Impact Of Micro Economic Factors On Performance - Free Essay Example

Sample details Pages: 17 Words: 5014 Downloads: 4 Date added: 2017/06/26 Category Statistics Essay Did you like this example? This research examines the effect of Working Capital Management (WCM) on profitability of firms in the textile sector of Pakistan. I also used cost of production and fixed assets cost as control variable to investigate their effect on profitability of textile companies. I have selected a sample size of 55 textile companies of Pakistan for a period of six years from 2003 to 2008. Regression and coefficient of correlation are used for analysis. The SPSS result R=0.77 shows the strong correlation between the model which helps me understand the relationship between working capital, cost of production, fixed assets and profitability. OBJECTIVES This research is focusing on working capital management and its effects on profitability of textile companies in Pakistan. The main objectives are: Don’t waste time! Our writers will create an original "Impact Of Micro Economic Factors On Performance" essay for you Create order To determine the relationship between the efficiency of Working Capital Management (WCM) and Profitability over a period of 6 years for 55 Textile firms of Pakistan. To analyze the relationship between cost of production and profitability of textile companies. To find out the effect of fixed assets cost on profitability of textile companies. To draw conclusion about the relationship between efficiency of working capital management and profitability of textile firms in Pakistan. To suggest some measures for improvement in working capital management of textile sector in Pakistan. LIMITATIONS Due to the time frame and choice of the subject there were number of limitation faced by the researcher during the thesis. The first and the foremost limitation to this research is the shortage of time which created many hurdles in collecting data and completion of report; Researcher was unable to find many research on his topic within the scenario of Pakistan. So therefore researches were unable to compare its finding with other researches; Very few studies have been made in relation to Working Capital Management (WCM) especially in the textile sector in Pakistan. Therefore, the present study is a maiden attempt to analyze the relationship between WCM efficiency, cost of production, fixed assets cost and Profit in the textile sector in Pakistan. Its was very difficult for research to collect financial data of 55 textile companies in a very short span of time allotted to complete the research. Chapter 1: INTRODUCTION 1.1 Textile Sector: Textile products are a basic human requirement next only to food. Backbone of industrial sector which plays a vital role in the national economy it give support to GDP, exports, employment, foreign exchange earnings, investment and contribution to value added industry by providing employment to largely utilized workforce. So to boost the economy and to reduce the poverty in the country the performance of all industrial sectors is very important and textile sector is one of the major sectors of all developing countries. 1.2 Performance of Textile Sector in Pakistan: The performance of textile sector has strong relationship with the cost incurred by textile sector and effective management of net working capital. Pakistan is a developing country which lack in most of the industrial resources same as the case with textile sector in Pakistan we have to import most of the technical machinery used in textile sector from other developed countries which increases the overall cost of textile sector in Pakistan as well as lack of working capital, increase in fuel prices, electricity shortage, high import duties, high cost of debt, taxation and all other factors together bring negativity in the performance of textile sector. However, Pakistanà ¢Ã¢â€š ¬Ã¢â€ž ¢s textile industry has again started to invest in the textile machinery and the imports of textile machinery for the month of February, 2010 were $23.1 million, an increase of 190% as compared to the imports of machinery in February, 2009 of $7.99 million. From July 09 to February 10 the total imports of machinery recorded 3.1% increase, from $158.89 million to $163.844 million for the same period last year. Although the textiles sector cost has increased by purchase of these new machineries but this technology placed the positive impact on performance of textile industries because this not only increase productivity ultimately profit but also it helps to compete in the international market. The increased in labor cost is also one of factor effecting the textile sector in Pakistan because the major portion of textile production depends upon the labor used for production purposes due to the lack of technology. As the enhancement of minimum wages for textile sector is announced which proposed increase in minimum wages from Rs.4, 600/= to Rs.6, 000/= per Month (over 30%) for unskilled workers will have a devastating effect on industry. Besides the financial impact will also have to be borne towards payment of gratuity, provident fund, EOBI, social security excluding overtime etc. which if worked out will come to Rs.8, 322. In addition to the above, proportionate increase will also have to be given to the skilled cadre of workers as for instance; an operator will refuse to work at the same rate of salary being paid to a doffer. This will make textile sector survival more difficult in current scenario. The growth of textile sector depends on its productivity and mainly depend s on the cost and profitability. The textile sector is the largest sector of Pakistanà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy which has the major shares in exports of the country but the major financing of this industry depends upon the bank loan. To purchase heavy machineries on cash or to lease them, the textile sector required huge amount of investment and to meet daily expenditures they need net working capital and for all that they have to borrow from bank by paying interest (i.e. cost debt) which increases the overall cost of textile sector in Pakistan. The textile sector of Pakistan is divided in many small firms which have small capital structure most of them are mainly dependent on loans due to unavailability of funds, continuous increase in cost of production. All these factors have a cumulative effect on the cost and profitability of textile sector as the increase in double digit inflation the survival of textile sector become more difficult. Although the textile sector of Pakistan is backed by the government with the ir greatest interest in textile sector. They have arrange different types of investment policies and funds for textile sector but the improvement in textile sector due to other factors is still less then the requirement. Importance Of Textile Industry In Pakistanà ¢Ã¢â€š ¬Ã¢â€ž ¢s Economy Particulars 2006-07 2007-08 (July-Feb) Share in Total Exports 61.1 53.8 Share in Manufacturing 45 46 Share in Employment 38 39 Share in GDP 8.5 8.5 Textile Exports $ 6.6 billion $ 6.3 billion Investment in Textile $ 6.4 billion $ 7.0 billion 1.3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Effect of Working Capital and Other Factors on Textile Sector: Working capital management is a very important component of finance because it directly affects the profitability and liquidity of any organization especially in developing countries like Pakistan. It comprises funds invested in Current Assets, which in the ordinary course of business can be turned into cash within a short period without undergoing diminishing in value and without interruption of the organization. Current Liabilities are those which are projected to be paid in the ordinary course of business within a short time. Every company has to make arrangements for adequate funds to meet the day-to-day expenditure apart from investment in Fixed Assets. However, Pakistan textile sector is on decline just because of the additional cost due to lack of working capital which can have impact of profitability and liquidity and increase in inflation also effect textileà ¢Ã¢â€š ¬Ã¢â€ž ¢s production badly. In this research, I have discussed and analyzed the relationship between the efficiency level of working capital management and profitability of textile sector in Pakistan as it is the major sector which contribute in Pakistan economy and generate foreign revenue by exporting textile products to international markets but the increase in cost, debt and improper management of working capital in this sector make its a declining sector in terms of profitability and liquidity. The textile industries come under the SMEs (Small Medium Enterprises) which does not bear the continuous increase of cost. According to APTMA, textile exports of Pakistan have declined by about 20% in 2008. The industry is bracing for more trouble ahead with continuing c rises of electricity and gas, international market access, global economic slowdown, lack of capital and adverse travel advisories. Chapter 2: LITERATURE REVIEW 2.1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Concept of Working Capital: Gross Working Capital: It represents the total current assets and is also referred to as circulating capital because current capital as current assets, are circulating in nature. Net Working Capital: It is a measure of liquidity and it can be defined in two ways. The most usually implied definition of net working capital is that it represents the difference between current assets and current liabilities. Some people also define it as excess of current assets over the current liabilities. It is that portion of the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s current assets, which is financed by long-term funds. 2.2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Objectives of Working Capital Management: The main objective is to ensure the maintenance of satisfactory level of working capital in such a way that it is neither inadequate nor excessive. It should not only be sufficient to cover the current liabilities but ensure a reasonable margin of safety also. To minimize the amount of capital employed in financing the current assets. This also leads to an improvement in the à ¢Ã¢â€š ¬Ã…“Return of Capital Employedà ¢Ã¢â€š ¬?. To manage the current assets in such a way that the marginal return on investment in these assets is not less than the cost of capital acquired to finance them. This will ensure the maximization of the value of the business unit. To maintain the proper balance between the amount of current assets and the current liabilities in such a way that the firm is always able to meet its financial obligations, whenever due. This will ensure the smooth working of the unit without any production held ups due to paucity of funds. 2.3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Nature Importance of Working Capital: Working capital is the most important concepts that a company should understand as how working capital and financing helps them to survive and competitive in business world. Working capital fulfills the short-term financial requirements of any business organization including textile companies especially in developing countries like Pakistan. It is regarded as operating capital needed to meets daily cash requirement of the organization and can not be retained in the business for a longer period of time in a particular form. The money invested in working capital changes its form and substance during the normal course of any business operations and the need and importance for maintaining an adequate working capital in any industry including textile sector can not be neglected in any way. Just as human body can not survive without the circulation of blood in the body, the organization also requires sufficient flow of funds within the organization. If it becomes weak, the business can har dly survive, prosper and generate profit. In developing countries like Pakistan, working capital starvation is generally accredited as one of the most important reason which causes the decline of any industry. According to Rafuse, (1996), Working capital starvation is generally credited as a major cause if not the major cause of small business failure in many developed and developing countries. There are several problems that create starvation of cash in any business which include poor financial management and improper planning of cash management. Jarvis et al, (1996) said that the cash flow problems of many small businesses are exacerbated by poor financial management and in particular the lack of planning cash requirements. For the financial strength of the business, a company should have and will prefer to have a positive working capital rather than a negative working capital. Some of the best ways to acquire short-term working capital financing are equity, trade credit and short-term loans. 2.4 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Determinants of Working Capital: Working capital management is an indispensable functional area of management. However the large number of factors influences the total working capital requirements of the firm. It may however be added that these factors affect differently to the different units and these keep varying from time to time. In general, the determinants of working capital, which are common to all organizations, can be summarized as under: Nature and Size of Business Production Cycle Business Cycle Production Policy Credit Policy Growth Expansion Proper availability of raw materials Profit level Inflation Operating Efficiency 2.5 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Sources of Working Capital: The working capital necessary and what constitutes working capital have been analyzed in depth. Now we look out what are the ways we can generate working capital. Trade Credits Bank Credit Current provisions and non-bank short term borrowings: and Long term sources i.e., equity share capital, preference share capital and other long term borrowings. 2.6 à ¢Ã¢â€š ¬Ã¢â‚¬Å" The Management of Working Capital According to Van Horne (1977), working capital management is the management of current assets such as cash, marketable securities, receivables, and inventories. Osisioma (1997) described working capital management as the regulation, adjustment, and management of balance between current assets and current liabilities of a firm such that maturing obligations are met, and the fixed assets are properly serviced. In order to manage working capital efficiently, two elements must exist as necessary components and desirable quantities. Osisioma (1997) explained that efficient working capital management must guarantee an adequate relationship between the different components of a organizationà ¢Ã¢â€š ¬Ã¢â€ž ¢s working capital so as to make an efficient mix, which will guarantee capital adequacy. Thus, working capital management should ensure that the desirable quantities of each component of the working capital are available for organization. However, the question arises that à ¢Ã¢â€š ¬Ã…†œWhat determines necessary components of an organizationà ¢Ã¢â€š ¬Ã¢â€ž ¢s working capital and how much of such necessary components can be considered as adequate or desirable?à ¢Ã¢â€š ¬? Each organization working capitalà ¢Ã¢â€š ¬Ã¢â€ž ¢s necessary components depend on the type of business and industry. Cash, accounts payables, accounts receivables, marketable securities, inventories, and redeemable futures can be recognized as the common components of firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s working capital. However, the question is to recognize the factors that determine the adequacy of working capital based on growth, size, operating cash flow, etc. The inability to understand the determining factors and measurement of adequate amounts of working capital will lead an organization to bankruptcy. The altitude of performance levels businesses have traditionally been attributed to many general managerial factors such as manufacturing cost, marketing strategies and operations. Working capital management may have a consequent impact on business survival and growth (Kargar and Blumenthal, 1994). The proper management of working capital is very vital for the financial health of businesses of all sizes. It is often observed that the amounts invested in working capital are high in percentage to the total assets employed. Therefore, it is imperative that these amounts should be used in an efficient and effective manner. However, there is substantiation that manufacturing sector which include textile industry as well are not very good at managing their working capital. Reasons for that are many small businesses suffer from undercapitalization, increase cost of production, increase fixed asset cost and lots of other factors. According to V MARIAPPAN, K CHIDAMBARAM) (2003), Productivity does not only mean the increase in production but it relates to the cost reduction and efficiency in the process of production. Therefore, the importance of exerting tight control over working capital investment, cost of production and cost of fixed assets can not be neglected. An organization can be highly profitable, but if it fails to translate this into cash from operations within the same operating period, the organization would require borrowing to support its continued working capital requirements. Hence, the dual objectives of profitability and liquidity must be synchronized and one should not impinge on the other for long. Investments by any business in current assets are inevitable to ensure delivery of goods or services to the ultimate customers and a proper management of same should create the desired impact on either profitability or liquidity. If different resources are blocked at the various phases of the supply chain, this will lengthen the cash operating cycle. However, profitability might increase due to increase sales but it may also adversely affect the profitability if the costs tied up in working capital surpass the benefits of carrying more inventories and/or allowing more trade credit to customers. (Padachi, Kesseven, Oct 2006) 2.7 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Production Cost Profit: Production cost is the cost of materials and labor necessary to produce goods and there are two types of profit that is generated from a business. The first is gross profit which is the difference of the total revenue generated after the sale of each item by the production cost for that item. Second is net profit which is calculated once the company pays taxes, rent, and other expenses that might come with running and owning the business. However lack of technology, increase labor and material cost, higher cost of debt and other factors increases production cost and decrease profit but if production increases, businesses are able to purchase more materials at a discounted rate, which can help them to reduce the production cost. 2.8 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Textile Sector Cost of Production: The relationship of cost of production with profit of any sector is the key element used to evaluate the productivity of that particular sector including textile sector. Productivity is often mixed with increased production. However, higher production does not always mean higher productivity. Higher productivity can be achieved only by better utilization of resources and reduction of cost. So the importance of production cost can not be neglected and is closely related to the increase productivity of industrial sector on any economy. According to the Michael porter of the Harvard University says the competitiveness of any sector is totally depend on the productivity of its industrial sector. Productivity does not only mean the increase in production but it relates to the cost reduction and efficiency in the process of production (V MARIAPPAN, K CHIDAMBARAM) (2003). The competition from international market has been increased due to the continuous innovation on technology used in the industrial sector of textile which ultimately increases the cost. The protection from international competition of the earlier semi-insular phase has given rise to high cost manufacturing, which is inhibiting both the expansion of the domestic market and more rapid development of exports [India, 1985:16].(Aug 29 1989). However, the intense competition in international market leads to the high domestic growth with increased in the level of exports. Productivity is getting drained mainly due to under- utilization of machines, inefficient working, poor machinery maintenance, over- spinning, lack of modernization, power shortage and unhealthy labor and management relations [Gulrajani 1982]. (2003) with reference to above saying the same situation is related to the Pakistanà ¢Ã¢â€š ¬Ã¢â€ž ¢s textile sector the machines used in the textile sector is either underutilized or very old which became the hurdle in productivity of the sector and the labor related with this textile sector is also effected due to strong labor unions in the country which increase cost and decrease productivity and eventually profit of the textile sector. The government policies related to the investment on technological innovation also effect textile sector Government policies in these sectors, it is argued, have been biased against fresh investments; and import restrictions on capital goods and advanced technology have condemned entire industries to obsolete technologies (1989). The restriction on the imports and other obligations imposed by the Government on the purchase of machinery from outside country force the entire industry to obsolete technologies as well the continuous capital requirement for the expansion of production and other raw material cost force the textile sector to borrow money from bank to inject working capital. One of the most important concepts that a new business owner should know is how working capital and financing helps them survive and grow in a competitive world. The difference between current assets and current liabilities is known as à ¢Ã¢â€š ¬Ã…“net working capital (Jonathan Keith Gober). The data of textile sector used in this research shows that most of the companies have negative working capital which means the current liabilities of the textile sector is more than the asset which again increase the cost of the textile sector of Pakistan. 2.9 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Textile Sector Cost of Fixed Assets: With increasing global competition, the survival of any industry is getting difficult day by day especially in developing countries like Pakistan. Textile sector or any other sector of all developing countries used machineries and fixed assets which are obsolete and outmoded which increases their cost of production and decline productivity, efficiency and profitability. According to V. Mariappan and K. Chidambaram (2003), proper machine utilizations, the effective cost management and quality of material supplies are the three vital factors that determine the operating efficiency of a textile mill. Developing countries lack in most of the industrial resources same as the case with textile sector in Pakistan we have to import most of the technical machinery and equipment used in textile sector from other developed countries and this increases the overall cost of textile sector in Pakistan. Although the cost of textile sector increases with purchase of new machineries and equipment but this advancement in technology create the positive impact on performance of textile sector because this not only increase productivity, efficiency and profitability but also it helps textile firms to compete in the global market. Increase productivity of the textile sector is not only the outcome of advancement in the level technological development but other factors such as relative cost of labour and equipment, the cost of material, effective management of working capital and other resources also create an impact on it. Thus, higher productivity is not an accident. It is the result of effective p lanning and the judicious use of resources, V. Mariappan and K. Chidambaram (2003). Chapter à ¢Ã¢â€š ¬Ã¢â‚¬Å" 3: METHODOLOGY 3.1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Statement of Problem: à ¢Ã¢â€š ¬Ã…“What is the impact of working capital, cost of production and fixed assets cost on profitability of textile sector in Pakistan?à ¢Ã¢â€š ¬? 3.2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Hypotheses: H1: Increase in working capital negatively affect the profitability of textile sector by increase in short term liabilities. H2: Investment in technological instruments (Fixed Assets) has the positive impact on the profitability of textile sector: H3: High production cost has a negative impact on the development of textile sector. 3.3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Data Collection: There are two major sources of data collection use by the researchers for research purposes. They are: Primary Data: Primary data is used for the first through questionnaires, interviews and service and this is not published anywhere before. Secondary data: Secondary data is used for the researches which are based on already published in different newspapers, research journals and yearly companies reports. Chapter à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4: STATISTICAL ANALYSIS Results and Interpretation Model R R Square Adjusted R Square Std. Error of the Estimate 1 .775(a) .600 .597 264.88061 A Predictors: (Constant), fixed assets, working capital, cogs In the model summary table he capital à ¢Ã¢â€š ¬Ã…“Rà ¢Ã¢â€š ¬? in this table is coefficient of correlation which is .775 which shows that there is high correlation(relationship) between dependent (net income) and independent variables (fixed assets, working capital and cost of good sold) the second column which shows R Square (coefficient of determination or regression coefficient) which shows that 60% Of variation in net income amount is caused by predictors third column is Adjusted R square 59.7% variation is caused by predictors considering number of observations and the number of predicted variables. The ANOVA table tests the model acceptability and how model fits the first row which shows regression displays information about the variation accounted for by your model and the second row of Residual shows information about the variation is not accounted by your model the significance value of F is .000 which is less than 0.05 so it means than model is acceptable and the variation explained by the model is not due to chance. The coefficients table the first row shows constant which is second column of first row -38.373 shows that when all predictors (cogs, working capital and fixed assets) are held to zero the amount of net income is -38.373 and the constant is also significant P0.05. Then there is fist slope which is cost of good sold it is also significant p0.05, p=0.000 and t=5.375 which shows that cost of good sold had impact on net income the value of beta for cogs shows 1 million change in cost of good sold will bring 0.052 million change in net income which is not bigger change but at least it will bring change and significant. Then second slope is working capital it is also significant p0.05, p=0.000 and t=11.333 which shows that working capital had impact on net income the value of à ¢Ã¢â€š ¬Ã…“tà ¢Ã¢â€š ¬? is also bigger shows healthy variability in net income by working capital the value of beta for cogs shows 1 million change in working capital will bring 0.125 million change in net incom e. Final variable is fixed assets which is not significant p0.05, p=0.641 which means that change in fixed assets will not bring any change in net income On the basis of correlation matrix fixed assets is again rejected of being related to net income R=0.309 which is very low correlation it is also insignificant as shown in coefficient table. Chapter à ¢Ã¢â€š ¬Ã¢â‚¬Å" 5: CONCLUSION RECOMMENDATIONS: 5.1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Conclusion: After evaluating the whole textile sector I reached to a point that cost is greatly affect the productivity, efficiency and profitability of every sector same as the case with textile sector. In Pakistan, the textile sector is considered the most important investment sector which greatly push Gross Domestic Product (GDP) and National Income (NI) of the country. So to study such an important sector these variables help me in evaluating the relationship of cost with the performance of textile sector. The hypothesis used in conducting this research shows the impact of fixed assets, working capital, cost of production with the net income of the sector my finding shows that there is no impact of fixed asset cost on net income of the textile sector so my hypothesis is rejected which shows that increase in the investment of technology and equipment improve the efficiency and productivity of textile sector. Secondly, the research contain other variable relationship with the development of textile sector in which the working capital plays an important role my research results clearly shows the impact of working capital with net income because the increase in current assets help this sector to better maintain its current liabilities which ultimately reduces the addition cost incurred by the sector. In Pakistan textile sector needs continuous short term investment which forced the sector to increase it short term debt by borrowing from bank to meet its short term expenses. So the sample size taken in the research shows that both of them are highly correlated but they have inverse relationship increase in working capital decreases the net income as vise a versa. So my hypothesis for the working capital is accepted and it is proved that independent variable is explained by dependent variable. The third and last variable is the cost of production which incorporate all costs incurred while production of the textile items. It include the prices for all raw materials which are essential for the production process fuel, oil inventories, transportation, cotton prices, yarn prices which bring significant changes in the profitability of textile sector . The hypothesis used for the cost of production shows that there is inverse relationship on cost of production and profitability as cost for producing the textile items is increasing the profitability becomes falling and in result the development of textile sector faced hurdles in growing. The overall analysis shows that we cannot considered the increase in production only until or unless the cost structure is not clearly defined although the production of textile sector is increased in last few years but simultaneously the cost is increased with greater extend which reduces the profit margins with very less proportion which does not support the economy of Pakistan which has the major share in growth of the Pakistanà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy. 5.2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Recommendations: Pakistan is a one of the leading country producing raw yarn, cotton, and fabrics. If we focus on the value added products like garments, hosiery, knitwear and other textile products, the production volume of textiles can be enhanced by tremendously. In this respect top priority should be given to cost reduction, easy availability of working capital and employment creation. The Government of Pakistan has created a special Textile Board for the promotion of Textile Industry as predicted in Textile Vision 2005 but unfortunately its performance and productivity is still below expectation of the government of Pakistan. So the guess is that government should establish a Ministry of Textile to meet the demand of private sector.   Whole economy of Pakistan is suffering due to energy crisis. Therefore, the increase in double digit inflation causes great discrepancy in the production of textile industry which forces most of the textile firms to wind up their business and to set up their business in other countries in our region. Therefore, my suggestion for government is that the government should take concrete steps on priority basis to resolve energy crisis and control inflation in Pakistan. The government of Pakistan has recently imposed tax of the import of thread from other countries which is severely affecting the productivity and profitability of the textile sector and tremendously increases the cost of production of textile industry. To resolve this issue, the government needs to seriously look into this matter and try to find a solution to it to boost the textile industry in Pakistan. Government should either set up joint ventures in textile related areas or should provide subsidized credit to textile manufacturers to upgrade their technology and capacity building through à ¢Ã¢â€š ¬Ã‹Å"Technology Upgradation Fundà ¢Ã¢â€š ¬Ã¢â€ž ¢. (TUF). It is also suggested that smaller units of power looms (up to 50 looms) should be upgraded to auto looms and power loom units larger than 50 looms into air jet looms. At present cost of doing business in Pakistan is higher as compared to the regional countries, which has resulted in bitter competitiveness to Pakistani Products in Foreign Markets. China and India are the bigger competitors of Pakistan. We fear if cost of doing business in Pakistan is not brought at par with other Asian countries, our products would find no place in Market both in terms of quality and price. In the context of future trade, there is an urgent need to bring all the utility charges and levy of taxes down to the minimum level.   BIBLIOGRAPHY:

Dan Sperbers Article The Future of Writing - 1049 Words

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Decennial Census In Census 2000, the census used 2 forms 1. â€Å"short† form – asked for basic demographic and housing information, such as age, sex, race, how many people lived in the housing unit, and if the housing unit was owned or rented by the resident 2. â€Å"long† form – collected the same information as the short form but also collected more in-depth information such as income, education, and language spoken at home * Only a small portion of the population, called a sample, received the long form. Two forms were used during Census 2000. The â€Å"short form† asked several questions on the most basic demographic and housing topics. These questions asked about age, sex, race, Hispanic origin, the number of people living in the housing unit, and if the housing unit was owned or rented by the resident. The â€Å"long form† collected the same information as the â€Å"short form,† but it also asked questions on additional topics. Thirty-two questions were asked of each resident of the housing unit on such topics as marital status, education, language spoken at home, employment, occupation, and others. Twenty-one questions were asked about the housing unit itself, so only one resident of that housing unit was asked to provide information on such topics as plumbing and kitchen facilities, type and cost of utilities, value of the property, and others. Only a sample of the total U. S. population received the long form. The data from the long form are called â€Å"sample data. † The basic data collected on both the short and the long forms are called â€Å"100 percent data† since these questions were asked for 100 percent of the U. S. population. 2010 Census and American Community Survey * 2010 Census will focus on counting the U. S. population * The sample data are now collected in the ACS * Puerto Rico is the only U. S. territory where the ACS is conducted * 2010 Census will have a long form for U. S. territories such as Guam and U. S. Virgin Islands * Same â€Å"short form† questions on the ACS The upcoming 2010 Census will include only one form sent to the entire U. S. population. That form will ask only questions similar to those contained in previous census short forms. The 2010 Census will provide a basic count of the U. S. population, collecting only the most basic demographic and housing information. Detailed demographic, social, economic, and housing data will no longer be collected as part of the decennial census. * The data that were collected from the long form sample are now produced from the American Community Survey. * The American Community Survey collects data from the 50 states, the District of Columbia, and Puerto Rico, where it is called the Puerto Rico Community Survey. The American Community Survey does not collect data from the other U. S. territories, such as Guam and the U. S. Virgin Islands. The 2010 decennial census will continue to collect long form type data for these areas. The questions that are asked on the 2010 Census are also asked on the American Community Survey questionnaire. American Community Survey Content The content collected by the American Community Survey can be grouped into four main types of characteristics – social, economic, housing, and demographic. Let’s take a closer look at the type of information each of these categories contain. American Community Survey Social Characteristics * Education * Marital Status * Fertility * Grandparent Caregivers * Veterans * Disability Status * Place of Birth * Citizenship * Year of Entry Language Spoken at home * Ancestry/ Tribal Affiliation Social characteristics include topics such as education, marital status, fertility, grandparent caregivers, veterans, disability status, place of birth, citizenship status, year of entry, language spoken at home, ancestry and tribal affiliation. American Community Survey Economic Characteristics * Income * Benefits * Employment Status * Occupation * Industry * Commuting to Work * Place of Work Economic characteristics include such topics as income, benefit s, employment status, occupation, industry, commuting to work, and place of work. Data on the economic characteristics of the population are collected to assess the well-being of individuals and households. American Community Survey Housing Characteristics * Tenure * Occupancy ;amp; Structure * Housing Value * Taxes ;amp; Insurance * Utilities * Mortgage/Monthly Rent Housing characteristics include topics such as tenure, occupancy and structure, housing value, taxes and insurance, utilities, and mortgage or monthly rent. This housing data gives us a measure of the housing stock of the country. American Community Survey Demographic Characteristics * Sex Age * Race * Hispanic Origin The American Community Survey also collects the basic demographic characteristics such as sex, age, race and Hispanic origin. This is the same information that will be collected by Census 2010. American Community Survey 2008 Content Changes * Three new questions * Health Insurance Coverage * Veteran’s Service-connected Disability * Marital History * Deletion of one question * Time and main reason for staying at the address * Changes in some wording and format Several changes were made to the American Community Survey questionnaire at the beginning of 2008. Three new questions were added and one question was deleted. The three new questions are on health insurance coverage, veteran’s service-connected disability, and marital history. These new data will begin to be available during the data release in 2009. The deleted question measured the time and main reason for staying at the sampled address. These data were used for internal research purposes and the data were not published in the data products. Changes were also made to some of the demographic questions so that they are consistent with the questions that will be on the 2010 Census questionnaire. American Community Survey Methodology * Sample includes about 3 million addresses each year * Three modes of data collection * mail * phone * personal visit * Data are collected continuously throughout the year About 3 million addresses are selected for the American Community Survey sample every year. The American Community Survey data collection operation uses three modes that take place over a three-month period: mail, telephone, and personal visit. For most housing units the first phase of data collection includes a questionnaire mailed to the sample address for the household to complete and return by mail. If no response by mail is received, the Census Bureau follows up with computer assisted telephone interviewing, or CATI, if a telephone number is available for the address. If the Census Bureau is unable to reach an occupant of the unit using CATI, or if the household refuses to participate, the address may be selected for computer assisted personal interviewing, or CAPI. At any point in this process, receipt of a completed questionnaire from the sampled address results in the address being removed from the data collection workload. Data for the American Community Survey are collected continuously throughout the year. Interviews conducted between January 1st and December 31st of a given year are aggregated to produce annual estimates for calendar years. For example, interviews conducted between January 1st and December 31st of 2009 are aggregated to produce estimates for 2009. American Community Survey Target Population * Resident population of the United States and Puerto Rico * Living in housing units and group quarters * Current residents at the selected address * â€Å"Two month† rule Interview and residence rules define the target population for a survey. These rules therefore identify the units and the people eligible for inclusion in the survey. The sampling frame reflects this choice of universe, as do the instructions on the forms and in the procedures used by survey interviewers during follow-up. The American Community Survey collects data from all persons without regard to their legal status or citizenship. In 2005 the target population was limited to the housing unit population of the US and Puerto Rico. For the first time in 2006, and for every year thereafter, the American Community Survey has included the resident population living in BOTH housing units and group quarters. The American Community Survey residence rules were established to collect data from people who are currently living at the selected address. For inclusion in the survey, these rules require that, at the time the questionnaire is completed, the respondent is living or staying at the housing unit address for more than two months. American Community Survey Group Quarters Group quarters are places where people live or stay that are normally owned or managed by an entity or organization providing housing and/or services for the residents. These services may include custodial or medical care as well as other types of assistance, and residency is commonly restricted to those receiving these services. The group quarters population is divided into two categories, the Institutional group quarters population and the Non-institutional group quarters population. The Institutional group quarters population includes residents under formally authorized supervised care. Examples of these facilities include skilled nursing facilities, adult correctional facilities, and psychiatric hospitals. The Non-institutional group quarters population includes residents of college/university housing, ilitary barracks, and group homes. American Community Survey Period Estimates * ACS estimates are period estimates, describing the average characteristics over a specified period * Contrast with point-in-time estimates that describe the characteristics of an area on a specific date * 1-year, 3-year, and 5-year estimates will be released for geogra phic areas that meet specific population thresholds American Community Survey period estimates describe the average characteristics of the population or housing over a specified period of time. In the case of American Community Survey one-year estimates, the period is the calendar year. For example, the 2007 American Community Survey data describe the population and characteristics of an area from January 1, 2007 through December 31, 2007, not for any specific day within the year. The American Community Survey collects survey information continuously nearly every day of the year and then aggregates the results over a specific period of time – one year, three years, or five years. The data collection is spread evenly across the entire period represented so as not to over-represent any particular month or year within the period. American Community Survey Data Products Release Schedule American Community Survey period estimates describe the average characteristics of the population or housing over a specified period of time. In the case of American Community Survey one-year estimates, the period is the calendar year. For example, the 2007 American Community Survey data describe the population and characteristics of an area from January 1, 2007 through December 31, 2007, not for any specific day within the year. The American Community Survey collects survey information continuously nearly every day of the year and then aggregates the results over a specific period of time – one year, three years, or five years. The data collection is spread evenly across the entire period represented so as not to over-represent any particular month or year within the period. American Community Survey Data Products Profiles * Data Profiles * Narrative Profiles * Comparison Profiles * Selected Population Profiles Tables * Detailed Tables * Subject Tables * Ranking Tables * Geographic Comparison Tables * Thematic Maps * Public Use Microdata Sample (PUMS) Files The American Community Survey data products are similar to those produced from the decennial census long form. Like the decennial sample data products, the American Community Survey products show the characteristics of the country’s population and housing. These products include four broad types of products – profiles, tables, thematic maps, and Public Use Microdata Sample, or PUMS, files. There are multiple types of profiles and tables – data profiles, narrative profiles, comparison profiles, selected population profiles, detailed tables, subject tables, ranking tables, and geographic comparison tables. All of the data products are available on the Census Bureau’s American FactFinder. The data products are explored in depth in the presentation titled â€Å"Data Products from the American Community Survey. † American Community Survey Learning More * ACS Main Page * 2007 Data Product Details * Subject Definitions * Guidance on Comparing 2007 Data to Other Sources * Design and Methodology Report * The ACS Compass Products The American Community Survey Web site has a lot of information about the program, its data products, and evaluation of the data. The next several slides will present some valuable resources for learning more about the American Community Survey. We will look at the ACS Main page, the 2007 Data Product Details, Subject Definitions, Guidance on Comparing 2007 Data to Other Sources, the ACS Design and Methodology Report, and The ACS Compass Products. The upcoming slides show static images of the American Community Survey Web site taken in late-September 2008. As the Web site is continually updated, these images may differ slightly from what is currently on the active Web site. At the bottom of each of the upcoming slides are the Internet addresses for the Web page that the slide is referencing. American Community Survey ACS Main Page The American Community Survey Main Page has links to valuable information. Currently, one of those links is the â€Å"2007 ACS Data Release. † It is accessible under the â€Å"Highlights† section on the main American Community Survey Webpage: http://www. census. gov/acs/www. The Highlights section changes periodically so the most recent American Community Survey happenings are highlighted. You can always access information on the latest data release by clicking on â€Å"Access Data† in the top menu bar or by directly typing in the Web address, http://www. census. gov/acs/www/Products/. American Community Survey 2007 Data Release The 2007 ACS Data Release page includes links to four ways to access American Community Survey data. They are the American FactFinder, the File Transfer Protocol or FTP site, the Public Use Microdata Sample or PUMS files, and Request a Custom tabulation. It also contains data user tools and tips as well as important documentation. This page is where you can access much of the information you may need when using American Community Survey data. In the image on this slide, arrows highlight hyperlinks to 2007 Data Product Details and Comparing ACS Data, both located under the Data User Tools and Tips column. Under the Documentation column, arrows highlight hyperlinks to Subject Definitions, Errata, User Notes, and the ACS Design and Methodology report. We will now briefly explore each of these resources. American Community Survey 2007 Data Product Details The 2007 Data Product Details contains table shells and their ID numbers, maps, geographic areas, and more. At the top left of the page, you can use the drop down menu to select the state you’re interested in and it will produce the list of geographic areas that are published for that state. There will be a similar tool for the three-year estimates that will be released in December 2008. The box in the middle of the page allows you to look at table shells by topic. These table shells do not contain any data, however they are a useful mechanism for seeing the data that are offered and the format of those data before going to American FactFinder to begin your data retrieval. At the bottom of the page you’ll find some downloadable files that contain detailed documentation on the data products. One of these files allows users to see if the 2007 American Community Survey produced a table that is comparable to a table produced from the Census 2000 Summary File 3. Another file lists all of the tables that are new, have been deleted, or have been modified since the release of the previous year’s data. Also on this page is a document that provides instructions for applying statistical testing to American Community Survey data, so that you can test to see whether changes in the data are statistically valid. Each of these files will open in a new window and can be saved on your computer. American Community Survey 2007 Data Product Details The image on this slide shows the table crosswalk that is found by clicking on the link titled â€Å"Census 2000 Summary File 3 detailed tables with comparable ACS tables. The crosswalk offers information about the table’s title, id number and the subject area for both the Census 2000 Summary File 3 and the 2007 American Community Survey. It also contains information on how the 2007 American Community Survey and Census 2000 Summary File 3 tables correspond to one another. This is available as a downloadable Excel file from the Data Product Details page. American Community Survey Comparison Guidance * Comparing 2007 ACS to 2006 ACS * Census Bureau supports comparisons made between 2006 and 2007 ACS data * Comparing 2007 ACS to Census 2000 Differences between the 2007 ACS and Census 2000 include residence rules, universes, and reference periods. The Census Bureau provides guidance to users that want to compare 2007 American Community Survey data with data from other sources. You will also find a link on this web page to guidance on comparing 2006 ACS data to other sources. Guidance is needed before drawing conclusions because in some instances comparisons could be misleading due to differences in questions or methods. The Census Bureau supports comparisons made between 2006 and 2007 ACS data. When comparing 2007 American Community Survey data to Census 2000 data, the user should keep in mind the differences that exist between the 2007 ACS and Census 2000. As noted earlier, these include differences in residence rules, universes, and reference periods. For example, the 2007 ACS uses a â€Å"two-month† residence rule – defined as anyone living for more than two months in the sample unit when the unit is interviewed whereas Census 2000 used a â€Å"usual residence† rule – defined as the place where a person lives or stays most of the time. We encourage you to review the guidance on our website which provides useful information for every variable. American Community Survey Comparing Data The Census Bureau provides guidance to users that want to compare 2007 American Community Survey data with data from other sources. You will also find a link on this web page to guidance on comparing 2006 ACS data to other sources. Guidance is needed before drawing conclusions because in some instances comparisons could be misleading due to differences in questions or methods. The Census Bureau supports comparisons made between 2006 and 2007 ACS data. When comparing 2007 American Community Survey data to Census 2000 data, the user should keep in mind the differences that exist between the 2007 ACS and Census 2000. As noted earlier, these include differences in residence rules, universes, and reference periods. For example, the 2007 ACS uses a â€Å"two-month† residence rule – defined as anyone living for more than two months in the sample unit when the unit is interviewed whereas Census 2000 used a â€Å"usual residence† rule – defined as the place where a person lives or stays most of the time. We encourage you to review the guidance on our website which provides useful information for every variable. American Community Survey User Notes The user notes section provides important information about the data by specific year. For example, the first note listed on the screen references the â€Å"Modification Made in 2007 ACS Weighting Methodology for Orleans and St. Bernard Parishes in Louisiana. † It states the following: â€Å"The review of the 2007 operational data discovered evidence that suggests a high incidence of misclassification of uninhabitable units as vacant units. The effect of misclassification was almost entirely removed through a modification in the weighting methodology for Orleans and St. Bernard Parishes. The effect of the weighting adjustment was to down-weight units that had the vacancy status of ‘Other Vacant. ’ This modification resulted in more consistent and accurate ACS estimates of the number of vacant units and ‘persons per household’ in these two parishes. This modification was also made to the 2006 ACS weighting methodology. † American Community Survey Errata Notes The Errata notes page will provide users with information on any updates made to the data due to detected errors. For example, the errata note 46, which is the first entry on the screen, references â€Å"Subject Table S2101 and Base Table B21002 for years prior to 2007, period of military service. † The errata note states the following: â€Å"Due to an editing error, veteran’s period of service (VPS) was being incorrectly assigned for some individuals. The majority of the errors misclassified some people who reported only serving during the Vietnam Era as having served in the category â€Å"’Gulf War and Vietnam Era. The remainder of the errors misclassified some people who reported only serving between the Vietnam Era and Gulf War as having served in the category ‘Gulf War. ’ These errors have been resolved for the 2007 tabulations. â€Å" American Community Survey Subject Definitions The Subject Definitions document is a glossary of all American Community Survey measures. In the 2007 version, definitions of the quality measures describing American Community Survey data have been added. Versions for the 2002 through 2007 American Community Surveys are available. American Community Survey Subject Definitions The Subject Definitions document includes explanations of the measures. For example, the partial definition of the â€Å"Language Spoken at Home and Ability to Speak English† measure that is shown on this slide tells us that the questions are only asked of people aged 5 years and older. The full definition provides other important information about this measure. American Community Survey Design and Methodology Report * Important reference document covering methods used in producing ACS data * American Community Survey How to Use the Data The ACS Design and Methodology paper describes the basic design of the American Community Survey and details the full set of methods and procedures that are currently in place. An updated version of the paper is forthcoming. This report can be accessed from the 2007 Data Release page. American Community Survey How to Use the Data The geography notes section provides a brief explanation of the Census Bureau’s geographic terms. Geography notes are located on the â€Å"How to Use the Data† Web page. The yellow toolbar that sits just below the American Community Survey banner is accessible from all pages on the American Community Survey Web site. Click on â€Å"How to Use the Data,† which is the fourth tab from the right. American Community Survey Geography Notes The geography notes provide an overview of the types of geographic areas that are presented in American Community Survey data products. At the bottom of the page are printable . pdfs for the current year and past years of the American Community Survey. American Community Survey The ACS Compass Products * Set of educational handbooks aimed at specific audiences * Presentation slides on important ACS topics E-learning tutorial In recognition of the need to provide guidance on new concepts and the challenges they bring to users of American Community Survey data, the U. S. Census Bureau is developing a series of educational materials called The ACS Compass Products. The ACS Compass Products include user-specific handbooks, PowerPoint presentations, and an on-line tutorial. The handbooks provide user-friendly information about the ACS and the multiyear estimates available in 2008. Each handbook targets a specific user group including first time ACS data users. The PowerPoint presentations, such as this, provide important information on various aspects of the American Community Survey. These presentations were developed for two main purposes: (1) for individual to use to learn more about the ACS and (2) to provide a wide audience with the tools needed to conduct training on the ACS. Each presentation consists of approximately 35 slides and the accompanying speakers’ notes. The presentations have also been recorded as multimedia files so users can learn about the ACS without having to read the presentations or attend a training session. An on-line tutorial that enables users to understand and appropriately use ACS data is also planned for future release. American Community Survey Similarities with Census 2000 * Same questions and many of the same basic statistics * 5-year estimates will be produced for same broad set of geographic areas including census tracts and block groups Now that we have explored the American Community Survey program and products, let’s wrap up by answering the question â€Å"How is the American Community Survey different from Census 2000? As mentioned earlier, the American Community Survey asks many of the same questions and produces many of the same basic statistics as the sample data from Census 2000. American Community Survey data will be produced for geographies as large as the nation and as small as block groups. Five-year estimates will be produced for the same broad set of geographic areas that received sample data from Census 2000, including census tracts and block groups. American Community Survey Key Differences from Census 2000 Beginning in 2010, data for small geographic areas will be produced every year versus once every 10 years * Data for larger areas are available now and data for mid sized area will be available in December 2008 * Census 2000 data described the population and housing as of April 1, 2000 while ACS data describe a period of time and require data for 12 months, 36 months, or 60 months As opposed to the decennial census which produced data once every 10 years, the American Community Survey will provide a continuous stream of updated information for states and local areas. Updated data from the American Community Survey will be released every year. Updated data have been available since 2005 for areas with populations of 65,000 or more. Data in the form of three-year estimates will be available for areas with populations of 20,000 or more in December 2008. American Community Survey estimates provide information about the characteristics of population and housing for areas over a specified period of time. American Community Survey single-year and multiyear estimates contrast with â€Å"point-in-time† estimates, such as those from the decennial census long form samples, which are designed to measure characteristics as of a certain date or narrow time period. For example, Census 2000 was designed to measure the characteristics of population and housing in the United States based upon data collected around April 1, 2000, and thus its data reflect a narrower timeframe than American Community Survey data. American Community Survey Key Differences from Census 2000 * The goal of ACS is to produce data comparable to the Census 2000 long form data * These estimates will cover the same small areas as Census 2000 but with smaller sample sizes * Smaller sample sizes for 5-year ACS estimates results in reductions in the reliability of estimates In Census 2000 approximately 17 percent of the housing units received a long form. Statistics from this sample were produced for a broad set of geographic areas including the nation, all states, counties, census tracts, and block groups. Five years of American Community Survey data are needed to produce estimates comparable to the estimates produced from the Census 2000 long form. A benefit that users will gain from the American Community Survey is the more timely issuance of the data and the greater frequency with which the data are released. Also, it produces information for small areas, including tracts and block groups, which will be updated every year instead of once every decade. The sample sizes for the 5-year ACS estimates will be smaller than the sample sizes were for Census 2000. This will result in a reduction in the reliability of the estimate. How to cite American Community Survey, Papers

Corporate Social Responsibility Principles and Recommendations

Question: Discuss about the Corporate Social Responsibility Principles and Recommendations. Answer: Introduction: Any kind of activities in which business engaged has both positive and negative impact. Stakeholders are very important part of organisation. If stakeholders are there organisation is there. Primary stakeholders of James Hardie are employees, managers, shareholders investors, whereas secondary stakeholders are public, media, ASX ASIC. Recently High Court of Australia found that directors of James Hardie breach their duties. Following are the brief details of stakeholders and duties of directors towards stakeholders: STAKEHOLDER Group of James Hardie Corporate Governance Responsibilities Owned Workforce (employees families of employees of James Hardie) Employees are the arm of any company. In this case asbestos does not only effect employees of the company but also affect their family. Following are the duties of directors and their senior management towards employees: Directors have philanthropic responsibilities towards the employees and their families. Directors also own ethical duties towards the employees of company. Ceased the use of asbestos and the products in which such dangerous substance is used but company manufacture the product till 1987. Give compensations and reliefs to the employees who suffer from the asbestos. Directors of James Hardie give more preference to the profit maximisation instead of social benefits. Directors make misleading statements for the establishment of MRCF. It is the duty of the senior management to maintain sufficient funds in MRCF. But company admits on later stage that MRCF is underfunded ( customers Customers are one of the pillars on which an organisation stands. In this case company knows very well that bricks contained the material asbestos, which is harmful for its customers. It has a serious health effects which cause lung disease, lung cancer asbestosis. Following are the duties of directors of the company towards customers: Duty to maintain sufficient fund in MRCF but company fails to maintain sufficient fund in MRCF. Ceased the production of the products in which asbestos is used. Responsibility towards customers is same as company owns towards its employees because both the groups of stakeholders are directly in the contact of asbestos. Shareholders Generally in high profile companies directors work for the interest of their shareholders. It is the duty of the director that they maximise the wealth of their shareholders. Shareholders are the most important group considered by the companies. Following are the duties of directors towards shareholders: Increase and safeguard the value and investments of shareholders. Make timely and fair disclosures to the shareholders of the company. Take proper and fair consent of the shareholders in the important decisions of company. In this case directors of James Hardie follow the theory of Friedmans in which directors objective is to maximise the profit, minimise the cost and social responsibility is of government. ASX ASIC Directors of the James Hardie required to file full and fair disclosures to both ASX i.e. Australian stock exchange ASIC i.e. Australian Securities and Investments Commission. High court held that management of James Hardie means 7 directors breach their duties by providing misleading information to the ASX regarding the availability of fund in MRCF. It is the duty of the directors that they provide fair information to the ASX. Duty of director to disclose deed of covenant between MRCF and JHIL (ASIC, n.d.; Ethics, n.d.). These principles are formulated and advised by the Australian stock exchange and apply to only those entities which are listed on the ASX. Following are the principles of corporate governance: Principle 1 Lay solid foundations for management and oversight- Every organization must lay down the roles and responsibilities of their board of directors and also take preventive measures to monitor and evaluate the performance of its board. Principle 2 - Structure the board to add value- organization must ensure that their board is of appropriate size, directors have skills and they are able to perform their duties. Principle 3 - Promote ethical and responsible decision-making- board of director must take ethical and responsible decisions. Principle 4 - Safeguard integrity in financial reporting- organizations must have process to verify the integrity of their reporting. Principle 5 - Make timely and balanced disclosure- entities which is listed with the ASX must make all the fair disclosures to ASX on time. Principle 6 - Respect the rights of shareholders- organizations should provide appropriate and timely information to their shareholders so that they can enjoy their rights. Principle 7- Recognize and manage risk- organizations must ensure risk management process in their operations and have effective mechanism to check that framework. Principle 8- Remunerate fairly and responsibly- remuneration policy of organization is very important, company must have paid remuneration to its directors and senior management as per the legal framework and it must be sufficient so that quality of directors can be maintained. Following are the issues of James Hardie case which are related to the corporate governance principles: ASX Principle Key Corporate GOVERNANCE Issue CORRESPONDING to that ASX Principle Principle 3 Promote ethical and responsible decision-making- board of director must take ethical and responsible decisions. In this case management of James Hardie follows the theory of Friedmans narrow approach. According to the theory responsibility of director is to maximize the profit and minimize the cost, and social responsibility is of political parties and government. James Hardie knew about the symptoms of asbestos through the claim of their own employees in 60s but it takes 20 years to ceased the product. Board of directors of James Hardie takes many unethical decisions, High Court held that management of James Hardie are alleged for breaching of their duties by giving the wrong information to Australian stock exchange about the funds in MRCF. Board of directors of company does not take proper information from the management of company and approve the resolution. Directors of company act on the advice of management. Principle 5 Make timely and balanced disclosure- entities which is listed with the ASX must make all the fair disclosures to ASX on time. In this case directors of James Hardie breach their duties and five allegations are there for which they are alleged: In 2001 they provide information regarding establishment of MRCF, which was false. Does not make disclosures in relation to deed of covenants between MRCF and JHIL. Misleading information related to future obligation is involved in scheme of arrangement. Misleading presentations in 2002 related to MRCF. Fail in fulfilling their duties of care and diligence regarding cancellation of shares and provide information to ASX ASIC. ASIC commence civil proceedings against the 7 non-exective directors of the company, 3 executive directors of the company cs/general counsel of JHIL in 2007 u/s 180(1) of the Act. ASIC put allegations that directors failed to excersice their duties related to providing information to ASX (Norton Rose Fulbright, 2012). In answer 2 we discuss the principles of corporate governance and also the actions taken by the directors of the company. Abovementioned principle 3 principle 5 i.e. Promote ethical and responsible decision-making Make timely and balanced disclosure respectively. In this question discuss about the actions taken by the company to comply with the principles of ASX. Following is the brief discussion: ASX PRINCIPLE ACTIONS COMPANY SHOULD HAVE TAKEN TO COMPLY WITH THE ASX GUIDELINE Principle 3- Promote ethical and responsible decision-making This principle state that if directors of the company want to make decisions which are legal as well as ethical then company must give preference not only to legal obligations but also ethical principles. Following are the action which James Hardie must take to comply with the ASX guidelines: Company must lay down the standards for ethical behaviour for their board of directors and make ensure that directors follow those standards. Directors of the company take legal decisions and consider the interest of all stakeholders group. Company must lay down the code of conduct and ensures that directors of the company follow that code of conduct (ASX, n.d.) Principle 5- Make timely and balanced disclosure This principle states that companies must give fair and timely disclosures in the authorities. In this case James Hardie make many misleading statements to the ASX regarding the funds of MRCF. Following are the actions that company has to take while complying with the guidelines: Company must place a mechanism to ensure that timely and accurate information is disclosing to the authorities. Company must ensure that information which is giving to the authorities government is fair, clear and factual. Company must make proper disclosures regarding the financial position and other material information to the ASX. In 19th century James Hardie was founded. In 20th century it became an iconic company in Australia for manufacturing the products which are based on asbestos. Products sold by James Hardie are made of asbestos which cause dangerous lung disease. In 1939 James Hardie gets its first compensation case from worker, but till 1960 James Hardie did not give information about the hazardous effect of asbestos to its employees and even after 20 years company ceased the use of asbestos. Government inspectors informed about the effects of asbestos at the site but still asbestos is used in manufacturing of fibre by the company. Jamie Hardie is one of the largest users of asbestos. These effects are not only affected the employees of the company but also affect their family members, neighbours or contractors, etc... STAKEHOLDER Group of james Hardie HOW LONG TERM INTERESTS OF STAKEHOLDER GROUPS WERE AFFECTED OR EXACERBATED Employees and their family members Employees of the company and their family members get badly affected with the impacts of asbestos. This product caused many lung diseases such as lung cancer, asbestosis. Some of the cases are: Employee of company Bernie Banton was suffered from asbestosis mesothelioma during the employment period in James Hardie. Court held that award of $800,000 and a separate undisclosed amount must be grant to the banton as compensation. Another case is of Winnifred Brennanwho washed her husbands cloth which contain asbestos fibers and get infected with mesothelioma. Her 5 childrens and husband are already dies from cancer. In 2001 brennan get compensation of $374,000(lawgovpol, n.d.) Customers Customers of the James Hardie also get infected and suffer from the fiber of asbestos. Following are the case which explain how customer gets affected with the use of products of James Hardie: In 2007 Anita Steiner gets reward of unspecified amount because she get infected with the fiber of asbestos during the time when her parents used the products of James Hardie for renovating their house. Company Directors There is huge reputation damage to the company. Former directors of the company take a huge risk by not providing fair disclosures to the ASX, which affect the market value of shares as well as the reputation of the company in long run. Unfair information provided by the directors of James Hardie cause damage to the company first and then to the stock exchange. Brand image of James Hardie also get affected very badly. Directors reputation and career also get badly affected with their decisions. They ruin their career and reputation by their decisions. James Hardie discloses wrong information to the ASX about the funding of MRCF. Due to which ASIC commence proceedings against James Hardie and penalize the company. According to the investigation of ASIC, case of james hardie includes 3 countries (US, UK AUSTRALIA) and it includes 348 documents 72 examinations. In 2001 company restructured the business and creates a fund for asbestos sufferers and make false statement about the funds to the ASX (Financier Worldwide, 2012) It appears in the case that James Hardie sacrifice social interest on the cost of profit. Before commenting on the decision of James Hardie directors in mid-1960s, we discuss about the history of James Hardie. In late 19th century company was founded and in 20th century it becomes a successful company in Australia. Company was engaged in the mining and manufacturing of products which are based on asbestos. These products commonly known as fibre and they were very popular in expanding cities and it was cheaper then brick, but James Hardie manufacture these fibres from asbestos which are known for the causing lung diseases even in 1930 as per report of Ministry of Health in 1938. The first case of compensation from worker was filed in 1939 with James Hardie but company does not inform their employees about the harmful effect of asbestos and the liability provision till mid-1960. The liability provisions are up to A$1.5 million. Company take 20years to cease the product and manufactured it till 1987. Effects of asbestos are discussed on international level; it includes many lung diseases and specially mesothelioma, lung cancer and asbestosis. Company know about the effects of asbestos in 1930 but still it does not inform its employees till mid-1960 about the health complications and liability provisions regarding asbestos. James Hardie receive many claims from their workers in 1960 but still they continue to manufacture the product till 1987 which shows they sacrifice the health and lives of their employees on the cost of profit. There is a boom period of fibres from 1960-1970 and company chooses financial advantage over societys benefit and continue the manufacturing the products based on asbestos and ignore the warnings related to health of their employees. In 1970 when there is a death of the employee, which rise the voice of the public related to asbestos issues (the Australian Asbestos Network, n.d.). James Hardie does not behave ethically at that time, decisions of directors of James Hardie shows a greedy face of organization which maximize the profit of the company while minimizing the cost but they ignore their employees health and also not provide them fair compensation for putting their life on risk. If we talk about business ethics in this case directors of the company take professional decision and increase the wealth of their shareholders but taking care of one stakeholder group they neglect the other stakeholder group that are workforce. In this case directors of James Hardie totally ignore the moral values and take a risk on the life of their employees. Every organization wants to make profit and their main goal is profit maximization but there are some other goals too. Anglo American says every company must make profits but not on the cost of their employees health. Anglo American makes various principles on security of employees and human rights (Business Case Studies, n.d.). From the above discussion we can say that James Hardie does not make ethical decision that time and put their employees life on risk for the profit maximization goal and also company does not give fair compensation to their employees and make false statements regarding establishment of fund. Stakeholders are very important part of an organisation infect they are the drivers who drive the organisation in a right way, but if drivers does not drive correctly accident is confirmed. This is something happened in the case of james Hardie in which stakeholders of company took wrong decision which effect the reputation and society very badly. Stakeholders like shareholders, directors and senior management of the company took some decisions which threaten the companys ability to achieve the corporate sustainability. Some actions are briefly discussed here: SPECIFIC STAKEHOLDER GROUP HOW DID ACTIONS THREATEN JAMES HARDIES CORPORATE SUSTAINABILITY Directors Officers As we discussed in answer 5 former directors of the company took wrong decisions for profit maximisation. As we earlier discussed in 1939 first case of compensation was filed with the company but till mid 1960 directors of the company does not inform the employees about the effects of asbestos and liability provisions related to asbestos. It takes 20 years to company to cease the manufacturing of asbestos products which cause many deaths of employees and their family members. Later on company make false statements regarding the funds of MRCF to ASX which effect the reputation of company in long run and also decrease the market value of its shares. Directors of James Hardie make one more decision and decided to get separated from the subsidiaries on which asbestos related claims are high in number in 2001. In relation to this decision they set up a foundation which aim is to compensate the sufferers and make a research for the cure of this disease. company make statement to the stock exchange (ASX) that foundation has sufficient funds to meet the claims but in reality the statement found wrong because there s short of $1.3 billion (Board Matters, n.d.). ASIC commence proceedings against the company and penalize the company for their actions. In February 2007 ASIC start civil proceeding against the company and investigate the directors of the company specially related to MRCF and found directors guilty (Sydney morning herland, 2012). Many directors of the company resigned from the company. There are many lessons for other directors and officers from the case of James Hardie: Before passing any resolution it is necessary for the board of directors of the company to take necessary information from the management of the company. In this case before approving the resolution regarding funding of MRCF board of directors of James Hardie must ensure from their management that the funds are available or not. If decisions of directors are depend on the advice of management and third parties then it is a duty of each director of the company to check, review and understands that information provided by the management or third party. Directors are not free on the ground that management of the company does not provide actual or complete information to them. It is the duty of director to check and confirm the information provided by the management before approving the resolution. Directors of the company must be familiar with the matter conducted in the meeting by go through the material provided to them. But in case of James Hardie it was found that two directors give their confirmation on telephones without reading the material. Follow the practices of good corporate governance by propose resolution in the meeting of board of directors. Company must maintain a set of document regarding the matter conducted n a meeting. And also maintain complete minutes of the meetings(Blake Dawson, 2009 Ashurst, n.d.) It is necessary for every organisation to consider the benefit of the society also otherwise company cannot go in long run. Customers interest is the most important criteria but James Hardie ignores this. References: ashurst. James Hardie High Court Appeal Decision. Retrieved on 23rd August from: file:///C:/Users/Guest/Downloads/Company%20Law%20%20Governance%20Update%209%20May%202012.pdf. ASIC. 07-35 ASIC commences proceedings relating to James Hardie.Retrieved on 23rd august from: https://asic.gov.au/about-asic/media-centre/find-a-media-release/2007-releases/07-35-asic-commences-proceedings-relating-to-james-hardie/. ASX. Corporate Governance Principles and Recommendations with 2010 Amendments. Retrieved on 23rd august from: https://www.asx.com.au/documents/asx-compliance/cg_principles_recommendations_with_2010_amendments.pdf. ASX. Corporate Governance Principles and Recommendations. Retrieved on 23rd august from: https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf. Blake Dawson. (2009). Company Law Governance Update. Retrieved on 23rd august from: file:///C:/Users/Guest/Downloads/Company%20Law%20and%20Governance%20update%20-%208%20May%202009%20(1).PDF. Board Matters. High Court finds James Hardie directors breached their duties. Retrieved on 23rd August from: https://www.boardmatters.com.au/newsletter/high-court-finds-james-hardie-directors-breached-their-duties. Business case studies. Business ethics and corporate social responsibility. Retrieved on 23rd august from: https://businesscasestudies.co.uk/anglo-american/business-ethics-and-corporate-social-responsibility/what-are-business-ethics.html#axzz4IJx540q7. Ethics. The james hardie case: risk, reputation and business ethics. Retrieved on 23rd august from: https://www.ethics.org.au/on-ethics/blog/june-2012/the-james-hardie-case-risk,-reputation-and-busines. Financier Worldwide. (2012). 10 Questions. Retrieved on 23rd August from: https://www.financierworldwide.com/implications-of-the-james-hardie-judgment-for-directors-in-australia/#.V7_nlE197IU. Lawgovpol. Case Study: James Hardie and Asbestos. Retrieved on 23rd august from: https://lawgovpol.com/case-study-james-hardie-and-asbestos/. Norton Rose Fulbright. (2012). The James Hardie Decisions: Australian Securities Investments Commission v Hellicar Ors [2012] HCA17; Shafron v Australian Securities Investments Commission [2012] HCA 18. Retrieved on 23rd august from: https://www.nortonrosefulbright.com/knowledge/publications/66582/the-james-hardie-decisions-australian-securities-investments-commission-v-hellicar-ors-hca17-shaf. Sydney Morning Herland. (2012). James Hardie Directors Lose Final Appeal. Retrieved on 23rd August from: https://www.smh.com.au/business/james-hardie-directors-lose-final-appeal-20121112-298v1.html. The Australian Asbestos Network. James Hardie. Retrieved on 23rd august from: https://www.australianasbestosnetwork.org.au/asbestos-history/asbestos-work-3/james-hardie/.

The Facts Of Aids Essays - HIVAIDS, Health, Medicine, HIV, Virus

The Facts Of Aids AIDS is the plague of the 20th century, but how much do we really know about this deadly disease? HIV is a virus that gets into the body and flows through the bloodstream. AIDS is the disease that is caused by HIV. Once you are diagnosed as HIV positive, you do not automatically have AIDS. There is a possibility of being HIV positive, and not having AIDS. Most people do not know it is the infections that break down the body's immune system rather than the AIDS that kills paients. HIV can be prevented in many ways, but they are not always followed. People die when they don't play it safe. That's why we have to spread the word on prevention. There a three main ways the HIV can be spread: 1. sexual intercourse 2. intravenous drugs 3. blood transfusions (which are very rare now because all blood is tested) HIV is spreading like wild fire among adolescents because they don't believe it can happen to them. Sixty-one percent of 14-21 year olds are engaged in sexual intercourse. The problem we have to deal with is the spreading of this disease among our generation. A small percentage of people who use condoms still get HIV because: 1. misuse of condom 2. use of drugs or alcohol which can impair judgment or proper use 3. the condom could be defected The AIDS virus can be spread in many ways. AIDS can be transmitted by direct contact of bodily fluids from an infected male or female. The AIDS infected blood contaminates uninfected blood. The three most common ways of transmission are: sexual intercourse, blood transfusions of infected blood, and the sharing of intravenous needles which may have contaminated blood still in them. The virus cannot be contracted in many of the ways people think it can. There is a very low concentration of the virus in tears and saliva, so these cases of transmission are very rare. There are no known cases of transmission through mosquitoes or any other animals. Another common way of AIDS transmission is mother to child transmission. The virus can be transmitted to the child from the mother before or during the delivery of the baby. The other mother to child transmission case is through the breast milk that he/she is fed in the early stages of the child's life. In the first stages of HIV, the symptoms don't show up. People can live with AIDS for years without knowing it. Blood tests at the doctor will show antibodies after they form to fight the AIDS virus, but it takes the antibodies three months to show up. That means that if you take a blood test right after you have sex, the virus won't show up for another three months. In the second stage, the virus grows within the white blood cells and destroys them. When most of the cells are destroyed, the immune system is destroyed and the body weakens. Some symptoms they might form are: they begin feeling tired, loose weight. They may develop a cough, diarrhea, fever, or sweating at night. With HIV a cold is more threatening to them than to a person without the disease. In stage three, the AIDS virus has nearly destroyed the body's immune system. The body has great difficulty fighting off germs. Also, patients can develop a rare type of cancer called Kaposi's sarcoma. AIDS doesn't kill anyone, but other infections and cancer do. Scientists are trying to develop a cure for the AIDS virus. There are three parts to finding the cure. The three parts are: 1. To devise a drug that will kill the HIV once it enters the body. 2. To create a vaccine that would prevent the disease. 3. To educate people world wide about the dangers of AIDS and how to prevent the HIV infection. In 1986, the first step was taken in AIDS prevention. AZT is a pill that has prolonged the lives of HIV infected patients. Ninety percent of patients who have taken the AZT pill are still alive after one year of being diagnosed. This is an increase of 50% without the pill. There are some side effects of AZT.

Teen Social Issues Essays - Alcohol Abuse, Drinking Culture, Suicide

Teen Social Issues Essays - Alcohol Abuse, Drinking Culture, Suicide Teen Social Issues There are many social problems that teenagers go threw. I think the two most recognized problems are Teenage Drinking and Driving, and Teen Suicide. These two social behaviors teenagers go threw are two of the leading causes of teenage death in the state of New Mexico. Alcohol, the most widely used and abused drug among youth, causes serious and potentially life-threatening problems for this population. New Mexico holds one of the nation's highest DWI (Driving While Intoxicated) rates (Ulibarri, 1999). Motor vehicle crashes are the leading cause of death for teenagers in New Mexico. Society must now face several questions, why do teens drink, what are the results of teen drinking and driving, and how can society change this pattern. Every year hundreds of teens die in the state New Mexico. Teen suicide is the fastest growing killer of youth in America and if left unaddressed it will affect are future generations. Why do teenagers drink alcohol? Peers play the major role in shaping attitudes about alcohol use. Prior to this time, television and movies played the most influential role. The attitudes of parents toward alcohol correlated strongly with the attitudes of their children. There are several reasons why teenagers give to drinking alcohol which include recreation, rebellion, relieve depression, fatigue, and boredom. Also because they have personal problems at home that make them turn to alcohol. Other reasons are a loved one passing away, fighting with parents, divorce, and separation of family. The main factor of teenage drinking is influence from their peers. Teenagers in our society are pressured into trying out alcohol for the first time to see how it tastes like. If they give in to their peers they become part of the group, but if they do not they are not accepted into the group. As a result of teens being under the influence of alcohol, they are not aware that once they get behind the wheel they are risking their lives and the lives of other innocent people on the road. Teenagers think it's cool to drink and drive. They feel nothing will happen to them. A survey concluded, Males having higher rates of daily drinking and binge drinking than females, but these difference are diminishing. While white students report the highest levels of drinking, Blacks report the lowest, and Hispanics fall between the two (Alcohol Alert, 1999). The causes that lead them to automobile accidents are driver inexperience, driving late at night, having consumed alcohol, speeding, youthful risk, and driving during emotional stress. Many programs are being offered to educate teenagers and people on how to prevent alcohol-related accidents. The gentleman that came to talk to us on DWI related accidents had very interesting facts on Rio Arriba County. I found it vary informative. In R io Arriba County there is a DWI course being offered to anyone interested in developing strategies to prevent DWI from occurring by informing teens the DWI penalties, and laws in New Mexico, what happens in a DWI arrest and trial, and what the blood alcohol concentration level is. Education can help teens become aware of the consequences of drinking and driving. Yet effective ways of dealing with teen drinking and driving are formal treatment. Teens can be taken to visit a Rehabilitation center, which is a process of putting the treatment plan into action. It consist of (1) education, (2) Group therapy, (3) life story, (4) individual therapy, (5) peer assessment, (6) recreational therapy, (7) coping skills and relaxation therapy, (8) support group attendance, and (9) spiritually. Rio Arriba County is one of six communities across the nation to participate in the Rapid Responses Team Pilot Project, which is designed to study whether a team of experts can work with community members to develop effective ways of reducing underage drinking. The teams are comprised of one expert from each of the following profession: law enforcement, education, prevention, public policy, and strategic planning. Every year thousands of teens die in the United States, not from cancer or car accidents, but by their own hand; they make the choice that they want to die, and they take their life. Suicide is the fastest growing killer of youth in America (www.yellowribbon.org), and if left

Group Policy Coursework Example | Topics and Well Written Essays - 500 words

Group Policy - Coursework Example Security: due to the various security breaches evident, it is important to use the group policy to curb that. For instance, an organization can experience security breach due to the employees using very weak passwords. With the group policy, it is easy for an organization to set certain requirements for the users to follow when setting passwords. Cost and time: it enables installation or upgrading of software from one location and ensures that every machine is serviced simultaneously (Moskowitz, Hicks, & Burchill, 2013). Moreover, it is also possible to conduct the upgrade outside the business hours to avoid disruption of the work schedule. There are various potential pitfalls. One, because the SQL server is configured for windows authentication only, it becomes difficult to manage data in all the other relational databases. Moreover, the database can only be accessed from within the local area network. Beyond that, it becomes inaccessible. Lack of firewalls between the servers and the applications of the client becomes difficult to get into the client’s database and gather the additional information required. The types of data elements that will be difficult to capture are the compound data elements. These are data elements consisting of three field’s control, component count field together with the total length of the required data elements. The reason is due to lack of firewall between the server and the applications of the clients. It is able to establish a boundary between a trusted and un-trusted network (Moraes, 2011). Thus, the user is not restricted by any set of rules applicable and can therefor e conceal the compound data elements in such a way that it becomes difficult for them to be found. The main considerations include enhancing security. Among the 120 end users, there can be some using some practices that can lead to breach of security for the organization. This can be quite costly since the