Working Time Directive - Business Dissertations - Free Essay Example

Sample details Pages: 22 Words: 6517 Downloads: 5 Date added: 2017/06/26 Category Statistics Essay Did you like this example? The EU Working Time Directive was instituted to standardize working conditions across the European Union it specifies maximum working hours, compulsory rest periods and time off standards. There is an opt-out option which allows employees to agree to working longer hours, an option taken by 2 million British workers. Small and Medium Businesses (SMEs) have been impacted with additional overhead in the form of requisite forms and documentation to prove compliance, and a lack of flexibility as the directive has been enforced. There have been a number of attempts to remove or amend the opt-out option, this has been vigorously opposed by SMEs stating it would force them to become uncompetitive as they compete with the large conglomerates and the self employed person, who is exempt from the directive. Don’t waste time! Our writers will create an original "Working Time Directive Business Dissertations" essay for you Create order This has also led to uncertainty for small business owners and statistics show that the increased regulation could result in some small businesses being forced to close if no opt-out was available in the future. The unions have an opposite view, stating that employees are being exploited and they want the opt-out to be abolished, this has been tried on 3 occasions by the EU but to date these attempts have failed. There are statistics to show that a high number of employees are working 20% additional time as unpaid overtime, a situation that does not benefit the employees in any way. Employees in some industries feel their freedom of choice has been limited and they want the freedom to work longer hours and reap greater financial remuneration as a result of their inputs. The overall effect to both employees and employers in SMEs is that the employers have a higher administrative and cost overhead in complying with the directive and employees do not feel they have additional benefits a nd free will to work on terms and conditions that suit their financial and personal requirements. The British government agrees that the increase in regulations places a heavy burden on the small to medium enterprise. 1. Introduction The dissertation will investigate the effect of the European Union Working Time Directive and its effects on UK small and medium enterprises (SMEs). The EU Working Time Directive guarantees workers A maximum of 48 hours work per week At least four weeks paid annual leave A minimum period of 11 hours rest every 24 hours At least one days rest per week A rest break if the working day is longer than six hours. Ref The Morning Advertiser, https://www.morningadvertiser.co.uk/news_detail.aspx?articleid=23797 The directive was legislated in 1993 and brought into effect in the UK in Oct 1998. Like all European Union directives, this is an instrument which requires member states to enact its provisions in national legislation. Although the directive applies to all member states, in the United Kingdom it is possible to opt out of the 48 hour working week in order to work longer hours. In contrast, France has passed more strict legislation, limiting the maximum working we ek to 35 hours. Ref https://en.wikipedia.org/wiki/Working_Time_Directive The Working Time Directive is a piece of EU legislation designed to prevent damage to the health of workers through working excessive hours and ensuring they have sufficient breaks during the working day and appropriate days off. Self employed people and volunteers are exempt from the legislation. This paper will look into the Working Time Directive as it affects both small business owners and employees. 2. Research Objectives The objectives of the paper are to document the impact of the European Union Working Time Directive, and any significant changes and updates, and assess both the positive and negative impact on employers and employees in Small and Medium Enterprises (SMEs). The directive has been in force in the UK since October, 1998 and a number of proposals have been tabled to amend it in the subsequent period. 3. Research Methodology Background on SMEs will be briefly looked at to identify the scope of the issues within the Small to Medium Enterprises in the UK and the magnitude of their collective effect on the UK economy. The overhead in ensuring a company is in compliance with the Working Time Directive will be investigated and the effect on SMEs in particular, in the UK. In addition, the effects of the changes on employees in this sector to be analyzed, views of the unions will also be commented on, if appropriate as inputs. The application of the opt-out by British c ompanies in general will be analyzed, this is a vital element of the directive for SMEs and widely used by business in the United Kingdom. As the directive was enacted 9 years ago, updates to the directive and the responses of UK SMEs and other companies will be studied. 4. Literature Review Findings Background on UK SMEs Soon after the enactment of the directive, Johan Fairhurst, a senior lecturer at the University of Huddersfield wrote the paper, The Working Time Directive: A Spanish Inquisition, https://webjcli.ncl.ac.uk/1999/issue3/fairhurst3.html#Heading23 He defined an SME as an employer with fewer than 250 workers. SMEs account for 99% of businesses and provide one third of all jobs within the EU see Johnson (1998) p 231). Johnson reviews the impact of the Directive on SMEs within the UK. She concludes that the new legislation will increase staff costs for the SMEs However, those employees who are covered by the new proposals will enjoy the benefit of increased protection for their health and safety in a working environment, which is the very objective the legislation was designed to achieve (Johnson 1998, p 237). At the time of writing, it was felt that there would be an increase in overheads for SMEs but that the employees would enjoy improved protection in the workplace in regard to the ir working times and conditions. The overall purpose was to improve the working/home life of individuals as a result of the directives implementation. The statistics on the scope of SMEs and their tremendous value to the economy should clearly indicate that any changes to legislation should consider the impact of such amendments to this economic sector in order to retain their valuable contribution to the entire European Union economy. Opt-Out Option Article 18 of the Working Time Directive, article 18 does allow member states to opt-out of the directive and not apply the mandated 48 hour working week if the following conditions are met Ref EU Working Time Directive, UK Advisory, https://www.eu-working-directive.co.uk/ workers must sign individual opt out agreements, and must not suffer any penalty if they refuse to do so; Employers must keep records of staff that work more than 48 hours a week, and make them available to the appropriate authorities. The opt-out is not specific to the UK; however, the UK has made use of this provision extensively. The reason cited being Ever since its inception in 1993, the Working Time Directive has caused disruption within European and British industry, and often finds itself in the news following trade disputes or breaches of the legislation. It is estimated that approximately one third (1/3) of British employees have invoked the opt-out, this equates to 2 million workers. The unions stat e that people are being unfairly coerced into signing agreement to the opt-out; they cite that the form to be completed is given to employees when they receive their employment contract plus they state that some employees are unaware of the fact that there is legislation limiting the number of hours that they have to work. During the course of producing this paper, I would disagree with the statement that people are unaware of the legislation; such information is readily available in both the print and electronic media and has been since 1998. There have been increasing calls for the opt-out option to be abolished, and this has been discussed a number of times to date no agreement has been reached and the UK still have this option. This is the single change that would impact the most on small businesses in the UK. The 2 million workers who have opted out are not limited to SMEs but the feedback received from SMEs indicates that they are totally against it being abolished and that t he very nature of their companies finds its inclusion vital to the future of many companies. The Centre for European Politics, https://www.eupolitix.com/EN/ForumBriefs/200405/23de3582-833e-49b0-866c-73ba2420c36f.htm, 27 May 2004 reported that the Forum of Private Businesses (FPB), in collaboration with the European SME Employers Organisation (UEAPME) was opposing certain changes to the directive. They stated The abolition of the opt-out could have a disastrous effect on many firms, impacting on their bottom line and forcing many companies to close. Costs could rise drastically as will the red tape and paperwork certain changes in legislation will impose. FPB considers that the opt-out must be maintained with the option of an independent opt-out agreement. They also cited that removing the opt-out option was against the small business ethos and freedom of choice for both employers and employees. Any closure of companies would have a direct impact on the economy and raise unemploymen t. A survey carried out in April 1994, refer appendix 1, shows that 56% of the respondents expected any change to the opt-out option to increase the already burdensome costs for SMEs. Due to the limitations of resources, both staff and money, within small businesses such companies cannot afford to do without the opt-out option. It is noted that in order to allow staff to opt-out, the burden of administration and record keeping falls to the SME in order to make this available to authorities. In June 2005, the EU ministers met to discuss changes which could have resulted in an end to the opt-out by 2012. The ministers could not agree on the change and it again failed, with the British government stating that scrapping the opt-out would have been unhelpful to Britain and the other member states (BBC) The information technology sector sees particular problems for IT contractors which would adversely affect the sector. Infromatics, ref nvunet.com, 01/10/2004, quoting James Mortimer from the Association of Technology Staffing Companies, ATSCo, in the article EU directive could choke IT skills proposed amendments to the EU Working Time Directive could trigger a serious skills crisis in the IT sector. Ann Swain, the CEO said this legislation is designed to protect workers, but contractors want the flexibility to choose when, where and how they work. Flexibility is vital for contractors as well as for the organizations that employ them. Where problems need to be solved quickly they may have to put in a lot of hours in a short space of time. Its not for anybody to tell them they cannot do that. Any attempt to limit IT contractors rights to opt out of the directive could also lead to a serious IT skills shortage, added Swain. Typically, IT contractors work intense hours to meet business critical deadlines, for this, they are well paid and work for their above average hours. They tend to enjoy a high income for their efforts and many will also take extended time off when it suits them. If the opt-out was abolished on the WTD, ATSCo see this as resulting in a possible skills shortage as there would be no incentive for IT personnel to take on contract work. Although this example refers to technological workers, the same situation would apply for many projects related workers who have one off projects with tight deadlines such as construction, catering and events personnel, etc. Certain industries, such as IT, actually have been proven to attract people with a particular work profile in general they are very work orientated, goals driven, often high achievers and they want the flexibility and options to be in control of their own working environment and income stream that consulting and contracting provides. They take the risks of work downtimes between jobs in exchange for the above average rewards and personal satisfaction of seeing a project successfully completed. Such employees would feel frustrated and limited by the imposition of the Working Time Directive and would probably become self employed to circumnavigate the legislation if the opt-out option was removed or limited. Cost of Working Time Directive In 2003, Management Issue news, ref https://www.management-issues.com/display_page.asp?section=topicsid=623, reported that the additional cost of regulations to UK business was nearly 6bn a year. The article, titled, Bad for business, Bad for Enterprise and Bad for Jobs illustrated that the most expensive of the regulations to business was the Working Times Directive at an overall cost per annum at 2.3bn per annum. In practical terms the Institute of Directors, in a report stated that members with small businesses spent an average of 6 hours a week on red tape. Some have taken on extra staff to cope with the increased paperwork. It appears that the hardest hit sector of business is the SME that have to cope with a tremendously time and cost consuming overhead in order to comply with European Union rulings. The WTD accounts for a staggering 39% of all regulation costs in the UK, the highest of all regulations in force. This is a total figure for UK business, based on the fact that small businesses are the most burdened by the overheads of such regulations, it is fair to state that there is a huge financial burden carried by SMEs that could be better spent to grow and expand their businesses and provide both company and country wide economic growth and improve the financial situation for their employees.. It was reported in the Financial Times ref, https://search.ft.com (John Willman) Sept 06, 2006 that Complying with regulations costs five times as much and takes five times as long for small businesses as it does for large firms The Federation EU chairwoman said Our research has found that two-thirds of small firms want to grow in the next five years but half of all small businesses see excessive regulation as a serious barrier to that growth. The excess of regulations and the negative effect on SMEs has the potential to stifle the sector and limit the growth with serious consequences. Considering the financial contribution they make to the UK economy and the number of employees involved, any cut back in their growth or reduction in income would result in increasing unemployment and rising cost for consumers if they were forced to close their companies due to them becoming increasingly uneconomical. Particularly worrying is the fact that self employed people are exempt from the dir ective entrepreneurs who currently have a small business, could consider working alone to avoid the red tape and administration overhead, particularly costs. The burden to SMEs has also been recognized by the government ref https://www.cabinetoffice.gov.uk/regulation/faqs/index.asp#2 where they produced a document titled Does regulation discourage small businesses? This goes on to state Government recognizes that red tape can have a disproportionate impact on smaller businesses and is looking at ways to reduce the amount of bureaucracy they have to deal with through the better regulation agenda. The Federation of Small Businesses (FSB) reported in February 2007 that The average small business owner in Northern Ireland spends 28 hours per month filling in forms for government SMEs examples In practical terms the SMEs have stated their case against the Working Time Directive and identify the need to retain the opt-out option in order to survive. The following example appeared in The Guardian, ref https://technology.guardian.co.uk, Counting the hours when the truck drivers were to be included into the Working Time Directive regulations, March 25, 2004. The directive does not apply to self employed who, at this time, were still exempt. Gary Hoarth, MD of the transport company Sameday stated if his company wants to offer a service for 50 hours in a week, then legally it will need to employ a second person whereas a self-employed driver could make up the time themselves. If you look at the sort of person we employ, which are semi-skilled individuals, they would tend to increase their earning capabilities through the provision of overtime or additional shifts. If their working time is restricted they need to look at increasing their hourly rate to get them back to where the y are currently in terms of take-home pay. He forsees a potential problem for employees who wish to maintain or raise their standard of living and require a level of income in order to do this. He believes that skilled employees will go out of the door after their official working week and supplement their incomes with additional, paid part time work outside their regular job. The SME, when faced with additional work load, will have to take in inexperienced part time workers to do any additional hours while the employees who are skilled in the position will be working elsewhere on a part time basis to supplement their income, a complete lose/lose situation. Why would you want to put a limit on what someone could earn? People have different levels of capacity and different appetites for work. Study of the UK Working Conditions This section looks at the current state of working conditions in the UK for employees. With the Working Time directive in place, still with the opt-out option available, one would expect the working lives of British workers to have become easier since its inception. The book, Working Time and Workers Preferences in Industrialized Countries: Finding the Balance, Jon C. Messenger; Routledge, 2004 states within the EU there are still around one in five employed men working hours at or in excess of this 48-hour limit, as are 9 per cent of employed women, with the incidence of long working hours particularly prevalent for men in Ireland, Greece and the UK and for women in Greece, Spain and Portugal The book does not identify if these statistics refer to workers who have opted-out of the directive, or not. Statistics in the Guardian, ref https://money.guardian.co.uk/work/story/0,1456,1092148,00.html identify a huge trend in longer working hours actually being unpaid overtime. Based on these statistics, it appears that the directive itself is not benefiting the employees and is being completely undermined. The employees are not gaining additional quality time outside of the work environment and neither are they being financially compensated for the total time spent at work. Such statistics imply that the work force supply and demand is out of balance somehow; if overtime is required but cannot be paid due to regulations that impose a limit on the work week; this is serving no useful purpose to the employee who will have to work the extra hours anyway in order to fulfill company requirements. These statistics would be based on the actual reported unpaid overtime, if the practice is so prevalent in the UK work place, one can assume that the report is based on only known and report occurre nces of this practice and that there are likely to be many unreported cases of additional unpaid overtime being carried out. Unpaid overtime soars in the UK, John Carvel, November 24, 2003 British workers will do unpaid overtime worth 23bn this year, according to a TUC survey today which showed that millions of people are putting in the equivalent of an extra days work every week for no additional financial reward. The survey found that more that five million workers average seven hours and 24 minutes of unpaid overtime a week. The Chartered Institute of Personnel and Development ref https://www.cipd.co.uk/subjects/wrkgtime/wrktmewrklfbal/worklifeba.htm?IsSrchRes=1 did a survey in March 2001 and asked if the UK has a culture of long working hours. Respondents stated that working longer hours was totally [their] own choice doesnt mind working long hours up from two out of five respondents saying the same thing in the previous survey conducted in 1998. The above reports indicate that the WTD is not having a positive effect on the working lives of UK employees in general. If one has chosen to not opt out, an employee could find themselves working additional time with no compensation and workers themselves often choose to work longer hours, based on their financial requirements and the companys workflow needs. It is fair to say that such effects would be heightened in an SME where they have the additional constraints of limited resources and variable workloads. The statistics for unpaid overtime are exceptionally high, with 5 million workers putting in an additional 22% of work each week without any reward or additional time off in lieu. Although the report does not state this, it can be assumed that workers are likely to undertake this high level of unpaid work for one of the following reasons. 1. To keep their job in a competitive market as they do not see better prospects being available elsewhere working standard hours probably leading to a high level o f frustration and work dissatisfaction 2. The employee is within an environment where this is considered the standard and they accept this in order to gain future advantages or simply because they want to be part of a successful team. 3. The employee chooses to work longer hours and does not resent the fact that it is unpaid. Changes and their outcomes The latest attempt by the European Union to do away with the Opt-out option occurred in Nov 2006. In the Morning Advertiser, ref https://www.morningadvertiser.co.uk/news_detail.aspx?articleid=23797, 07/11/2006 The Federation of Small Businesses (FSB) said, prior to the meeting in Brussels, Surrendering the opt-out would be equivalent to abandoning British businesses but so would allowing it to be watered down with tons more red tape The European Union not only discussed scrapping the opt-out option it also wanted to reduce the maximum number of working hours per week from 78 to 60 for those countries that had the opt-out option; primarily this would affect Britain who are the country who have used the option most frequently. The talks failed and the outcome was met with varying responses from the FSB and the unions. The FSB hailed the results as a success and praised the government for fighting to retain the opt-out; in contrast, the unions felt that workers would continue to be e xploited. Both aspects were not passed, the opt-out option remains as does the current maximum hours of 78 hours. Ref https://www.newbusiness.co.uk/news/working_time_talks.html 08/11/2006 The collapse of discussions may be bad for relations between EU member states but for UK small businesses this is great news, said Matthew Knowles, spokesman for the FSB. The status quo is much better than either the Finnish proposals or the loss of the opt-out. The UK government has again defended small businesses and their 12 million workers from both the loss of the opt-out and from a huge rise in red tape. Small business owners will be breathing a sigh of relief that the average 28 hours a month of form-filling they already have to do wont go any higher for the time being, he added. The Trade Unions Congress (TUC) felt the outcome was a missed opportunity to ensure that UK workers are properly protected against the dangers of overwork, said Brendan Barber, TUC general secretary. The trend in t he UK is now towards a slow decline in long hours working. The Union Views on Time Working Directive The TUC feels that the UKs opt-out from the directive is being abused. As reported by the BBC, ref https://news.bbc.co.uk/2/hi/uk_news/3254940.stm Tuesday, 2 December, 2003. An unpublished European Commission report, obtained by the BBC, found that British workers were being pressurized into signing opt-out clauses and giving up their rights to take rest breaks. TUC General Secretary Brendan Barber said the report showed the UKs opt-out policy was failing to protect workers rights and needed to be scrapped. The research, based on 13 case studies, was compiled by three Cambridge University academics and involved interviews with staff at several companies. The report also found low productivity in businesses where staff worked very long hours, with stress and burnout being a major factor. The research, which was asked for by the European Commission last year ahead of a review of the UK opt-out, was never published but a copy was obtained by the TUC. It follows publication last wee k by the TUC of its own report that claimed UK workers put in more than 23bn of unpaid overtime this year. Using official statistics, it was calculated that around five million people work an average of seven hours and 24 minutes without pay every week, worth 4,500 a year. The European Trade Union Confederation agrees with their British counterparts, as reported in 2005, ref https://www.etuc.org/a/504 stating over the last ten years, the opt-out has been widely abused in the UK. Research indicates that two-thirds of British workers are unaware of the 48-hour limit. In addition, two-thirds of long-hours workers say they have not signed an opt-out, and one-third of those who have, say they were given no choice. Far from boosting British competitiveness, long-hours working leads to reduced productivity and poor management. The UK is only tenth in the EU-15 in terms of productivity per hour, and studies show that long hours create tired workers, producing lower, poorer quality output, and more mistakes. They are also a barrier to workers education and training, perpetuating an under skilled and underproductive workforce Collective Feedback from SMEs The Federation of Small Business (FSB) reviewed the Working Time directive on behalf of their 185,000 members in March 2004 ref https://www.smallbusinesseurope.org/en/upload/File/Issues/Working_Time_Directive_Reviews/FSB_Response.doc Regarding the retention of the opt-out option, they see it as vital for their members The opt-out of the 48 hour week is essential for small businesses. Empirical and anecdotal evidence indicates that there are two main groups of people where opt outs are being used. These are the comparatively low paid hourly paid workers who get overtime and the comparatively highly paid professional and managerial workers for whom long hours mean significant rewards. These groups of people tend to fit the dynamics of small business They suggest a reversal of the current system A more appropriate way to give full effect to the second recital of the Directive would be to have a small employer exemption for employers with less than a given number, perhaps 20 employees, with a right for such employees to opt in to the 48-hour working week. They also feel that employees want to retain the flexibility that the British working environment has always encouraged in the past Employees may want or need to work longer hours to gain extra qualities of family life, an expensive holiday, a nice home etc. Removal of the opt-out would limit an employees right to do so by and could potentially have a devastating effect on the work/family life balance. Flexibility is important for employees too. It is clear from within our membership that employees want the freedom to adopt their working practices to their needs, both in the amount of hours and organisation of those hours. The Forum of Private Business, ref fpb.org used even stronger wording in a statement on their web site. The WTD is one of the worst pieces of legislation to hit our industry, which is reliant on operating 24-hours-a-day, 365-days-a-year. Its a nightmare. If the opt-out was amended or deleted, we would have to employ four new operatives at 25,000-a-year each. In addition, there would be enormous costs in training each new operative and buying uniforms, tools, laptops, mobile phones and company business cards, and thats just for starters. Moreover, our staff, with families and mortgages, thinks its ludicrous, as they will be unable to earn valuable overtime. The recommendation that workers should automatically be opted-out of the WTD but would have the option to opt-in, as stated by the FSB, would reduce the administrative and financial overheads this directive is currently imposing on SMEs and do away with the possibility of employees being unfairly coerced into signing for the opt-out, as stated by the unions. Assuming that workers would not be penalized for opting in, this solution appears to offer a win-win situation for small businesses and the employees involved. The FSB also highlighted another aspect of the directive in their report issued 30 March 2007, EU Commission Missing Chance to Slash Unemployment A Alan Tyrrell, FSB Employment Chairman, said: Decision-makers in the European Union need to bear in mind that if every small business in the EU created one new job there would be no unemployment in all 27 member states. That is the priority for employers and employees alike small business growth leading to new jobs. The Commission must ensure flexible labor markets are restored in the EU in order to achieve this. The current Green Paper misses an opportunity to slash unemployment in the EU. Diversity in labor markets in different EU member states is not a problem to be fixed in Brussels. It is a strength from which each country benefits. A uniform labor market across 27 countries is neither desirable nor practical. This statement emphasizes the impact that growth within small businesses could have on unemployment. However, it has been sta ted that the WTD is inhibiting growth in this sector, and already causing unnecessary overheads for SMEs in order for them to comply with the ruling, even with the current opt-out option still in place. It is safe to assume that the British government should undertake an in depth investigation into this looking at future growth and the probable economic results and the increasing overhead of compliance with European directives. Diversity and flexibility vs. a standard across the European Union should be debated, particularly if the overall effect could result in a slowdown of growth in such a vital area of the economy. In addition, there appears to be an ongoing attempt my both the unions and the European Union in Brussels to eventually get the opt-out option amended or removed, certainly a cause for concern and a source of uncertainty for the owners of SMEs going forward. To date the British government has backed the call to retain the option but there is no guarantee that this ca n be maintained over time. 4. Research Findings Summary The small and medium enterprises in the UK are clearly feeling negative effects of the Working Time Directive. The administration and financial burden generally falls to the owner as they do not have the extra resources to specifically employ staff to handle these matters. In recent years there have been 3 attempts to scrap the opt-out option and this is the single biggest concern for SMEs, particularly as they feel it will stifle future growth. In order to remain competitive, in a market where they are competing with major corporations who have more resources and single person owners who are exempt, the removal of the opt-out could squeeze some companies out of business. Typically SMEs workload has peaks and troughs and they are not in a position to supplement the staff compliment and therefore service their clients during peak periods. This is currently handled by working overtime by current staff, when necessary. They also identify that, by the very nature of their staff, employees enjoy flexibility and want to increase their take home pay by taking on additional working hours. Employees, the very people who are supposed to be protected by the directive, are frustrated and feel their freedom of choice regarding their working hours have been taken away. Many people want the option to earn more money by taking on additional hours, if this cannot be achieved in their normal place of work, the option is to go and work on a part time basis elsewhere. This is counterproductive, particularly when unskilled workers would have to be brought in to take the place of skilled, permanent workers if the workload peaks. Although the unions have stated that many people were coerced into signing an opt-out, and this could have possibly been true initially, there is no proof that this is currently a wide spread practice and there are certainly adequate resources available for workers to be well aware of their rights i n this regard. 5. Conclusions The overall effect of the EU Working Time Directive is that it has not produced positive effects for either the small business owner or the employees. Although the purpose of the directive was to enhance the working/home life balance for staff members, employees feel they have been deprived of their freedom of choice as to whether they want to have extra time off or work longer and enjoy the financial rewards that overtime brings. In certain cases this is a necessity due to personal commitments and the result is that people will take on additional work elsewhere, probably leaving their employer to take on part time unskilled workers if the company is experiencing a heavy work load at the time. Currently there is unpaid overtime being worked by employees, a situation which does not provide the employee with either an improvement in their work/life balance or additional income. The small business owner is already burdened with increase administration and human resources requirements as a result of the directive. Since its inception, they have been fighting against the possibility of the opt-out option being withdrawn which they see as a particularly negative change and one that has been tabled unsuccessfully three times, although the motion has had strong backing from the unions. SMEs feel that any move to amend or withdraw the opt-out will reduce their ability to grow and prosper and inhibit their potential, both for the company as a whole and for the workforce they employ. Small businesses feel they are unfairly placed as they try and compete against the large conglomerates with huge resources and the self employed person who is exempt from the directive. There is also a strong feeling that Brussels cannot apply a blanket policy throughout the EU which removes the options for flexibility and free will in British working society, something they see as a cornerstone for them to remain competitive in a global market. The ongoing situ ation to get the opt-out scrapped or amended is adding uncertainty to the SMEs environment and growth is being hampered in the current situation. SMEs have recommended that the opt-out option is amended to be an opt-in for Small Businesses this would require employees to opt-in to the 48 hours working week and reduce the administrative burden to comply with the current regulations for the opt-out, which generally fall to the business owner. This would ensure that overtime was paid, when required, and improve the take home salaries of employees based on their work inputs. There has not been an official response to this proposal. 6. Limitations of the Research The research has is limited due to the lack of information on employees and individuals feedback on the directive. It is difficult to conclude if employees are actually being abused and taken advantage of, as claimed by the unions, or if there simply is a culture of working longer hours than their counterparts within the EU. AS the data relates to workers in SMEs, it is unlikely that the majority of their employees are unionized. There is no evidence to support the stance of the unions that workers are being unfairly treated and being inappropriately persuaded to sign an opt-out against their will. The research has not included the recent controversy over junior doctors, which implies a drop in medical services due to doctors having to take requisite work breaks regardless of a current emergency, although serious consequences have been recorded, as they generally work for the NHS, this is not relevant to SMEs. 7. Recommendations for Further Research It is recommended that an in dep th study is taken of employees within a sample of small businesses. The purpose of the investigation would be to quantify and understand their current working conditions, their knowledge of the Working Time Directive and identify what percentage of staff have agreed to the opt-out clause and under what circumstances. The sample businesses should be a cross section of companies with different products and services to get a full simple of companies that are small enterprises. Once this is completed, interviews with owner/managers of the SMEs should be undertaken to understand their viewpoints and concerns over the future of their business and the overhead imposed by regulations, plus identify the actual working hours owners are committing to keep the regulatory requirements current and still run their business successfully. In addition, to get a clear picture of the situation, a financial analysis of these specific companies would show if the resources within SMEs are as limited as st ated or if they could possibly expand their workforce, etc if necessary and still remain profitable. Association of Chartered and Certified Accountants, https://www.accaglobal.com/poll_archive/ Centre for European Politics, https://www.eupolitix.com/EN/ForumBriefs/200405/23de3582-833e-49b0-866c-73ba2420c36f.htm Chartered Institute of Personnel and Development ref https://www.cipd.co.uk/subjects/wrkgtime/wrktmewrklfbal/worklifeba.htm?IsSrchRes=1 EU Working Time Directive, UK Advisory, https://www.eu-working-directive.co.uk/ European Trade Union Confederation ref https://www.etuc.org/a/504 The Forum of Private Business, ref fpb.org Federation of Small Businesses, https://www.smallbusinesseurope.org/en/upload/File/Issues/Working_Time_Directive_Reviews/FSB_Response.doc Financial Times https://search.ft.com/ftArticle?queryText=%27small+business+UK%27+%2B%27eu+working+time+directive%27y=8aje=truex=17id=060906010800 United Kingdom Cabinet Office website, https://www.cabinetoffice.gov.uk/regulation/faqs/index.asp#2 Management Issue news, ref https://www.management-issues.com/displa y_page.asp?section=topicsid=623 New Business, https://www.newbusiness.co.uk/news/working_time_talks.html The Morning Advertiser, https://www.morningadvertiser.co.uk/news_detail.aspx?articleid=23797 The Guardian, https://technology.guardian.co.uk/online/businesssolutions/story/0,12581,1176763,00.html The Working Time Directive: A Spanish Inquisition, https://webjcli.ncl.ac.uk/1999/issue3/fairhurst3.html#Heading23 Wilkipedia, https://en.wikipedia.org/wiki/Working_Time_Directive Working Time and Workers Preferences in Industrialized Countries: Finding the Balance, Jon C. Messenger; Routledge, 2004 Appendix I Survey on Costs if Opt Out Option Scrapped The following survey was carried out by the Association of Chartered and Certified Accountants Working Time Directive (WTD) Review March/April 2004 https://www.accaglobal.com/poll_archive/ The EU is reviewing the WTD and is considering ending the individual opt-out from the average weekly 48-hour limit. Do you think this would increase business costs? No (62) 32% Yes a little (65) 34% Yes a lot (43) 22% Dont know (23) 12%

Should Same Sex Marriage Be Legal - 1551 Words

Since June 2015, Supreme Court declares same-sex marriage is legal in all 50 states (npr.org, 2015). This movement caused the nation to be torn between those who were for and those who were against same-sex marriage. Although the nation has made a huge step forward, its’ people still have so much more to learn about what this movement means overall. In regards to same-sex marriage, people only think just as it states same-sex marriage, but how about the others who do not quite fit into either heterosexuality or homosexuality? Outside from heterosexuality, there are so many other types of sexual orientation. The current stereotypes of homosexuality and other types of sexualities have a negative connotation. In today’s society, it is perhaps the lack of education, and religious beliefs that caused this rift. Many people do not realize that there is a difference between gender identity and sexual orientation. As well that there is many different types of sexual orientatio ns and what they all mean. The country, itself, has presented itself has proudly heterosexual for a long time. This causes the people who are not heterosexual to feel discomfort in their own cities. Some people may confuse sexual orientation with gender identity, and vice versa. They often confuse these two terms because they are often unsure of the correct definition. Sexual orientation is sexual and romantically attracted towards a certain sex (American Psychological Association, 2011). This means that aShow MoreRelatedSame Sex Marriage Should Be Legal1288 Words   |  6 Pages Marriage is not precisely the same as it used to be interpreted. For example, women used to be their husband’s property. Sometimes the women were forced to marry whoever their parents wanted them to marry and most of the time they couldn’t leave the marriage. Nowadays women have more freedom. They can vote, they can run their own business, and they can marry whichever man they want to. The laws change as the people’s mind change. As they get more comfortable with the idea, they become more openRead MoreSame Sex Marriage Should Be Legal Essay1475 Words   |  6 PagesSame sex relat ionships relate to when a man or woman are attracted to someone of the same gender of themselves. It is being rejected as same gender marriage denies the obvious purpose between a man and a women which is procreation (Richardson-Self, 2012). Denying same sex couples the legal right to get married, could mean that they are being denied their basic human rights to enjoy human benefits (Richardson-Self, 2012). However, the opposing view is that if gay marriage was granted the legal rightsRead MoreSame Sex Marriage Should Be Legal1403 Words   |  6 PagesSame-Sex Marriage â€Å"I now pronounce you†¦Ã¢â‚¬  At some point in a person’s life, they have heard or will hear those words. What follows, however, has changed somewhat over the years; although, the commitment has remained the same. Those words historically indicate that until the death of a spouse, that couple shall remain together. Who should be able to determine whom that spouse is for that person? Some people judge others for their sexuality and how it is affecting them, but they never stop andRead MoreSame Sex Marriage Should Be Legal1144 Words   |  5 PagesGay Marriage There are many issues the revolve around same-sex marriage. Many issues like: Whether same-sex should be legalized and should there be an amendment on same-sex marriage? There are multiple side to view this, but gay marriage but in my opinion gay marriage is socially accepted. it should be legal and it does affect American teens in a broad spectrum of ways. There have been a lot of issues on whether or not same-sex marriage should be legal or not. According to Burns, â€Å" The unionRead MoreSame Sex Marriage Should Be Legal998 Words   |  4 PagesSame sex marriage ought to be legalized on the grounds that it is uncivilized and unmerited. Marriage is a commitment between two people that cherish one another. In almost every country and culture, marriage is a commitment of loyalty and love. Marriage is an authority contract gathering two individuals together, furnishing them with profits of holy matrimony such as tax cuts and clinical privileges. The debate throughout most countries today is whether or not the rights of these profits and commitmentsRead MoreSame Sex Marriage Should Be Legal1659 Words   |  7 Pages Same-sex couples can hardly remember a time where they were not fighting for their right to marriage in the United States. After several court cases, California Proposition Six, and their struggle against the Defens e of Marriage Act (DOMA), same-sex couples found their way into U.S. society. Many misguided studies appealed to those opposing same-sex marriage, but after several years of integrating in society, same-sex couples found the support they were looking for. Before the Supreme CourtRead MoreSame Sex Marriage Should Be Legal899 Words   |  4 Pages In the United States, same sex marriage became legal nationwide on June 26, 2015, when the United States Supreme Court overruled the court in favor of same sex freedom and marriage. The victory of same sex marriage came to be recognized from the Obergefell v. Hodges case which was submitted when an American Ohio man was denied and regretted to get his name on his late husband’s death certificate. Same sex marriage has been a controversial social issue in the United States for several decades. SinceRead MoreSame Sex Marriage Should Be Legal1491 Words   |  6 PagesSame sex marriage is one of the most debatable issues in the modern world. Marriage has been accepted as the social union between a man and a woman for the past thousand years. Homosexuality was viewed with scorn, and marriages among same sex couples were prohibited in most cultures across the globe. However, gay relationships are slowly obtaining acceptance, as homosexuals have come to be expressive in fighting their rights to marry in the early 90’s. As homosexuality grows in acceptance in theRead MoreSame Sex Marriage Should Be Legal2253 Words   |  10 Pages1776). The recognition of same-sex marriage is an issue influenced by numerous factors, and debates continue to arise over whether people in same-sex relationships have the right to marriage. Marriage provides many benefits, legally, financially, and personally. Same-sex marriage can open up those in same-sex relationships to tax benefits and financial demands comparable to those afforded to and required of people in opposite-sex marriages. Same-sex marriage also gives them legal pr otections, such asRead MoreSame Sex Marriage Should Be Legal892 Words   |  4 PagesLove Same sex marriage is now allowed in all states across the country. But it took years and years for this â€Å"issue† to be finally laid to rest. The first state to legalize same-sex marriage was Massachusetts in 2004. There was not a last state to legalize gay marriage. The supreme court realized how many states were now legalizing it, so they just had all of the states left legalize it as well. ProCon.org supplies information that â€Å"Twenty-six states were forced to legalize gay marriage because

Social Network Free Essays

One way to understand social-networking sites like Facebook and MySpace is to consider that younger digital natives are not necessarily being exhibitionists when they post photographs of themselves and share personal details there. Instead, these users are living a life in which consciousness is spread out evenly over two platforms: real life and the Web. Rather than feeling schizophrenic or somehow pathological, digital natives understand that these two realms divide the self much as speech and the written word divide language, a division that humans have lived with for a long time without going bonkers. We will write a custom essay sample on Social Network or any similar topic only for you Order Now (Sarah Frere-Jones, â€Å"Living on the Radio,† The New Yorker, April 20, 2009) Assignment: Do social-networking sites such as Facebook and MySpace enhance a young person’s social life or serve as a substitute for a real social life? Compose an essay in which you develop your point of view on this topic. Support your position with arguments and examples drawn from your reading, studies, experience, and observations. **http://grammar. about. com/od/developingessays/a/SATtopic1. htm The purpose of this paper is to introduce, discuss, and analyze the topic of social networking. Specifically it will discuss the impact of the social networking site Facebook on today’s society. Facebook has become a phenomenon for the social networking set, and what makes that so amazing is that Facebook did not even exist until 2004. Three college students created it to allow other students to network and meet each other, and it has caught on with young people around the globe. What impact does Facebook have on today’s technologically advanced society? It allows people who probably never would have met each other in person to communicate, it creates new relationships and friendships, and it places distance between people who could communicate in person but instead choose to communicate online, instead. It is just another element of society that is interested in sharing information with the intimacy of a close, personal relationship. Facebook is nothing more than a medium for communication, and yet, it is so much more than that. At a glance, a user can learn everything from what gender a Facebook member is, to what religion they believe in, what school they attend, and their likes and dislikes, all with the click of a mouse. How to cite Social Network, Essay examples

Impact of Social Influence Pressure

Question: Discuss about the Impact of Social Influence Pressure . Answer: Introduction The independence of the auditors is an important aspect of the audit profession. Auditors independence indicates that the auditors of an organization must not have any kinds of financial material interest in the financial properties of the audit client. There must be integrity and honesty in the audit process (Blay Geiger, 2013). Two types of auditors independence can be seen. They are Actual independence and Perceived Independence. Actual independence is the state of mind of the auditors at the time of performing audit. On the other hand, perceived condition is the perception of the auditors to approach to a particular problem (Dogui, Boiral Heras?Saizarbitoria, 2014). Potential Threats The independence of the auditors demands that the auditors must be independent at the time of audit operation (Schmidt, 2012). However, it can be seen in the case study that the auditors independence is not maintained in the given case. The violation of auditors independence may cause several threats for both the parties. The potential threats are discussed below: Situation 1: The first condition of the auditors independence is that the auditors must be free from any kind of financial interest. In a broader sense, the internal as well as external auditors of the organization must not have any kinds of material financial interest in the property of the audit client. The auditors need to keep that in mind that they are the representative of public and their audit report must not have any kinds of biasness. As per the given situation, Fellowes and Associates are the official audit partner of Health Care Holding Group (HCHG). Hence, as per the rules of AccountingProfessional Ethical Standards (APES) 110, any member of the audit firm should not have any kinds of materials financial interest in the financial properties of HCHG. However, it can be seen that the one of the accountant of Fellowes and Associates owns shares in the company. This act poses a potential threat of breaching the independence principles of auditors (Hossain et al., 2016). Situation 2: As per the given case study, the intellectual property of HCHG was values by Fellowes and Associates on 1 March 2014 and the same amount of $ 30 million was shown in the consolidated balance sheet on 30 June 2014. On the other, the intellectual properties were considered as material to HCHG. In this situation, there are two potential threats in this situation. The first threat is the valuation of the intellectual property. The value of intellectual property could be changed between 30 June to 1 March; but the old value is taken in the new balance sheet. There can be biasness or the self-interest of the auditors in doing so and hence, it is against the independence of the auditors. On the other hand, the intellectual property is considered as material to HCHG while they may not be material due to the nature of the assets. This is a potential threat (Chapple et al., 2014). Actions and Safeguards According to the above discussion, there are some potential threats for Fellowes and Associates. However, with the help of proper corrective measures, the threats can be avoided. As per the first situation, an accountant of Fellowes and Associates has purchased the shares of the audit client, HCHG. This implies that the accountant has financial interest in the wealth of HCHG. As per the corrective action of this situation, the accountant should sale the shares of the audit client and Fellowes and Associates needs to replace the position of the accountant with another one (Clayton Staden, 2015). In the second situation, the valuation of the intellectual properties of HCHG was wrongly done; on the other hand, the intellectual properties were shown in the books of HCHG as material. This is a serious offence as it violates the principles of auditing independence. As a corrective action, Fellowes and Associates should take actions to make the valuation of intellectual properties in a rig ht way. The next step will be to show the intellectual properties of HCHG as immaterial in the books of HCHG (J. Clout, Chapple Gandhi, 2013). To avoid the future threats of the auditors independence, some safeguards need to be taken. In the presence of appropriate leadership in the field of audit eliminates the threats of auditors independence. The above case states the linear accelerator of TCCL has adverse radiation effects on the patients. Hence, it is recommended to Fellowes and Associates to test the condition of that linear accelerator before passing any kind of audit judgment. This needs to be done as a safeguard. Another important aspect is that the Fellowes and Associates should not perform the audit operation free of charges as it can indicate biasness of Fellowes and Associates towards the audit client, HCHG. This is another safeguard that can be taken (Townsend, 2014). Conclusion From the above discussion, it can be understood that it is the responsibility of the auditors to provide the audit report after performing the audit operation in an honest and ethical way. As per the given case study, it can be seen that one of the accounts associates of Fellowes and Associates is found having financial interest in the audited client. On the other hand, he did not value the intellectual properties in a proper way. Hence, based on the principles of APES 110, the threats are described and the possible corrective measures are provided along with various kinds of safeguards. References Blay, A. D., Geiger, M. A. (2013). Auditor fees and auditor independence: Evidence from going concern reporting decisions.Contemporary Accounting Research,30(2), 579-606. Chapple, L., Crofts, P., Ferguson, C., Hronsky, J. (2014). Professional independence and attachment bias: an exploratory study. Clayton, B. M., Staden, C. J. (2015). The Impact of Social Influence Pressure on the Ethical Decision Making of Professional Accountants: Australian and New Zealand Evidence.Australian Accounting Review,25(4), 372-388. Dogui, K., Boiral, O., Heras?Saizarbitoria, I. (2014). Audit fees and auditor independence: The case of ISO 14001 certification.International Journal of Auditing,18(1), 14-26. Hossain, S., Monroe, G. S., Wilson, M., Jubb, C. (2016). The Effect of Networked Clients' Economic Importance on Audit Quality.Auditing: A Journal of Practice and Theory. Clout, V., Chapple, L., Gandhi, N. (2013). The impact of auditor independence regulations on established and emerging firms.Accounting Research Journal,26(2), 88-108. Schmidt, J. J. (2012). Perceived auditor independence and audit litigation: The role of nonaudit services fees.The Accounting Review,87(3), 1033-1065. Townsend, S. R. (2014).The regulation of auditor ethical behaviour in Australia(Doctoral dissertation, Macquarie University).

Tale Of Two Cities Essays (1095 words) - English-language Films

Tale Of Two Cities In the fictitious novel Tale of Two Cities, the author, Charles Dickens lays out a brilliant plot. Charles Dickens was born in England on February 7, 1812 nears the south coast. His family moved to London when he was ten years old and quickly went into debt. To help support him, Charles went to work at a blacking warehouse when he was twelve. His father was soon imprisoned for debt and shortly thereafter the rest of the family split apart. Charles continued to work at the blacking warehouse even after his father inherited some money and got out of prison. When he was thirteen, Dickens went back to school for two years. He later learned shorthand and became a freelance court reporter. He started out as a journalist at the age of twenty and later wrote his first novel, The Pickwick Papers. He went on to write many other novels, including Tale of Two Cities in 1859. Tale of Two Cities takes place in France and England during the troubled times of the French Revolution. There are travels by the characters between the countries, but most of the action takes place in Paris, France. The wineshop in Paris is the hot spot for the French revolutionists, mostly because the wineshop owner, Ernest Defarge, and his wife, Madame Defarge, are key leaders and officials of the revolution. Action in the book is scattered out in many places; such as the Bastille, Tellson's Bank, the home of the Manettes, and largely, the streets of Paris. These places help to introduce many characters into the plot. One of the main characters, Madame Therese Defarge, is a major antagonist who seeks revenge, being a key revolutionist. She is very stubborn and unforgiving in her cunning scheme of revenge on the Evermonde family. Throughout the story, she knits shrouds for the intended victims of the revolution. Charles Darnay, one of whom Mrs. Defarge is seeking revenge, is constantly being put on the stand and wants no part of his own lineage. He is a languid protagonist and has a tendency to get arrested and must be bailed out several times during the story. Dr. Alexander Manette, a veteran prisoner of the Bastille and moderate protagonist, cannot escape the memory of being held and sometimes relapses to cobbling shoes. Dr. Manette is somewhat redundant as a character in the novel, but plays a very significant part in the plot. Dr. Manette's daughter, Lucie Manette, a positive protagonist, is loved by many and marries Charles Darnay. She is a quiet, emotional person and a subtle protagonist in the novel. One who never forgot his love for Lucie, the protagonist Sydney Carton changed predominately during the course of the novel. Sydney, a look-alike of Charles Darnay, was introduced as a frustrated, immature alcoholic, but in the end, made the ultimate sacrifice for a good friend. These and other characters help to weave an interesting and dramatic plot. Dr. Manette has just been released from the Bastille, and Lucie, eager to meet her father whom she thought was dead, goes with Mr. Jarvis Lorry to bring him back to England. Dr. Manette is in an insane state from his long prison stay and does nothing but cobble shoes, although he is finally persuaded to go to England. Several years later, Lucie, Dr. Manette, and Mr. Lorry are witnesses at the trial of Charles Darnay. Darnay, earning his living as a tutor, frequently travels between England and France and is accused of treason in his home country of France. He is saved from being prosecuted by Sydney Carton, who a witness confuses for Darnay, thus not making the case positive. Darnay ended up being acquitted for his presumed crime. Darnay and Carton both fall in love with Lucie and want to marry her. Carton, an alcoholic at the time, realizes that a relationship with Lucie is impossible, but he still tells her that he loves her and would do anything for her. Darnay and Lucie marry each other on the premises of the two promises between Dr. Manette and Darnay. Right after the marriage, while the newlyweds are on their honeymoon, Dr. Manette has relapsed and cobbles shoes for nine days straight. France's citizens arm themselves for a revolution and, led by the Defarges, start the revolution by raiding the Bastille. Shortly before the start of the revolution, the Marquis runs over a child in the streets of Paris. Gaspard, the child's father, who is also a part of the revolution, assassinates him

Social and ethical responsibilities of management in business environment

Social and ethical responsibilities of management in business environment Abstract Managers in the day-to-day running of affairs in business environment are normally faced with different challenges that vary in nature. It is of great importance that their action or decision be favorable to both the company and the society.Advertising We will write a custom term paper sample on Social and ethical responsibilities of management in business environment specifically for you for only $16.05 $11/page Learn More In this manner, the company improves its prospects in capturing new market segments, and the society will have confidence in the company. In essence, social and ethical practices may not be profitable or beneficial to the company in the short run, but will have lasting effects in the long run (Averch Johnson, 1990). Discussion Managers pursue multiple objectives and multiple sets of priorities. They need to make choices from these goals after careful considerations. Therefore, the choices they make affect the ability of employee s, customers, suppliers, stockholders and anyone else with interests in the organization. So often managers have to decide who has the right to what and when. No matter what they do, the actions are either of benefit or of detriment to people. Ethics as applied to management refers to the concept of interactive responsibility; it deals with what is good or bad, or what is right or wrong (Drucker, 1990). It can also be described as the study of how our decisions affect other people or as the study of people’s rights and duties and the rules that people apply in making decisions. In business, we cannot avoid ethical issues just like in other areas of our lives. In business, most ethical issues will be categorized in these four levels: Social level, which deals with the basic institutions in society, like the role of the government in the market place. Stakeholders’ level, which deals with employees, suppliers, customers in the way company’s decision affects them. Internal policy level, essentially deals with the nature of company’s relationship with its employees and managers. Personal level, that involves the ground rules of individuals, companies and social behavior.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The laws of the country prohibit any acts that are sufficiently hurtful to others and therefore laws offer guides to ethical behavior. Nevertheless, distinction must be made between what is illegal and what is unethical. Not everything that is unethical is illegal. For example, the law has limits regarding honesty. If one picks a lost item and keeps it, he probably has not done anything illegal but his act is unethical. If a clerk steals from his company in order to feed the poor, he has done an illegal thing but for ethical reasons. Decisions of ethics are quite difficult but all managers need to know is that ethic s goes beyond the minimum requirements by law and by market economy (Buckley Casson, 1976). There are very many unethical things that can be done in business and yet there is no law against them! Business ethics also called managerial ethics is the application of ethical principles to business relationships and activities. Managers who run business are human beings who despite the laws set cannot behave the same regardless of the circumstances. Managers face many ethical dilemmas (two or more situations) where both seem right but at the same time, conflicting. Talking to the manager one of the major pharmaceutical company about managerial ethics, he said that managerial ethics normally apply in the following areas: relationship of the firm to the employees in terms of how they are to be treated and how they are paid. Secondly is the relationship of the employee to the firm in terms of how employees should behave in the firm. Thirdly is the relationship of the firm to the environmen t, where ethical issues arise in how the firm relates to the various elements of the environment e.g. customers, competitors, stockholders dealers and the community. Many industries and organizations companies have formal, written codes of ethics that provide specific guideline for managers and other employees. However, the question is whether when individuals violate the code of conduct, the organization enforces it (Demsetz, 1979) Many companies in an attempt to manage ethics have developed specific codes of ethics. These establish guidelines for ethical decision making in business. Areas covered may be truthfulness in advertising, improper use of company assets political contributions, payments in connection with business transactions, conflict of interest, trade secrets etc.Advertising We will write a custom term paper sample on Social and ethical responsibilities of management in business environment specifically for you for only $16.05 $11/page Learn More There are advantages for organizations to form industry associations to develop and promote improved codes of ethics. It is difficult for a single firm to pioneer ethical practices if its competitors undercut them by taking advantage of unethical shortcuts. If ethics are to be improved, it is very important for top executives to support and emphasize ethical behavior by adhering to ethic themselves and train their staff in ethics. The tools of ethics include ethical language, which normally refers to values, rights, duties and rules. I questioned one of the workers of an investment company concerning this tool as a way of improving work relationship and he responded by saying that values are permanent desires that seem to be good. He also added that rights entitled a person to do something. On the other hand, since duty is an obligation that takes specific steps, in general, all the traits combined improve work relationships as well as productivity. Common morality as a tool is the body of rules covering ordinary ethical problems, which essentially are the rules that we live by most of the time. During this century, there has been much change in what society expects of its institutions and in what managers’ regard as the proper roles in organization. This change has gradually developed into a new concept of corporate social responsibility. Increasingly many managers are adopting the view that besides the obligations they have to their organizations, they have a personal responsibility to the society. Managers are increasingly being held accountable for the social effects of their actions. The questions however remain of where such social responsibility begins and where it ends (Trevino Nelson, 2007). The issue of corporate social responsibility has been debated for many years but it has never been clearly defined. However, from the various arguments raised, certain things can be said about social responsibility. One of them is that it deals with c orporate conduct in respect to the broader societal values. The other fact is that it questions the responsibilities of business to the entire society. Despite the lack of an accepted theory of corporate social responsibility, it is obvious that CSR draws on the fields of ethics and morals, which are basic to most cultures.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In other words corporate social responsibility may refer to the moral and ethical content of managerial and corporate decisions, that is to mean the values used in business decision making over and above the requirement of the law and market economy (Stephen, Dirk, Daniel, 2007). Closely related to social responsibility is the concept of social responsiveness, which simply means the ability of a corporation to relate its operations and policies to the social environment in ways that are mutually beneficial to the economy and the society. The difference between social responsibility and social responsiveness is that the latter implies actions and the ‘how’ of enterprise responses. Business organizations do not operate in a vacuum but have to interact constantly with society. A business organization is a part of society. It interacts at a primary level with groups such as employees, distributors, consumers, stockholders, banks, suppliers and competitors. At a secondary l evel, it interacts with such institutions as governments, local communities, media social pressure groups, business support groups and the public. With all these interactions, business cannot afford to go on with their businesses without responding to issues affecting these groups. Some people argue that there is no such thing as corporate social responsibility (Adams, 1965). Others argue that CSR must and will eventually result in long run profits, while others feel that modern organizations must undertake social responsibility regardless of the profit. Whatever the argument are, the question of accountability arises! Two areas of corporate accountability exist: Conventionally which shows that management is professionally responsible to the board of directors while the directors run the corporation for the shareholders who are the providers of capital to their corporation. It is logical that the shareholders expect a fair financial return for their investment. Although through sepa ration of ownership and control shareholders do not run the company, thus by implication therefore management has the responsibility to ensure that the shareholders receive an adequate return. Broadly and more modern view, corporations should be accountable to employees, customers, suppliers and the state. In short, corporations should respond to forces external to it but should be those that are of value to it. It is from these external forces that the corporation draws its existence. How then can it operate without of them? CSR involves decisions – the corporation world is decision oriented and corporations have an impact on society through these decisions. CSR therefore raises the question of rightfulness of decisions and further of which decisions are more right. So social responsibility goes beyond short run profitability, merely meeting minimum legal and market directives do not constitute social responsibility. CSR is very subjective in nature and is influenced by the economic and social system within which it operates (Arrow, 1951). From an interview with a branch manager in one of the banks, he said benefits from social responsibility do not directly accrue to the firm making the expenditure on social responsibility. CSR is hence a system holding that the corporation should respond to the moral and ethical values of society within which it is licensed and which it serves. A given corporation will draw from and shape the values of the society from which it draws its existence. CSR tries to fuse social values with profit maximization goals. Many organizations have thus been evaluating the benefits and problems that are associated with corporate social responsibility, some business organization argue for and others against. Those supporting say that since businesses create some problem they should solve them as well as the fact that organizations owe society for supply of resources. Those arguing against say that social responsibility gives corpor ations too much power, and that it will decrease profits thus contradicting the real reason for firms’ existence. According to the research, there are different areas of social responsibility that an organization can exercise. Such undertakings include non-business related activities such as giving donations, being involved in preservation of the environment (ecology) and ensuring environmental quality. These included things like noise control and aesthetic improvement, consumerism like control of harmful products, community needs like improvement of health care and education, government relations like restriction on lobbying and internal relations, labor relations like expansion of employee rights, and stockholder relations like full financial disclosures. Companies often are in a position to do most of this things but the challenge to most corporations is the absence of immediate benefit. Study has also shown that there is a certain pattern of response to social demands, he nce organizations can respond to social demands in three strategic approaches. The first one is adoptive strategy; this involves changing only when you are forced to do so by the society. This is, complying with the law. The law gives business a general guideline of what is expected by a society. Legal compliance is the minimum that is expected by a society. Organizations that use this strategy adopt or react to the environment only when there is strong outside pressure. For example, producers of body perfumes have to be ozone friendly. The second one is pro-active strategy; this involves an attempt at shaping the environment. The company using this strategy tries to manipulate the environment in ways that will be to their advantage. The steps they take may or may not be to the interest of the society in the long run, e.g. paying off politicians to avoid scrutiny. The final one is interactive strategy, when a company is able to anticipate environmental changes and blend its own goal s with those of the society, then it is said to have taken an interactive strategy. This involves reducing the gap between public expectations and business performance. This calls for knowhow and skills on how to manage the company’s social relations with external forces, which may affect the company. The firm tries to interact with the surrounding social environment in ways that will be mutually beneficial. Conclusion In conclusion, an ethical principle is a modern concept that provides businesses and organizations with corporate priorities. They are of significant influence to the way the organizations operate and especially its survival in the near future. Customers are increasingly showing interest in doing business with those organizations that demonstrate responsibility and ethical practices. Those organizations that fail to achieve this suffer the consequences in many different ways, either by lose of market share, which will reduce revenues and in the long run, may pu t organization out of business. One of the senior managers of the bank I interviewed suggested that the modern business world needed to incorporate the four Ps in their ethical management and leadership. They include purpose, people, planet and principles. These represent the four things required for success in any modern business venture. In practice, this model represents the personality of a good ethical organization, manager or leader. Therefore, ethics and ethical decisions are of utmost importance in running of any organization, business ethics is what separates the successful giants and losers in the modern corporate world and the decision a company takes in ethical matters can be binding for or against the company. References Adams, J. (1965). Inequality in Social Exchange. Advances in Experimental Social Psychology, 2(1), 267. Arrow, K.J. (1951). Social Choice and Individual Values. New York, NY: John Wiley. Averch, H., Johnson, L.L. (1990). Behavior of the firm under regu latory constraint. American Economic Review, 52, 1052-1066. Buckley, P.J., Casson, M. (1976). The Future of Multinational Enterprise. London: Macmillan. Demsetz, H. (1979). Ethics and Efficiency in Property Rights Systems. Lexington: Lexington Books. Drucker, P.F. (1990). Ethics in Management. The Practice of Management, 124-125. Stephen, G., Dirk, D.S., Daniel, S. (2007). Managing social and ethical issues in organizations. New York, NY: IAP. Trevino, L., Nelson, K.W. (2007). Managing business ethics: Straight talk about how to do it right. New York, NY: Hoboken.

Determine whether the First World War started a slow change in Essay

Determine whether the First World War started a slow change in attitude toward the traditional American foreign policy of Isolationism - Essay Example The evidence of American expansionist ambitions, however, was seen in the following. Cuba remained under American occupation till 1902, when it received permanent naval bases and rights of intervention. Puerto Rico was annexed and its people were given American citizenship in 1917. Guam and the Philippines were also annexed. The Philippines were given partial self-government in 1907, and in 1916 a promise of independence if they achieved a stable democratic government (Ketelbey p 673). Thus the US developed her own individual power and interests in strategic locations across the world. But to the ferment in Europe, she maintained a distance, tinged with moral disapproval. This attitude was not inconsistent with the role of mediator, which she played (e.g in the Russo-Japanese War of 1905; the holding of the Algericas Conference in 1906 to ease tensions between France and Germany.) This was to a great extent due to the initiative of Theodore Roosevelt. When Woodrow Wilson took over the president-ship, he continued to keep the US neutral, refusing to intervene in the crisis of 1914. When war was declared, Wilson declared neutrality. In fact in 1916, Wilson came back for another term on the electoral plank of having kept America ‘out of the war’. However, it soon dawned on the American people that the massive redistribution of world power would affect the country. And America had to join the war. As a matter of fact, the sequence of events that led America to openly declare hostilities against Germany speaks of extreme patience on the part of Wilson. America had a large number of people of German origin and did not wish to enter the war. In 1915, an American ship was sunk, Americans traveling in British ships were drowned, and then the Lusitania was torpedoed. Wilson sent a strong note to Germany citing a violation of international law. In 1916, an English ship, which had on board seventy-five American passengers was torpedoed; in 1917 there was an announcement of unrestricted submarine warfare - that all ships, neutral or otherwise - would be sunk. Just some time before that an alliance between Germany and Mexico was also unearthed, in which the former promised the latter help in regaining Texas, Mexico and Arizona On April 6th, 1917, the US declared war on Germany "to make the world safe for democracy." (Ketelbey ps 428-429) After the end of the First War too, the US continued with its policy of Isolationism. There was a feeling that it had been unwittingly dragged into a situation, that was of no concern of its. The Great Depression was believed to have been caused by the War. Despite information of the atrocities of the Holocaust, America chose to remain neutral and focus on domestic affairs. With the conclusion of the First World War, President Wilson took the lead in the formation of the League of Nations, though this was rejected by the Senate. Following Wilson, American presidents went ahead with formulating international policy, whereby it was okay to have strategic relationships with other countries,

Introduction to Strategic Management Report Essay

Introduction to Strategic Management Report - Essay Example The companies include Lexus, Daihatsu, and Hino Motors among others. A recent study shows that Toyota has sold over more than 12 million cars. The company also manufactures forklifts, buses, industrial equipment, and buses. Toyota has a large market in North America. The United States of America is a host to five plants of the Toyota Company. The locations are in Buffalo, West Virginia; San Antonio, Texas; Huntsville, Alabama, Georgetown, Kentucky and Princeton, Indiana. Early imports from Japan like the Toyopet did not make large sales due to their small size. However, due to energy crisis in the 1970s, Americans and other countries imported Toyota cars because of their fuel efficiency and lower price compared to other cars in the automobile industry. The rise of fuel prices and side effects of global warming prompted the company to manufacture fuel efficient cars. The recent brands like Highlander, Camry and Prius are a proof of the firm’s objective to make fuel efficient ve hicles. The vehicles serve the current global market that requires cost efficient and effective cars. An international business is an enterprise or entity that is involved in commercial transactions in two or more than two countries. An international business cuts across boundaries in doing business. The business environments are the surrounding factors that influence the business performance (Fry et.al, 2009). The business environment can have a number of impacts on a business. Toyota Motor Corporation falls into this category. Before introducing a business venture in a foreign land, it is imperative to study the business environment to establish the feasibility of the particular business. The economic factors in a given country will influence the habits of the consumer. A good economy is one that has empowered consumers to purchase products they demand thus satisfy their needs. Recession and Inflation influence the purchasing power of

Calculating Our Impact on the Global Culture Essay

Calculating Our Impact on the Global Culture - Essay Example Using the same carbon footprint calculator, I changed the number of miles I drive annually to 10,000 miles and got a carbon emission reading of 4.88 metric tons of CO2 for car usage. This still gave me a total emission reading more than twice the national average. Aiming for a lower CO2 emission count, I next changed the type of car I drove to a 2006 Toyota Corolla with manual transmission and used the same mileage reading (10,000). For this type of car with this mileage, the calculator gave a reading of 2.85 metric tons. Reverting to my current mileage reading but with the Toyota, I was able to get a reading of 8.54 metric tons. The changes shows that the amount of C02 emission for my car usage actually depends on how many miles I drive or how often I use my car. Needless to say, I can decrease my CO2 emission by also decreasing my car usage. My total household CO2 emission reading of 27.00 metric tons is primarily composed of flights, car usage and secondary sources. After reviewing the Climate Crisis website, three easy measures I can adopt would be to a) start carpooling with my co-workers, b) take other means of transportation whenever I can to avoid driving and c) try meatless Mondays or other days. Three complex measures that can further reduce my CO2 emission from the same website can be a) insulating my home, b) switching to green power and c) protecting and conserving forest worldwide. After seeing the results of the Carbon Footprint Calculator, I am motivated to implement the measures I have enumerated above as soon as possible. Whenever I avoid driving, I can actually accomplish two good things. I spend less on fuel and generate less carbon dioxide. (Levinson, W. & Rerick, R., 2002) I not only help myself but I help nature as well. I am also willing to try using less meat when cooking for my family. â€Å"Another way to reduce the amount of energy needed

Dividend Payment Impact on Common Stock Prices

Dividend Payment Impact on Common Stock Prices Abstract The main goal of this paper is to investigate the impact of dividend payments on common stock prices using a panel of listed firms in Tunis Stock Exchange for a period from 2000 to 2008. Our empirical investigations reveal that Tunisian investors reward firms paying cash dividends. This result is very interesting because it begs the question on the intention of Tunisian managers to pay dividend when investors put a stock price premium on payers as the catering theory suggests. 1. Introduction In efficient and perfect market, Modigliani and Miller (1961) have demonstrated that there is no difference between the value of the firm paying dividends and that of nonpayer. Baker and Wurgler (2004a) argue that the investor demand for dividend-paying stocks depends on either psychological or institutional factors. They argue that managers tend to pay dividends when investors put higher prices on payers, and they omit dividends when payers are at a discount. Baker and Wurgler (2004a) suggest that this catering behavior explains the difference documented between the average market-to-book ratios of payers and non-payers and that managers rationally initiate dividends to exploit an apparent market mispricing. They find that when the rate of dividend initiation increases, the future stock returns of payers are lower than those of non-payers. This result supports the hypothesis that firms initiate dividends when the payers are overvalued. In this paper, we attempt to investigate whethe r cash dividend payments affect positively share prices. The remainder of the paper is organized as follows. Section 2 reviews the literature on dividend payout policy. Section 3 provides a description of the data used in the empirical analysis and presents regression results for the determinants of stock prices. Section 4 concludes. 2. Literature Review Baker and Wurgler (2004b) show that the disappearance of dividends can be explained by lower market valuations of payers during such periods. They find that the propensity to pay increases when a proxy for the stock market dividend premium is positive and decreases when it is negative. These empirical results suggest that the distribution of dividends responds to patterns of market timing. Companies pay dividends in order to raise the stock prices of their shares above their fundamental values. However, we wonder why the demand for shares paying dividends changes over time? Baker et al. (2007) argue that this time-varying can be attributed to changes in income tax rates of shareholders. Baker and Wurgler (2004a) note that the increase in the value of a company paying dividends reflects the risk assessment by investors. Indeed, dividend-paying firms are considered less risky than non-payers ones since this dividend premium disappears in periods of expansion and reappears in recession periods. Thus, investors who prefer cash dividend payments during gloomy period as an indicator of the firms safety and therefore are more willing to pay dearly to buy dividend-paying stocks. Ferris et al. (2006) conclude that the decline of the number of dividend-paying firms in UK can be explained by a shift in catering incentives. Li and Lie (2006) suggest that changes in corporate payout ratios of US firms depend on the market dividend premium. Ferris et al. (2008) find that investors place high value on dividend-paying firms. By contrast, Eije and Megginson (2008) investigate dividend policies in fifteen European countries over the period 1989-2003 and conclude that their findings do not support the catering hypothesis. Denis and Osobov (2008) find that reductions in the percent of dividend-paying stocks occur in countries where the dividend premium is largely positive. Tsuji (2010) finds that Japanese corporate managers do not cater to investors in either their dividend initiation decisions or their continuation decisions. 3. DATA and Methodology To form our main Tunisian sample, we start with all listed firms appearing at any point between 2000 and 2008. We restrict the sample to exclude financial firms  [1]  . The final sample covers 24 publicly traded Tunisian firms. Data were collected from Tunis Stock Exchange and completed from firms web sites. 3.1 Definition and measurement of variables The evolution of stock prices can be explained by variables specific to the firm such as cash dividend and profitability, by macroeconomic variables such as interest rates and inflation, and a variable which reflects the stock market performance. 3.1.1 Dividends According to the model of Gordon and Shapiro (1956), the current stock price equals the present value of its future dividends. Gordon and Shapiro assume that the dividend is a constant fraction of the profits carried out by the company. The expected receipt of dividend income is an incentive for investing in a given stock, particularly if the yield on the investment exceeds the return offered on other alternative investments like savings accounts. Investors may pay a premium for shares in issue. Tsoukalas and Sil (1999) find a strong correlation between the stock prices and dividends paid by U.K firms. 3.1.2 Profitability An improvement in profitability leads to an increase in stock price because investors become more optimistic about future performance of the firm. Demand increases for the shares that have a high prospect for growth (blue chip shares). Prices of such shares rise much faster than those of companies whose growth prospects are bleak. Vuolteenaho (2002) finds that firm-level stock returns are mainly driven by cash-flow news. By contrast, Kothari et al. (2006) show that stock prices are unrelated to past earnings and depend negatively on concurrent earnings. In this paper, Profitability is defined as earnings before interests and tax reported to total assets. 3.1.3 Inflation The impact of inflation on the stock price is not obvious. If households expect higher prices, they can increase their consumption and therefore reduce their savings. This behavior will lower stock prices. By contrast, if households choose to keep the value of their heritage, they will be more likely to invest in shares in order to hedge against a rise in the general level of prices of goods and services. Indeed, inflation erodes the purchasing power of money and other financial assets that have fixed values. Therefore, if households have a hedging purpose, inflation will have positive effects on share prices. Alagidede and Panagiotidid (2010) provide evidence of a positive long-run relationship between stock prices and inflation in five African countries (Tunisia, Egypt, South Africa, Kenya, and Nigeria) and they conclude that common stocks in these countries represent a hedge against rising consumer price. Geyser and Lowies (2001) examine the relationship between share prices and inflation within a sample of firms listed in Namibian and Johannesburg Stock Exchanges. Their findings reveal a strong positive correlation between inflation and stock prices of Namibian firms. In South Africa, companies belonging to the mining sector cannot be served as an inflation hedge since stock prices of these firms are negatively correlated with the evolution of the Consumer Price Index, whereas stock prices of firms in other sectors (financial services, information technology and food and beverage) are slightly positively correlated with inflation. Bodie (1976) finds that in the U.S during the period from 1953 to 1971 common stocks failed to serve as hedges against either anticipated or unanticipated inflation. The inflation rate is defined as the percentage rate of change in consumer price index. 3.1.4 Interest rate The impact of changes in interest rates on stock prices is mixed. If rates rise, bonds become less expensive which encourages shareholders to arbitrate for bonds by selling shares that they hold and therefore stock prices fall. By contrast, a significant decrease of interest rate makes shares more profitable and persuades investors to buy back equity and pushing up prices. Cifter and Ozun (2008) find that stock prices in Turkey are negatively affected by the interest rate changes. represents the money market annual average rate for Tunisia. 3.1.5 Stock market performance A bull market is characterized by higher valorizations and a bear market is characterized by lower stock prices. In this paper, we used annual return rate of the index TUNINDEX to measure the performance of Tunisian stock market. 3.2 Descriptive statistics  ¶ Table 1 reports descriptive statistics for the dependant and explanatory variables. We note the higher level of the money market annual average rate that can be explained by the important rising consumer price Tunisia. The mean of the natural logarithm of dividend is negative suggesting that Tunisian firms pay annually on average less than 1 TND as cash dividend. Insert table-1 here Table 2 reports the correlations matrix for explanatory variables. The coefficients of correlation of explanatory variables are generally low. Using a test of Farrar-Glauber (1967), we can accept the hypothesis of the absence of multicollinearity among our independent variables. Insert table-2 here 3.3 Estimation methods The study was conducted on panel data. Using panel data can enhance the quality and quantity of data. It allows us to identify some effects that cannot be detected using time-series analysis. Panel data regression provides three estimators; pooled OLS, fixed effects, and random effects models. A pooled estimator takes as the same across all cross-section units. The fixed effects model assumes as a group specific term. The random effects approach takes as a group specific disturbance. Testing the significance of the group effects To choose between these three approaches we compute a test of homogeneity. The hypothesis of homogeneity of constants across all cross-section units can be formulated as follows: This test of Fisher is computed as follows: Where: : Residues square sum of the individual effects model : Residues square sum of the model Pooled. : Number of firms : Number of explanatory variables (constant not included) If calculated F is lower than tabulated F (p-value Hausmans test for fixed versus random effects If the effect is assumed to be individual, the Hausman specification test is carried out in order to decide whether the fixed or the random effects model should be used. The Hausman test compares the fixed and random effects estimates of coefficients. The tested hypothesis concerns the correlation of the individual effects and the explanatory variables. Under the null hypothesis, the individual effects are random and we then have to choose the estimator of GLS. Under the alternative hypothesis, the individual effects are correlated to the explanatory variables and we then have to choose the model to fixed effects. The test of Hausman compares the matrix of variance-covariance of two estimators: The statistic H is asymptotically distributed as with K degree of freedom, where K is the number of explanatory variables. If calculated H is lower than tabulated (p-value 3.4 Findings Table 3 reports regression results. We provide Pooled OLS, fixed effects and random effects results. The Hausmans test confirms that the estimator fixed effects is the proper one. Insert table-3 here Cash dividends have a significantly positive impact on stock prices of Tunisian firms. This result indicates that Tunisian investors reward cash dividend-paying firms by adding a positive premium to their shares prices. The profitability has a positive impact on stock prices. Highly profitable firms have higher stock prices. If the firm releases new positive results, investors will be more optimistic about its prospects and expected future cash flows and therefore they will be willing to pay dearly to buy its securities. The variable MARKET that measures the performance of Tunis stock exchange presents the expected sign. This result indicates that stock prices follow the overall trend of the market. Inflation affects negatively and significantly stock prices suggesting that common stocks of Tunisian firms cannot provide a hedge against inflation. The plausible explication for this result is that an increase of the consumer price index reduces the marginal propensity to save. Our result confirms findings in Geske and Roll (1983). 4. Conclusion This paper investigates the impact of cash dividend payments on stock prices of listed non-financial Tunisian firms. Our empirical results reveal that Tunisian investors reward cash dividend-paying stocks. This finding begs the question on the existence of a catering behavior as suggested by Baker and Wurgler (2004a). Future academic studies with larger datasets should investigate whether Tunisian firms behave according to the prediction of the catering theory by comparing the value of payers and non-payers firms.

Atkins and Low Carbohydrate Diets: Not the Optimal Method of Weight Loss :: Health Nutrition Diet Exercise Essays

Atkins and Low Carbohydrate Diets: Not the Optimal Method of Weight Loss In the help of today’s society where looks seem to matter more than personality, different types of diets quickly became popular. In the year 2003 to 2004 the Atkins Diet reached its peak, from its wide advertising to its celebrity connections an increasing amount of Americans focus their interest on this unusual way of losing weight. The Atkins Diet was introduced by Dr. Robert Atkins in 1972. Its purpose is to make a person loose weight by eating foods that are high in protein and lessening foods that are high in carbohydrates. When a person eats foods that are high in carbohydrates, it produces a high amount of insulin which causes the body to quickly change food into body fat. On the other hand, when the body generates low carbohydrates it produces low insulin and this causes the body to search other areas for fuel, which is fat. And when the body does not have energy source that comes from carbohydrates it will turn to another resource which is fat to burn energy. So in other words, the Atkins Diet is stating that you can eat as much food that contains fats and proteins which are mainly steak, eggs and all the other foods that are taught to be unhealthy. Therefore, one question seems to be always asked when talking about the Atkins Diet. Does it work? Low carbohydrate diets have been very controversial because it does not follow the food pyramid and many Americans are puzzled by this idea. But countless people are trying it because of the idea that you can eat large amounts of good tasting foods and still be able to loose weight. There are also other advantages such as sleeping better, no headaches as well as no joint and muscular pains. Weight loss in the Atkins Diet is also rapid compared to the conventional way of loosing weight where carbohydrates are stated to stimulate a person’s appetite that triggers to more eating which can cause breaking the rules and longer time to see results. Many believe that the Atkins Diet is too good to be true and wants to be informed of the bad side of this well known diet. With its focus on fatty foods and meats, medical experts find the Atkins to be unsafe because it limits a person from eating nutrient rich foods.