Importance of Ethics in Business as an Academic Discipline

0. 1OUTLINE OF THIS PAPER This paper is discussed under the following broad areas: Preliminaries 1. Statement of the Problem 2. Executive Summary Main Paper 1. Introduction to Business Ethics 2. Ethics as an Academic Discipline 3. Importance of Ethics in Business as an Academic Discipline 4. The Case Against Business Ethics Education 5. Conclusion 0. 2STATEMENT OF THE PROBLEM Question 1: Discuss the importance of Ethics in business as an Academic Discipline. 0. 3EXECUTIVE SUMMARY In today’s highly competitive, performance-driven business climate, regulations are not enough; professional ethics codes are not enough; the old model of â€Å"business ethics† is not enough. According to a 2003 survey of corporate directors and general counsel conducted by the National Association of Corporate Directors and the American Corporate Counsel Association, â€Å"†¦the two groups overwhelmingly agree that the single measure that would most improve corporate governance is the establishment by senior management of an ethical business culture. And, â€Å"Another clear message of the survey is that ethical leadership from the top is the key to reducing corporate malfeasance. † Considering the ethical failures in the last several years and the resulting crisis in confidence, a sincere commitment to creating and sustaining an ethical business culture in public and private sectors has never been more important. It is important that each individual feel s personally ethically responsible. How an individual treats others, is affected by the way the individual is treated within the organization or by society. The focus on ethics provides a guide to individual and organizational actions in a consistent manner. The question ethics tries to answer is: â€Å"Is this the right thing to do? The purpose of ethical inquiry is to create a framework of general principles or right and wrong, what one might do, and what one’s duties are. The ethical application in a business situation is for managers to draw a line between morality and individual or institutional self-interest. Ethical analysis involves assessing issues and paying attention to the effects of potential decisions on the lives of those who will be affected. The imperatives of day-to-day organizational performance are so compelling that there is little time or inclination to divert attention to the moral content of organizational decision-making. Morality appears to be so esoteric and qualitative in nature that it lacks substantive relation to objective and quantitative performance. An effective organizational culture should encourage ethical behavior and discourage unethical behavior. Admittedly, ethical behavior may cost the organization. Even though ethical problems in organizations continue to greatly concern society, organizations and individuals, the potential impact that organizational culture can have on ethical behavior has not really been explored. What is needed in today's complicated times is for more organizations to step forward and operate with more positive and ethical cultures. Ethical decision making is key to the very fabric of administration and governance, either in a business setting or government operations. To have an ethical organization or business enterprise, requires: ? having a critical mass of ethically responsible individuals ? romoting norms that encourage ethical behavior ? having leaders who behave ethically and serve as ethical role models for others to emulate. 1. 0INTRODUCTION 1. 1What is Ethics? Ethics has been defined in many different ways by various people, depending on the perceptive they have and also the context of the definition. Some of the thoughts and definitions of term à ¢â‚¬ËœEthics’ are as follows: ? Ethics refers to well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness or specific virtues. Ethics means the continuous effort of studying our own moral beliefs and our moral conduct, and striving to ensure that we, and the institutions we help to shape, live up to the standards that are reasonable and solidly-based. ? Ethics is the study and development of one’s ethical standards. It is necessary to constantly examine one’s standards to ensure that they are reasonable and well-founded. ? Ethics refers to those standards that impose the reasonable obligations to refrain from behaving in an unacceptable manner, such as rape, stealing, murder, assault, slander or fraud. Ethical standards include standards relating to rights such as rights to life, the right to freedom from injury and the right to privacy. ? Ethics has to do with acting e thically as individuals, creating ethical organizations and governments and making our society as a whole ethical in the way it treats everyone. ? Ethics refers to standards of behavior that tell us how human beings ought to act in the many situations in which they find themselves as friends, parents, children, citizens, business people, and professionals. . 2Definition of Terminologies associated with Ethics What are the differences between values, morals and ethics? They all provide behavioral rules, after all. It may seem like splitting hairs, but the differences can be important when persuading others. Ethics : Ethics may be defined as: rules or standards governing the conduct of a person or the members of a profession. Ethics tend to be codified into a formal system or set of rules which are explicitly adopted by a group of people e. g. medical ethics. Ethics are thus internally defined and adopted, whilst morals tend to be externally imposed on other people. If you accuse someone of being unethical, it is equivalent of calling them unprofessional and may well be taken as a significant insult and perceived more personally than if you called them immoral (which of course they may also not like). Values: Values are the rules by which we make decisions about right and wrong, should and shouldn't, good and bad. They also tell us which are more or less important, which is useful when we have to trade off meeting one value over another. Values can be defined as: beliefs of a person or social group in which they have an emotional investment (either for or against something); â€Å"he has very conservatives values† Morals: Morals have a greater social element to values and tend to have a very broad acceptance. Morals are far more about good and bad than other values. We thus judge others more strongly on morals than values. Morals can be defined as: motivation based on ideas of right and wrong. Moral conduct is a mood arousing good behavior with others by showing happy mien, nice wording, and kind manners. Norms: Norms are the behavioral expectations and cues within a society or group. They have been defined as â€Å"the rules that a group uses for appropriate and inappropriate values, beliefs, attitudes and behaviors. These rules may be explicit or implicit. Failure to stick to the rules can result in severe punishments, the most feared of which is exclusion from the group. † They have also been described as the â€Å"customary rules of behavior that coordinate our interactions with others. † The social norms indicate the established and approved ways of doing things, of dress, of speech and of appearance. 1. 3Applications of Ethics Ethics have been adapted in various areas of life such as: Legal ethics This encompasses an ethical code governing the conduct of people engaged in the practice of law. The model rules address the client-lawyer relationship, duties of a lawyer as advocate in adversary proceedings, dealings with persons other than clients, law firms and associations, public service, advertising, and maintaining the integrity of the profession. Respect of client confidences, candor toward the tribunal, truthfulness in statements to others, and professional independence are some of the defining features of legal ethics. Professional responsibility is the area of legal practice that encompasses the duties of attorneys to act in a professional manner, obey the law, avoid conflicts of interest, and put the interests of clients ahead of their own interests. Professional ethics This concerns the moral issues that arise because of the specialist knowledge that professionals attain, and how the use of this knowledge should be governed when providing a service to the public. The professional carries additional moral responsibilities to those held by the population in general. This is because professionals are capable of making and acting on an informed decision in situations that the general public cannot, because they have not received the relevant training. For example, a layman member of the public could not be held responsible for failing to act to save a car crash victim because they could not give an emergency tracheotomy. This is because they do not have the relevant knowledge. In contrast, a fully trained doctor (with the correct equipment) would be capable of making the correct diagnosis and carrying out the procedure and we would think it wrong if they stood by and failed to help in this situation. You cannot be held accountable for failing to do something that you do not have the ability to do. This additional knowledge also comes with authority and power. The client places trust in the professional on the basis that the service provided will be of benefit to them. It would be quite possible for the professional to use his authority to exploit the client. An obvious example is that of the dentist who carries out unneeded dental work on his patients in order to gain more money. It is likely that the patient will not have sufficient knowledge to question what is being done, and so will undergo and pay for the treatment. Work ethic: This is viewed as a set of values based on the moral virtues of hard work and diligence. It is also a belief in moral benefit of work and its ability to enhance character. Good work ethics may include being ? reliable ? having initiative ? maintaining social skills 1. 4Branches of Ethics Descriptive Ethics – it simply involves describing how people behave and/or what sorts of moral standards they claim to follow. Descriptive ethics will include research from the fields of anthropology, psychology, sociology and history in order to determine what people do or have believed about moral norms. . g. a description of what corporations and executives actually do value Descriptive ethics is sometimes referred to as comparative ethics because so much activity can involve comparing ethical systems: comparing the ethics of the past to the present, comparing the ethics of one society to another and comparing the ethics which people claim to follow with the actual rules of con duct which do describe their actions. All said, descriptive ethics asks two basic questions: 1. What do people claim as their moral norms? 2. How do people actually behave when it comes to moral problems? Metaethics – this investigates where our ethical principles come from, and what they mean. Are they merely social inventions? Do they involve more than expressions of our individual emotions? It is a philosophical study of the meaning, nature and methodology of moral judgments and terms, relations between moral concepts, the correct ways of arguing about moral issues, similarities and differences between various normative systems (e. g. , morality, religion, law, etiquette, aesthetics, the requirements of prudence, the judgments of taste), etc. There are questions about morality that are not concerned with its content, being neither questions on what principles there should be nor how we must live. These spring instead from puzzles about the logical form of morality. For example, the question of the objectivity or subjectivity of moral judgements and the problem of the logical relation between moral beliefs and factual beliefs are not directly concerned with the content of any particular form of moral life, but with what the general logical rules of any morality or any moral argument, whatever it advocates or condemns, must be. According to Richard Garner and Bernard Rosen, there are three kinds of meta-ethical problems, or three general questions: ? What is the meaning of moral terms or judgments? ? What is the nature of moral judgments? ? How may moral judgments be supported or defended? A question of the first type might be, â€Å"What do the words ‘good', ‘bad', ‘right' and ‘wrong' mean? † For example, until you have decided whether moral beliefs reflect some objective truth or are dependent on the personal desires of their holders you cannot know what form of argument is appropriate for the support or refutation of any given belief. Indeed you may not know if rational argument about morality is possible at all. Normative ethics Takes on the task of arriving at moral standards that regulate right and wrong conduct. This may involve articulating the good habits that we should acquire, the duties that we should follow, or the consequences of our behavior on others. Normative ethics is concerned with classifying actions as right and wrong without bias, as opposed to applied ethics. e. g. an account of what corporations and executives should value Applied ethics involves examining specific controversial issues, such as abortion, infanticide, animal rights, environmental concerns, homosexuality, capital punishment, or nuclear war. By using the conceptual tools of metaethics and normative ethics, discussions in applied ethics try to resolve these controversial issues. The lines of distinction between metaethics, normative ethics, and applied ethics are often blurry. For example, the issue of abortion is an applied ethical topic since it involves a specific type of controversial behavior. But it also depends on more general normative principles, such as the right of self-rule and the right to life, which are litmus tests for determining the morality of that procedure. The issue also rests on metaethical issues such as, â€Å"where do rights come from? † and â€Å"what kind of beings have rights? † 1. 5Core Ethical Values The following recommended core ethical values were developed based on research by the program founder, Dr. Ron Bucknam, for the development of an applied ethics in professional practice program to assist in evolving solutions to ethical dilemmas encountered in professional practice. Integrity o exercising good judgment in professional practice o adherence to ethical principles ? Honesty ? truthfulness ? fairness ? sincerity ? Fidelity ? faithfulness to clients ? allegiance to the public trust ? loyalty to employer, firm or agency ? loyalty to the profession ? for the theist, faithfulness to God ? Charity 1) kindness 2) caring 3) good wil l 4) tolerance 5) compassion/mercy ? Responsibility 1. reliability/dependability 2. accountability 3. trustworthiness ? Self-Discipline ? acting with reasonable restraint ? not indulging in excessive behavior All the above ethical values are important to development and maintenance of an ethical business organization as well as an ethical society. 1. 6Development of Ethics The study of business ethics in North America has evolved through five distinct stages: ? Before 1960 ? The 1960’s ? The 1970’s ? The 1980’s ? The 1990’s – and continues to evolve in the 21st century. Ethics in Business Before 1960’s: Ethics in Business Until 1960, ethical issues related to business were often discussed within the domain of theology or philosophy. Catholic collages and universities began to offer courses in social ethics. Protestants also developed ethics courses in their seminars and schools of theology and addressed issues concerning morality and ethics in business. The protestant work ethics encouraged individuals to work hard and attain success in the capitalistic system. Such religious traditions provided a foundation for the future field of business ethics. The 1960’s: The rise of social issues in business The 1960’s saw the decay of inner cities and the growth of ecological problems such as pollution and disposal of toxic and nuclear waste. In 1962, President John F. Kennedy delivered â€Å"special message on protecting the consumer interest†, in which he outlined four basic consumer rights: the right to safety, the right to be informed, the right to choose, and to be heard. This came to be known as the consumer bill of rights. The modern consumer movement began in 1960’s. At this stage, activities that could destabilize the economy or discriminate any class of citizen began to be viewed as unethical The 1970’s: Business ethics as an emerging field Business ethics began to develop as an emerging field of study in the 1970’s. Business professors began to teach and write about corporate social responsibility. Companies became more concerned with their public image. The 1980’s: Consolidation In the 1980’s business academics and practitioners acknowledged business ethics as a field of study. Five hundred courses in business ethics were offered at collages across the country with more than forty thousand students enrolled. Corporations that were once nationally based began operating internationally and found themselves mired in value structures where accepted rules of business behavior no longer applied. The 1990’s: Institutionalization of business ethics The administration of President Clinton continued to support self regulation and free trade. The federal sentencing guidelines for organizations set the tone for organizational ethical compliance programs in 1990’s. Companies were made to develop corporate values, enforce its code of ethics, and strive to prevent misconduct. 1. 7Why Should One Be Ethical? Ethical behavior can be defined as: â€Å"Conducting one’s life in complete accord with a firmly held set of values and principles. † These principles may be derived from religious beliefs, philosophical understanding, etc. Application should be in all areas of one’s life: personal, family, business, social, etc. The question asked by some is whether there is a universal ethical standard for everyone. And the answer is, yes – Ethics is taught in different cultures using various approaches as seen below. Such approaches are at times used in school for more effectiveness. In Principle, there is a universal ethical standard practiced by: Christian principle: The Golden Rule â€Å"Do unto others as you would have them do unto you. † Luke 6:29-38 â€Å"Thou shalt love thy neighbor as thyself. † Luke 10:27 Other religions also have their own golden rule, that they teach their believers, which guides the moral and ethical behavioral standard. For example: Islam: No one of you is a believer until he loves for his brother what he loves for himself. Hinduism: Do nothing to thy neighbor which thou wouldst not have him do to thee. Sikhism: Treat others as you would be treated yourself. Buddhism: Hurt not others with that which pains thyself. Confucius: What you do not want done to yourself, do not do to others. Aristotle: We should behave to our friends as we wish our friends to behave to us. Plato: May I do to others as I would that they should do unto me. In studying business ethics, we want to know the facts about what people actually do value. But we also want to know what people ought to value. Business ethics asks questions about how things should be done, and thus go beyond simply asking questions about ethos. There is already something odd about this question. It is like asking, â€Å"Why are bachelors unmarried? † They are unmarried by definition. If they were married, they would not be bachelors. It is the same with ethics. To say that one should do something is another way of saying it is ethical. If it is not ethical, then one should not do it. Perhaps when business people ask why they should be ethical, they have a different question in mind: what is the motivation for being good? Is their something in it for them? It is perfectly all right to ask if there is a reward for being good, but this has nothing to do with whether one should be good. It makes no sense to try convincing people that they should be good by pointing to the rewards that may follow. One should be good because â€Å"good† is, by definition, that which one should be. As for motivation, good behavior often brings a reward, but not every time. Think about it. If it were always in one’s interest to be good, there would be no need for ethics. We could simply act selfishly and forget about obligation. People invented ethics precisely because it does not always coincide with self interest. Impacts of not inculcating ethics 2. 0ETHICS AS AN ACADEMIC DISCIPLINE 2. 1Can Ethics Be Taught? Of the Institutions that have contributed to the quality of human life, business ranks with science, art, and education. Business has created the wealth that has given unprecedented numbers of individuals financial control of their lives. It has expanded immeasurably the range of goods and services available to individuals. It has broken down countless centuries-old barriers of racial, sexual, religious, and ethnic prejudice. And it has been the vehicle for countless numbers of individuals to develop their fullest potentials in achieving their dreams. In short, business has been a prime mover in making it possible for millions to pursue their lives in a wealthy, healthy, rational and exciting world. Yet no other human institution has been so plagued by suspicions of immorality. â€Å"Business ethics,† the old joke goes, â€Å"Isn't that a contradiction in terms? How moralists evaluate business depends upon their fundamental moral principles. Most moral philosophy has included the assumption that morality and practicality are two different things. Older moralists typically argued that the demands of morality conflicted with the requirements of business practicality, and so condemned business. More recent morali sts tend to adopt a less extreme version of the dichotomy, holding that determining what is practical and what is moral involves following two distinct lines of thought, although what is moral and what is practical happen to coincide in many cases. (Stephen Hicks , PhD. Chairman of the philosophy department at Rockford College, Stephen Hicks is the author of a forthcoming book on business ethics. ) Since Objectivism is unique in its rejection of the traditional dichotomy of the moral and the practical, it offers a unique perspective on the full range of business ethics issues. Ayn Rand's Atlas Shrugged, The Virtue of Selfishness, and Capitalism: The Unknown Ideal remain by far the best presentation of the broader moral context within which to evaluate the various dimensions of business practice. The major issues in business ethics can be classified into four areas: ? The relationship between business and consumers ? The relationship between employers and employees ? The nature and value of special forms of business organization—most notably, that of the corporation ? The nature and value of financial markets The issue of the proper scope of government regulation cuts across these four categories. Miscellaneous issues such as waste disposal (â€Å"the environment†) and investing in morally dubious foreign nations (such as Communist China or Iraq) are often debated in the business ethics literature, but are primarily issues of political theory and so do not fit into the above business ethics categories. Even granting that business ethics is important, many seem to believe that there is no point in studying the subject. Ethics is something you feel, not something you think. Finance, marketing, operations, and even business law lend themselves to intellectual treatment, but ethics does not. The idea that ethics has no intellectual content is odd indeed, considering that some of the most famous intellectuals in world history have given it a central place in their thought (Confucius, Plato, Aristotle, Maimonides, Thomas Aquinas, etc. ). Ethics is in fact a highly developed field that demands close reasoning. The Western tradition in particular has given rise to sophisticated deontological, teleological and consequentialist theories of right and wrong. No one theory explains everything satisfactorily, but the same is true, after all, in the natural sciences. Even when they grant that ethics has intellectual content, people often say that studying the field will not change behavior. Character is formed in early childhood, not during a professor’s lecture. If the suggestion here is that college-level study does not change behavior, we should shut down the entire business school, not only the ethics course. Presumably the claim, then, is that studying finance and marketing can influence one’s conduct, but studying ethics cannot. This is again a curious view, since ethics is the one field that deals explicitly with conduct. Where is the evidence for this view? The early origins of character do not prevent finance and marketing courses from influencing behavior. Why cannot ethics courses also have an effect? Ethics courses have a number of features that seem likely to influence behavior: ? Ethical courses provide a language and conceptual framework with which one can talk and think about ethical issues. Their emphasis on case studies helps to make one aware of the potential consequences of one’s actions. ? They present ethical that theories help define what a valid ethical argument looks like. ? They teach one to make distinctions and avoid fallacies that are so common when people make decisions. ? They give one an opportunity to think through, at one’s leisure, complex ethical issues that are likely to arise later, when there is no time to think. ? They introduce one to such specialized areas as product liability, employment, intellectual property, environmental protection, and cross-cultural management. They give one practice at articulating an ethical position, which can help resist pressure to compromise. None of this convinces one to be good, but it is useful to those who want to be good. It may also improve business conduct in general. ? They enable an individual identify the unethical business conducts that occurs in the business world to-date, for example: o Ac count Fraud o Insider Trading; (of stock and Bonds) o Falsifying Documents o Deceptive Advertising o Defective Products o Bribery o Employee Theft ? They train the society and future generations to be ethical thereby raising the ethical standards in the business world. An individual’s personal values and moral philosophy are only one factor in the ethical decision-making process. The courses enable an individual to distinguish the individuals everyday ethical issues from business ones. ? They enable one to deal with individuals’ personal moral dilemmas as these issues affect everyone’s ability to function on the job. How many of the recent business scandals would have occurred if subordinates had possessed the skills, vocabulary and conceptual equipment to raise an ethical issue with their coworkers? Ethics not only should be studied alongside management, but the two fields are closely related. Business management is all about making the right decisions. Ethics is all about making the right decisions. So what is the difference between the two? Management is concerned with how decisions affect the company, while ethics is concerned about how decisions affect everything. Management operates in the specialized context of the firm, while ethics operates in the general context of the world. Management is therefore part of ethics. A business manager cannot make the right decisions without understanding management in particular as well as ethics in general. Business ethics is management carried out in the real world. This is why usiness majors should study ethics for future benefit in the business world. 3. 0IMPORTANCE OF ETHICS IN BUSINESS AS AN ACADEMIC DISCIPLINE 3. 1Benefits of Ethics in Business Business ethics started developing as an academic discipline in the 1970’s. At this time, theologians and philosophers had laid down the ground work suggesting that certain pri nciples could be applied to the corporate activities. Using this foundation, business professors started to teach and write about corporate social responsibility which is an organization’s obligation to maximize its positive impact to stake holders and to minimize its negative impact. A Marketplace Advantage: When most managers and employees study ethics in learning institutions as an academic discipline, it enables them gain intelligence of business ethics, that later attracts more customers and investors who will have more trust for the corporate practices and values as primary considerations in their decision-making to either, if customers, buy the organization’s product or, if investors, decide to invest in the organization. Superior Employee Performance: With the company employees and management application of their academic gained business ethics practices, the companies with sound business ethics and established values report improved employee morale, reduced employee turnover and increased productivity. As a result, the organization is able to work towards achieving its objectives due to enhanced better performance of the employees. Reputation Management: Workers in the organization can use their academically gained ethical lessons since if an organization is damaged by scandal or unethical behavior, a company’s reputation may never recover – resulting in lost revenue, low employee morale, and increased governmental and public scrutiny. Emphasizing responsible business conduct is the surest means of preserving a company’s intangible assets. Powerful legal and Financial Incentives: Another importance for the organization to follow business ethics is that the international regulatory developments shall provide strong legal and financial incentives to corporations that establish standards of conduct and provide ethics education and training to employees promoting business ethics as an academic discipline and ethical conducts of individuals in the organization. Enhanced Consumer ad employee loyalty: Consumer and employee commitment comes from their belief that their future is attached to the organization and thus are willing to make sacrifices for the organization. Study of ethics as an academic discipline is able to highlight to the consumer and employees the importance to be loyal to one organization; the benefits are reduced prices to the consumers and ability to the seller to understand the customer needs, it also promotes more trust to the employees who are also able to share during the company success periods. Increased Organization Profits: Another importance of business ethics as an academic discipline is that the company can improve its profit base. A company cannot nurture and develop an ethical climate unless it has achieved adequate financial profits. Businesses with greater resources have means to practice social responsibility while serving their customers, valuing their employees, and establishing trust with the public. Many studies have found relationships between corporate social responsibility and business performance. Customer satisfaction: Customer satisfaction is another important value business receives from better ethical operations of the organization that serves its customers and customer satisfaction is one of the most important in an effective business strategy. This can be achieved one way if the business operates ethically by considering the customer expectations and needs as well as avoiding exploitation of the customers. Investor’s loyalty: Investors today are extremely concerned with the organizations ethics, social responsibility, and reputations of the companies in which they invest in. investors also do recognize that the ethical climate provides a foundation of efficiency, productivity and profitability. Many companies such as Global crossing, Adelphia, Freddie Mac lost their investors due to unethical standards in their operations. Differentiating between personal and business ethics: Many people believe that individual’s ethics can be applied in the business setting, that is, wrong study of business ethics as an academic discipline helps to give a difference between the personal ethics and business ethics that can be applied in solving the organization’s ethical dilemmas. Identification of ethical issues: Study of ethics as an academic discipline also helps in enlightening individuals on ways to identify and deal with business ethics issues. It also enables both organizations and individuals to learn about ethical decision making and ways to promote ethical standards in the organization. By studying business ethics one begins to understand how to cope with conflicts. Promotion of organization responsibility: Study of ethics as an academic discipline also helps to ensure the organization undertakes its responsibility in the society and help solve the company stake holder’s problems. 3. 2Societal Costs of Unethical Behavior 1. Law enforcement and other security personnel 2. Physical protection (locks, electronic security, fences, vaults, etc. ) 3. A substantial portion of attorney and court system costs 4. Some welfare costs 5. Costs of collecting taxes 6. Wasted/misused investment funds . A substantial portion of accounting/auditing costs 8. A large fraction of costs for regulators and examiners 9. Some marketing/advertising costs 10. Costs for institutions like better business bureaus, consumer protection agencies 11. Some costs of bankruptcy 12. Lack of investment from outside investors, tourists 3. 3Business Costs of Unethical Behavior 1. Loss of physical as sets 2. Increased costs of security 3. Loss of customers – especially those who value ethics 4. Loss of employees especially – the more ethical 5. Loss of reputation 6. Increased legal costs 7. Higher costs of debt 8. Loss of investor confidence (lower stock price, difficulty in raising funds, problems with lenders) 9. Regulatory intrusion 10. Costs of bankruptcy 3. 4How Does Ethical Behavior Add Value? Better information a. Trust from investors b. Lower costs for audits, controls, investigations c. Better allocation of resources d. Customers will be more loyal e. Lower costs from suppliers f. Attracting and retaining better employees Fair competition g. Lowers cost of business in economy h. Leads to better decision-making (do what’s best for firm, not one individual) i. Improves competitive nature of a country’s economy Just compensation j. Creates a more vibrant, entrepreneurial economy k. Attracts and retains better employees Rights of others l. Draws upon talents of wider set of individuals m. Develops long-term respect from the community n. Maintains the environment for long-term value to all 3. 5How Can Ethical Values be Taught? Level 1: The Foundation – Personal Ethical Understanding ? Concepts of right and wrong, fair play, respect for rights of others, honesty, personal integrity ? Best learned in the home at an early age – and follow-up is needed throughout life ? Institutions (churches, schools, etc. can help ? Difficult to â€Å"back fill† in adulthood Level 2: Application to Business – Application of Ethics to Business Situations ? Can be taught in management education and organizations – provided students have a personal understanding of ethics ? Taught by modeling (cases and personal example are helpful) ? Can be reinforced by policies, codes of ethic s, training ? Businesses can teach through proper modeling: â€Å"Companies also have to further strengthen ethics management and social responsibility activities to improve their public image’’ – Korean Commerce-Industry-Energy Minister Lee Hee-beom. Level 3: Ethical Courage ? It is not sufficient to simply understand ethical principles ? One must have the courage to pay a price for being ethical ? Examples can be helpful—case studies showing people willing to stand up for ethical principles ? Again, it helps to have â€Å"practiced† ethical behavior over many years—especially in small things Level 4: Ethical Leadership ? The ability and willingness to encourage others to behave ethically ? Can be taught through cases, problem solving, study of successful organizations ? Developing an organizational climate that fosters ethical behavior ? Structuring policies that encourages ethics ? Behaving ethically while facing the pressures of leadership 3. 6Challenges of Teaching Ethics & Ethical Dilemma As the twenty-first century approaches, companies face a variety of changes and challenges that will have a profound impact on organizational dynamics and performance. In many ways, these changes will decide who will survive and prosper into the next century and who will not. Among these challenges are the following: ? The challenge of international competition. The challenge of new technologies. ? The challenge of increased quality. ? The challenge of employee motivation and commitment. ? The challenge of managing a diverse workforce. ? The challenge of ethical behavior. 3. 7Ethics and The Challenge Of Ethical Behavior The word â€Å"ethics† is often in the news these days. Ethics is a philosophical term derived from the Greek word â€Å"ethos† m eaning character or custom. This definition is germane to effective leadership in organizations in that it connotes an organization code conveying moral integrity and consistent values in service to the public. Certain organizations will commit themselves to a philosophy in a formal pronouncement of a Code of Ethics or Standards of Conduct. Having done so, the recorded idealism is distributed or shelved, and all too often that is that. Other organizations, however, will be concerned with aspects of ethics of greater specificity, usefulness, and consistency. Formally defined, ethical behavior is that which is morally accepted as â€Å"good† and â€Å"right† as opposed to â€Å"bad† or â€Å"wrong† in a particular setting. Is it ethical, for example, to pay a bribe to obtain a business contract in a foreign country? Is it ethical to allow your company to withhold information that might discourage a job candidate from joining your organization? Is it ethical to ask someone to take a job you know will not be good for their career progress? Is it ethical to do personal business on company time? The list of examples could go on and on. Despite one's initial inclinations in response to these questions, the major point of it all is to remind organizations that the public-at-large is demanding that government officials, managers, workers in general, and the organizations they represent all act according to high ethical and moral tandards. The future will bring a renewed concern with maintaining high standards of ethical behavior in organizational transactions and in the workplace. Many executives, administrators, and social scientists see unethical behavior as a cancer working on the fabric of society in too many of today's organizations and beyond. Many are concerned that we face a crisis of ethics in the West that is undermining our competitive strength. This crisis involves business-people, government officials, customers, and employees. Especially worrisome is unethical behavior among employees at all levels of the organization. For example, a recent study found that employees accounted for a higher percentage of retail thefts than did customers (Silverstein, 1989). The study estimated that one in every fifteen employees steals from his or her employer. In addition, we hear about illegal and unethical behavior on Wall Street, pension scandals in which disreputable executives gamble on risky business ventures with employees' retirement funds, companies that expose their workers to hazardous working conditions, and blatant favoritism in hiring and promotion practices. Although such practices occur throughout the world, their presence nonetheless serves to remind us of the challenge facing organizations. This challenge is especially difficult because standards for what constitutes ethical behavior lie in a â€Å"grey zone† where clear-cut right-versus wrong answers may not always exist. As a result, sometimes unethical behavior is forced on organizations by the environment in which it exists and laws such as the Foreign Corruption Practices Act. For example, if you were a sales representative for an American company abroad and your foreign competitors used bribes to get business, what would you do? In the United States such behavior is illegal, yet it is perfectly acceptable in other countries. What is ethical here? Similarly, in many countries women are systematically discriminated against in the workplace; it is felt that their place is in the home. In the United States, again, this practice is illegal. If you ran an American company in one of these countries, would you hire women in important positions? If you did, your company might be isolated in the larger business community, and you might lose business. If you did not, you might be violating what most Americans believe to be fair business practices. The effective management of ethical issues requires that organizations ensure that their managers and employees know how to deal with ethical issues in their everyday work lives. Therefore, organizational members must first understand some of the underlying reasons for the occurrence of unethical practices. 3. 8Unethical Behavior: Why Does It Occur In Organizations? The potential for individuals and organizations to behave unethically is limitless. Unfortunately, this potential is too frequently realized. Consider, for example, how greed overtook concerns about human welfare when the Manville Corporation suppressed evidence that asbestos inhalation was killing its employees, or when Ford failed to correct a known defect that made its Pinto vulnerable to gas tank explosions following low speed rear-end collisions (Bucholz, I 989). One answer to the question of why individuals knowingly commit unethical actions is based on the idea that organizations often reward behaviors that violate ethical standards. Consider, for example, how many business executives are expected to deal in bribes and payoffs, despite the negative publicity and ambiguity of some laws, and how good corporate citizens who blow the whistle on organizational wrongdoing may fear being punished for their actions. Jansen and Von Glinow (1985) explain that organizations tend to develop counternorms, accepted organizational practices that are contrary to prevailing ethical standards. It is not too difficult to recognize how individuals can knowingly engage in unethical practices with such mentalities. The overemphasis on short-term monetary gain and getting votes in the next election may lead to decisions and rationalizations that not only hurt individuals in the long run, but threaten the very existence of organizations themselves. Some common rationalizations used to justify unethical behavior are easily derived from Gellerman (1986): ? Pretending the behavior is not really unethical or illegal. ? Excusing the behavior by saying it's really in the organizations or your best interest. ? Assuming the behavior is okay because no one else would ever be expected to find out about it. Expecting your superiors to support and protect you if anything should go wrong. Rules, procedures, and other control mechanisms often lag behind growth of a firm, providing organizational members with an opportunity to behave illegally because no internal rules prescribe such behavior. Predisposition indicates a tendency or inclination to select certain activities–illegal ones–over activit ies because of socialization or other organizational processes. Baucus and Near (1991) avoid the assumption that a firm's managers or agents subscribe to a different set of ethical standards than the rest of society. Instead, they recognize that organizations, and industries, can exert a powerful influence on their members, even those who initially have fairly strong ethical standards. Certain industry cultures may predispose organizations to develop cultures that encourage their members to select unethical acts. If an organization's major competitors in an industry are performing well, in part as a result of unethical activities, it becomes difficult for organizational members to choose only unethical actions, and they may regard unethical actions as a standard of industry practice. Such a scenario results in an organizational culture that serves as a strong precipitant to unethical actions. The next section looks at the organizational culture-ethical behavior relationship. The ethical climate of an organization is the shared set of understandings about what correct behavior is and how ethical issues will be handled. This climate sets the tone for decision making at all levels and in all circumstances. Some of the factors that may be emphasized in different ethical climates of organizations are (Hunt, 1991; Schneider and Rentsch, 1991): ? Personal self-interest ? Company profit ? Operating efficiency ? Individual friendships ? Team interests ? Social responsibility ? Personal morality ? Rules and standard procedures ? Laws and professional codes Pressure, opportunity, and predisposition can all lead to unethical activities; however, organizations must still take a proactive stance to promote an ethical climate. The final section provides some useful suggestions available to organizations for creating a more ethical climate. 3. 9Promoting an Ethical Climate: Some Suggestions and Strategies Recent literature has suggested several strategies for promoting ethical behavior in organizations. (Adler and Bird, 1988; Burns, 1987; Harrington, 1991; Raelin, 1987; Stead etal. , 1990). 1. First, chief executives should encourage ethical consciousness in their organizations from the top down showing the support and care about ethical practices. 2. Second, formal processes should be used to support and reinforce ethical behavior. For example, internal regulation may involve the use of codes of corporate ethics, and the availability of appeals processes. 3. Finally, it is recommended that the philosophies of top managers as well as immediate supervisors focus on the institutionalization of ethical norms and practices that are incorporated into all organizational levels. The philosophies of top managers as well as immediate supervisors represent a critical organizational factor influencing the ethical behavior of employees (Stead etal. , 1990). A seven-step checklist that organizations should use to help their employees in dealing with an ethical dilemma (Schermerhorn, 1989; Otten, 1986): 1. Recognize and clarify the dilemma. 2. Get all the possible facts. . List all your options. 4. Test each option by asking: â€Å"Is it legal? Is it right? Is it beneficial? † 5. Make your decision. 6. Double check your decision by asking: â€Å"How would I feel if my family found out about this? How would I feel if my decision was printed in the local newspaper? † 7. Take action. An effective organizational culture should encourage ethic al behavior and discourage unethical behavior. Admittedly, ethical behavior may â€Å"cost† the organization. An example might be the loss of sales when a multinational firm refuses to pay a bribe to secure business in a particular country. Certainly, individuals might be reinforced for behaving unethically (particularly if they do not get caught). In a similar fashion, an organization might seem to gain from unethical actions. For example, a purchasing agent for a large corporation might be bribed to purchase all needed office supplies from a particular supplier. However, such gains are often short-term rather than long-term in nature. In the long run, an organization cannot operate if its prevailing culture and values are not congruent with those of society. This is just as true as the observation that, in the long run, an organization cannot survive unless it produces goods and services that society wants and needs. Thus an organizational culture that promotes ethical behavior is not only more compatible with prevailing cultural values, but, in fact, makes good sense. Although much remains to be learned about why ethical behavior occurs in organizations and creating and maintaining organizational cultures that encourage ethical behavior, organizations can benefit from the following suggestions: ? Be realistic in setting values and goals regarding employment relationships. Do not promise what the organization cannot deliver. ? Encourage input throughout the organization regarding appropriate values and practices for implementing the cultures. Choose values that represent the views of employees at all levels of the organization. ? Do not automatically opt for a â€Å"strong† culture. Explore methods to provide for diversity and dissent, such as grievance or complaint mechanisms or other internal review procedures. ? Insure that a whistle-blowing and/or ethical concerns procedure is established for internal problem-solving (Harrington, 1991). Provide ethics training programs for all employees. These programs should explain the underlying ethical and legal (Drake and Drake, 1988) principles and present practical aspects of carrying our procedural guidelines. Understand that not all ethical situations are clear-cut. Like many basic business situations, the organization should recognize that there are ambiguous, grey areas where ethical tradeoffs may be necessary. More importantly, some situations have no simple solution (Cooke, 1991). ? Integrate ethical decision-making into the performance appraisal process. . 0THE CASE AGAINST BUSINESS ETHICS EDUCATION 4. 1The Milton Friedman Argument According to Milton Friedman’s philosophy it states that the ethical duty of business people is to maximize profit. He also says in his philosophy that businesses should be concerned with stakeholders’ wealth maximization which requires competency in their business. This means that they (business people) should study marketing, finance, and operations and should not waste time studying ethics. Freidman advances two main arguments for his position. First that corporate executives and directors are not qualified to do anything other than maximize profit. Business people are experts at making money, not making social policy, and it is by making money, that they contribute to human welfare. They lack the perspective and training to address complex social problems, which should be left to government and social service agencies The second argument which is rooted in Friedman’s libertarian philosophy maintains that corporate officers have no right to do anything other than maximize profit. Corporate officers have no right to spend investors’ money on social welfare. Sole proprietors can spend the company’s money the way they want, since it is their money, but fiduciaries and hired managers have no such privileges. If they want to contribute to social causes, they are free to donate as much of their own money as they please. In the first argument, determining just how far they should go in order to meet this goal is what business ethics is all about. Business ethics rather than social ethics in general is the required competency. Students concede to this in that once business ethics is distinguished from ethics in general simply collapses into the duty of maximizing profit under the law. There are no specifically business related obligations than this and no training beyond business law and the traditional managerial skills is required. 4. 2The Argument from Incentives This argument begins with the familiar hypothesis that economic phenomena are best explained as resulting from the choices of utility maximizing, self interested individuals. Moral sentiments therefore play no significant role in economic life. Even if there are duties beyond profit maximization, the only way to encourage ethical behavior is to install financial and legal incentives. Business People respond to these not ethics lectures. If business people behave ethically, it is only because financial inducements and legal sanctions are properly calibrated, not because Kant or Aristotle inspired them to do the right thing. For example in the U. S. business scandals can only be addressed by such measures as regulatory reform, improved corporate governance, and removal of conflict of interest. Ethics instructions have no place in this picture. 4. 3The Gut Feeling Argument One cannot study ethics in a meaningful sense anyway, since it is something ou feel, not something you think about. Ethical judgment is seen as an essentially non-rational function that is tied to emotions and early childhood development. 4. 4The Moral Development Argument. Moral character is formed in early childhood, not while sitting in ethics class. By the time students enter business school, it is too late to change. One learns ethics from mom and dad, not from college professors. Moral chara cter is fixed early in life. This does not imply that ethics instruction serves no useful purpose, since it can change behavior even if it doesn’t change character. The opponents of ethics education presumably concedes that finance, marketing and operations courses change behavior, but insist that ethics courses do not. Where is the evidence showing the ethics which directly deals with how one should behave, incapable of changing behavior? There are a number of reasons to suspect that ethics instructions can affect conduct without going as far as to change character. They are: ? It provides a language and conceptual framework with which one can talk and think about ethical issues. Its emphasis on case studies helps to make one aware of the potential consequences of ones actions. It presents ethical theories that help define what a valid ethical argument looks like. It teaches one to make distinctions and avoid fallacies that are so common when people make decisions. ? It gives one an opportunity to think through, at ones leisure, complex ethical issues that are likely to arise later, when there is no time to think. 4. 5The motivational argument This final argument takes us into ethics the first class on the first day of the semester. Even if there is reason to study ethics, business students see no motivation to study it and do not take the subject seriously. Many students object to ethics class with such animus as it is different from others as they say. The finance or marketing instructor enlightens them, but the ethics instructor preaches to them and some students do not want to be preached to, and so react negatively. Accordingly, it is seen that students say that their finance instructors do not try to convince them to make money as the lecturers know the students want to make money and so they tell them how to make the money as opposed to the ethics lecturers who assume that students want to be ethical and so tell them how to. Some instructors have devised a number of strategies to overcome this issue. They convince students that ethical conduct is smart business, because they can â€Å"do well by doing good†. They integrate discussion of ethical issues into courses students’ regard as legitimate, such as finance and marketing. They bring in seasoned executives to talk about how ethics is a constant factor in their decision making. 5. 0CONCLUSION In conclusion, study of business ethics as an academic discipline is important to ensure that the managers are equipped with the tools and knowledge to undertake the ethical judgment about the organization business operations. This study also enables the organization to work towards achieving its objectives it sets to achieve since the stakeholders who contribute to the organization’s success will have more trust in the company to manage their interests in that organization. Even though ethical problems in organizations continue to greatly concern society, organizations, and individuals, the potential impact that organizational culture can have on ethical behavior has not really been explored (Hellreigel et al. , 1989). The challenge of ethical behavior must be met by organizations if they are truly concerned about survival and competitiveness. What is needed in today's complicated times is for more organizations to step forward and operate with strong, positive, and ethical cultures. Organizations have to ensure that their employees know how to deal with ethical issues in their everyday work lives. As a result, when the ethical climate is clear and positive, everyone will know what is expected of them when inevitable ethical dilemmas occur. This can give employees the confidence to be on the lookout for unethical behavior and act with the understanding that what they are doing is considered correct and will be supported by top management and the entire organization. REFERENCES 1. FERRELL, O. C. , FRAEDIRICH, J. & FERRELL, L. (2005). Business Ethics: Ethical Decision Making and Cases. Houghton Mifflin Company, U. S. A. 2. Hooker, J. (April 2003). Why Business Ethics? Carnegie Mellon University. 3. http://wpweb2. tepper. cmu. edu/ethics/whybizethics. pdf 4. http://construct. haifa. ac. il/~danielp/soc/sims. htm 5. http://changingminds. org/explanations/values/values_morals_ethics. htm 6. Friedman, M (1970), â€Å"The Social Responsibility of Business Is To Increase Its Profits,† New York Times Magazine (September 13). 7. http://en. wikipedia. org/wiki/Meta-ethics

Human Capital Theory

To what extent can Human Capital Theory provide a plausible explanation for inequalities in the labour market? Illustrate your answer with examples of labour-market segmentation tied to race or gender or social class. Introduction: Human capital theory can be identified as studies of organisations, individuals or nations which accumulates stock of productive skills and technical knowledge from study of investments (Becker, 1964). By following the judgement of human capital theory it can be said that it represents a path for the individual to develop his or her charisma to the labour market . Human capital theory is used as a analysis of theoretical frame , development of competence , formal education and job tenure probably are the crucial aspects for the individual’s perceived employability. As a result investment of individuals in these respects would be essential factors in identifying their perceptions of the possibilities that exist for gaining new employment (Judge and Bretz, 1994 et al, 1995). Efficiency losses and Gender differences: In recent times around 50 % of woman around the world are in the labour force officially, approximately 1/3rd of all workers are constituted by women’s. Work unpaid performed by females most of them because following the tradition of division of labour within nature of employment on family farms . Although it attracts pay, men’s work is valued more than women’s. Earnings of women is normally average around 2/3rd of men’s . In general, simply 1/5th of world’s wages accrue to women partly because they are engaged usually in low paying-jobs. Still in these jobs, payment is less usually to women compare to men instead doing comparable work (Bergmann, 1971), the result of discrimination and exclusion of women are solely the gender differences in labour market, to evaluate a method the output and wage are affected under conditions of discrimination it has been projected in the context of racial segregation, According to (Tzannatos, 1988) this method can be extended to apply in context of gender on the basis of assumption that men and women have same human capital and preference. This exercise is preceded in two steps, in beginning it estimate the output in present conditions, namely, when differences occupational and wage within industries. Secondly, output is re-estimated assuming within industries are eliminated due to occupational differences, Therefore differences between two estimates of output provided when there is maximum welfare gains indicated it can be achieved, but characteristic and preferences are same of women as compare to men and equally treated in labour market. For Example: UNESCO 1999 In India , women around 88 % in higher education opted to majors in arts and commerce but 1 % of women choose occupations like engineering . low paying jobs are choose by majority of women in Kerala like nurses , clerks , school teachers and typists. Dreze and Sen, 1996) Kerala which ranks first within states of India in Gender development and Human development Index, In fact female in Kerala enjoyed a better status in society than other females in rest of the part of India and although a male child is considered to be more valuable compare to female in India but in Kerala it is different case, women exceeds 1000 to males Except districts such as Wayanad and Idukki. According to census conducted in India, Kerala outnumbered men, the independence and pride among the women in Kerala has instilled in them (Jeffrey, 1987). In Some countries, women who are married are prevented from working due to law or by strong social customs, in late 1970s and early 1980s it was true in Korea and Japan in which women had to left their jobs due to marriage (Horton, 1994), although in Korea it is no longer to discriminate against women married in dismissal and promotion, hiring in discrimination is still un punishable due to law and remained sex stereotyped in Japan ,Discrimination against married women is still carried and permitted in Indonesia and due to the law husband is identified as the household head. Provisions such as results in working women or women workers being left with the last option that is into dead-end jobs, although first to lay off but still paid low wages, This overcome women’s incentive to remain in labour force to human capital. Treatment for the married workers in the family can be strengthen the traditional specialization of labour with in the statistical discrimination and household . From the perspective of Cigno (1994) there is existence of gender biases in various forms, more often in family treatment as a tax creates disincentives to work for women and taxation due to joint tends women to stay at home rather than separate taxation due to the higher marginal taxes that the earnings of worker which is considered secondary or usually, the wife attract . axation if separated may increase incentives of women while working and might result in greater participation as compare to the husband in domestic activities. Apart from this area Gustaffson (1995) believed that divorce laws not to oblige fathers to support their children. Additionally, the financial ability was lacked by women to access the courts . hile enabled legal provisions that equal sharing of responsibilities and child care among parents, on work constraints women’s are relaxed and eased so poverty declined among mothers for an example authorities in Sweden serious attempts are made to identify th e fathers to make them share the cost of finance for the child rearing die to this there is increase in price of children to men and indirectly there is reduction in the fertility which results in beneficial effects to welfare of women and work . Trzcinski and Alpert, 1994) maternity leave deals with which is physically demanded by new mothers and pregnant mothers and there is variation in the provisions maternity legislation among the developed countries for example in Canada there is 15 weeks leave where as in U. S. A only 6 weeks and provisions of maternity also differs such as private one or national system . here as in Philippines and Thailand the family extended has enables women to work after the family formation by giving the day care facility and in some South Asian countries and African Countries children are not constituted as a major barrier for female in labour force participation and neither there is reduction of potential duration of working life compare to men . Ther e are two types of legislations:- 1. Equity promoting legislations It is known as the requirement that women and men are paid equal wages or have equal opportunities. 2. Protective legislations In short it consist of maternity , hazardous and night work it is seen that this legislation is more valuable to women than was legislation to ensure the conditions exploited women faced during the industrialization. (Goldin, 1990) According Mason (1988) Protective legislation to women can lead to discrimination statistical against the group deem to benefit such kind of regulation usually helps out who are already working but hampers which are seeking for a job in the protected sector or it can create blockage between both covered and un covered sectors . For example restriction on night work from specific work can excessively reduce ability of women to compete effectively in the labour market. In countries like Britain, New Zealand, Canada and Greece female pay used to be prescribed as reference to male pay underpayment of women was depended in two things and first thing is man was considered usually to look after and support a family and be paid family wage by which he can support him and his family, secondly it was considered women working for her own as single and married for additional family income. MacDonald, 1994) Wage setting of this kind refection of existing norms. This type of wage setting was suitable for employers on the basis of short run-minimization of cost considerations. while the differential pay rates for men and women workers was removed from law and single wage rate was added in the law due to this gender pay gap was reduced in some of the cases. Previously female and male wage rates were replaced by rates for l ight and heavy work . According Ehrenberg and Smith, (1987) in the case of gender differences of pay by employment segregation instead of unequal pay in the same job or employment and overt wage is illegal and discriminative, Schemes such as job evaluation can be undertaken to check a cook or carpenter is worth in comparison, although it is true that both work requires same level of training , esponsibility and effort, possibly cook are mostly women’s and carpenter are men’s in this case labour market will first assign lower wage to cook than carpenter . It is not fair as two comparable workers in terms of human capital characteristics will be awarded differently and it has been proved by having a glance at evidence in U. S. A that it has adverse effects on employment by following the comparable worth principle. Conclusion: This concludes that a labour market perspective, and most important recommendations of this is that policies should treat reproduction and unpaid work as recognized economic activities, secondly the legislations are important timely but not be over designed and case of economies indicates that women workers faces risk of poverty that were traditionally borne by enterprises are now lost such family leave, day care, child allowances. It also explains the discrimination faced by women and inequality done in labour market segmentation tied to gender and race and also due to the unfair law followed in earlier times by many countries but in these some legislations proved to be successful such as equal payment to men and women in developed countries and facts such as comparison of labour resulted in unfair wage distribution found by evidence from U. S. A We also know that how women are considered less valuable in some countries in comparison to men and how it affects the women society and indirectly the human capital of women workers and moreover it can be seen that it is male dominated, certain action plan worked in developed countries but not in other countries and from example of India we can see the selection of work of women that is the low wage work selection due to this women are lacking behind because of decision-making ability compare to men ,Thus from the above essay we can see the inequalities and problems faced by women while surviving in the human capital labour market . References:- Becker, G. S. (1964). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70, 9-49 Bergmann, B. (1971) The effect on white incomes of discrimination in employment. Journal of Political Economy 79(2), 294–313 Tzannatos, Z. (1988) The long run effects of the sex integration of the British labour market. Journal of Economic Studies. 15(1), 1–18 Judge, T. A. and R. D. Bretz (1994) ‘Political Influence Behavior and Career Success’, Journal of Management 20(1): 43–65 . Judge, T. A. , D. M. Cable, J. W. Boudreau and R. D. Bretz (1995) ‘An Empirical Inves- tigation of the Predictors of Executive Career Success’, Personnel Psychology 48(3): 485–519 UNESCO. Report of Expert Group Meeting on Training of Women Graduates in the Development Process, Thailand, February 1999 Dreze, Jean, and Amartya Sen. India: Economic Development and Social Opportunity. Delhi: Oxford University Press, 1996 Jeffrey, Robin. â€Å"Governments and Culture: How Women Made Kerala Literate. † Pacific Affairs 60 (Autumn 1987): 447–472 Cigno, A. (1994) Social security, the tax treatment of couples and the position of women. Paper presented at the Gender Symposium, World Bank, Poverty and Social Policy Department, World Bank, Washington, DC Horton, S. (1994) Women and Industrialization in Asia, Routledge, London Gustaffson, R. (1995) Single mothers in Sweden: Why is poverty less severe. In: Katherine McFate, Roger Lawson and William Julius Wilson (Eds. ), Poverty, Inequality and the Future of Social Policy: Western States in the New World Order, Russell Sage Foundation, New York Trzcinski, E. , Alpert, W. T. (1994) Pregnancy and parental leave benefits in the United States and Canada: Judicial decisions and legislation. Journal of Human Resources. 29(2), 535–555 Mason, M. A. (1988) The Equality Trap: Why Working Women Should Not be Treated Like Men. New York MacDonald, M. (1994) Social security policy and gender, Paper presented at the Gender Symposium, World Bank, Poverty and Social Policy Department, Washington DC Goldin, C. (1990) Understanding the Gender Gap: An Economic History of American Women. Cambridge University Press, Cambridge Ehrenberg, R. , Smith, R. (1987) Comparable worth wage adjustments and female employment in the state and local sector. Journal of Labor Economics 5(1), 43–62

A policy of imperialism in America

A policy of imperialism in America From the late 1800s through the early 1900s, Americans pursued a policy of imperialism that became referenced as Social Darwinism. This Imperialist Age left a positive impact on America through the military and economic worlds. Leading the nations, the United States felt that colonies were crucial to military power. Militarism and imperialism were both connected. They were connected because imperialism meant the stronger taking control of the weaker and having a strong military is what America wanted to have to be the more powerful nation and take control. Europeans have been taking control for years and America didn’t want to be next Imperialism made the military row stronger for its country. In the 19th century, military power was a form of imperial strength. A nation needed a strong military to protect its interests and support its policies. â€Å"Seeing that other nations were establishing a global military presence, American leaders advised that the United States build up its own military strength†(Holt 549) Strong armies and navies were needed to take care of the United States, to protect trade among other countries, and stay strong against threats and rivals. Admiral Alfred T. Mahan of the U.S. Navy urged the government officials to strengthen and put time/money into the American naval power. â€Å"As a result of the urging of Mahan and others, the United States built nine steel-hulled cruisers between 1883 and 1890†(Holt 549). This was done in order to compete with other nations. Governments and leaders who have not been able to maintain their armies and navies are considered less than or weaker than other countries. Americans military strengthened and overcame many obstacles for it to be one of the armies of the leading nations.This wasn’t the only positive effect but also. In the late 19th century, advances in technology enabled American farms and factories to produce more than the average amount of American citizens could consume. The United States needed more material for the factories and new, different markets for its goods. â€Å"Imperialists viewed foreign trade as the solution to American overproduction and the related problems of unemployment and economic depression†(Holt 549). The motive for nineteenth-century European imperialism is that imperialism would benefit the economies of the colonial powers. Some Americans formed the idea that Social Darwinism came into play. â€Å"A belief that free-market competition would lead to the survival of the fittest†(Holt 550). America was growing and reaching to the top of the economy list of the world and many believed that the United States had the responsibility to help the inferior peoples. Because the American economy advanced and produce more goods, the country became richer than ever and helped make the economy boom. Overall imperialism really had a major factor when having the United States military grow stronger as it pushed the country to protect its interests and support its policies. But also help the economy rise, advance in technology, and produce more goods.

Financial Statement Analysis Assignment Example | Topics and Well Written Essays - 1000 words

Financial Statement Analysis - Assignment Example A provision for warranty should be provided for at 2% and any changes is taken to the profit and loss account. An account should be maintained that has this figures and if there is returns then the actual amount and changes in the provision is taken to the profit and loss account. b. Calculate K2’s warranty expense for 2008. Opening balance 8,430,000 Provision 2% of 1,934,700,000 38, 694,000 47, 124,000 Closing balance 6,490,000 Warranty expense for the period 40,634,000 c. How much did K2 pay during the year to repair and or replace goods under warranty? Amount paid for repairs =50% of warranty Amount paid for repairs =50% of 2% of 1934.7million = 19,347,000 2. (6 points) Mustang Inc. issued $800,000 of 5%, 20-year bonds at 96 on January 1, 2000. Through Jan 1, 2008, Mustang amortized $20,000 of the bond discount. On January 1, 2008, Mustang Inc. retired the bonds at 102 (after making the interest payment on that date). a. Calculate the net book value of the bond on January 1 , 2008 Interest = .05 x800,000= 40,000 Net book value = 800,000x102/100 = 816,000 b. and the gain or loss that Mustang would report for this retirement. Loss of the retirement = 800,000-816,000= 16,000 3. Higher Ratio financial risk Total debt/ equity (%) Increases EBITDA interest coverage Decreases Operating income/Sales (%) Decreases Free operating cash flow/Total debt (%) Decreases Return on equity (%) Decreases FFO/Total debt (%) Increases / Decreases Long-term debt/ equity (%) Increases EBIT interest coverage Decreases 4. (18 points) Progressive Corporation (a property and casualty insurance company) reported the following in its 2008 annual report: 2008 2007 (in millions) Carrying Value Fair Value Carrying Value Fair Value 6.375% Senior Notes due 2012 (issued: $350.0, December 2001) $ 348.9 $ 355.3 $ 348.6 $ 367.8 7% Notes due 2013 (issued: $150.0, October 1993) 149.3 154.3 149.2 162.9 6 5?8% Senior Notes due 2029 (issued: $300.0, March 1999) 294.6 272.0 294.4 311.8 6.25% Seni or Notes due 2032 (issued: $400.0, November 2002) 394.0 350.0 393.9 397.6 6.70% Fixed-to-Floating Rate Junior Subordinated Debentures due 2067 (issued: $1,000.0, June 2007 988.7 450.0 987.8 936.5 $2,175.5 $1,581.6 $2,173.9 $2,176.6 On December  31, 2008, we entered into a 364-Day Secured Liquidity Credit Facility Agreement with National City Bank (NCB). Under this agreement, we may borrow up to $125 million, which may be increased to $150 million at our request but subject to NCB’s discretion. The purpose of the credit facility is to provide liquidity in the event of disruptions in our cash management operations, such as disruptions in the financial markets, that affect our ability to transfer or receive funds. The revolving credit facility agreement discussed above replaced an uncommitted line of credit with NCB in the principal amount of $125 million. Under this terminated agreement, no commitment fees were required to be paid and there were no rating triggers. Interest o n amounts borrowed would have generally accrued at the one-month LIBOR plus .375%. We had no borrowings under this arrangement during 2008, 2007, or 2006. Aggregate principal payments on debt outstanding at December  31, 2008, are $0 for 2009, 2010, and 2011, $350.0 million for 2012, $150.0 million for 2013, and $1.7 billion thereafter. Required: a. What amount does Progressive report for long-term debt on its balance sheet? The amount of long-term debt reported in the year 2008 was 2,175.5 million and 2,173.9million in the year 2007 b. Why is

Comparing HIPAA & GLBA Essay Example | Topics and Well Written Essays - 500 words

Comparing HIPAA & GLBA - Essay Example HIPAA was signed into law in 1996. Electronic transactions have also been under the scope of this act due to the fact that information systems have been dramatically evolving, which poses a risk for the avenues of how information is transmitted. Since HIPAA puts strict regulations in patient information, blue cross blue shield was force to renovate its strategy. Due to HIPAA and ACA, blue cross blue shield was forced to think of new strategies. For example, it used the benchmark principle to tell the hospitals to reduce its cost by 10%, which was indirect method. A more direct approach would be to tell the hospital to directly cut the staff. In this particular scenario, blue cross blue shield gave full control to the hospital to reduce its cost which could mean eliminating paper waste, cutting salaries, reducing leisure activities. Both HIPAA and ACA influence insurance and hospitals to securely dispose medical information of patients. A challenge for any healthcare provider and its subsidiaries is the fact that fraud has become a serious issue in this era. In order to combat fraud, Congress enacted HIPPA and the ACA have implemented some procedures to combat fraud. The HIPAA and ACA are both critical legislations that ensure patient privacy. This is a key element to prevent fraud in most cases. Individuals seeking information must submit their PHI or SHI in order to prevent other individuals from claiming insurance compensation on behalf of others. Similarly to the HIPAA, the Gramm-Leach-Bliley Financial Modernization Act is designed to facilitate and provide integrity to consumers against financial institutions that offer products. Undoubtedly, protecting the privacy of consumer information is critical towards harnessing the growth of business and protecting the integrity of information that is transferred. Thus, the GLB act not only covers federal banking agency

Strategic plans Essay Example | Topics and Well Written Essays - 500 words

Strategic plans - Essay Example An organization that aims to be cutthroat in today’s competitive market needs to seek talent and expertise from a broad array of countries and continents. This allows it to deal with consumers coming from different backgrounds, cultures, ethnicity and education. How a company deals with its operations to reach zenith necessitates integrated processes and functions. The company can curve to socioeconomic conditions in the ways it tailors its goods and services without disturbing the cultural sensitivity of either the employees or the consumers. In many circumstances a company will have to adapt its products and marketing mix strategy to meet unchangeable local needs and wants. Global player like Mcdonald has adapted its burgers to the local needs. In India where a cow is a sacred animal they serve their burgers with chicken or fish whereas in Mexico burgers come with chilli sauce (Jones, 2009, p.87). It is arguable that standardization is better for organizations because it reduces cost; however the thriving companies are ones which think globally, but act locally. In spite of globalization, geographic, demographic, economic and cultural characteristics of consumers vary dramatically in different countries. Thus it is critical to imply that, a business will need to adapt its product mix, communication and marketing strategy to match the disparity in product preferences, product uses, consumers’ attitudes, shopping patterns, income levels and education. Dennis and Harris manifested global branding strategy as a local plan for each served market by carefully singling the most significant differences and tailoring the products and services to suit local tastes and conditions (Beeson, 2011). According to them having a standard approach worldwide without considering local preferences and cultural differences a company is doomed to failure (Lauterborn, 2011, p.56). Food and beverage organizations can easily fall prey to impediments

Casestudy Case Study Example | Topics and Well Written Essays - 500 words

Casestudy - Case Study Example We at Lauren sincerely regret the unavoidable employee lay-off situation that followed our acquisition of Western Company. We have received complaints by former Western employees who feel aggrieved by the amount of severance package we have stepped forward to offer our unfortunate brothers whose esteemed services were cut short at the firm for sustainability reasons. For demonstration we shall pick the case of Bill Smith, a recently laid off Western employee, who we understand is concerned that Lauren is not genuine in the severance package offered to him. To clarify our stand, Lauren has hired the services of a statistician who worked out the figures contained in the analysis below regarding our severance packages policy. The output above shows the coefficients generated when the data from the randomly picked former Lauren employees is executed. We use the table values to construct a linear model that can be used to determine the amount of severance pay for any employee at the firm and emerging subsidiaries. The model is supposed to acquire the form: y = ÃŽ ²0 + ÃŽ ²1x1 + ÃŽ ²2x2 + ÃŽ ²3x3 since we have got three independent variables; employees age at the time of termination of the contract, the length of time the employee has worked with us, and the annual pay of the employee. We have also one dependent variable, weeks of severance pay. From the figure obtained above (-2228.2 weeks), it is clear that the model does not exactly obey the assumption that the pay period is directly related to any linear combination of the factors listed by Lauren as the determining factors of pay period. This is a serious fact because it exposes Lauren as a company that does not honour or follow any pre-set procedures in administration of the severance package. The negative value indicates that Mr. Smith is supposed to work for firm for another over 2220 weeks, a situation that depicts him as

The Four Tops Essay Example | Topics and Well Written Essays - 750 words

The Four Tops - Essay Example They signed with Motown records in 1963 (Johnson 2). Even though, the four tops are best remembered for the records they produced at Motown in the Sixties, they also had noteworthy success at such places as Casablanca, ABC, and Arista in the decades that followed. Although the four tops began their career at Motown, they had a considerable prehistory before their arrival at the label Benson and Payton attended Detroit North High School While Fakir and Stubbs attended Pershing High School in the North end of Detroit. They first sang together at a friend’s birthday where they had met the four of them after graduating from high school; they formed the Four Aims in 1954 where they evolved into a versatile night club act. Payton had a talent of arranging harmonies, and he became the group musical director. His Cousin Roquel Davies also became closely affiliated with the group, and he provided management, material and even vocal assistance during the formative years of the group. Th e four tops recorded several classics in Motown, which remains the most outstanding singles during the label’s mid sixties. ... Four Tops made Billboard’s Hot 100 chart 45 times between 1964 and 1988 and fifty two times in R&B chart. Twenty-four of their singles managed the Top forty, and seven of those managed the Top ten. Throughout their career, they sang in close harmony and not even a single voice stood apart from the others. In 1962, the group was approached by Berry Gordy for a deal, but they failed to sign a deal with him since they said they wanted to be sure whether Gordy’s Independent Label would survive. Gordy described the group as very loyal to each other and their vocal blend as phenomenal. However, after two years, they signed a deal with Gordy and their first project was an album of show tunes named Breaking. At this point, the Four Top future seemed uncertain with failed singles on three labels and one unreleased album on a fourth label. Nonetheless, there followed a triumphant union with Holland-Dozier-Holland, which resulted to a hit, â€Å"Baby I Need Your Loving,† im mediately. It was decided that the Four Tops be reshaped from a close harmony group to one with lead vocalist (Levis) while Benson, Fakir and Payton provide background vocals, harmonies, and occasionally co-leads. In addition, it was resolved the need to emphasize Levis’ high range, where his croaky, anguished vocals most expressively communicated the passion of Eddie Holland’s lyrics The Four Tops Led in Mid-1965with ‘I cannot help Myself’ classic spotlighting the group. However, the climax of their work with Holland was ‘Reach Out I’ll Be There’ from its spectacular neoclassical arrangement to Levis thunderous vocal. It was one of their greatest recordings. It remained in the charts for almost four months, and it was their second number one hit (Jones 52). The fruitful union of

National Curriculum in Schools in England Essay

National Curriculum in Schools in England - Essay Example From this study it is clear that a curriculum should not burden the leaners by ensuring that the developers constitute the most appropriate concepts for every stage of the learning process thereby guaranteeing optimum learning. This requires the consideration of such pertinent features of the learner as their age and the knowledge gap. Additionally, an effective curriculum introduces concepts progressively thereby ensuring that the learner understands each concept at the most appropriate age. Besides the development of the concepts for the learner, curriculums manage the teachers. According to the paper a curriculum must consider and set feature requirements for the teacher thereby ensuring that only the most effective teachers impart the knowledge in the learners. A curriculum therefore advises the teachers on the best earning aids for every learning stage and the mode of teaching to ensure a productive system. Additionally, curriculums should always reflect the state of the society within which it is applied in a number of ways, the knowledge in the curriculum must have direct relevance with the environment within which it is used. This implies that the curriculum must envision the knowledge growth through time. An effective curriculum therefore has a period lapse within which it is reviewed. In the United Kingdom, the period is four years a time within which the developers remove certain aspects of the curriculum and replacing them with new concepts.  

Analysis of Music Instruments in Movies Assignment

Analysis of Music Instruments in Movies - Assignment Example A musical score is a written form of a musical composition. Music has become one thing that people cannot do without due to its numerous advantages. Some of these include: it brings back memories, improves your concentration over time, it gives a soothing ability and some music expands our intellectual ability through the message. To Kill a Mocking Bird's score is one of the superlative scores I have ever encountered. The film based on Harper Lee's book titled by the same name. It is about a young lass Scout, and her elder brother Jem, and their feeble friend, Dill. Scout's father, Atticus (Gregory Peck) takes a case to defend a black man named Tom Robinson. He is accused of raping a white woman. A skillfully edited opening is displaying wonderful shooting and a beautiful score. Its high rating up to date bases on its affecting nature. To Kill a Mocking Bird is one of the greatest film ever, but one thing that makes me watch this movie time and time again is its exemplary music score. Melodies have been used to define what the actors are not enthusiastic or are incapable to communicate hence can stream emotional support for the film.

Bibliography of Famous Authors Essay Example for Free

Bibliography of Famous Authors Essay In this article by Robert Scholes, it talks about the hope and memory in My Antonia. He says the characters find themselves by looking back at the past. He said â€Å"we are reminded of this past constantly: by the Bohemian customs and culinary practices of the Shimerdas; by the observations of Otto Fuch on the relationship of Austrians and Bohemians I the old country; and especially by the Catholic religion of the Bohemians, which is their strongest link with the past, and which serves to bind them together and to separate them from the protestant society of their adopted and†¦Antonia cherishes her connection with the past† it talks about the characters and their past and how it has impacted their lives. I will use this to tie back into my thesis because this is basically what my whole paper is about. My paper based on the character’s past and how it impacts them later in life. The article talks a lot of the past memories that I can use in my research paper. Lucenti, Lisa Marie. â€Å"Willa Cathers My Antonia: Haunting the Houses of Memory.† Twentieth Century   Literature 46 (2000): Literary Reference Center, Galileo. MPHS Library, 18 April 2011 (#33 a work from an online service to which your library subscribes) This article analyzes My Antonia and it’s theme of memory and how it haunts some of the characters. It talks about the story of the wolves and how its haunted Peter and Pavel and how that brings gothic to the story. It also tells why Cather included some of the memories that she did in the novel. It tells the importance of those memories to the characters. I will talk about the memories it mentions and how they are important to the story and to the characters lives. Their past is what makes them who they are and it is important to mention why they are so important to them. This article analyzes the theme and I can use some of that information to help with my argument. Meeker, Joseph W. â€Å"Willa Cather: The Plow and The Pen† Willa Cather’s Ecological Imagination. Ed. Susan Rosowski. Volume 5. Lincoln: U of Nebraska, 1986. (#18 a selection from an anthropology) In this article, Meeker talks about the symbols mentioned in Cather’s novels. It talks about the plow and the landscape in My Antonia. It also talks about how some of the symbols represent the past. The article mentioned imagery throughout the novel and how the Nebraska plains had an impact on Jim. It also mentioned some of the imagery in O Pioneers! and other novels by Cather. I will use the information to help support my thesis on the symbols and theme and how it impacts the characters in the novel. In the article when it talks about the land and how it ties back to the past, I will use that to help my thesis. It has very good detail on everything represented in the novel and it will help me develop my paragraphs on symbolism. Gross, Jonathan D. â€Å"Recollecting Emotion in Tranquility: Wordsworth and Byron in Cathers My à ntonia   and Lucy Gayheart† Cather Studies 7 (2007): Literary Reference Center, Galileo. MPHS Library 18 April 2011 (#33 a work from an online service to which your library subscribes) This article compares My Antonia with novels from Wordsworth and Byron. They all share similar qualities in their writings. In this article it talks about theme and symbols in My Antonia. In both My Antonia and in â€Å"Lines Written a Few Miles above Tintern Abbey†, they talk about the theme of nature and how it impacts the characters. This whole article compares My Antonia to other works by Cather, Wordsworth, and Byron. I will use the information about the theme of nature and symbols mentioned in the article. There’s not a whole lot I can use on My Antonia but it has good information about theme and symbols throughout out the novel. It talks about how Cather focused on landscape and sensitivity of the reader to relate the past. Hallgarth, Susan A. â€Å"Archetypal Patterns in Shadows on the Rock†. Colby Quarterly 24 (1988): 2-4. (#22 An article in a journal with continuous pagination throughout the annual volume) In this article, it talks about symbols and how they represent something in the novel. It talks about how shadows are a repeated pattern in My Antonia and how Antonia breaking away from her mother is a symbol of her going through a new beginning. It compared symbols in My Antonia to some in Death Comes for the Archbishop and how they relate to one another. In the article it says â€Å" Burdens discovery of pastness in the present allows him to see Antonia as all the ‘image’ which do not fade and herself, a ‘battered woman’ (MA, 352, 353). So I will use that in the paragraph I will have talking about how the past still reminds him of Antonia because his childhood is basically Antonia. All of his memories remind Jim of her because she is a big part in his past.

Challenges in the Business Environment Essay Example for Free

Challenges in the Business Environment Essay There has been no change to Apple Code of Conduct policy since 2014 when Apple started taking previous audit scores into consideration and conduct detailed risk assessments with suppliers who had not been audited in the past before awarding the new business. In 2014, we reviewed 459 suppliers, and factored their responsibility performance into our decisions. This engagement has allowed Apple to address over 700 findings related to labor standards, worker safety, permits, environmental hazards, and chemical management before production began (Apple – 2014 Supplier Code of Conduct). Apple has made significant progress, gaps still exist, and there is more work to do. Apple knows that workers are counting on them and they will not stop until every person in their supply chain is treated with the respect and dignity they deserve (Apple Supplier Responsibility 2015 Progress Report). Apple believes that it is not enough to just set high standards they must work every day to make sure they’re upheld. Apple Supplier Code of Conduct is among the toughest in the industry. To track working conditions at suppliers’ facilities, we conduct regular, in-person audits deep into the supply chain. Audits remain essential to Apple work, but they’re only the beginning. Apple reports monthly on working hours for over one million workers with hopes that their openness will inspire other companies. But more important, Apple believe the feedback that transparency invites makes us even better (Apple Supplier Responsibility 2015 Progress Report). Apple’s suppliers are required to provide safe working conditions, treat workers with dignity and respect, act fairly and ethically, and use environmentally responsible practices wherever they make products or perform services for Apple. Apple requires its suppliers to operate in accordance with the principles in this Apple Supplier Code of  Conduct (â€Å"Code†) and in full compliance with all applicable laws and regulations. This Code goes beyond mere compliance with the law by drawing upon internationally recognized standards to advance social and environmental responsibility. This Code outlines Apple’s expectations for Supplier conduct regarding labor and human rights, health and safety, environmental protection, ethics, and management practices. Apple assesses its suppliers’ compliance with this Code, and any violations of this Code may jeopardize the supplier’s business relationship with Apple, up to and including termination. This Code applies to Apple suppliers and their subsidiaries, affiliates, and subcontractors (each a â€Å"Supplier†) providing goods or services to Apple, or for use in or with Apple products (Apple – 2014 Supplier Code of Conduct). To show that Apple believes that it is not enough to just set high standards and that they must work every day to make sure they’re upheld. In 2014, over 2.3 million workers were trained on Apple’s Co de and their rights. Apple invested millions of dollars to expand our Supplier Employee Education and Development (SEED) program since it began. SEED now totals 48 classrooms in 23 facilities equipped with iMac computers, iPad devices, education software, video conferencing systems, and more. To make sure the standards were upheld Apple performed 633 audits covering over 1.6 million workers in 2014. Apple also audited suppliers in 19 countries and calls were made to 30,000 workers to make sure their rights were being upheld (Apple – 2014 Supplier Code of Conduct). Apple Suppliers Understanding of Their Standards, Responsibilities, and Company Relationship Apple is proud of the strong relationships they have built with their suppliers, many of whom have been working with them for years. Apple periodically reviews their relationships and adds new suppliers as needed. Apple requires each of its suppliers to meet the highest standards for all goods and services. Our requirements include a commitment to rigorous quality assurance. In addition, suppliers must be committed, as we are, to ensuring the highest standards of soci al responsibility. The ideal suppliers are those who understand our culture and expectations. We value suppliers who take the time to learn about and understand our business and who look for ways to add value. These suppliers know the importance of making and meeting commitments and delivering the highest quality goods and services (Apple Apple and Procurement). Apple business environment is  competitive and fast-paced. Apple suppliers must understand this dynamic and be agile and flexible in responding to changing business conditions. All over the world, people are building Apple products and Apple has a responsibility to make sure that each person is treated with dignity and respect. It’s a massive challenge where Apple work is never done, but each year they implement meaningful, lasting changes across their supply chain. Because of this around the globe, Apple employees are united in bringing equality, human rights, and respect for the environment to the deepest layers of their supply chain. Apple goes deep into their supply chain to enforce their social and environmental standards by empowering workers through education, demanding that suppliers treat workers fairly and ethically at all times, having safe and healthy facilities, and hold their products and processes to the highest environmental standards (Apple Supplier Responsibility 2015 Progress Report). Apple believes that in order to make impactful changes across their supply chain, it’s important to understand firsthand what’s happening inside their suppliers’ facilities. That’s why they don’t simply employ and review audits from behind a desk in Cupertino. Instead, they directly gauge how their supplier facilities are doing by regularly visiting and partnering with their suppliers around the world, so when they discover a problem, they can work together to get it fixed (Apple – Accountability). To make sure the standards are understood and upheld Apple performed 633 audi ts covering over 1.6 million workers. Apple also audited suppliers in 19 countries and calls 30,000 workers to make sure their rights are being upheld. Every audit is led by an Apple auditor and supported by local third-party auditors. These third parties are experts in their fields and all have been trained to use our detailed auditing protocols. During each audit, Apple grade suppliers on more than 100 data points corresponding to each category of our Supplier Code of Conduct (Apple – Accountability). Apple auditors are highly skilled at identifying when suppliers are covering up information. Apple audits are proven to improve supplier compliance. Each year we review and raise our already strict requirements, and suppliers continue to meet our increasingly stringent standards. In 2014, facilities audited two times scored 25 percent higher than those facilities with first-time audits. Facilities audited three times or more scored 31 percent higher than facilities audited  for the first time (Apple – Accountability). In addition to these regular, prescheduled audits, Apple randomly select facilities to audit unannoun ced. These surprise audits help ensure that our suppliers continue to meet our standards at all times not just during scheduled visits. Apple conducted 40 surprise audits in 2014, where their team visited suppliers on the spot and inspected the facility within hours. After the audit Apple conducts physical inspections, reviews documents, and interviews workers in their native languages, without their managers present. Afterward, workers are given a phone number, so they have the opportunity to securely and confidentially provide additional feedback about a facility to our team, including anything they consider to be unethical behavior. Apple encourages workers to report any retaliation to us, and we follow up with all suppliers to address each reported issue (Apple – Accountability). Inclusion these audits, code of conduct, and standards give Apple suppliers the understanding of what it means to be part of the company. Reference Apple Accountability. (2015, January 1). Retrieved March 7, 2015, from http://www.apple.com/supplier-responsibility/accountability/ Apple Apple and Procurement. (2015, January 1). Retrieved March 7, 2015, from http://www.apple.com/procurement/ Apple – 2014 Supplier Code of Conduct. (2014, January). Retrieved March 3, 2015 from https://www.apple.com/ca/supplierresponsibility/pdf/Apple_Supplier_Code_of_Conduct.pdf Apple Supplier Responsibility Progress Report. (2015, January). Retrieved March 3, 2015 from https://www.apple.com/supplierresponsibility/pdf/Apple_Progress_Report_2015.pdf