Thursday, May 23, 2019

Ethical Self Reflection Essay

AbstractIn m any(prenominal) cases, a person mustiness choose between two or much rights that may or may not align with two wizards moral and respectable standards. The care- ground, rule-based, ends-based thinking to arrive at a decision rather than rationalizing after the fact are necessary for analyzing ethical dilemmas (Hughes, Ginnett, & Curphy, 2012, pp. 164-165). The self-reflection needed to identify ones fundamental nature, and to understand the moral philosophy, ethics and set one uses to make decisions are critical to becoming an authentic attractor who is a moral manager that serves the mess that follow him or her (Hughes,, pp. 152-153).Ethical Self ReflectionWhat is right? Morals define personal tone related to the ideas of both right and wrong. Ethics, while inherently linked to morals and ones moral obligations, is a set of moral principles used in a social system in which those morals are applied. In other words, ethics point to standards or codes of behavior expected by the separate to which the individual belongs. These standards could be national ethics, social ethics, confederation ethics, professional ethics, or even family ethics. So while a persons moral code is usually unchanging, the ethics he or she practices sight be dependent on exogenous factors not controlled by the individual or the group to which the individual belongs. Care-based thinking describes what is commonly referred to as the Golden Rule, Do unto others as you want others to do to you, of conduct and is most closely aligned with Aristotles writings concerning happiness. Aristotle writes in Nichomachean Ethics that, If happiness is activity in unison with virtue, it is reasonable that it should be in accordance with the highest virtue and this will be that of the best thing in us (Aristotle, 1992, p. 7).Thus the idea of ethics does not begin with the morals of either right or wrong, but starts with the premise that we all desire what is expert or wha t seems so to us (Brennan, 1992, p. 64).Happiness, then, is to live in an objectively good way according to several virtues that conform to the best and most complete aspects of human activity including wisdom, knowledge, courage, self-control, magnanimity, and honorable ambition (Brennan, pp. 65-67). These virtues describe the character of a good person whose acts are ethically free, not compelled voluntary and not forced. Unlike Aristotles character based ethics, Immanuel Kant proposes a rule-based thinking that actions of received moral worth are do when a person does the right thing because it is right and not for what benefit the person can get under ones skin appear of the act (Hughes,, p. 165).This type of thinking largely negates the external factors that may influence a persons inclination to wiegh the decision to act based on the greatest hapiness provided to thegreatest number of people. When one takes the results or consequences of an act into consideration mor eso than the acts rightness or wrongness, then the act can be express to be based on ends-based thinking (Hughes,, p. 165). This thinking is largely based on Utilitariansim proposed by JohnStuart Mill in 1863 who defines it as The creed which accepts as the rump of morals, Utility, or the Greatest Happiness Principle, holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the happiness. By happiness is intended plea sure, and the absence of pain by unhappiness, pain, and the privation of pleasure (Mill, 1863, pp. 9-10).Mill, however, did not propose that the ends of an action justified the means, for justice, to Mills, is paramount to the creation of good organizations and societies (Mill, pp. 42-43). The principle of ends-based thinking or utilitarianism requires that each person count for as much as the next, and that no single man or woman should be made to suffer injustice in order to increase the happiness of all the rest (Brennan, p. 98). Determining why we enunciate what we are going to say why we do what we are going to do and why we feel what we feel in an ethical dilemma presupposes that moral choice is rational. However, man is not a rational animal he is a rationalizing animaland one of the hardest things to believe is the abysmal depth of human stupidity (Heinlein, 1953, p. 18). This Sartrean brand of existentialism is based on the idea that we act first, and then look around for reason afterward (Brennan, p. 122).This rationalizing does not operate at the level of our experience behavior alone. We, as social animals, are prone to adaptto the reality as others find it. We tend to conform, even if, when rationally examined, the reality of the group does not make esthesis. To thine stimulate self be true, and it must follow, as the night the day, thou canst not then be false to any man (Shakespeare, Hamlet, Act I characterization 3, 78-82). Shakespeare provides Polonius a voice that re sonates clearly in present contexts the importance of being true with ones morals and virtues. True, not in the Elizabethan sense of making certain you had your home and finances in order to allow you to better help others, but true in a sense of Platos maxim Know Thyself. Jean-Jacques Rousseau, whose name is strongly associated with the Enlightenment movement, believed that the knowledge of oneself is the beginning of wisdom (Brennan, J., p.75). Gaining this knowledge requires self-reflection. Reflection links changed awareness with changed action. Reflection is a of import part of any worthwhile effort.When one takes the time to thoughtfully reflect about an experience, one is given the opportunity to learn from it, to enjoy success, understand failures, and to larn insights that will be helpful to you in future activities The knowledge of self is essential to enable leaders and followers who aspire to lead to clarify their own set as they model the way for others to follow (Ba rry P., Kouzes J., 2012). However, lifting the cloud of the false personal perceptions we all build from the front of our observation lenses is no easy task. Our connotative prejudices, in-group favoritism, claims of imagined credit and misjudged conflicts of interest are the fuel to the clouds that provide us an over-inflated sense of self-importance (Hughes R.L., et al., 2012, pp. 161-163) Simple self-reflection or introspection is useful when we are trying to fix to make for dinner. During the 2012 Human Capital Institute (HCI) Learning and Leader Development Conference, BG (Ret) Thomas Kolditz said that, You cant become in 30 seconds what you harbort been in 30 years (Fakalata, 2012).Whether a leader is in a corporate boardroom, watching the companys price point per share fall so low that you need a special ticket into the spick-and-span York Stock Exchanges stinking underbelly to see how further it really sunk, or whether a leader is watching his ladder and hose crews bat tle an industrial chemical fire near a suburban aluminum community, the situations that test leadership are also the events that produce competent and selfless leaders driven by moral obligation and social conscience (Kolditz, 2007). Likewise, these likesituations produce the corporate and local government villains that are ridiculed for their selfishness, incompetence, inattentiveness and greed. Motive provides one the reason for doing something and may be considered the why that inspires the what needs to be do (Covey, 2006, p. 78). Values are constructs representing generalized behaviors or states of affairs that are considered by the individual to be important (Hughes, Ginnett, & Curphy, 2012, p. 152).With these definitions in mind, one may surmise that values what is important to us guide us to adopt motives that become visible to others through our behavior towards and with others to complete the what needs to be done. Loyalty to a leader is engendered when followers can p lace their full trust in leaders who are perceived as persons with high moral integrity (Wakin, 1976, p. 587). The moral obligations one has influences the values that drive us toward a certain set of motives that cause us to take action under varying circumstances. Leaders who are coherent with their behaviors with respect to their perceived moral obligations are viewed as having high moral integrity and worthy of trust. The ability of a person to lead a group is often dependent on the culture and the groups beliefs in right and wrong the ethical climate (Hughes, Ginnett, & Curphy, p. 155). For example, a person who values money, diminution expenses, realizing profits, and maximizing business opportunities is motivated by finance or financial wealth.This person, leading a group that values devotion to duty, hard work, and respect for authority, may experience difficulty because the values are not shared and will seldom align to the tradition that motivates the group being led. T he financial leader in a group of traditionalists may be viewed negatively because the obtaining financial success is considered the wrong why to do work that requires from the groups perspective duty, loyalty, hard work and respect. In any context where leadership is a critical component to success, moral absolutists whose values reflect strict adherence to a defined rule-based thought dish may be viewed as uncompromising and hide-bound. Likewise, a pragmatist or a person that uses end-based thinking to justify actions may be viewed as one who uses any method to expediently achieve the organizations goals and objectives. In either case, the appellation of absolutist or pragmatist may be viewed as a pejorative depending on what values are shared by the followers and the organization.However, uncompletemoral archetype explanation is sufficient when dealing with human actions and the values that drive the motives behind these actions. Truth-telling, promise-keeping, preservation o f life, respect for property may not be absolute moral obligations, but they are not relative either. Rather, as Hughes describes, the situation significantly influences both the priority of moral obligations and the leadership interaction between the leader and followers in a particular situation (Hughes, Ginnett, & Curphy, p. 26). In terms perhaps more easily understood, moral obligations like promise-keeping may be at odds, depending on the situation, with an equal universal obligation like preserving life. Neither obligation is absolute and neither is relative, however circumstances may arise when one must prioritize the obligation that shapes what one values and provides the motive to take action. Leadership is about getting results in a way that inspires trust (Covey, 2006, p. 40).Trust of oneself, trust in the relationships we have with our constituents and the organization of which we are part. The means to accomplish a task and get the expected results are just as importan t as the ends. Leaders possessing a set of morals consistent with the ethics of a given inn (organization) are better able to get results in a way that maintains or increases trust. The non-conformists and the dissidents who openly oppose dominant social attitudes and ideologies are not of necessity more correct or more rational. But we might take their criticism as an opportunity for honest self-reflection and examination of even our most dearly held views of ourselves and our society. Congruence with morals, values, motives and behavior results in what we might call integrity. There are no gaps between what the person believes and how they act, and therefore we can trust that actions are done in accordance with who the individual really is.ReferencesAristotle. (1992, January 3). Nichomachean Ethics. The Internet Classics Archive, X. (D. C. Stevenson, Ed., & W. D. Ross, Trans.) Cambridge, MA, United States. Retrieved from http// Brenna n, J. G. (1992). Foundations of Moral Obligation The Stockdale Course. Newport, RI Naval War College Press. Covey, S. (2006). The Speed of Trust The One Thing ThatChanges Everything. New York, NY Free Press. Heinlein, R. A. (1953). Assignment in Eternity. NY, New York Baen Publishing Enterprises. Hughes, R. L., Ginnett, R. C., & Curphy, G. J. (2012). Leadership Enhancing the Lessons of Experience. New York, NY McGraw-Hill Companies Inc. Mill, J. S. (1863). Utilitarianism. London, England Parker, Son and Bourne. Retrieved from https// Wakin, M. M. (1976). The Ethics of Leadership. American Behavioral Scientist (Pre-1986), 19(5), 567-588. Retrieved from http//

Wednesday, May 22, 2019

Accounting Fraud at Worldcom

Accounting Fraud at WorldCom LDDS began operations in 1984 offering services to local retail and commercial customers in the southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less(prenominal) than a year to make the accomp whatsoever profitable. By the end of 1993, LDDS was the quadrupletth largest vast distance carrier in the United States. After a shargonholder vote in May 1995, the company officially came to be known as WorldCom. WorldCom culture was dominated by a strong chief administrator officer (Bernie J. Bernie) Ebbers), who was given virtually unfettered discretion to commit vast amounts of shareholder resources and de end pointine embodied direction without even the slightest scrutiny or purposeful deliberation or analysis by senior management or the get along with of directors and legal function was less influential and less welcome than in a healthy corporate environment. Top hierarchy granted compensation and pension beyond the company guidelines to a select group of individuals based on their loyalty to them.The companys human resource virtually never objected to much(prenominal)(prenominal) special awards. Inaddition, there was no outlet for employees to express their concerns. The room four improvement and corrective measures was obsolete, the consequence of all these culture irregularities were the factor to the big hazard for the company. According to Ebber, in 1997,our goal is to be the NO. 1 sprout on Wall Street. Revenue growth was a key to increasing the companys market value. Ebbers was obsessed with revenue growth and insisted on a 42% E/R ratio.He encouraged managers to push for revenue, even if it meant that long term cost would outweigh the short term gains. As business operations declined post the 1st quarter in 2000, CFO Sullivan used accounting tactical manoeuvre to achieve targeted performance, accounting principles require companies to est imate expected payments from line costs and match them with revenues in the income statement,. Throughout 1999 and 2000, Sullivan told staff to release accruals which too high compared to the proportional cash payments, without visualizeed Matching Principe.Over a 7 quarter period among 1999 and 2000, WorldCom released $3. 3 billion worth of accruals. Sullivan directed the making of accounting entries that had no keister in generally considered accounting principles in order to wee the false appearance that WorldCom had achieved those revenue targets. As an accountant, one should be familiar with the standards and rules of the position, accept personal responsibilities for the fore affectable consequence of actions, and realize the long-term effect of such behavior on the accounting industry and the citizens.At all times, an accountant should conduct themselves with integrity, dignity, and appreciate for the position held in society. Whistleblowers frequently face reprisal, s ometimes at the custody of the organization or group which they have accused, sometimes from related organizations, and sometimes chthonian law. As Terance Miethe explains in his book, Whistle blowing at Work, many people see the whistleblower as a snitch, or a a lowlife who betrays a sacred trust largely for personal gain. In the flip side, whistleblowers are seen as saviors who ultimately helped create important changes in organizations.This approach to whistleblowers as guardians of in the public eye(predicate) accountability is often taken by consumer advocates. I would not consider blowing the whistle. I would rather distance myself after informing my immediate supervisor if any wrong practice or misconduct similar to the WorldCom Fraud is happening in my environment. Public confidence in the accounting profession has been changed by corporate scandals, which created a crisis that affected the reputation and credibility of accounting professionals.The unethical decisions make by accountants can prove detrimental to the public who rely on teaching from the monetary statements to make decisions. Users of financial statements rely on the information purported by an enterprise to exhibit certain qualitative characteristics that are both relevant and reliable. The push of unethical decisions of both corporate leaders and accounting firms involving financial describe by U. S. orporations has necessitated a new governmental regulation under SOX recreate of 2002. chair Bush signed this Act into law (Public Law 107-204) on July 30, 2002. The Act resulted in major changes to compliance practices of large U. S. and non-U. S. companies, whose securities are listed or traded on U. S. line of credit exchanges, requiring executives, boards of directors and external auditors to undertake measures to implement greater accountability, responsibility and transparency of financial reporting.Accounting Fraud at WorldcomAccounting Fraud at WorldCom LDDS began oper ations in 1984 offering services to local retail and commercial customers in the southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the company profitable. By the end of 1993, LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995, the company officially came to be known as WorldCom. WorldCom culture was dominated by a strong chief executive officer (Bernie J. Bernie) Ebbers), who was given virtually unfettered discretion to commit vast amounts of shareholder resources and determine corporate direction without even the slightest scrutiny or meaningful deliberation or analysis by senior management or the board of directors and legal function was less influential and less welcome than in a healthy corporate environment. Top hierarchy granted compensation and bonus beyond the company guidelines to a select group of individuals based on their loyalty to them.The companys human resource virtually never objected to such special awards. Inaddition, there was no outlet for employees to express their concerns. The room four improvement and corrective measures was obsolete, the consequence of all these culture irregularities were the factor to the big disaster for the company. According to Ebber, in 1997,our goal is to be the NO. 1 stock on Wall Street. Revenue growth was a key to increasing the companys market value. Ebbers was obsessed with revenue growth and insisted on a 42% E/R ratio.He encouraged managers to push for revenue, even if it meant that long term costs would outweigh the short term gains. As business operations declined post the 1st quarter in 2000, CFO Sullivan used accounting tactics to achieve targeted performance, accounting principles require companies to estimate expected payments from line costs and match them with revenues in the income statement,. Throughout 1999 and 2000, Sullivan told staf f to release accruals which too high compared to the relative cash payments, without considered Matching Principe.Over a 7 quarter period between 1999 and 2000, WorldCom released $3. 3 billion worth of accruals. Sullivan directed the making of accounting entries that had no basis in generally accepted accounting principles in order to create the false appearance that WorldCom had achieved those revenue targets. As an accountant, one should be familiar with the standards and rules of the position, accept personal responsibilities for the foreseeable consequence of actions, and realize the long-term effect of such behavior on the accounting industry and the citizens.At all times, an accountant should conduct themselves with integrity, dignity, and respect for the position held in society. Whistleblowers frequently face reprisal, sometimes at the hands of the organization or group which they have accused, sometimes from related organizations, and sometimes under law. As Terance Miethe explains in his book, Whistle blowing at Work, many people see the whistleblower as a snitch, or a a lowlife who betrays a sacred trust largely for personal gain. In the flip side, whistleblowers are seen as saviors who ultimately helped create important changes in organizations.This approach to whistleblowers as guardians of public accountability is often taken by consumer advocates. I would not consider blowing the whistle. I would rather distance myself after informing my immediate supervisor if any wrong practice or misconduct similar to the WorldCom Fraud is happening in my environment. Public confidence in the accounting profession has been changed by corporate scandals, which created a crisis that affected the reputation and credibility of accounting professionals.The unethical decisions made by accountants can prove detrimental to the public who rely on information from the financial statements to make decisions. Users of financial statements rely on the information purpor ted by an enterprise to exhibit certain qualitative characteristics that are both relevant and reliable. The impact of unethical decisions of both corporate leaders and accounting firms involving financial reporting by U. S. orporations has necessitated a new governmental regulation under SOX Act of 2002. President Bush signed this Act into law (Public Law 107-204) on July 30, 2002. The Act resulted in major changes to compliance practices of large U. S. and non-U. S. companies, whose securities are listed or traded on U. S. stock exchanges, requiring executives, boards of directors and external auditors to undertake measures to implement greater accountability, responsibility and transparency of financial reporting.

Tuesday, May 21, 2019

President Musharraf’s Validity and Endorsements by Supreme Court

Written by Afreen Baig Chronological record of events, that validates President Musharrafs preference as President and subsequent endorsements by overbearing Court http//presidentmusharraf. wordpress. com/2009/02/01/musharraf-validity-by-supreme-court/ 1- On 13 May 2000, Pakistans 12 member haughty Court unanimously validate the October 1999 coup and granted Musharraf executive and legislative authority for 3 years from the coup date. Justice Iftikhar Chaudhry was one of the judges that validated. (Link) 2- On 7 October 2002, the 5 member bench of sovereign Court validated LFO and amendments to constitution.Justice Iftikhar Chaudhry was one of the judges that validated. (Link) 3- On 29 Dec 2004, PML-Q government passed the seventeenth constitutional amendment bill in National Assembly, with 2/3 majority, also approved by Senate that allowed President Musharraf to hold dual offices. (Link) 4- Constitution of Pakistan Article 63 clause (1) paragraph (d), read with proviso to Art icle 41 clause (7) paragraph (b), allows the President to hold dual office. 5- On 13 April 2005, the 5 member bench of lordly Court gave judgment in favor of 17th amendment and Presidents uniform.Justice Iftikhar Chaudhry was one of the judges that validated. (Link) 6- On 28 September 2007, the Supreme Court cleared the way for President Pervez Musharraf to seek some other five-year term, and stand for Presidential elections, when six of the nine judges, rejected a tangle of petitions against him and threw out a major legal challenge to his re-election plans. Presided by Justice genus Rana Bhagwandas. (Link) 7- President Musharraf was elected President of Pakistan, on 6th October 2007, by a combined electoral of the Senate, National Assembly and the FOUR Provincial Assembles. President of Pakistan declare emergency on 3rd noember 2007, as per Article 232 of the constitution. 9- The 10 member bench of Supreme Court (SC) on 24 November 2007 directed the chief election commissione r and the government to declare Pervez Musharraf president for a second term. (Link) 10- On 24 November 2007, the Pakistan Election Commission confirmed Musharrafs re-election as President. (Link) 11- President Musharraf won by 58% votes, declared in November 2007, as the constitutional President of Pakistan 2- On 28 November 2007, Musharraf relinquished the office of headspring of Armed Staff, as per November 2007 verdict of the Supreme Court. 13- On 15 Feb 2008, the Supreme Court validated the proclamation of emergency of 3rd Nov 2007, PCO 2007 and oath of the judges. This full court judgment was written by Chief Justice Abdul Hameed Dogar. (Link) These facts above raise serious questions regarding the credibility of those so-called political intellects and experts of judicial matters that appear on media talk shows, accusing President Musharraf of violating the constitution, thereby desire to apply Article-6 on him.They do so, merely for publicity and self exposure, overlooking the role of the Judiciary all along and misguiding the public to zenith. They should know that the Parliament and the Supreme Court, has approved and endorsed every single decision taken by President Musharraf. President Musharraf cosmos the President of Pakistan was the rightful authority to sign amendments to the constitution, after being approved by the Senate. Article 270-AA of the constitution gives full protection to the 17th amendment and the 1999 coup, which cannot be called into question in any(prenominal) court of the country on any ground what-so-ever.The 17th amendment was approved by the National Assembly by 2/3 majority and made into law, as part of the constitution. Then, the Constitution (Amendment) Order, 1980, (P. O. No. 1 of 1980) section 2 clauses (3A), (3B) and (3C) give full protection and immunity to Martial rectitude Regulation made by the Chief Martial equity Administrators, any sentence passed by a Military Court or Tribunal, Chief Martial Law Adminis trator or a Martial Law Administrator or any person acting under the authority of either, and cannot be called into question in any court.Then, Article 248 clauses (1) (2) (3) (4) of the constitution, protects the President, and he shall not be answerable to any court for the exercise of powers and performance of functions of his respective office, no criminal proceedings whatsoever shall be instituted or continued against the President or a Governor in any court during his term of office and no process for the arrest or imprisonment of the President or a Governor shall issue from any court during his term of office.All of President Musharrafs decisions were according to the constitution, approved by the supreme Parliament and endorsed by the Supreme Court. Despite these above mentioned facts and articles as per the constitution, if those prejudiced intellects and revenge seeking politicians, call to apply Article-6 on President Musharraf, then they should know the article in full. Article-6 clause (2) Any person aiding or abetting the acts mentioned in clause (1) shall likewise be guilty of high treason.Which clearly indicates that the Supreme Court and the Parliament itself that approved and endorsed the events from 1999 till 2007 shall be held equally responsible, for abetting, if a case ever arises. Yet, as Article-6 itself is NOT a self governing article, that could decide and instigate itself automatically, hence Article-6 provides a clause, expiration it to the supreme Parliament to decide, if and whenever, such a case arises and is brought to the attention of the Parliament.Article-6 clause (3) Majlis-e-Shoora (Parliament) shall by law provide for the punishment of persons found guilty of high treason. former(a) than the supreme Parliament, no other institution can approve nor apply Article-6. Afreen Baig is an independent analyst majoring in International Relations and Economics. She can be reached at emailprotected com (c) PRESIDENT MUSHARRAF http //presidentmusharraf. wordpress. com/2009/02/01/musharraf-validity-by-supreme-court/

Monday, May 20, 2019

Character Studies in the Ruby in the Smoke

In the novel blood-red in the Smoke, Phillip Pullman has created sleazy, nasty villains and wholesome, genuine, kind-hearted heroes and heroines. This piece study explores at the behaviour of these important heroes and heroines in vital events in the novel. It also includes details about their appearance, personalisedity and behaviorstyles.1. cleft LockhartSet in 1872, the Ruby in the Smoke involves sixteen year old whirl Lockhart. Sally is uncomm save pretty at the time the reference point at the start of Chapter 1 shows us thisShe was minute and pale, and dressed in mourning, with a black bonnet under(a) which she tucked in a wander twist of blonde hair that the wind had teased loose. She had unusually dark brown eyes for angiotensin converting enzyme so fair.Sally Lockhart is a serious middle-class orphan whose late father taught her a variety of effectual things accounting, Hindustani, marksmanship, finance and shootingAs a result, her knowledge of English literatur e, French, History, Art and Music was non-existent.Sallys lack of perceptiveness in these quarters caused trouble with her guardian Mrs Rees and so her stay there ended.Sally Lockhart shows sensitivity end-to-end the novelWhat are you scowling for? he said at one point I wasnt scowling, she said, appear petulant and youngsterishSallys sensitiveness also links in with her testamentingness to let Frederick Garland draw a bead on charge, this reference book economic aids us visualise thisShe was in danger , and was glad of his company.This shows her lack of decisiveness and most of the novel portrays Sally in this fashion. Sally often seems to feel vulnerable in the novel this extension shows us thisSally around quailed and took a step backwards in frightIn the balance of the last three quotations Sally Lockhart give the gate be seen as a weak, powerless and indecisive heroine but Sallys part in the novel has practically more to it.Sally proves to be resourceful to the Garla ndsWouldnt it be possible to tell a story in pictures?Sallys opinions bring in plenty of property and solidify her role as a strong origin woman. During these parts or chapters in the novel, Sally gains significant authority, determination and control. Sally Lockhart shows fearlessness and determination at the end of the novel to defeat her enemy Mrs HollandThe old woman plunged. She fell without a cry Mrs Holland was dead.This achievement symbolises her courage and quick-witted thinking she showed to react to Mrs Hollands actions and words. To summarise, Sally Lockhart is young, sensitive, and, at times, willing to let Frederick Garland take charge, however she is also a resourceful, fearless, determined, and an independent heroine.2. Frederick GarlandAnother one of the important characters is Frederick Garland, a photographer with imagination. The quotation tells us about Fredericks appearanceHe looked an amiable young man.Frederick is caught up in Sallys mystery, he proves to be trustworthy, right-hand and decisive through out Pullmans novel. Criticisms of Fredericks character involve his poor organisation and proviso. The succeeding(a) quotation shows us this Frederick Garland she stormed. Those bills are have been waiting since Easter, Fredericks organisation has cost him plenty of money through out the novel he should show slightly elevated interest on his personal gain. Fredericks poor planning skill also links in with his dreadful business abilities these weaknesses have modify many situations within Pullmans novel.Fredericks character possesses lots of effective strengths in this novel. One of them is his braveness as shown by the quotationBut hes brave though.This quality has come to Fredericks rescue plenty of times as well as this his braveness has also offered sufficient help to other characters (particularly Sally, Jim and Adelaide). Due to these acts, Frederick is known as a trustworthy character. In an early chapter, Frederick provid ed help to Sally. This short passage notifies this In the tent, he saidThroughout the Ruby in the Smoke, Frederick has been helpful and kind. This point also links in with his ability to think and to stay calm even when under pressure. However, his more brilliant qualities are shown towards the end of the novel when he is portrayed as a life saver. This is proved by this quotation showing Mr Berrys surprise at Fredericks determination How? said Mr Berry. . I thought I severaliseed you out. During this chapter, Frederick showed his egotismless abilities to save the lives of Jim and Adelaide. To conclude Frederick Garland is a helpful, brave, decisive and a trustworthy character.3. Mrs HollandThe villain of Pullmans novel is the mean and manipulative Mrs Holland. Her appearance is exposit by this quotationShe was a shriveled old woman with sunken cheeks, pinched lips, and glittering eyes.It is obvious from the earlier chapter that Mrs Holland possesses villainous qualities. One of them is her beastly and cunning thinkingSo I think shed better have an accident One look at the paper tomorrow and youll do whatever I want.This shows that Mrs Holland has no conscience to threaten and blackmail, she is only interested in her personal gain. However, Mrs Holland is dexterous at her trade, she proves that she is manipulative. We can also sense that Mrs Holland is dis resemblingd by others You spider. You calculating old bitch. Mrs Holland has earned herself plenty of enemies. In contrast to the selfless and caring heroes, she proves to be esurient and unkind to others throughout the novel. Heartless is an excellent description Mrs Hollands character, this is proved by the following quotationIts the young woman Ill have her and Ill tear her open, I will and Ill have her life.Mrs Holland is cold hearted, she wishes evil to others and she makes it clear that nothing will stop her from achieving her ambitions. Particularly towards the latter stages Mrs Holland overr eactsShe thrust Sally aside and scrambled up on to the parapet. She tottered wildly Mrs Holland is unable to remain calm. However, her knowledge of her surroundings was excellentShe will find me and drag me out She knows everythink. Everythink and everyone. Sorry, maam, mental picture ashamed of himself and not knowing why.Mrs Holland shows her authority over others. She has the ability to frighten people and make them represent for her in a high standard. In a nutshell, Mrs Holland is a mean, heartless, greedy villain with authority and planning abilities.4. Jim TaylorJim Taylor, the cheap office boy, emerges as one of the principal heroes to help take up Sallys quest. Jims looks is visualised by this description His jacket was torn in three places, his collar had come adrift from the shirt, and his hair looked as if it had been used in an experiment with the powers of electricity.Jim shows great spunk towards Sally in this novelIt was Jim he worships you.Jims like of Sally g ets him into this quest and in deep trouble. However, he has showed determination and bravery in these situations. The following quotation shows thisHe nearly fainted and then he lowered his head and charged.Jims heroic acts in the latter chapters offered help to Frederick and Adelaide in difficult circumstances. He puts others first. Jim also stayed calm and thought freely under pressure. Like Frederick Garland, he shows no interest in personal gain, this links in to the previous points. All through the Ruby in the Smoke, Jim is inquisitiveThats him thats the bloke what killed Selby.Jim is a hard questioning thinker he looks deep into happenings. Jims vision is justified after he found the Ruby. After finding this expensive and enchanting object, Jim showed excellent self control and selflessness not to misuse the Ruby. However, in some parts of the Ruby in the Smoke, Jim is a rowdyJim looked up and released a jet of language that might have blistered a battle ship.Jim doesnt f orever and a day posses gentlemanly qualities. Despite this, his heart is dedicated to the good and helpful. At the start of the climax to the Ruby in the Smoke, Jim is betrayed by Paddy. This quotation shows us this Why? Money, mate, was the reply. Gotta live.Despite his anger at Paddy, he kept his concentration and bravery, he somehow survived. In conclusion, Jim Taylor is a likeable, principal hero with bravery, determination and selflessness and at times a rowdy.5. quaker (Theophilus Molloy)quaker, part of the fashionforce in the Garlands household, ends up to be one of the key characters in Sallys quest. His figure is describedA little wizened man ran anxiously out Helpful is an excellent description of quakers character in the Ruby in the Smoke Could you light the match for me and hold it under the opium? Righto.Particularly to Sally, Trembler provided excellent help through out the novel (buying her a pistol, helping her re remember with opium). Trembler (along with Frede rick Garland) is a dreadful business man You must press to have your bills paid on time. on that point is fifty six pounds seven shillings owing to you. Before Sally arrived, the Garland household was unable to sort out their finances. This shows that Trembler, Frederick (and Rosa to an extent) are unorganised. Trembler is unpersuasive in the Ruby in the Smoke, this is proved by the ensuing quotation You tell him. Ive tried but he wont listen to me. Particularly in the earlier stages, Trembler lacks qualities needed in a business field. However, his bravery and loyalty is second to noneThe Brobdingnagian man knocked him down the big bloke took a swing at him and flattened him.Tremblers hard work and bravery were a key part of his character. His liking and friendliness towards Adelaide was huge Heres my lady love, Trembler was an escaped going character, he had an excellent knowledge of the surroundings. To consummate, Trembler was a helpful, faithful, unorganised and easy going character.6. AdelaideAdelaide plays a key part towards the earlier and the latter stages of this novel. Her appearance is shown in the following quotation a child whose only feature seemed to be, , a pair of enormous dark eyes.Adelaide is weak and uneducated. The following quotations help us visualise this ideaMr Berry was holding her around the neck with one hand and so should, by law, be in school.Adelaide hasnt been a brave contributor to Sallys quest. However, she has been incredibly useful, in an earlier chapter she informed Jim (who in turn acquainted Sally) about Matthew Bedwell. This was of significant use. Adelaides main symptomatic is that she is scared of Mrs Holland. This quotation shows us this still I mustnt tell Mrs Holland, else she will kill me.Adelaide is troubled, she is being abused, bullied and frightened by Mrs Holland. Adelaide, unlike Frederick and Jim, lacks determination. This showed in a key part of the novel Get up here. We got to climb over the wall I cant, This undermined characteristic often caused trouble to other characters. Despite this their like and affection towards her is unhurt theres a good girl.Adelaide returns this affection with respect, this quotation shows this Morning miss, Adelaide is a kind and caring character, she is soft hearted. To recapitulate, Adelaide is weak, bullied andundetermined but however she proves to be courteous and resourceful.

Sunday, May 19, 2019

Rhetorical Analysis Essay

E very(prenominal)one else got to decide what would become of their lives, magic spell she was now going to have everything decided for her. While Kim tells her story, she books some(prenominal) statements that key on the readers emotions and get us to take her side. Kim uses not bad(predicate) imagery when she tells about her village being burned down and her clothes scorched off. She says I byword an airplane getting lower and then four bombs falling down. I saw fire everywhere around me. Then I saw fire over my body, especially on my left arm. My clothes had been burned off by the fire.Anyone who could imagine this happening to a nine stratum old wouldnt be able to help feeling sorry for this person. To make matters for the little daughter worse, she was then forced to become a poster child for the Vietnamese government to show the remainder of the world. Kims freedom to become what she wanted was taken from her. While telling her story, she does a very good job using thes e rhetorical pathos to make the reader feel sorry for her and take her side. In the story, Untold Stories of Kindness, an American soldier tells about the brutal reality of war.He explains that even though you may not agree with the reason for the fight or even know the truth foot the war, if you are a soldier, you have to do your job and continue fighting. He hits on the point that lot want to help each other even in times of war and despair. He says that if everyone entrust just accept people who are different, the world will be a more still place. His idea that people always want to help each other is supported by an archetype of a time he remembers people helping each other during his campaign in the Iraq war.after one particular fire fight that lasted nearly eight hours, Iraqi civilians helped the American soldiers clear the streets of wound men and try to aid their injuries. People would also care for children, rebuild hospitals and schools, and feed the poor. The author of this seek uses strong imagery to make the reader have emotion towards his story. He tells about the time when insurgents detonated several car bombs killing over a hundred people. The number of people killed in this incident helps to evince the reality of all the people who dying in this war.He says Cars were covered in blood as if theyd been hit with a paint sprayer. This makes the reader try to imagine what he had to see and tries to make the reader feel the same emotions he has toward the situation. The rhetorical pathos used here are very similar to the pathos used by Kim in her story. Both of these essays made good points support the system of logic behind the statements and opinions in their stories. They also used good details and imagery so the audience could motion picture some of the things they had to see. The imagery in these stories tried to make the readers feel emotional and take the authors sides.

Saturday, May 18, 2019

Disintermediation and Reintermediation of the Travel Agents Essay

1. INTRODUCTIONNowadays, the operate distri furtherion channelize is very complex and characterized by the bearing of umteen antithetic kind of intermediaries which operate in a very contentiony market. Since the beginning of the get industry, intermediaries contrive always played an Copernican part for the build upment of tourism products and services. Indeed, intermediaries dedicate the ability to bone and aggregate a large f are of data into one price. More everywhere, they direct a fundamental role for counseling and delivering a personalized service according to the specific need of customers (Kracht and Wang, 2009). Before the advent and hike development of communication engineering, the market was dominated by the large suppliers such as airlines, hotel arrange and resorts. die factors were the conventional intermediaries which were independent from each other and represented a portion of the dominant players in a non- hawkish market (Gharavi and Sor, 2005). Later on, with the high spread of ICT and the need of cutting costs the position of the stumble agents has been queered. sensitively kind of middlemen emerged adding additional layers of intermediation, disintermediating certain players by bypassing the traditional intermediaries (Buhalis and Law, 2008). engineering has too allowed suppliers to directly communicate with consumers who have seen their choices enormously increased. This has increased the competition and the complexity of the market and has raised an important issue for the presence in the market of traditional conk out agents. The aim of this paper is to investigate how disintermediation and re-intermediation have abnormal the way travel agents operate and whether in that location is still a place and a prospective of growth for travel agents in the market.2. DISINTERMEDIATION AND RE-INTERMEDIATION OF THE TRAVEL AGENTSIn the last twenty historic period several changes occurred in the tourism distributional cha nnel. all component of the chain value has been affected and particularly travel agents. Traditional travel agencies are live onence threatened not only by integrated tour operators, which control their confess distribution channels, but also by the expansion of alternative distribution channels such as the Internet, Teletext, call centers, and compensate travel TV channels. This process is cal take disintermediation (Kracht and Wang, 2009). According to Bennett and Buhalis (2003) disintermediation is the process of eliminating intermediaries within the distribution channel driven by electronic means that enable consumers to access and transact directly with suppliers and destinations. Before 1993, the traditional tourism system consisted of consumers, traditional retail travel agents, corporate travel agents, tour operators, GDSs and suppliers. The 1993 was the year of the first commercial usage of meshing. After that year many changes occurred and many to a greater extent p layers enter into the market thanks to the diminution of barrier entry costs. However, the starting point of disintermediation was in the 1960s, when the American airline lunch the first GDS allowing consumers to debase tickets directly from the airline company (Kracht and Wang, 2009). motivity agents main source of revenue at the time was commissions gainful to them by the airlines on tickets sold by them on the airlines behalf. Pressures to reduce costs in an increasingly combative industry caused airline companies to look for ways to reduce their payments to travel agents. Initially, airline companies progressively reduced the amount of commission paid to travel agents while, at the same time, they opened up new channels and grow knowing channels to reach travelers directly. Airline companies encouraged travelers to book direct channel by divers(a) means with a very successful results. For instance, easyJet, a successful British low-cost carrier, in 2002 was already sellin g 90% of its seats through its own site (The Economist, 2002). After the public debut of the meshing, suppliers began establishing web sites to connect directly with customers, thereby beginning the disintermediation of traditional retail travel agents(McCubbrey, 1999 cited by Kracht and Wang, 2009).For example, Hotelsalso created their own websites to reach their customer. Establishing a direct relationship with clients allows suppliers to put in place various price polices and inscription schemes. Suppliers believe they no longer need an intermediary to sell their products. They discover the internet to be a powerful and cheap distribution channel, and not just an online brochure (The Economist, 2002). Indeed, using information technology to develop supply chain relationships can reduce costs and bring higher quality of travel products into the market. Internet, perhaps, has been the nigh powerful means of disintermediation and it has radically changed the travel industry, addi ng more(prenominal) layers of intermediation and more players (Kracht, 2009) The travel industry, in fact, is doubtlessly one of the most interesting sector in terms of the possibilities asserted by the internet. Internet travel reservations have increased dramatically in the last years with more and more users confident with the technology, and it represents the fastest development segment of electronic commerce (Bernstein and Awe,1999 cited by Anckar, 2003).The success of internet in this respect, is perhaps due to the temperament of the tourism product, which is a little more than an information product, easy to convey through the web (UNCTAD, 2000 cited by Anckar, 2003). However, as stated by Palmer and McCole (1999 cited by Bennett and Lai, 2005) the internet does not change the principal role of intermediaries who endure to simplify buyers choice processes. Indeed, even though internet allowed suppliers and consumers to communicate directly bypassing the travel agents, the re were somewhat important issues related to the internet. According to Bloch et al. (1996, cited by Wynne 2000), when potential tourists try to book directly with suppliers on the internet, they flavor a wide range of problems. For example, they require to know in which website to look. It takes at lot of time considering different options and prices. Often, it is not possible to book online. Thereby, the necessity of one stop-shopping, aggregation of information and comparison of price led to the formation of new e-mediaries or cybermediaries.Disintermediation indeed, push back to re-intermediation with new players coming into the markets and existing ones which re-intermediate themselves by reinventing their condescension. Re-intermediation has been delimit by Bennet and Buhahs (2003) as the utilization of ICT and internet tools for the development of either new intermediaries or new methods for existing intermediaries thatenable them to re-engineer the tourism distribution c hannel. Re-intermediation is evident through the development of new electronic intermediaries such as Expedia, Yahoo rifle, and Travelocity which are based only online. Based on the premise that intermediaries exist because they provide value added services, these e-mediaries have the potential to pass economies of scale directly to the consumer, offering reduced fares as well as the convenience of making reservations 24/7 (Lai, 2005).As a result of some(prenominal) disintermediation and re-intermediation travel agents have been reduced in numbers and have to face a very competitive market. In fact, from one side they are threaten by the disintermediation put in place by the suppliers, and from one other by online reservation and therefore, by the e-mediaries or cybermediaries. The latter, in particular, with no established high-street presence, threaten established retailers by changing the distribution channel for consumer products. Reservations made online are pr obably the most important danger that traditional intermediaries like travel agents have to face. Figures show an increase of online bookings over the years both(prenominal) in Europe and United States but also in other markets (http// According to Cheung and Lam (2009), to see to it their position in the marketplace, and avoid disintermediation, travel agents moldiness be able to acquire the new technology and be able to compete into the new channels as electronic-able intermediaries, without losing their advantage in the conventional market. To calumniate the risk of disintermediation, travel agents need to reduce their dependence into simple transaction and increase revenues by centre on more complex activities, like counseling and personalization of the service.3. TRAVEL AGENCIES RESPONSES TO A CHALLENGING MARKET despite the severe competition, and the possibility for booking online, many customers still prefer to purchase from travel agents. TTI chairman, Tony Allen stated that there would always be people who didnt trust the internet and wanted face-to-face advice (Taylor, The Guardian, 2003). Indeed, travel agents have still many cards to play and can benefit from several advantages in the marketplace * They are situated wherecustomers come, in shopping centers and in high streets * Aggregation of the offer from various suppliers into one portion * They can offer a personalized service* Human relationship* Travel agents can offer an advisory service, and assist the customers in making a decision before processing with transactions * little time spent by the customers to buy a travel product. It can also be argued, that not all the effects of the disintermediation and re-intermediation have had a negative effect on travel agents. Gharavi and Sor (2005) have suggested, in fact, that because of internet and other forms of disintermediation, the bonds between the small travel agents and the dominant large suppliers like the airline companies, hotel chains and resorts owners, was finally broken. As a result of that, many independent travel agents, which continue to based their business on conventional methods such as commissions from suppliers, were pushed out of the market. However, many others entrepreneurs were stimulated to reinvent their business. Travel agents were allowed to propagate with a variety of suppliers and organize into cooperative. Moreover, others entrepreneurs developed franchises or merged, in nine to have more bargain power against competitors. Therefore they fight back the disintermediation and re-intermediate themselves.Organizing into franchising or into other forms of collaboration has allow several advantages to travel agents. First of all, it hauls to gain more bargaining power which make more convenient for travel agents to traffic with suppliers. Second of all, it admirers travel agents to focus only on the front location activities, while the centre office is in charge of t he administrative procedures and of the marketing activities, such as brand building and advertising. Another reason, wherefore this kind of collaborations are successful is that they can allow a better training of human resources and lead to better prospects for income. A great example of travel agency unionised into franchising is definitely Harvey knowledge domain Travel with over 170 stores in Australia and more than 70 in the UK which offer to its branches a very wind software to create a very personalized package for customers (Harris and Duckworth, 2005). In dedicate to fight disintermediation many travel agents differentiate themselves and/or focus on niche markets.They try to offer something different that clients could not find online. EuroTravel is a great and successful example of how a small independent travel agent can compete in the market. This company was able to leverage technology effectively in order to specialize and fight back against disintermediation. It specializes in sales to only the European destination, but has used the internet as its primary communication channel in order to acquire customers from a broader geographic area. This scheme seems to have paid off. In fact, in 2004, sales were 6.5 m and in 2008 they reached more the 8.5 m (Haris and Duckworth, 2005). Similarly, doubting doubting doubting Thomas Cook is another successful experience. By being the first travel agent in the UK, Thomas Cook can count on a very long history and tradition. Over the years it has experienced many changes in order to adapt to a competitive market. In 2007, it merged with the competitor MyTravel, and nowadays Thomas Cook is the UKs largest retail travel network. It aims to dominate both, conventional and innovative channel (Williamson A., 2001). Thomas Cook has indeed, a very strong position online and continues to open new branches every year. Therefore, Thomas Cook demonstrates not only how a travel agent can fight disintermediation, bu t also how to grow and prosper in the marketplace.CONCLUSIONUpon the introduction of Internet technology, travel industry has been strongly affected by electronic commerce that contributed the most to the disintermediation of the channel. This is true in particular for travel agents. It is clear that disintermediation and re-intermediation exist in the travel sector. In the intermediate phase, traditional travel agencies dominate the market. However, as new EC-only travel agencies emerge in the market and build up their competitive abilities, traditional travel agencies lost over 50% market shares (Cheung and Lam, 2009). As a result of that many travel agencies merged or organized themselves into some form of collaboration such as franchising. In order to survive in this competitive travel market, agents need to reposition themselves as travel consultants, but also must be more technologically oriented. They must focus on consulting and niche markets. As suggested by the Economist ( 2002), travelagents prospective lead be based on helping customers to buy what they want, rather than selling what is left unsold by suppliers.They now must look out for consumers best interest by using IT resources to help them find the best product. Indeed, it is necessary an integration of conventional business with the new opportunities offered by the web, in order to add value for the client. That is probably one of the most difficult challenge that travel agents have to face. ICT must seen as an opportunity more than as a threat which allows travel agent to reach more customers, get more information and therefore, adding more value for the latter. The ability to use new technology will also make possible for travel agents to compete with the e-mediaries. Porter (1999, cited by Anckar, 2003) claimed that the internet is going to be the death of a lot of intermediaries. However, if this prevision may be true for certain intermediaries, at the molybdenum and perhaps in the lon g run, it appears not to be valid for travel agents.REFERENCESAnckar, B. (2003) Consumer Intentions in Terms of electronic Travel dispersal. E-service ledger, Vol. 2, No. 2, pp. 68-86 Anckar, B. (2006) Reassessment of the Efficacy of Self-booking in Travel. 39th Hawaii International host on System Sciences. visible(prenominal) at http// Bennet, M. and Kevin Lai C. W. (2005) The impact of the internet on travel agencies in Taiwan. Tourism and Hospitality Research, Vol. 6, No. 1, 2005, pp. 8-23. Bennett, M. and Buhalis, D. (2003) The Future for Internet Travel dissemination the travel agent perspective, Insights, face Tourism Council, January 2003, pp. D.25-30. usable at http// Bray (2006) The struggle over travel distribution, Financial quantify (15 May 2006) Buhalis, D. and Licata, M. C. (2001) The future eTourism intermediaries. Tourism trouble, (2002) 207220. Available at www. Cheung, R. and Lam, P. (2006) How Travel Agency Survive in e-Business World? Communications of the IBIMA, Volume 10, 2009 ISSN 1943-7765. Available at http// Chircu, A. M. and Robert Kauffman, J. (1998) Strategies for internet middlemen inthe intermediation / disintermediation / reintemediation cycle. The International Journal of electronic Commerce and Business Media, 9, 2, 1999, pp. 109-117 Doherty, N. and Ellis- Chadwick, F. (2010) Internet retailing the past, the present and the future. International Journal of Retail & Distribution Management Vol. 38 No. 11/12, pp. 943-965. Available at eMarketer Inc (2005) Travel Agencies Online Report. http// Gharavi, H. and Sor, R. (2005) Population ecology, institutionalism and the internet, Travel agencies evolving into middlemen. Journal of Organizational Change Management, Vol. 19 No. 2, 2006 pp. 104-118. Availabl e at Harris, L. and Duckworth, K. (2005) Travel agents future. Published online in Wiley InterScience. Available at www.interscience.wiley.comHoontrakul, P. and Sahadev, S. (2006) Application of data mining techniques in the on-line travel industry, Marketing Intelligence & Planning, (2008), Vol. 26 No. 1, pp. 60-76. Available at Huang, H. H. et al. (2006) Exploring Customer Satisfaction, Trust and Destination Loyalty in Tourism. The Journal of American Academy of Business, Cambridge, Vol. 10 Knight J. (2003) Can they fix it?, The Guardian. Available at http// Kracht, J. (2009) Examining the Tourism Distribution cable Evolution and Transformation. Pre print of paper, Emaral group Publishing. PDF document available at http// n%20Channel.pdf Kracht, J. and Wang, Y. (2009) Examining the tourism distribution channel evolution and transformation. International Journal of Contemporary Hospitality Management, Vol. 22 No. 5, 2010, pp. 736-757. Available at Law, L. and Lau, W. (2004) A Study of the Perceptions of Hong Kong Hotel Managers on the Potential Disintermediation of Travel Agencies. The Haworth Press. Available at http// Law, R. and Lau, W. (2004) A Study of the Perceptions of Hong Kong Hotel Managers on the PotentialDisintermediation of Travel Agencies. The Haworth Press. Available at http// Law, R., Leung, K., and Wong, R. (2004) The Impact of the Internet on Travel Agencies. International Journal of Contemporary Hospitality Management, pp. 100107 Lawton , L. J. and Weaver, B. D. (2007) Travel Agency Threats and Opportunities The Perspective of fortunate Owners. International Journal of Hospitality & Touris m Administration, 106892, 2009 McCubbrey, D. J. and Taylor, R. G. (2005). Disintermediation and Reintermediation in the U.S. Air Travel Distribution Industry. Communications of the Association for Information Systems , Volume 15, pp.464-477 Rosenbloom, B, (2007) Wholesalers Role in the Marketing Channel Disintermediation vs. Reintermediation, Int. Rev. of Retail, Distribution and Consumer Research, Vol. 17, No. 4, 327 339. Rosenbluth International. http//, J. (2002) Synergy and strategy in e-business. Marketing intelligence & planning. Available at http// Taylor R. (2003) create verbally on the wall for travel agents, The Guardian (12 April 2003). Available at http// The Economist (2002) burst for DIY Travel Agents, (1 June 2000). Available at http// Travel Industry Association of America.www.tia.orgWilliamson A. (2001) The Golden Age of Travel (Thomas Cook), ISBN 1900341336 Wynne, C. (2000) the impact of internet on the distribution value channel. International Marketng Review, Vol. 18, N. 4, pp. 420- 431. Available at http// 1 . globose Reservation System used as a single point of access for reserving airline seats, hotel rooms, lease cars, and other travel related items by travel agents, online reservation sites, and large corporations ( 2 . Travel Technology initiative

Friday, May 17, 2019

Companies Are Incorporated And Operated On The Premises Of Agency Theory Accounting Essay

Companies be in mergedd and operated on the expound of Agency Theory. The Agency Theory spells forth that in that location should be a working relationship mingled with the direction of the comp both and the investors of the comp either in order to maximise the stockh greyers wealth.The way for the traditional seek of collective government activity was serve up by Berle and Means ( 1932 ) , when they presented an federal agency guess to divide ownership from control. This guess to divide ownership from control led to the development of the bureau theory.The early rivals of the bureau theory adduce that the bureau relationship is a contract at a lower place which one society ( the principal ) engages an other party ( the agent ) to execute whatsoever service on their behalf. ( Coase, 1937, Jenson and Meckling, 1976 and Fama and Jensan, 1983 ) . The bureau theory is of import, yet incompatible writers and research workers see it from controersial positions. The footing of the bureau theory appears from the separation of direction and fundss Sleifer & A Vish, ( 1996 ) . Agency theory is widely utilise as a model in many research of corporate administration. It is used in research state of affairss where the benefit on one party ( the principal ) is dependent on the behavior and actions of 2nd party ( the agent ) .The constructs and territorial dominions of corporate administration be headingly based upon the bureau theory. Good corporate administration requires an effectual hop on to take the fraternity so that it creates wealth for the stockholders and anyhow to run into other stakeholders show up hold offs.For illustration, Barclays Board of Directors, guided by separate Chairman Marcus Agius, runs the associate on behalf of stockholders. As a scheduled friendship on the London Stock Exchange, Barclays meets the footings with the UK keep formula on corporate Governance.Barclays Executive consignment involves the most superior leaders in the concern, headed up by Group headsman Executive John Varley. It has proclaimed the enlargement of its Executive Committee and alters to its organisation and elder direction undertakes, puting its concerns to extend strongly in the developing pecuniary services industry.Stockholders ar placed as one of the stakeholders that directors mustiness see doneout their de bourneination doing on how a corporation can and should be set and lend oneself way Jonker J, ( 2003 ) in Freeman ( 1984 ) .Although the bureau theory is expected to make a smooth and vertical relationship between the principal and the agent, there ar or so jobs which arise because of the impossibleness of absolutely undertaking for every action of an agent whose de preconditionination affects both his ain public aid and the public assistance of the principal, ( Brennan, 1995 ) .Agency theory is concentrating at everyplace bureau connexion, in which one party ( the principal ) condemn work to an other ( the agent ) , who carry out that work.The theory is related with work outing devil jobs that can happen in bureau relationships. The first is the bureau trouble that happens when ( a ) the yearning or aim of the principal and agent clang and ( B ) it is difficult or dearly-won for the principal to affirm that the agent had acted appropriately. The 2nd is the trouble of guess sharing that happens when the principal and agent have dissimilar set upon in the way of the hazard.The job here is that the principal and the agent may prefer different actions because of the different hazard penchants ( Elsenhadt, 1989 ) .Barclays Capital and/or its associates may, from truncate to clip, have topographic points in, and may, as chief or agent, bargain for or retail the Securities. Barclays Capital sh on the intact non be law affluenty responsible to any single on any base for any dead or costs go oning straight or indirectly out of the exercising of or dependence on any of the ap praisal or in sequence set out herein. ( hypertext transfer protocol // )From the bureau theory position, the aim of corporate administration is to warrant that directors resort to tax maximising schemes ( Shleifer and Vishny, 1997 ) . There have besides been efforts to linkthe resource based position and the motorcoachial rents theory ( Castanians and Helfat, 2001 ) with corporate administration, in the strategic direction literature. This position maintains that corporate administration variables ar the factors, which are considered cardinal and of import to the effectivity of Corporate Governance. Corporate Governance s cardinal variables are nigh associated with the triumph or failure of companies and a cardinal theatre directorial resource or human seat of government and therefore a possible beginning of competitory advantage to the house. Many companies have failed in the joined Kingdom and this has stimulated argument closely Corporat e Governance. The prostration of the Maxwell Publishing Group in the late eightiess stimulated the Cadbury Report in 1992. In the 1990s instances like the Poly Peck, BCCI and Marconi farther necessitated a read for proper Corporate Governance.In looking at all these incidences of Corporate Governance inefficiencies and ineffectualness, it is noticeable that several(prenominal) instances are understandably a affair of concern think and hapless decision-making by direction. The strategic planning is the exclusive duty of the board. This therefore points it out that the board composing plays a study function in the success or failure of the concern.As is clear now, BP could hold put in more(prenominal) dear to extra diminish or maintain off from the jeopardy of sloping oil into the ocean. Even with parking lot Project Management, if BP s pick was non to pass more in a hazard response strategy, so possibly they should hold approximate the party costs necessary for a clean-up acti vity as they are at present commencing.( hypertext transfer protocol // )The prostration of many companies is as a moment of fraud. sendup could be in signifier of cover-up and deception by direction or in some instances it could be the combination of both. The WorldCom in the United States and Maxwell, BCCI and Poly Peck in the United Kingdom are coercive and living illustrations. Another issue is the doubtfulness of regulative inadvertence, as highlighted in the instance of Enron.Then Combined Code was introduced in the UK to reconstruct the investor s assurance following many prostrations and company failures of those large corporations.The Directors are accountable for midland control in HSBC and for reconsidering its efficiency. Events have been planned for saving assets against illegal usage or disposition for continuing good accounting records and for the consistence of pecuniary reading used within the concern or for jour nal. Such events are considered to pull off instead than make off with the hazard of interruption to achieve concern aims and can merely offer reasonable and non complete announcement aligned with measurable misstatement, mistake, losingss or fraud. The actions besides allow HSBC Holdings to unclutter its duties under the Handbook of Rules and Guidance issued by the monetary operate Authority, HSBC s guide supervisory organic structure. ( hypertext transfer protocol // )2.2.2 The Original Combined Code-1998The Combined Code is do up of terzettosome chief studies. The original combined codification incorporates the recommendations of the Cadbury, Greenbury and Hampel studiesCadbury Report ( Cadbury, Sir Adrian, 1992 )The Committee issued a scope of recommendations for good corporate administration in a Code of Best Practice. The Cadbury study communicate four chief countries viz. , Board of Directors, Non- decision maker managers, Executive managers and order Ac counts.The chief recommendations of the Cadbury study are explained downstairs ( ICSA 2003 pp 151 152 ) .Board of managersThe board should run into on a regular basis, supervising the public presentation of the executive director direction. gibe over the company should be exercised jointly by the board of managers as a whole, with a clearly accept division of duty between the main executive and the president to avoid domination of the board by a individual someone or by a little group of executive managers. The Code argued that it was desirable to divide these functions, so that the resembling individual did non transport out both. It did non province that the same individual should neer be both president and main executive, scarce recommended that when this did go on, there should be a strong independent component on board to move as a counter- gouge, with a recognized senior member to take them.The board should hold formal agenda of affairs specifically reserved to it for determination to guarantee way and control is steadfastly in its custodies and does non let power loony toons to an almighty main executive or president.Non-executive managersThere should be a sufficient figure of non-executives, suitably qualify for the positions to transport weight.Non-executive managers should be able to convey independent judgement and experience to the deliberations of the that the executive managers on their ain would miss.Non-executive managers should be selected through a formal procedure and they should be appointed for a fixed term. Reappointment at the terminal of that term should non be automatic.Executive managersThe service contract of an executive manager should non transcend three old ages without stockholders blessing. The intent of this demand was to put a bound to the size of the pay-off for a manager who is forced to go forth the company, or illustration as a hapless public presentation and stockholder force per unit area. The wage of the exec utive managers should be decided by a wage flush, dwelling on the whole or chiefly of non-executives.The histories of the companyThe board should set up an audit military mission of at least three non-executive managers, with written footings of mention. The board of managers should show a balanced and apprehensible appraisal of the company s monetary place to the stockholders including a statement in the annual study about the company s cogency to go on as a traveling concern. The managers should describe to the stockholders on the full system of the internal control in the company.The board of Lloyds group believe that superior administration is innermost to achieving the Group s regulating thought of maximizing stockholder monetary value in surplus of clip. That has been highest in managers attendance when seting on the values restricted in the combined codification on corporate administration issued by the Financial Reporting Council. ( hypertext transfer protocol //www. )A board incorporating executive and non-executive managers with wide light guide the Lloyds group.A The choice of managers is measured by the board and, supervising the necessities in the articles of association, they must stand for voting by the stockholders at the first yearly general meeting following their choice and must go forth, and may acquire up for re-election by the stockholders, as a lower limit every three old ages. ( hypertext transfer protocol // )Greenbury Report ( Greenbury, Sr Richard, 1995 )In 1995 a commission was set up to look into the wage deal and service contracts of the managers. The concern was centered around the fat cat issue . This referred to the managers who paid themselves immense wages. There was another concern sing the failure of wage bundles to supply a suitable inducement for managers to execute better. The study recommended the followers are other things Directors wage and service contra cts Disclosure and acclamation and Remuneration Committee ( ICSA 2003, pp 152 153 ) .Directors wage and Service contractsA wage commission dwelling wholly of non-executive managers should make up ones mind the wage of the executive managers .The maximal notice period in an executive manager s service contract should usually be 12 months, compared to the three old ages maximum recommended by the Cadbury codification. In exceeding fortunes notice periods of up to 2 old ages might be sensible, by merely on occasion should a notice period exceed this.The Report included general recommendation about wage, but most of these were slackly phrased and unfastened to wide reading. They included neverthelessExecutive wage should non be inordinate, but the wage commission should offer wage bundles that are sufficient to pull, retain and actuate person of the needed quality.The public presentation related elements of the wage should make a nexus between the involvements of the manager with those of the stockholders. The public presentation standards should be pertinent, stretching and designed to heighten the concern affairs .Matters for the wage commission to see should include the phasing of any reward strategy s, the nature of any portion option bundle and the deductions of each component of the wage bundle for payments into the manager s pension strategy.Puting an upper bound to options given(p) as portion of a manager s wage strategy should non be issued at a price reduction. Before Greenbury, it was rather usual in the UK to allow portion options to managers with an exercising monetary value at some price reduction to the current market monetary value.Share options should be apt(p) to managers in phased sums over clip the in individual big awards.A steadfast line should be taken on the payment of payment to managers dismissed for unsatisfactory public presentation. In the public perceptual experience, a high wage off to an outgoing main executive can look in reality much like a wages for failure.The Board of Ladbrokes Plc manus over the Remuneration Committee with the indebtedness for the scheme in regard of the executive managers and senior executives. In regard of other workers the executive managers have been manus over answerability to run within the wage scheme and program construction recognized by the Board. The Board at the advice of the Nomination Committee makes agenda to the committee, which discuss with the Chairman of the Remuneration Committee. The Committee normally request the Chief Executive and the HR manager to be present at commission conference about suggestion depicting to the payment of the executive managers, other than when their single payment is conversed. The Company Secretary takes stairss as secretary to the Committee. The Committee and Board think that it is in the security of stockholders to protect some of the betting and bet oning industry s most superb and profitable individuals by given that to th e full spirited wage. The Committee has judgement to believe corporate presentation on environmental, societal and administration ( ESG ) affairs when seting the wage of executive managers. The commission has warrant that ESG hazards are non beingness lifted by the motive savvy for senior direction accidentally interesting careless activities. ( http // )Disclosure and blessingGreater revelation about the wage of single manager s.The one-year study and histories should unwrap for each named manager the elements of wage, much(prenominal) as wages and fees, one-year and deferred fillips, compensation for the loss of office, portion options and any other long -term inducement strategy. An account and Justification should be provided whenever any component of the wage other than basic wage is pension able.A revelation should be made of nay manager with a notice period in surplus of 12 months in his her service, contract, unneurotic with an account of the grounds. The elaborate revelations on the manager s wage should be checked any extracurricular hearers. The president of the wage commission should go to the one-year general meeting, where the stockholders should hold an chance for a inquiry sand reply session.The audit commission of Unilever includes a least of three or more non-executive managers two of them stand forA a quorum. The commission assists the boards in fulfilling their error undertakings in regard of the truthfulness of Unilever s fiscal statements hazard direction and internal control activities conformance with legal and narrow petitions the public presentation, makings and independency of the outside hearers and the presentation of the internal audit intent. The commission is besides in a straight-line accountable, expose to local regulations refering stockholder indorsement, for the proposal, wages and failure to notice of the external hearers. The disclosure commission includes the Group Co ntroller, the Chief Legal Officer, the Group Treasurer and the NV Corporate Legal Counsel. The rule of the commission is to help the boards make certain that fiscal and other information that have to be revealed openly by Unilever is revealed in a timely mode and that the information that is revealed is absolute and right.( hypertext transfer protocol // )The wage commission studyThere should be a study in the one-year study and histories on managers wage policy demoing how wage compares with other, similar companies. All fillip strategies should depend on satisfactory public presentation standards. Long term inducement strategies should be submitted o the stockholders for the blessing, in approach of presenting them. The Greenbury study did non give guidelines of make up ones minding what constitutes satisfactory public presentation , and as a consequence this component of the recommendations has been interpreted widely. For ill ustration, there were no guidelines about inducements for longer term public presentation.The study should include a statement on the company s policy for allowing portion options and other long term inducement strategies, together with a justification for any going from that policy in the policy under the reappraisal.Hampel Report ( Hampel Committee, 1998 )The commission was set up in 1995 to reexamine the advancement of the execution of the findings of the Cadbury and Greenbury Committees.The Hampel study proposed the consolidation of the Cadbury study, Greenbury study, and Hampel study into one amalgamate codification. The Hampel study described its undertaking as reviewing the substance and execution of the Cadbury codification.2.2.3 The rewrite combined code 2003The original Combined Code was proposed by Hampel and latter it was rewrite and brought update by Higgs in 2003.The key alterations made by Higgs are in the alterations of the composing of managers. He proposed the addition of non- executive managers and the fitting of a senior independent executive manager.Contentss of the revised codificationThe function and duties of the board, the president and the NED s are more clearly defined. The functions of president and main executive should be separate- the president should fulfill the standards for independency on assignment, but should non, thenceforth, be considered independent when measuring the balance of board rank.The president is give clear duties, including the entryway of red-hot managers and guaranting the proper flow of information to board members. No person should be appointed to a 2nd chairmanship of a FTSE 100 company. At least half of the board larger companies, excepting the president, should be independent NED s. The standard for independency are defined.The board, it commission and managers should be capable to one-year public presentation reappraisal. At least one member of the audit commission should hold recent and relevan t fiscal experience.In softening of the line adopted the Higgs Report, it is now acknowledged thatThe president nominations commission, anticipate where the commission is sing the assignment of the president s replacement. Smaller companies ( below the FTSE 350 ) may happen it hard to run into the commissariats associating to board and commission composing hence, such companies should hold at least two independent NED s ( instead than a bulk ) and may hold smaller wage and audit companies.Where the companies wish to retain a NED for more than six old ages, their farther assignment will non will non necessitate to be explained in the one-year study but such be capable to peculiarly strict reappraisal .The function of the senior NED should be clarified and the importance of the president s function in pass oning with stockholders and supplying guide to the NED s emphasized.The purpose of the FRC has been to heighten board effectivity and better investor assurance by raising criteri ons of corporate administration. Companies are encouraged to do an early study on the stairss, which they are taking to implement the new Code, instead than waiting until their coverage year-end.In visible radiation of these amendments of the Code, companies will necessitate to transport out a comprehensive reappraisal of their corporate administration policies and processs and see how best to react. Over the following few months these responses will, no uncertainty, be the topic of considerable investor, regulative and media involvement.2.2.4 The revised combined code 2005In 2004, the Financial prudent Council established the Turnbull Review Group that saw the issue of the Guidance for Directors on the Combined Code . The chief accent of the Turnbull study was to fasten internal control ( Turnbull Report, 1999 ) .Significance of Internal Controls and hazard directionThe significance of internal controls has been sketched in Turnbull study as followsA dependable technique of inte rnal control adds to preservation the stockholders spending and the company s resources. A company s strategy of internal control as a big duty in direction of hazards that is of import to the executing of its concern aims.Internal control smoothes the advancement of the success and competency of operations aids guarantee the dependableness of internal and external exposure and helps fulfilment with Torahs and ordinances. effectual pecuniary monitoring, every bit good as the saving of appropriate clerking records, is a key edifice block of internal control. They aid certify that the company is non without cause uncovered to preventable fiscal hazards and that fiscal informations employed inside the concern and for diary is consistent. They besides add to the saving of belongings, together with the number away and find of cozenage.A company s aims, its internal constitution and the background in which it maps are repeatedly developing and, as a consequence, the hazard it tackles is repeatedly changing. A sound system of inner(a) influence accordingly depends on a methodical and usual appraisal of the nature and sum of the jeopardy, which the company is uncovered. Since net incomes are, in portion, the recompense for booming risk-taking in concern, the ground of internal control is to help get by and form hazard suited instead than to acquire rid of it.The hazard direction system in J Sainsbury plc has been prepared all over the twelvemonth and up to the day of the month of countenance of the yearbook Report and Financial Statements. Acknowledging that hazard is an intrinsic fraction of making concern, the strategy is intended to acknowledge major menaces and do available declaration that these hazards are wholly recognized and handled. It is besides maintained by a hazard policy and regulations on how to be relevant the scheme, which are connected all the manner through the Company. The success of the process is reconsidered two times a twelvemonth by t he Audit Committee, which so reports to the Board. The mathematical operation Board maintain up a hazard registry, which is often re-examined by the Committee and officially, conversed with the Board. The registry holds the consequential hazards facing the Company and recognizes the possible influence and chance of the hazard at both a taxation ( pre mitigating controls ) and a net ( station mitigating controls ) phase. Where the net hazard inescapably extra behaviors, these are decided with rent timelines. These workss are narrowly checked until they are wholly utilize. ( http // )Aim of the studyTo guarantee that concerns have sound internal controls engraft in the concern processes as the companies pursue their aims.To guarantee that the internal control remain relevant over clip in the continually germinating concern environment and to enable each company to use it in a mode which takes history of its peculiar fortunes.The guideline on internal contr ols requires the managers to exert judgement in reexamining how the company has implemented the demands of the Combined Code associating to internal control and coverage to stockholders.Internal control demands of the combined codificationThe rule C2 of the combined codification provinces that The board should keep a sound system of internal control to forethought stockholders investing and the company s assets.The proviso C2.1 states That managers should, carry on a reappraisal of the effectivity of the group s system of internal control and should describe to stockholders that they have done so. This reappraisal should cover all stuff controls, including fiscal, operational and conformity controls and hazard direction systems. Turnbull Report, ( 2004 ) .The Board of Marks and Spencer have on the whole duty for administering the concern expeditiously confirms hazards are directed and it s all under review. Internal controls and hazard direction are intended to boundary the poss ibility of dislocation to achieve corporate aims. Autonomous declaration is offered by the outside hearers and internal audit, who manus over their decision often to the Audit Committee. They have taken on an integrated method to put on the line direction, autonomous averment and internal controls to license better connexion across re-examine and assessment of hazard. They are a broad concern with a wide assortment of aims and hazards. The Board is accountable for doing certain that all goes harmonizing to agreement and that describing lines and individual answerabilities are plain mute. They besides have runing schemes and events covering the whole thing from fiscal planning and coverage, capital outgo, undertaking administration and information security to concern stableness, worker public presentation direction and how they do concern. ( http // )2.2.5 The revised combined code 2006This codification supersedes and rep laces the Combined Code issued in 2003. It follows a reappraisal by the Financial Reporting Council of the execution of the Code 2005 and subsequent audition on possible amendments to the Code.The Financial Services Authority, as the UK itemisation Authority, is obliged by legislative act to transport out a separate audience before listed companies can be officially required under the Listing Rules to unwrap how they have applied this new version of the Combined Code. This audience is expected to get down September 2006 and, capable to positions received, the Listing Rules would be expected to use to the new version of the Combined Code with consequence from some clip in the 2nd one-fourth of 2007.In the interim, in position of the limited nature of the alterations and strong keep up that they have received, the FRC would promote companies and investors to use the revised Code voluntarily for describing old ages get downing on or after 1 November 2006.The Code holds cardinal and subsequent doctrine and status. The Listing Rule needs listed companies to make a disclosure statement in two parts in relation to the Code. In the primary portion of the declaration, the company has to account on how it be relevant the chief beliefs in the Code. This should cover both chief and back uping values. The signifier and substance of this division of the statement are non set, the significance being that companies should hold a free manus to depict their authorization regulations in the visible radiation of the policy-making orientation, every bit good as any peculiar state of affairs be relevant to so which have guided to a specific method. This comply or explain method has been in operation for over 10 old ages and the lissomeness it proposes has been extensively welcomed both by company boards and by stockholders. It is for investors and others to measure the company s statements.The statement of conformityA company that has non complied with the commissariats of th e combined codification in full passim the period must stipulate the Code commissariats, with which it has non complied, for what portion of the period non-compliance continued and give grounds for non-compliance. This is a demand of the Listing Rules of the Stock Exchange. Ignoring the commissariats of the codification is non an option, but the company has good substantial grounds for comical the commissariats, it is up to the stockholders to make up ones mind whether the ground given by the company is valid or non. If the managers an explain converting the stockholders that the going from the codification commissariats is in the best involvement of the company, the non-compliance is improbable to be an issue.Criticisms of combined codificationThe Higgs and metalworker studies were widely welcomed by different boards like the Financial Reporting Council ( FRC ) on the revised combined codification, but besides identified some strong unfavorable judgments were simply on the functi ons and responsibilities of the president and the period of term of office for managers.The board suggested that the combined codification needed to set more attempt into doing the system work, there would be occasions when a company would take to utilize the explain option, and institutional investors should see such accounts carefully, giving grounds if they did non accept the account.