The movies Salt of the Earth and The Battle of Algiers Essay

The movies Salt of the Earth and The Battle of Algiers - Essay Example The strength of the women depicted in these films can only be said to be admirable because it shows that it is not only men who have the fortitude or capability of fighting for what they know to be their rights. It can be said that while women have increasingly taken up an active role in the societies that are depicted in the films, the bias and segregation against them is still an ongoing process, which need to be addressed. The roles that women lay in these films shows that they are an important part of the society, because they not only bring within it a different view of things, but they also bring the diversity needed to ensure that revolutions or social movements are successful. The films show that despite the fact that the men, who dominate the society, have denied these women the opportunity to take up their rightful position in society is quite unfortunate and that such discrimination should be remedied, to ensure that there is equality within the society. The films being analyzed provide a clear picture of how women are treated not only in the society as a whole but also in their personal lives as well. It is a fact that the films address instances concerning the gender differences and bias against women that take place within the society, and because of what can only be perceived as the men’s emotional distance, there seems to be nothing that is being done by the men, in the societies depicted, to remedy this situation. The films therefore show that the matter of the discrimination against women in their respective societies should be addressed because this is the only way through which the issues involved can be understood and addressed (Nunes 9 16). The films which have been analyzed provide a small picture of the biases that women underwent in the society and one would state that the issues that these films address are only some of the cases that existed in the societies depicted and still continue to do so today. It is most likely that future research will make more revelations concerning the treatment of women in the societies, depicted in both Salt of the Earth and The Battle of Algiers, to demonstrate the prominent roles that these women played in the social movements of the said societies. These films seem to have been developed in part with the intention of sparking a movement towards a change in the attitudes that put women in such different situations from their male counterparts. In addition, it can be said that these films seem to be a challenge to the men who view them to take up the responsibility of showing more concern and consideration towards the women in their lives. It can further be said that the men in society should stop using women in their societies merely for the sake of sexual fulfillment, and should instead treat them with the respect that they deserve, since they are equal participants in the development of their societies. The films being analysed depict societies dominated by men and this has created a situation where women are not treated as equals and are instead relegated to the background (Pfaelzer 120). In the films, it can be seen that women, have yet to establish themselves well within the society to ensure that they excel on an equal basis as their male counterparts. Instead, women face many challenges in order to find success in an environment which can only be considered to be extremely hostile to them.

Economics and Global Business Applications Essay Example for Free

Economics and Global Business Applications Essay Elasticity of demand is a measure of responsiveness to a price change of a good or service. When demand is elastic, the percentage of a price change of a product will result in a larger percentage of quantity demanded (McConnell, p 77). It basically means reducing the price of a good service will result in a greater quantity demanded and an increase in revenue for the seller. When demand is inelastic, a change in price will result in a reduction of quantity demanded, which will then lead to a revenue decrease (McConnell, p 77). To demonstrate elastic and inelastic demand results, Company A sells 100 pens at $1.00 a piece each day, making their revenue $100.00. Company A then decides to sell their pens at $.50, which results in a total of 250 pens being sold. The total revenue from the price drop is $125, resulting in an additional $25.00; therefore the demand in this scenario is elastic. If selling the pens at the decreased price of $.50 would result in more pens being sold, but less total revenue, the demand is said to inelastic. According to McConnell, when demand in unit elastic, the percentage change in price and the resulting percentage changes in demand are the same. The change in price will not increase or decrease revenue. Cross price elasticity measures the response of demand to a change in price of another substitute or complimentary good (McConnell, p. 87). Substitute goods are goods that can be purchased in place of another good. Examples of substitute goods are soda (buying Coke vs. Pepsi), computers, and potato chips. A positive cross elasticity of demand means the increase of price in one good, for example Coca-Cola, will increase the demand of a substitute good, for example Pepsi. As the price for Coke increases, consumers are more likely to purchase Pepsi at a lower price, thereby increasing its demand. Complementary goods are items that are typically purchased in conjunction within one another. Examples are ringed binders and notebook paper, pencils and erasers, and potato chips and dip. A negative cross elasticity of demand in complementary goods means that the increase in price of one good, an example being potato chips, will decrease the demand for the complementary product that goes with it, the dip. Income elasticity measures the responsiveness of consumers to changes in their incomes (McConnell, p 88). Demand for normal goods tends to increase as consumers’ incomes increase and conversely, demand for inferior goods tends to decrease as consumers’ income increases. Demand is elastic where there is a large availability of substitutes. The reason for this as the price of a good increases, if there is a large amount of substitutes for this particular good, the consumer will choose the substitute. As discussed earlier, soda is an excellent example of this elasticity. Airline tickets are another example. As one airline raises its cost of a ticket or to even pay for a bag to be checked, a consumer will more likely choose a cheaper ticket or an airline that doesn’t charge for baggage over the original. If there is no (or a very limited) amount of substitutes for a good, elasticity is said to be negative. A price change in medication will not likely change the behavior of a consumer relative to demand since there isn’t a substitute to taking the medication. Household utilities are another example of a limited amount of substitutes. In discussing the proportion if one’s income devoted to a good concept, the household budget comes into play. In a given month, households pay for many different good and services. A change in price may or may not affect the households demand for those goods and services. Often, it is dependant on how much of the household budget is devoted to that good or service. Mobile phone service is an excellent example of a service that will most likely have a large amount of a household budget dedicated to it. A change in price in the cell phone service will most likely result in that family making a decision to change to a cheaper service, since that will have a large impact on their budget. On the other hand, that same household may purchase light bulbs each month. The amount of money dedicated to the purchase of light bulbs is so small, that a price increase will not likely affect the budget, therefore the family will not likely make a decision to change to a cheaper bulb. The concept of time when discussing demand is important. When a consumer has a large amount of time to decide on the purchase of a good or service, the elasticity is positive. Conversely, if there is little time, the elasticity is said to be negative. According to McConnell, and excellent example of this is gasoline for automobiles. Gasoline prices change daily and more often than not, prices rise. A family, who owns a car and is dependent on that car for work, etc, will not likely stop buying gas in the sort-term, because it is crucial to their everyday living. However, that family over a long period of time may decide to find alternate means of travel, decreasing their demand for gas. Using the graphs for elasticity of demand and total revenue, areas of elasticity, inelasticity and unit elasticity have been identified. Demand is elastic between the prices of $80.00 and $50.00, meaning the demand increases as the price decreases, resulting in an increase of total revenue. Between the prices of $50.00 and $40.00, the demand in unit elastic, meaning the percentage of drop in price resulted in the same percentage of increase in demand. Revenue remained unchanged in this price range. Between the prices of $40.00 and $0, the demand is inelastic, meaning the price drop has resulted in an increase in demand, but not enough to over come the decrease. Total revenue has been negatively impacted.

Relationship Between CSR and FTSE 100 Companies

Relationship Between CSR and FTSE 100 Companies Chapter 1 INTRODUCTION In todays business world the phrase corporate social responsibility (CSR) has become a relevant and frequently discussed topic. By definition it is the non-profit activities engaged by a business concern that aids the society, economy and the environment. The World Business Council for Sustainable Development has defined CSR as â€Å"the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community, and the society at large.† (WBSCD, 2000) Modern business concerns place CSR in high priority. In the fifth global CEO survey conducted by PricewaterhouseCoopers World Economic Forum concluded that 70 per cent of chief executives around the world have the opinion that corporate social responsibility is fundamental in the process of profit making in the business. In the Western European region, 68 per cent of the big companies have joined the triple bottom-line performance namely the economic, social and environmental factors along with financial performance whereas in the United States, this figure is 41 per cent (PricewaterhouseCoopers/BSI Global Research Inc, 2002). However 80 per cent of the company managers in the US are of the opinion that CEOs status is a factor of major influence on corporate reputation, although interestingly this value is just 56 per cent in the UK. According to Business in the Community, more than 70 per cent of business leaders believe that incorporating responsible business activities makes busin ess concerns more competitive and profitable. (Hancock, 2006) 1.1 Why was this topic selected? If the topic doing research to find out if there is a relationship between corporate social responsibility (CSR) and the corporate financial performance (CFP) of a company is able to find out with positive outcome and relationship between the two, then it may be an eye opener to various entrepreneurs to the various financial benefits CSR can bring about to business. This is so especially in the medium and small scale industries, which are yet to fully utilise the CSR in their business routines. From a common person point of view, when large corporations and business concerns take part in community relief and environment friendly activities, it makes a whole lot of difference to the society and the environment. So it is greatly beneficial for humankind to explore and bring out to light the relationship between corporate social responsibility and the firms financial performance. 1.2 Background of CSR: Many of the ideals and customs of the corporate social responsibility have references dating back to the 19th century. But it was during the 1960s and 1970s in the United States that there was resurgence in the mindset of people towards this phenomenon. It was during this period that various modern policies of civil regulation were invented. This includes the social audits, social investment funds, voluntary codes of conduct, recognitions for social and environmental activities and more commonly the use of corporations as potential places for political activity. During that period there were many protests and demonstrations like the boycott of Dow Chemical in 1970. There was also a campus-led movement pressuring firms to retract from South Africa in the 1970s which was similar to the challenges faced by the corporations having investments in countries like Burma and Sudan. Since the 1990s many companies form America and Europe that have headquarters either in the United States or Europe have taken aboard some voluntary standards for employment states, environmental activities and also regarding human rights. These fresh measures have since then became standardised in many companies, corporations and other agencies. These new measures have been monitored and reported. These initiatives that were not heavily legal have since been the standard setter for what is known today as corporate social responsibility. Some of the fresh changes that were brought about by this civil regulation were: (1) A positive reduction in the amount of children hired for labour every year. A massive improvement in health and safety in various factories around the world which provide the large firms with products including shoes, clothes, toys, etc. (2) A cut down in the production of wood from endangered forests and animal habitats, which were used to manufacture furniture for United States and Europe. (3) Providing reasonable prices for some agricultural producers like coffee growers for their products. (4) A considerable decrease in the emission of greenhouse gases especially in the wake of the greenhouse effect. (5) A withdrawal of firms from Burma in the wake of the human rights abuse in that country. (6) Some more recent examples are the lowering of prices of drugs for AIDS and other diseases. After that companies have come forward and set examples of CSR initiatives for other companies to follow, even when there is no restriction on them in the countries concerned to limit their activities. For example Home Depots policies regarding environment have helped in the sustaining of some of the rainforests in the South America. The government of Chad cannot be trusted in handling their oil reserves properly. So ExxonMobils efforts to keep an eye on its royalty payments means that at least some of the money is not wasted. Indonesia does not have adequate policies to protect the environment. Therefore Chevron Texacos activities have protected the fragile ecosystem in Papa New Guinea. Having discussed that, it must also be said that the effectiveness of codes, such as the UN Global Compact, Voluntary Principle on Security and Human Rights, the Equator Principles, etc, are not very effective. The improvements are likely to happen, particularly if the monitoring and other measures are effectively carried out. One of the most outstanding obstacle standing in the way of these social changes is of course the cost factor. Many corporations do keep cost aside for these activities, but most of them have not found to be adequate. This is one of the reason researches have to be carried out that point to the connection between CSR and CFP, because CEOs and managers should be aware of the possibilities created by CSR on the firms reputation and financial activities. So that firms can spend more time and money on their CSR and hence create good value for them, their stakeholders and ultimately the society. Today even countries in the developing world have started to demand bet ter working conditions and environmental safety for their environment. In countries like India people have been protesting against big companies for their discrimination. For example there has been a recent outbreak of protests in India against soft drink manufacturer Coca Cola for their indiscriminate usage of underground water and also its contamination, since underground water is a major source of drinking water through wells in many parts of India. CSR is also a factor that is good for a society regardless of it being located in developed or underdeveloped countries. It is a universal phenomenon that is advantageous. This contributes to its popularity and prominence. Some countries practise CSR ideally in their manufacturing hubs located in developing and underdeveloped countries. Some others stick to bringing about local changes and prosperity. For example the constructing of a school, university or a hospital is considered as a valuable contribution to the society. The company benefits from these activities because they indeed sow the seeds for future graduates who may become skilled employees for them. Also environmental activities earn sympathy and support from local authorities who may reduce taxes and other duties for the company on the basis of their humanitarian concerns. Later on in the 1990s there were protest against companies like Nike and Shell, and since then the importance of CSR has grown significantly. In 2005 a search on Google for â€Å"corporate social responsibility† would yield 30000 sites. There are more the 15 million pages on the internet with address dimensions of CSR. This is including 100,000 pages based on corporate websites. In 2005 Amazon had more than 600 books on the subject. More than 1000 business concerns have created and adapted signed codes of conduct which clearly states their individual stand on issues such social, environmental, animal rights and human rights. The numbers of firms that issue reports on CSR initiatives have gone up to 2000 in the year 2005.in the country of United States there were more that 200 social mutual funds in 2005, and they saw their revenues increase tenfold over a span of 10 years. Global organizations, such as the United Nations, the European Union and the World Bank and the Organizat ion for Economic Cooperation and Development (OECD), vigorously endorse the phenomenon of CSR. These governing bodies regularly monitor, advice, and award the efforts and initiatives taken by the companies every year. In the last two decades various charitable organisations have also sprung up, which work together with companies, and aids in their activities. Previously CSR was used only to address internal business ethics and policies. Nowadays this narrow view of CSR has changed and evolved into a variety of issue. Today a companys social venture could include initiatives to uplift education, poverty, unemployment, animal rights and other basic needs for community development. Some companies pursue more specific goals like aids relief, cancer research, disability support etc. For example firms established in the automobile industry may come up with safety programmes for motorists. Today in many countries, households have the chance to invest their money in various non-monetary savings and investments. In many countries, which are listed in OECD (Organisation for Economic Co-operation and Development), special banks offer facilities in savings account where the customers are assured that the money will be used for environmental sustainability programmes, or to help some entrepreneurs, who find it hard to get money from other institutions. The target group for these investments have generally been women and minorities. Today the impact of CSR has grown so much that people even in countries like South Africa and Brazil has the opportunity to invest their savings in socially responsible initiatives that checks the CSR of the firms in which they invest (International Finance Corporation (IFC), 2003). Many companies contribute for the conservation of the environment by finding new methods for recycling and elimination of non-biodegradable compounds etc. Therefore modern businesses have realised the increasing acceptance of socially responsible companies in the minds of people, so much so that it has become a trend to undertake social initiatives by the business enterprises. 1.3 Reason for doing good: There are many opinions that reason the indulgence of business companies in non profit initiatives. But the commonplace one would be that the companies perform good activities because good things and image are preferred by the masses. The public argue that these activities impress the investors, business analysts, business partners and the potential customers. The whole picture will look good in the companys annual reports and maybe even the company may have some luck in the courtroom and the parliament. This ultimately gives a vital boost to the companys brand image and reputation. There are many distinct and underlying advantages for business concerns. The distinct advantages clearly give the business a boost in monetary terms, hence being a direct contributor to financial performance. The underlying advantages may not directly save money for business, but they indirectly become advantageous to the business and eventually bring about financial gains thereby affecting its performance. For example Chiquita a global leader in the manufacturing of bananas decided to follow an environment friendly approach which saved them more that $5 million in 2002 compared to the year 1997. The trick behind this was the implementation of smaller quantity of agrichemicals and the adoption of a paller recycling program which actually saved them more than $3 million a year. This however was only the tip of the iceberg. Chiquita had bigger, but much more discreet advantages, by adopting a more socially responsible image. The company which was previously a target of media backlash w as going through a period of damaged company reputation which was a threat to its business functioning. They turned this around with their environment friendly approach and activities. This change in policy also created a sense of pride among the employees and helped in developing a more open and clear communication with the media. These developments will ultimately increase the financial performance of the companies by ensuring their smooth functionality. A frequently referenced study is by the University of Southwestern Louisiana, called â€Å"the effect of published reports on unethical conduct on stock prices† confirmed that publicity about unethical corporate conduct reduces stock prices for a minimum period of six months. From a truly customers point of view, it can be said that in todays marketplace there are a lot of alternative choices for customers when deciding to by a product in the criteria of product, price and distribution channels. Researchers have shown that consumers base their purchase on reputed companies, that indulge in fair trade and other sustainable business practices including concerned about the society in which they operate, provided the price and quality of the products remains similar. As an example if a consumer had an option of two products that have similar qualities and price tags, the consumer would prefer the product that was produced by a ‘greener company (green being symbolic of the community welfare and environmental efforts of the company). 1.4 Aims of the project: This project aims to answer the following issues: 1) Is there a relationship between corporate social responsibility and financial performance of a company? In addition the relation between the size of a company and the CSR is observed. 2) If there is a relationship, is the relationship positive or negative? 3) Discuss the various relationships between corporate social responsibility and financial performance. (CSR is measured by the value taken from the Business in the Communitys Corporate Index ratings and CFP is measured by the changes in stock prices before and after being rated in the Index ratings). 4) Evaluate the relationship between CSR and CFP in the FTSE 100 companies. 1.5 Structure of the dissertation: The introduction part of this dissertation includes a description about the aims and objectives of the research and the reasons for choosing this topic. It also contains a brief insight into the background of CSR and some of the previous researches conducted on this topic. Chapter 2 discusses in detail the various studies and researches conducted on this topic from the period between 1977 until recent times. The literature review also tries to bring out various points of view of different researchers and lays the foundation for this study. Chapter 3 or the methodology section discusses the various modes of data collection used in this research to arrive at the appropriate conclusion. This research utilises the share prices of a sample of 20 companies in the FTSE-100 for representing CFP and also their comparative ratings in the BITCs Corporate Index ratings to show the value of CSR. Alternatively questionnaires were distributed to obtain some qualitative data. Then in chapter 4 comes the primary research section which uses first hand data available regarding the companies to try to find a solution to the questions imposed in this study. It also discusses the 2 styles of data collection namely positivist and phenomenological styles. Chapter 5 consists of the discussion and conclusion section to analyse and compare the previous information collected in literature review and primary data research to arrive at a final conclusion regarding the topic. The result maybe positive or negative, nevertheless a result should be arrived at as per the available information and also so that possible recommendations can be given for further references and studies. Chapter 2 LITERATURE REVIEW 2.1 Studies explaining the different aspects of CSR-CFP relationship: According to Peloza (2006), the CSR and CFP can be analyzed from four perspectives In the above figure show the conflicting side against the knack of CSR as a provider to the firms financial ambitions. The far left depicts the antagonists of CSR who are of the opinion that any money spend by the firm on CSR are a complete negation to the firms economic gains, whereas in the extreme right are the supporters of CSR who claims it as a supporter of the firms financial goals. In the vertical axis separates the above two different views of CSR on the basis of a long term and short term approach. The long term managerial viewpoint on CSR involves a longitudinal approach to the evaluation of the effect of social schemes and the short term is for a static, cross-sectional perspectives that directs more on immediate effect or do not openly consider the time aspect. There are various arguments against CSR that can be shown on the 1st quadrant. Margolis and Walsh projected three main categories of these objections to CSR on the basis that it clashes with the business financial motives. According to them one of the explanations that opponents of CSR give is that the firms benefit society more when they create maximum profits for their shareholders. Another opinion was that individual shareholders should be the deciders of investing in social initiatives; the firms should only focus on achieving maximum profits for its shareholders. Finally they express concern that many shareholders are not aware of the social initiatives of the firm and are not given opportunities to have their say in them. The antagonists claim that the firms may make wrong decisions regarding the allocation of resources for social responsibility and hence they are not eligible to perform it. In quick contrast to all this, quadrant 2 depicts the protagonists of CSR claiming that it helps in the realization of the firms financial objectives. Various studies were conducted in relating to this quadrant. At first a value or positive CSR is paired with a firms performance indicator such as the stock price. Then a negative amount of CSR (for example harmful waste disposal) is paired with an amount of firms financial performance. The result in each of these cases was a positive relationship between the two. This is supported by a meta-analysis conducted by Orlitzky et. al in 2003 and other various studies conducted over the past 30 years, which generally discovered a positive connection between CSR and CFP. Also negative CSR has been associated with negative impacts on share prices. For example Shell Oil Company suffered a setback in share prices after an oil spill in 2001 in Nigeria. This is caused due to the negative CSR. A large number of researchers have favoured a short- te rm view of the time factor. They argue that majority of the firms expect to get positive returns on their investments in the same year. Former Chrysler CEO Bob Eaton once said that the organizations have a common goal of getting constant year-in and year-out profits from their companies in their portfolios. They do this because the shareholders everywhere follow a common rule: â€Å"if they are not satisfied, they sell† (Reich, 1998). According to Werbel and Wortman (2000) suggest that firms use these initiatives to temporarily ward off negative media coverage. However when we consider the ability of CSR to affect CFP in a bad way, several investigators are of the opinion in extending the short term perspective to a long term one. Taking the case of quadrant 3, even though the impact of environmental regulations on the business is only a limited one, still there would be a long term effect in the form of productivity slowdown Stavins (1994). Also there is an argument that when a firm takes up a social initiative, its competitors will start to match its actions and hence it will result in a competition which will prove to be costly and a subsequent decrease in profits. The researchers say that nowadays it has become a trend among big companies so much that every large companies are expected to do some investments in socially responsible activities by their customers; hence making it as a sort of tax. Nowadays researchers are beginning to consider CSR as complimentary to CFP taking into consideration the long term perspective as depicted in quadrant 4 in the According to the researchers the social objectives need not necessarily be in conflict to the economic objectives, but rather be a supplement to it. For example if a company funds a school or university in its locality, it actually paves the way for future employees that are well educated and support and develop the companys cause and also at the same time changing the social climate in the locality for the better. Another long term advantage that companies can muster by indulging in social responsibilities is the building up of reputation. A good reputation has always been associated with positive financial returns. Bhattacharya and Sen (2004) are of the idea that CSR builds a large pool of goodwill that firms can rely upon in times of crisis. Similarly McWilliams and Siegel (2001) say that positive CSR produces a reputation that a company is reliable and honest. 2.2 CSR in stakeholder theory: Stakeholder theory suggests that a company must not only try to meet the demands of its shareholders, but also those with the lesser explicit, or implicit claims (Gornell and Shapiro, 1987). Stakeholder theory also brings to light that implicit claims like product quality are actually less costly to a firm than the demands of its shareholders which are more explicit. The low social responsibility of the company may place doubt in the minds of its shareholders about the ability of the company to fulfill its implicit claims, and hence the shareholders may demand more explicit claims which may prove costly to the company. For example if the firms manage to evade from its environmental responsibilities (dumping of waste, usage of recyclable materials, etc), the government agencies and officials may impose strict regulations like duty, fines etc on the company. These circumstances may raise doubts in the minds of implicit stakeholders, who may question its efficiency. On the contrary soci ally responsible and environmentally friendly companies may be favored by the government and they might even get a reduction or exemption from certain taxes and duties on account of their actions. 2.3 CSR as insurance cover: Another important aspect that consolidates the positive relationship between CSR and the financial outcome of a company is the conceptualization of CSR as kind of insurance for the business which is especially helpful in the time of a crisis. CSR may help the company to create a good impression among the government authorities and helps the company to evade government impositions. This is difficult to evaluate when examining the relationship between CSR and financial performance, even though it indirectly affects the financial outcome. Davidson and Worrell (1992) advocated that the losses incurred by the firm due to a dent in their reputation is much higher than the physical costs incurred from actual event itself, such as product recall. Also in the same manner Blacconiere (1997) and his co-workers conducted various studies, and found out that firms with active environmental activities had a lower reduction in market value. A research carried out around the Seattle riots in 1999 against the WTO meetings came up with two conclusions. The research was conducted on 400 firms across a cross section of firms and found out that firstly there is a noticeable industry effect where companies with negative CSR ratings suffered incrementally over companies from neutral industries. They also concluded that once the industry effect has been removed, the positive outcome of the CSR ‘insurance is distinct. Specifically companies that had negative CSR had to undergo a stock market decline of double the times that of companies that were known for the CSR activities. Researchers have previously argued that firms with good name and status can overcome crises. For example is the Tylenol tampering in the 1980s, were Johnson Johnson suffered lesser economic problems, when compared with companies with bad reputation (Fombrun, et al. 1996). Fombrun (2001) also says that reputations have considerable concealed value that acts as a storage house of goodwill. During the time of crises they act to minimise the moral and financial damage to the company. Jones et al. (2000) have conducted a study taking taken a large number of companies to find out if their reputations can help them during a crisis. They discovered that firms in the better part of the Fortune Magazines annual survey of the ‘Most Admires Firms in America experienced lower market valuation losses in the stock market plunge that took place in 1983(SP 500 went down 7 per cent on that day), than the companies that were in lower part of Fortunes ratings. The capital in socially responsible investment funds have greatly increased in the last ten years. In 1990, only seven US firms issued their annual reports citing their social performance. But by 2004, 745 of these reports were release due to the increasing pressure on the corporate managers to do so. (corporateregister.com) These developments clearly brings to light not only the incremental profits by increasing sales, but also the capability of CSR to maintain sales and stock prices in the time of crisis. 2.4 Major studies done to evaluate CSR-CFP relationship: Researchers Sandra Waddock and Samuel Graves (1997) of Boston College made a study on two aspects of the topic: (1) Whether there is a positive or negative relationship between corporate social responsibility and financial performance of a company, or if no relationship exists at all between them. (2) If the exists a relationship then, whether the financial performance was due to the previous practises of CSR or if CSR was a succession as a result of high financial performance. Waddock and Graves (1997) utilised the data collected from and independent research organization. The data was collected of all the companies in the SP 500. The data was calculated for each companys CSR performance based on a rating scale that integrated eight important attributes of CSR namely environment performance, staff diversity, staff relations, community relations, product features, military contracts and involvement in South Africa. The above attributes were then ranked according to their relative significance. This scaling method involving eight aspects of community welfare solved the problem of measuring the largely diverse CSR activities, which was faced by previous researchers. Waddock and Graves studied the links between CSR and CFP of 469 firms during the year 1989 through 1990. The firms were from different sectors of business industries including hospitals, aerospace, mining, publishing and utilities. The study made use of different figures of finance like return on assets (ROA), return on sales (ROS) and return on equity (ROE). The analysing of data from two consecutive years meant that the duo researchers could test the slack resources theory, which tests if better CFP leads to a better CSR in the consecutive year. The theory which finds out if a good CSR leads to improved financial performance, was called the good management theory. This theory was studied with CSR data in the year 1990 and compared with the CFP figures of 1991, therefore with a time lag of one year. The following results were unearthed from the survey: (1) The slack resources theory was found to be true. CSR of the firms were increased by the precedent financial success of the firms. (2) The good management theory was also proved as fine CSR activities contributed to the firms financial performance when measured using ROS and ROA. They came to the conclusion that the correlation between CSR and CFP can be attributed to a virtuous circle, in which both of them are mutually correlated. It is difficult to predict whether the cycle starts with CSR or CFP, but it is evident in the investigation that they are mutually correlated. Meta-Analysis: A prominent study conducted by Marc Orlitzky and Frank L. Schmidt titled â€Å"Corporate Social and Financial Performance: A Meta-Analysis,† was awarded the Moskowitz Price by the Social Investment Forum. The aim of the study was to establish the relationship between corporate social responsibility and corporate social performance. The research was conducted by examining 52 studies that were published between 1972 and 1997, that contained a total of 33,878 observations. This Meta analysis utilises statistics to evaluate results of each different studies and adjust for the statistical errors. The Orlitzky Meta analysis concentrates on four major hypotheses: (1) In various industries and study contexts, CSR and CFP are normally positively linked. (2) Between CSR and CFP there is a bi-directional causality. (3) CSR is positively connected with CFP because of two reasons: (i) CSR boosts managerial proficiencies and organizational efficiency and supplies to knowledge about the companys political, technological, social, market, and other environments. (ii) A positive status and goodwill is created among the companys external stakeholders through CSR. (4) Most of the differences in results of some studies are due to statistical or methodological errors. The researchers then selected studies that carried out a quantitative assessment of the connection between CFP and CSR by taking into account at least one characteristic of firms economic performance, and met the given description of CSR. The CFP in this study is calculated by dividing into three forms namely accounting based, where accounting outcomes determine a firms efficiency; market-based where the investors returns are the determinant of market value and finally the survey results that shows the subjective estimates of a firms current position. While CSR is normally measured from CSR rating indexes, social audits, CSR disclosures and the organizations codes and values. The findings of the research were phenomenal. The researchers claimed that there exists a positive relationship between CSR and CFP across various industries and other study contexts. The following were their conclusions: (1) CSR had a stronger connection with CFP when using the accounting measures of analysis than when market-based measures where used. (2) Environmental development as CSR affects CFP of a company to a lesser extent when compared with other aspects of CSR. (3) The relation between CSR and CFP could be described as a virtuous circle in which a higher CFP motivates the companies to spend more on CSR, and a good spending on CSR will allow the firms to become more successful, hence increasing their CFP. The message of the research to the managers of companies were that money spend CSR is a good investment for the development of CFP. The research also found out that the managers use CSR as a tool for building reputation as previous studies have established that there is scope for reputation development through CSR. The disadva Relationship Between CSR and FTSE 100 Companies Relationship Between CSR and FTSE 100 Companies Chapter 1 INTRODUCTION In todays business world the phrase corporate social responsibility (CSR) has become a relevant and frequently discussed topic. By definition it is the non-profit activities engaged by a business concern that aids the society, economy and the environment. The World Business Council for Sustainable Development has defined CSR as â€Å"the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community, and the society at large.† (WBSCD, 2000) Modern business concerns place CSR in high priority. In the fifth global CEO survey conducted by PricewaterhouseCoopers World Economic Forum concluded that 70 per cent of chief executives around the world have the opinion that corporate social responsibility is fundamental in the process of profit making in the business. In the Western European region, 68 per cent of the big companies have joined the triple bottom-line performance namely the economic, social and environmental factors along with financial performance whereas in the United States, this figure is 41 per cent (PricewaterhouseCoopers/BSI Global Research Inc, 2002). However 80 per cent of the company managers in the US are of the opinion that CEOs status is a factor of major influence on corporate reputation, although interestingly this value is just 56 per cent in the UK. According to Business in the Community, more than 70 per cent of business leaders believe that incorporating responsible business activities makes busin ess concerns more competitive and profitable. (Hancock, 2006) 1.1 Why was this topic selected? If the topic doing research to find out if there is a relationship between corporate social responsibility (CSR) and the corporate financial performance (CFP) of a company is able to find out with positive outcome and relationship between the two, then it may be an eye opener to various entrepreneurs to the various financial benefits CSR can bring about to business. This is so especially in the medium and small scale industries, which are yet to fully utilise the CSR in their business routines. From a common person point of view, when large corporations and business concerns take part in community relief and environment friendly activities, it makes a whole lot of difference to the society and the environment. So it is greatly beneficial for humankind to explore and bring out to light the relationship between corporate social responsibility and the firms financial performance. 1.2 Background of CSR: Many of the ideals and customs of the corporate social responsibility have references dating back to the 19th century. But it was during the 1960s and 1970s in the United States that there was resurgence in the mindset of people towards this phenomenon. It was during this period that various modern policies of civil regulation were invented. This includes the social audits, social investment funds, voluntary codes of conduct, recognitions for social and environmental activities and more commonly the use of corporations as potential places for political activity. During that period there were many protests and demonstrations like the boycott of Dow Chemical in 1970. There was also a campus-led movement pressuring firms to retract from South Africa in the 1970s which was similar to the challenges faced by the corporations having investments in countries like Burma and Sudan. Since the 1990s many companies form America and Europe that have headquarters either in the United States or Europe have taken aboard some voluntary standards for employment states, environmental activities and also regarding human rights. These fresh measures have since then became standardised in many companies, corporations and other agencies. These new measures have been monitored and reported. These initiatives that were not heavily legal have since been the standard setter for what is known today as corporate social responsibility. Some of the fresh changes that were brought about by this civil regulation were: (1) A positive reduction in the amount of children hired for labour every year. A massive improvement in health and safety in various factories around the world which provide the large firms with products including shoes, clothes, toys, etc. (2) A cut down in the production of wood from endangered forests and animal habitats, which were used to manufacture furniture for United States and Europe. (3) Providing reasonable prices for some agricultural producers like coffee growers for their products. (4) A considerable decrease in the emission of greenhouse gases especially in the wake of the greenhouse effect. (5) A withdrawal of firms from Burma in the wake of the human rights abuse in that country. (6) Some more recent examples are the lowering of prices of drugs for AIDS and other diseases. After that companies have come forward and set examples of CSR initiatives for other companies to follow, even when there is no restriction on them in the countries concerned to limit their activities. For example Home Depots policies regarding environment have helped in the sustaining of some of the rainforests in the South America. The government of Chad cannot be trusted in handling their oil reserves properly. So ExxonMobils efforts to keep an eye on its royalty payments means that at least some of the money is not wasted. Indonesia does not have adequate policies to protect the environment. Therefore Chevron Texacos activities have protected the fragile ecosystem in Papa New Guinea. Having discussed that, it must also be said that the effectiveness of codes, such as the UN Global Compact, Voluntary Principle on Security and Human Rights, the Equator Principles, etc, are not very effective. The improvements are likely to happen, particularly if the monitoring and other measures are effectively carried out. One of the most outstanding obstacle standing in the way of these social changes is of course the cost factor. Many corporations do keep cost aside for these activities, but most of them have not found to be adequate. This is one of the reason researches have to be carried out that point to the connection between CSR and CFP, because CEOs and managers should be aware of the possibilities created by CSR on the firms reputation and financial activities. So that firms can spend more time and money on their CSR and hence create good value for them, their stakeholders and ultimately the society. Today even countries in the developing world have started to demand bet ter working conditions and environmental safety for their environment. In countries like India people have been protesting against big companies for their discrimination. For example there has been a recent outbreak of protests in India against soft drink manufacturer Coca Cola for their indiscriminate usage of underground water and also its contamination, since underground water is a major source of drinking water through wells in many parts of India. CSR is also a factor that is good for a society regardless of it being located in developed or underdeveloped countries. It is a universal phenomenon that is advantageous. This contributes to its popularity and prominence. Some countries practise CSR ideally in their manufacturing hubs located in developing and underdeveloped countries. Some others stick to bringing about local changes and prosperity. For example the constructing of a school, university or a hospital is considered as a valuable contribution to the society. The company benefits from these activities because they indeed sow the seeds for future graduates who may become skilled employees for them. Also environmental activities earn sympathy and support from local authorities who may reduce taxes and other duties for the company on the basis of their humanitarian concerns. Later on in the 1990s there were protest against companies like Nike and Shell, and since then the importance of CSR has grown significantly. In 2005 a search on Google for â€Å"corporate social responsibility† would yield 30000 sites. There are more the 15 million pages on the internet with address dimensions of CSR. This is including 100,000 pages based on corporate websites. In 2005 Amazon had more than 600 books on the subject. More than 1000 business concerns have created and adapted signed codes of conduct which clearly states their individual stand on issues such social, environmental, animal rights and human rights. The numbers of firms that issue reports on CSR initiatives have gone up to 2000 in the year 2005.in the country of United States there were more that 200 social mutual funds in 2005, and they saw their revenues increase tenfold over a span of 10 years. Global organizations, such as the United Nations, the European Union and the World Bank and the Organizat ion for Economic Cooperation and Development (OECD), vigorously endorse the phenomenon of CSR. These governing bodies regularly monitor, advice, and award the efforts and initiatives taken by the companies every year. In the last two decades various charitable organisations have also sprung up, which work together with companies, and aids in their activities. Previously CSR was used only to address internal business ethics and policies. Nowadays this narrow view of CSR has changed and evolved into a variety of issue. Today a companys social venture could include initiatives to uplift education, poverty, unemployment, animal rights and other basic needs for community development. Some companies pursue more specific goals like aids relief, cancer research, disability support etc. For example firms established in the automobile industry may come up with safety programmes for motorists. Today in many countries, households have the chance to invest their money in various non-monetary savings and investments. In many countries, which are listed in OECD (Organisation for Economic Co-operation and Development), special banks offer facilities in savings account where the customers are assured that the money will be used for environmental sustainability programmes, or to help some entrepreneurs, who find it hard to get money from other institutions. The target group for these investments have generally been women and minorities. Today the impact of CSR has grown so much that people even in countries like South Africa and Brazil has the opportunity to invest their savings in socially responsible initiatives that checks the CSR of the firms in which they invest (International Finance Corporation (IFC), 2003). Many companies contribute for the conservation of the environment by finding new methods for recycling and elimination of non-biodegradable compounds etc. Therefore modern businesses have realised the increasing acceptance of socially responsible companies in the minds of people, so much so that it has become a trend to undertake social initiatives by the business enterprises. 1.3 Reason for doing good: There are many opinions that reason the indulgence of business companies in non profit initiatives. But the commonplace one would be that the companies perform good activities because good things and image are preferred by the masses. The public argue that these activities impress the investors, business analysts, business partners and the potential customers. The whole picture will look good in the companys annual reports and maybe even the company may have some luck in the courtroom and the parliament. This ultimately gives a vital boost to the companys brand image and reputation. There are many distinct and underlying advantages for business concerns. The distinct advantages clearly give the business a boost in monetary terms, hence being a direct contributor to financial performance. The underlying advantages may not directly save money for business, but they indirectly become advantageous to the business and eventually bring about financial gains thereby affecting its performance. For example Chiquita a global leader in the manufacturing of bananas decided to follow an environment friendly approach which saved them more that $5 million in 2002 compared to the year 1997. The trick behind this was the implementation of smaller quantity of agrichemicals and the adoption of a paller recycling program which actually saved them more than $3 million a year. This however was only the tip of the iceberg. Chiquita had bigger, but much more discreet advantages, by adopting a more socially responsible image. The company which was previously a target of media backlash w as going through a period of damaged company reputation which was a threat to its business functioning. They turned this around with their environment friendly approach and activities. This change in policy also created a sense of pride among the employees and helped in developing a more open and clear communication with the media. These developments will ultimately increase the financial performance of the companies by ensuring their smooth functionality. A frequently referenced study is by the University of Southwestern Louisiana, called â€Å"the effect of published reports on unethical conduct on stock prices† confirmed that publicity about unethical corporate conduct reduces stock prices for a minimum period of six months. From a truly customers point of view, it can be said that in todays marketplace there are a lot of alternative choices for customers when deciding to by a product in the criteria of product, price and distribution channels. Researchers have shown that consumers base their purchase on reputed companies, that indulge in fair trade and other sustainable business practices including concerned about the society in which they operate, provided the price and quality of the products remains similar. As an example if a consumer had an option of two products that have similar qualities and price tags, the consumer would prefer the product that was produced by a ‘greener company (green being symbolic of the community welfare and environmental efforts of the company). 1.4 Aims of the project: This project aims to answer the following issues: 1) Is there a relationship between corporate social responsibility and financial performance of a company? In addition the relation between the size of a company and the CSR is observed. 2) If there is a relationship, is the relationship positive or negative? 3) Discuss the various relationships between corporate social responsibility and financial performance. (CSR is measured by the value taken from the Business in the Communitys Corporate Index ratings and CFP is measured by the changes in stock prices before and after being rated in the Index ratings). 4) Evaluate the relationship between CSR and CFP in the FTSE 100 companies. 1.5 Structure of the dissertation: The introduction part of this dissertation includes a description about the aims and objectives of the research and the reasons for choosing this topic. It also contains a brief insight into the background of CSR and some of the previous researches conducted on this topic. Chapter 2 discusses in detail the various studies and researches conducted on this topic from the period between 1977 until recent times. The literature review also tries to bring out various points of view of different researchers and lays the foundation for this study. Chapter 3 or the methodology section discusses the various modes of data collection used in this research to arrive at the appropriate conclusion. This research utilises the share prices of a sample of 20 companies in the FTSE-100 for representing CFP and also their comparative ratings in the BITCs Corporate Index ratings to show the value of CSR. Alternatively questionnaires were distributed to obtain some qualitative data. Then in chapter 4 comes the primary research section which uses first hand data available regarding the companies to try to find a solution to the questions imposed in this study. It also discusses the 2 styles of data collection namely positivist and phenomenological styles. Chapter 5 consists of the discussion and conclusion section to analyse and compare the previous information collected in literature review and primary data research to arrive at a final conclusion regarding the topic. The result maybe positive or negative, nevertheless a result should be arrived at as per the available information and also so that possible recommendations can be given for further references and studies. Chapter 2 LITERATURE REVIEW 2.1 Studies explaining the different aspects of CSR-CFP relationship: According to Peloza (2006), the CSR and CFP can be analyzed from four perspectives In the above figure show the conflicting side against the knack of CSR as a provider to the firms financial ambitions. The far left depicts the antagonists of CSR who are of the opinion that any money spend by the firm on CSR are a complete negation to the firms economic gains, whereas in the extreme right are the supporters of CSR who claims it as a supporter of the firms financial goals. In the vertical axis separates the above two different views of CSR on the basis of a long term and short term approach. The long term managerial viewpoint on CSR involves a longitudinal approach to the evaluation of the effect of social schemes and the short term is for a static, cross-sectional perspectives that directs more on immediate effect or do not openly consider the time aspect. There are various arguments against CSR that can be shown on the 1st quadrant. Margolis and Walsh projected three main categories of these objections to CSR on the basis that it clashes with the business financial motives. According to them one of the explanations that opponents of CSR give is that the firms benefit society more when they create maximum profits for their shareholders. Another opinion was that individual shareholders should be the deciders of investing in social initiatives; the firms should only focus on achieving maximum profits for its shareholders. Finally they express concern that many shareholders are not aware of the social initiatives of the firm and are not given opportunities to have their say in them. The antagonists claim that the firms may make wrong decisions regarding the allocation of resources for social responsibility and hence they are not eligible to perform it. In quick contrast to all this, quadrant 2 depicts the protagonists of CSR claiming that it helps in the realization of the firms financial objectives. Various studies were conducted in relating to this quadrant. At first a value or positive CSR is paired with a firms performance indicator such as the stock price. Then a negative amount of CSR (for example harmful waste disposal) is paired with an amount of firms financial performance. The result in each of these cases was a positive relationship between the two. This is supported by a meta-analysis conducted by Orlitzky et. al in 2003 and other various studies conducted over the past 30 years, which generally discovered a positive connection between CSR and CFP. Also negative CSR has been associated with negative impacts on share prices. For example Shell Oil Company suffered a setback in share prices after an oil spill in 2001 in Nigeria. This is caused due to the negative CSR. A large number of researchers have favoured a short- te rm view of the time factor. They argue that majority of the firms expect to get positive returns on their investments in the same year. Former Chrysler CEO Bob Eaton once said that the organizations have a common goal of getting constant year-in and year-out profits from their companies in their portfolios. They do this because the shareholders everywhere follow a common rule: â€Å"if they are not satisfied, they sell† (Reich, 1998). According to Werbel and Wortman (2000) suggest that firms use these initiatives to temporarily ward off negative media coverage. However when we consider the ability of CSR to affect CFP in a bad way, several investigators are of the opinion in extending the short term perspective to a long term one. Taking the case of quadrant 3, even though the impact of environmental regulations on the business is only a limited one, still there would be a long term effect in the form of productivity slowdown Stavins (1994). Also there is an argument that when a firm takes up a social initiative, its competitors will start to match its actions and hence it will result in a competition which will prove to be costly and a subsequent decrease in profits. The researchers say that nowadays it has become a trend among big companies so much that every large companies are expected to do some investments in socially responsible activities by their customers; hence making it as a sort of tax. Nowadays researchers are beginning to consider CSR as complimentary to CFP taking into consideration the long term perspective as depicted in quadrant 4 in the According to the researchers the social objectives need not necessarily be in conflict to the economic objectives, but rather be a supplement to it. For example if a company funds a school or university in its locality, it actually paves the way for future employees that are well educated and support and develop the companys cause and also at the same time changing the social climate in the locality for the better. Another long term advantage that companies can muster by indulging in social responsibilities is the building up of reputation. A good reputation has always been associated with positive financial returns. Bhattacharya and Sen (2004) are of the idea that CSR builds a large pool of goodwill that firms can rely upon in times of crisis. Similarly McWilliams and Siegel (2001) say that positive CSR produces a reputation that a company is reliable and honest. 2.2 CSR in stakeholder theory: Stakeholder theory suggests that a company must not only try to meet the demands of its shareholders, but also those with the lesser explicit, or implicit claims (Gornell and Shapiro, 1987). Stakeholder theory also brings to light that implicit claims like product quality are actually less costly to a firm than the demands of its shareholders which are more explicit. The low social responsibility of the company may place doubt in the minds of its shareholders about the ability of the company to fulfill its implicit claims, and hence the shareholders may demand more explicit claims which may prove costly to the company. For example if the firms manage to evade from its environmental responsibilities (dumping of waste, usage of recyclable materials, etc), the government agencies and officials may impose strict regulations like duty, fines etc on the company. These circumstances may raise doubts in the minds of implicit stakeholders, who may question its efficiency. On the contrary soci ally responsible and environmentally friendly companies may be favored by the government and they might even get a reduction or exemption from certain taxes and duties on account of their actions. 2.3 CSR as insurance cover: Another important aspect that consolidates the positive relationship between CSR and the financial outcome of a company is the conceptualization of CSR as kind of insurance for the business which is especially helpful in the time of a crisis. CSR may help the company to create a good impression among the government authorities and helps the company to evade government impositions. This is difficult to evaluate when examining the relationship between CSR and financial performance, even though it indirectly affects the financial outcome. Davidson and Worrell (1992) advocated that the losses incurred by the firm due to a dent in their reputation is much higher than the physical costs incurred from actual event itself, such as product recall. Also in the same manner Blacconiere (1997) and his co-workers conducted various studies, and found out that firms with active environmental activities had a lower reduction in market value. A research carried out around the Seattle riots in 1999 against the WTO meetings came up with two conclusions. The research was conducted on 400 firms across a cross section of firms and found out that firstly there is a noticeable industry effect where companies with negative CSR ratings suffered incrementally over companies from neutral industries. They also concluded that once the industry effect has been removed, the positive outcome of the CSR ‘insurance is distinct. Specifically companies that had negative CSR had to undergo a stock market decline of double the times that of companies that were known for the CSR activities. Researchers have previously argued that firms with good name and status can overcome crises. For example is the Tylenol tampering in the 1980s, were Johnson Johnson suffered lesser economic problems, when compared with companies with bad reputation (Fombrun, et al. 1996). Fombrun (2001) also says that reputations have considerable concealed value that acts as a storage house of goodwill. During the time of crises they act to minimise the moral and financial damage to the company. Jones et al. (2000) have conducted a study taking taken a large number of companies to find out if their reputations can help them during a crisis. They discovered that firms in the better part of the Fortune Magazines annual survey of the ‘Most Admires Firms in America experienced lower market valuation losses in the stock market plunge that took place in 1983(SP 500 went down 7 per cent on that day), than the companies that were in lower part of Fortunes ratings. The capital in socially responsible investment funds have greatly increased in the last ten years. In 1990, only seven US firms issued their annual reports citing their social performance. But by 2004, 745 of these reports were release due to the increasing pressure on the corporate managers to do so. (corporateregister.com) These developments clearly brings to light not only the incremental profits by increasing sales, but also the capability of CSR to maintain sales and stock prices in the time of crisis. 2.4 Major studies done to evaluate CSR-CFP relationship: Researchers Sandra Waddock and Samuel Graves (1997) of Boston College made a study on two aspects of the topic: (1) Whether there is a positive or negative relationship between corporate social responsibility and financial performance of a company, or if no relationship exists at all between them. (2) If the exists a relationship then, whether the financial performance was due to the previous practises of CSR or if CSR was a succession as a result of high financial performance. Waddock and Graves (1997) utilised the data collected from and independent research organization. The data was collected of all the companies in the SP 500. The data was calculated for each companys CSR performance based on a rating scale that integrated eight important attributes of CSR namely environment performance, staff diversity, staff relations, community relations, product features, military contracts and involvement in South Africa. The above attributes were then ranked according to their relative significance. This scaling method involving eight aspects of community welfare solved the problem of measuring the largely diverse CSR activities, which was faced by previous researchers. Waddock and Graves studied the links between CSR and CFP of 469 firms during the year 1989 through 1990. The firms were from different sectors of business industries including hospitals, aerospace, mining, publishing and utilities. The study made use of different figures of finance like return on assets (ROA), return on sales (ROS) and return on equity (ROE). The analysing of data from two consecutive years meant that the duo researchers could test the slack resources theory, which tests if better CFP leads to a better CSR in the consecutive year. The theory which finds out if a good CSR leads to improved financial performance, was called the good management theory. This theory was studied with CSR data in the year 1990 and compared with the CFP figures of 1991, therefore with a time lag of one year. The following results were unearthed from the survey: (1) The slack resources theory was found to be true. CSR of the firms were increased by the precedent financial success of the firms. (2) The good management theory was also proved as fine CSR activities contributed to the firms financial performance when measured using ROS and ROA. They came to the conclusion that the correlation between CSR and CFP can be attributed to a virtuous circle, in which both of them are mutually correlated. It is difficult to predict whether the cycle starts with CSR or CFP, but it is evident in the investigation that they are mutually correlated. Meta-Analysis: A prominent study conducted by Marc Orlitzky and Frank L. Schmidt titled â€Å"Corporate Social and Financial Performance: A Meta-Analysis,† was awarded the Moskowitz Price by the Social Investment Forum. The aim of the study was to establish the relationship between corporate social responsibility and corporate social performance. The research was conducted by examining 52 studies that were published between 1972 and 1997, that contained a total of 33,878 observations. This Meta analysis utilises statistics to evaluate results of each different studies and adjust for the statistical errors. The Orlitzky Meta analysis concentrates on four major hypotheses: (1) In various industries and study contexts, CSR and CFP are normally positively linked. (2) Between CSR and CFP there is a bi-directional causality. (3) CSR is positively connected with CFP because of two reasons: (i) CSR boosts managerial proficiencies and organizational efficiency and supplies to knowledge about the companys political, technological, social, market, and other environments. (ii) A positive status and goodwill is created among the companys external stakeholders through CSR. (4) Most of the differences in results of some studies are due to statistical or methodological errors. The researchers then selected studies that carried out a quantitative assessment of the connection between CFP and CSR by taking into account at least one characteristic of firms economic performance, and met the given description of CSR. The CFP in this study is calculated by dividing into three forms namely accounting based, where accounting outcomes determine a firms efficiency; market-based where the investors returns are the determinant of market value and finally the survey results that shows the subjective estimates of a firms current position. While CSR is normally measured from CSR rating indexes, social audits, CSR disclosures and the organizations codes and values. The findings of the research were phenomenal. The researchers claimed that there exists a positive relationship between CSR and CFP across various industries and other study contexts. The following were their conclusions: (1) CSR had a stronger connection with CFP when using the accounting measures of analysis than when market-based measures where used. (2) Environmental development as CSR affects CFP of a company to a lesser extent when compared with other aspects of CSR. (3) The relation between CSR and CFP could be described as a virtuous circle in which a higher CFP motivates the companies to spend more on CSR, and a good spending on CSR will allow the firms to become more successful, hence increasing their CFP. The message of the research to the managers of companies were that money spend CSR is a good investment for the development of CFP. The research also found out that the managers use CSR as a tool for building reputation as previous studies have established that there is scope for reputation development through CSR. The disadva

Essay --

Almost all young men hit a point in life where his mindset transitions from the imagined indestructability to the comprehension of humanity. Many see it as a steady change with no definite stage of illumination, nonetheless a sequences of open-minded phases or â€Å"the stepping stones into maturity.† For a select few, there is an insight, bounded by a catastrophic occurrence that incites a renovation in one’s outlook on something. Whichever comes to play, the unavoidable renovation subsists. The short story â€Å"Greasy Lake" by Thomas Coraghessan Boyle exposes this rational alteration in three young but â€Å"undeveloped† men as they face a chain of faults, penalties, and reiteration. â€Å"Greasy Lake" is an extremely polished short story that hints the proceedings rising up to the young men’s major transition. This coming of age story can definitely be realistic to comparable tales of men all throughout the biosphere as an imprinted transitional event leading to maturity. For the individuals in this story, a domino effect of problems reveals probable and definite penalties rising to this transition. In the very beginning of this short story, the author lays one of the most significant foreshadows, that depicts immature to mature, and how the characters think they are tougher than they actually are. Describing the â€Å"bad† things the boys do the narrator states, â€Å"We wore torn-up leather jackets, slouched around with toothpicks in our mouths, sniffed glue†¦we drank gin and grape juice†¦. We were nineteen. We were bad" (306). It was almost as if Mr. Boyle wanted the reader to think the boys were full of themselves; and to think that the boys were trying to act older than what their mindset holds. The boys perceived their mirror image as the archetype o... ...ble.† (309). The character’s repetition of their pristine clarification of life originates in the arrangement of a second chance contribution to justify their â€Å"malevolent guy† identity that they preferred previously. As the characters assemble their views and mirror on the previous happenings, two older ladies in a Mustang enter into the lot. The girls were not looking for the decease body that was lifelessly bobbing up in down the lake. No, that would make the ending too non-predictable; the girls from the Mustang epitomize an alternative chance to satisfy the boys’ malevolent behaviors. Beforehand stand simple takings, girls in â€Å"tight jeans [and] stiletto heels" (310) holding a vast number of narcotics and enticement in which they were in desperate exploration for one long night earlier, but with the dark’s happenings still new in their attention, Digby declines.

General Hideki Tojo: war criminal Essay

World War II is one of the events in the modern history of mankind which is looked upon with mixed reactions considering what was lost and was created because of this war. This was a showdown not just of superpowers, but also of the most influential leaders in different countries. One of these leaders is Hideki Tojo of Japan, who led the country and its soldiers in the Pacific theater of operations during World War II versus Allied forces led by the United States. This was a set of many different battles, which, on a whole, was deadly and costly for both camps. Many would say that General Hideki Tojo was just a man doing his job consistent with the political, economic and military directions of the country. Like any other soldier and leader, Tojo was expected to make decisions that will appear harsh and inconsiderate to human life, but is this really the truth? Many dare challenge this. They believe that just like any other individual, Tojo always had options and choices and he was never forced to just one course of action that he did not wanted or approved. The truth is that he has options. How he selected his own course of actions especially during World War II speaks a lot about how Tojo is the archetypal villain and evil, in consideration to this man’s values as reflected in his goals, ambitions, actions and perspective. Bringing a villain like General Hideki Tojo to trial for his evil during World War II is a case that will be strongly supported by many different important reasons and justifications why such accusations are real and suitable for some like Tojo. These reasons and justifications would be laid out, spread and explained to ascertain Tojo’s undeniable complicity and role in atrocities and undesirable actions during World War II. Hideki Tojo’s trial regarding his military and political actions during World War II will feature the discussion of several different proofs that will establish Tojo and his role in these atrocities and unacceptable acts even during war time. There are four important aspects that serve as proof to establish Hideki Tojo’s acts of atrocities and unacceptable war time behavior during World War II. It led many people to believe that he was indeed the villain that endangered and put to slaughter not just the lives of the enemy but lives of his own men as well. The first proof of Tojo’s evil is his influence and active, conscious and direct role in the hostile imperialism of Japan. Tojo is described as â€Å"one of the most aggressive of the Japanese imperialists (Keegan, Wheatcroft 291). † Of course, history will show that no effort at expansion and imperialism is not without violence. The fact that this is expected, it does not mean that Tojo and his imperialist expansion-related violence, crimes and hostility will be accepted. On the contrary, if Tojo was indeed in favor of humanity, he should have learned from the lessons of the past like the imperialist tendencies of Europeans in the past. He should have seen this could result to death and bloodshed. He should have never subjected his people and other people in such condition wherein death and destruction is the main result. However, the self-centered, greedy and power hungry Tojo moved forward with his dreams of expanding by controlling other countries and territories through the use of military force. This resulted to the death of many people, Japanese and non Japanese alike. It was a deadly and lethal combination. Tojo had access to power and was war hungry. He looked at war as a necessity for Japan at the time, which is disputable even today (Benford 119). â€Å"Tojo has assumed for himself the three posts of prime minister, war minister and chief of army staff and was totally responsible for the conduct of the war and was determined that only war could bring Japan what it rightfully deserved (Benford 119). † Wohlstetter expressed the importance of this development (Wohlstetter 324). â€Å"Tojo has thus concentrated enormous power in his own hands, far more than any Premier of modern times. He is jingoistic and anti-foreign, particularly anti-Russian. He has strong pro-Axis leanings (Wohlstetter 324). † History has dubbed the attack on Pearl Harbor as an ignominy which will go down in history books as a dastardly act that will be continuously frowned upon. Because of the style and approach, Japan, and particularly Tojo, who was Prime Minister at that time (Gudykunst 276), took in this particular incident. It resulted to the deaths of many individuals; many of those are non-combatants and innocent civilians. The attack on Pearl Harbor is considered as one of the most evil of all forms of attacks during war time history and in World War II. It is an unforgettable and unacceptable act on the part of the Japan. If this is the case, then what does this say about the people who conceived and planned and executed it, among the many high ranking top brass of Japan to approve it is Tojo? It is Evil, pure evil. â€Å"Tojo ordered Japan’s attack on Pearl Harbor, and then led his nation in war for three years (Weston 182). † It is one thing to cause death in the battlefield, but it is another to resort to killing even non combatants and civilians just to inflict damage to the enemy and to help one side come closer to victory (it is explained this way because even though Japan’s attack was a serious blow to United States, Japan, in the end, did not win). In this event, Tojo resorted to a Machiavellian thinking. He believed that the end justifies the means. However, in the end, it was completely unfortunate that despite the sacrifices used as a means, they still were not able to achieve the ends. In this perspective, how will the sacrifice of men be seen, considering the failure to achieve the objective? Tojo’s military leadership that resulted to the deaths of many soldiers did not automatically make him an evil leader. What made him an evil leader is the fact that he did not conducted himself accordingly. His actions are often irrational to the point that it is immoral and unethical even during the state of war among nations. Pearl Harbor is an excellent example of this condition. Tojo’s hands are stained with the blood of the innocent, people who should have not been directed and accorded with hostility. They are nonetheless victimized by a man whose evil has become legendary – and heavily criticized – even before World War II would end with Japan accepting defeat eventually. The evil of Tojo is not just limited to Pearl Harbor. As a powerful and influential man who directed military actions during World War II, Tojo is responsible for the lives of men. These were military and non-military people that were hurt or killed throughout World War II in places that Japanese soldiers and soldiers controlled and conscripted by Japan operated in. It is no secret that after World War II, investigations about many different war crimes resulted in the surfacing of information regarding the presence of these atrocities. Even though this are undertaken by Tojo’s underlings, it was Tojo who is responsible in grooming and managing men who should know how to handle themselves admirably during war. Tojo’s lack of that same sense reflected in how his followers acted. As they say, the actions of members reflect the characteristics of the leader. Tojo is evil because he was directly or indirectly responsible for the acts of atrocities committed during the duration of World War II in places Japan controlled or fought in. Soon, investigators were able to fully judge beyond reasonable doubt that responsibility for war crimes rests on the shoulders of Tojo, for which the punishment is death. In the end, Tojo was arrested, and proven as a war criminal (Benford 119). For the enemies of Japan during the World War II, it is easy for them to say that Japan and its leaders are bad because of their acts of hostility towards them (Japan’s enemy). The real extent of evil inside a man is not found in how he treats his enemies, since hostilities are expected between and among enemies. The true evil is found in how a man appreciates the lives of the man that follows him and how he uses the faith and trust that his followers give him. It is in this last aspect of the proof of Tojo’s evil that one can truly see that Tojo is not evil in the eyes of his enemies, but is evil in consideration to what he had his men undergo, do and suffer. The achievement of an imperial domination which was close to impossible and was something that Japan as a country wanted but what the selected few desired for themselves. These individuals include Tojo. In analysis, Japan and its position economically and politically at that time allowed them many other options. For one, the battle was in Europe among old and new enemies. The reason why it spread in Asia and the Pacific is because of Tojo’s megalomaniac tendencies that endangered the lives of many men, not to mention the deaths of thousands and even millions of others as well. It is not easy to look of Hideki Tojo without bias, and why not? His curriculum vitae, during World War II, is proof of his responsibility in the military actions that resulted to death, destruction and acts of atrocity, among others. History and related literature gave Tojo many different titles besides the one’s he officially owned at one time, titles which he earned because of his actions. For example, he was described as â€Å"supreme war lord (Butow 440)†, and not just military leader. Notice the impact that the writer was going for when using the term â€Å"war lord† in consideration to what was being implied and how the writer was trying to describe Tojo more accurately and vividly with the use of such term. Evans described Tojo as â€Å"an arch enemy (Evans 329)† and placed Tojo alongside other unpopular megalomaniac who was also responsible for death, destruction and atrocity including Hitler and Mussolinni. He was described as standing side by side and among the most hated men during that time. â€Å"During World War II, the three most hated men in the world were Hitler, Mussolini and General Tojo Hideki (Weston 182). † Hill believes that he was an aggressor similar to Hitler (Hill 86). â€Å"Hitler and Tojo were planning every imaginable step and they had jointly executed a policy of world aggression (Hill 86). † Works cited Benford, Timothy B. Pearl Harbor Amazing Facts! Utah: American Book Publishers, 2001. Butow, Robert Charles Joseph. Tojo and the Coming of the War. California: Stanford University Press, 1961. Evans, David. Ramblin’ on my mind: new perspectives on the blues. Illinois: University of Illinois Press, 2008. Gudykunst, William B. Communication Yearbook. California: Routledge, 2002. Hill, Richard F. Hitler attacks Pearl Harbor: why the United States declared war on Germany. Colorado: Lynne Rienner Publishers, 2003. Keegan, John and Andrew Wheatcroft. Who’s who in military history: from 1453 to the present day. London: Routledge, 1996. Weston, Mark. Giants of Japan: The Live of Japan’s Most Influential Men and Women. New York: Kodansha America, 2002. Wohlstetter, Roberta. Pearl Harbor: warning and decision. California: Stanford University Press, 1962.

pol essays

pol essays Political Advantages of Weapons in World War II International politics can get very complicated. When the use of force is threatened each nation must think of the defense of their borders as well as the safety of their civilians. With this in mind the ability to possess the best and most modern weapons because its a key factor. Hands down the nation that possesses these weapons have a distinct advantage. This advantage not only comes on the battlefield but at the negotiation table as well. This is why weaponry plays such an important role in politics as well. With this the earliest modern weapons playing a primary role is in World War II. Many new innovations and modernizations of weapons were introduced in WWII. Weapons from the Atomic bomb to the then new 50-caliber machine gun and everything in the middle including the new threat from the air. Along with this threat from the air comes the new invention of radar. All of these inventions made a direct impact on the war and the world to come. Probably the three weapons that made the most difference in the war and politically were the long-range bombers, aircraft carriers, and the atomic bomb. When speaking of weapons of WW II there are two categories due to their locations in the world. These are the war in Europe and the war in the Pacific Ocean. Because of the two different settings there was two different ways of fighting. This carries different weapons and different ways of fighting in each of the surroundings. Also there was two different enemies so this put more pressure on the U.S. to have a very complete build up of armed forces in every aspect of war. This includes land, air and sea ability. The first part of WW II is the war in Europe. One major deciding factor in Europe was the new role of air power compared to its previous use in WW I. The U.S. Army was the first armed service to acquire an airplane.(Grolier) But it w...

Craniotomy of Tumors Essay Example

Craniotomy of Tumors Essay Example Craniotomy of Tumors Paper Craniotomy of Tumors Paper Surgeries pertaining to the brain for tumor removal are commonly done thru craniotomy. Craniotomy is also performed to examine the brain, remove a blood clot, manage hemorrhage, do biopsy, or to ease pressure inside the skull. The same with other surgeries, the patient will undergo diagnostic procedures prior to craniotomy like: computed tomography scans (CT) or magnetic resonance imaging (MRI) scans. This is done to determine the underlying problem that required the craniotomy as well as to get a better view at the brain’s structure. Angiography of the cerebrum may also be utilized to study the blood supply to the tumor, aneurysm, or other brain lesion. In the case of a tumor in the occipital lobe, the skull will be opened by making a curving incision at the nape of the neck around the occipital lobe. This paper discusses the procedure for a 40-year old, quadriplegic and HIV positive patient. Preparation of the Patient The patient is usually given drugs to ease anxiety. Other medications to reduce the risk of swelling, seizures and infection after the operation may be administered as well. Before and during the surgery, fluids will be restricted; a diuretic may be given if the patient is prone to retaining fluids. Intake of food or drink will not be permitted past midnight the night before surgery. The patient is admitted the morning of the procedure. Catheter will be inserted prior to patient going to the operating room. Since the patient is HIV positive, it is best that the patient’s schedule of operation/surgery will be the latest surgery for the day. Double gloving among the operating room staffs and surgeons should be imperative. Extra care in handling blood and body fluids should be maintained. Being quadriplegic, the patient will then be positioned in a modified fowler’s position HOB elevated 15-20? , patient on his lateral side. During the Procedure General anesthesia is given while the patient lies on the operating table. The head is positioned in a 3-pin skull fixation device once the patient is asleep. The device, which is attached to the table, holds the patient’s head in position during the procedure. A lumbar drain is inserted in the patient’s lower back to help remove cerebrospinal fluid (CSF) that allows the brain to relax during surgery. Additional support may be placed due to the patient’s quadriplegic condition. A skin incision behind the hairline is made after the patient’s scalp has been prepped with an antiseptic. The surgeon makes the incision as far as the thin membrane covering the skull. Many small arteries have to be sealed by surgeon since the scalp is well supplied with blood. The skin flap is then folded back to expose the bone. A circle of holes is made in the skull with a hand drill or a craniotome. A fine wire saw is inserted through the holes by the surgeon to cut the outline of a bone flap to expose the brain. The cut bone flap is taken off exposing the brain protective covering called the dura (Mayfield clinic, 2009). The bone flap is saved until it is replaced at the end of the procedure. Surgery of the underlying cause then commences. The surgeon opens the dura using surgical scissors and exposes the brain. Retractors are used to gently expose a passage to the section needing surgery (restoration or removal). Various very small instruments and tools are used by the surgeon due to the difficulty of moving tissues aside to perform the repair or removal procedure. This is due to the compact structure of the brain. Evoked potential monitoring is oftentimes used to preserve the nerve functions and to ensure that it will not be additionally damaged in the surgery. This is accomplished by stimulating specific cranial nerves while monitoring brain responses. The retractors holding the brain are taken off after the surgery for the underlying cause has been completed and the dura is closed with stitches. The bone flap is put back in its original position and secured with titanium plates and screws. The plates and screws will remain permanently to support the area. In some instances, a drain is placed under the skin for a couple of days to take away blood or fluid from the repaired area. Finally, the surgeon stitches back the membrane, muscle and skin of the scalp together. A soft adhesive or turban-like dressing is placed over the incision. Post Surgery The patient is taken to the recovery room after surgery and vital signs are monitored as the patient regains consciousness (from anesthesia). Oxygen supply remains until the patient fully recovers. Since the patient is HIV positive, constant monitoring is required since the patient is immuno-compromised. Painkillers and drugs are given after the operation to manage any swelling and seizures that may arise are after the operation. Codeine may be given to relieve the headache and nausea that may occur as a result of stretching or irritation of the nerves of the scalp that happens during the craniotomy. An anticonvulsant medication to prevent seizure may also be given. Patient hospital discharge varies from only 2 days to 2 weeks depending on the surgery and complications. In this case, a high probability of complication might develop due to the patient being HIV positive. The bandage on the skull is changed regularly. Stitches or staples are removed 7–10 days after surgery in the doctor’s office. The patient should avoid getting the scalp wet until all the sutures have been removed. A clean cap or scarf can be worn until the hair grows back Reference Mayfield clinic. (2009, January). Craniotomy. Retrieved March 6, 2009, from mayfieldclinic. com/PE-Craniotomy. htm The surgeon marks with a felt tip pen a large square flap on the scalp that covers the surgical area. Following this mark, the surgeon makes an incision into the skin as far as the thin membrane covering the skull bone. Because the scalp is well supplied with blood, the surgeon will have to seal many small arteries. The surgeon then folds back a skin flap to expose the bone. Using a high speed hand drill or an automatic craniotome, the surgeon makes a circle of holes in the skull, and pushes a soft metal guide under the bone from one hole to the next. A fine wire saw is then moved along the guide channel under the bone between adjacent holes. The surgeon saws through the bone until the bone flap can be removed to expose the brain. After the surgery for the underlying cause is completed, the piece of skull is replaced and

Free Essays on One-child Policy

China has had a population problem for nearly 30 years now. This population problem has caused the Chinese government to create the one-child-per-family policy to counteract the problem. This policy helps reduce the country’s population but it also generates many other problems which are debated. Proponents and opponents argue over China’s economy and morals. The argument is now more heated as the population is under control and the people are making unmoral decisions. China’s â€Å"one-child† policy per couple has been a controversial issue for over 25 years and is still one today. China has always had a problem with over-population. The problem of a growing population is dated back to the Mao Zedong era when the population was just over 602 million people. He believed that if there were more people, then there would be more workers. The Chinese government noticed the problem of feeding, clothing, housing, employing and educating the numerous amount of people in the early 1980’s. China came up with the solution of producing a fewer amount of people. The government officials decided to create the one-child policy. With this, married couples would have to sign a one-child certificate which enforced the policy. This certificate served as a contract between the couple and the government to have only one child. China’s culture promotes a married couple to have a son. This feature of their culture is promoted by the idea that the son will act as a security system in the couples old age (Jowett). The security system does not work if a daughter is born because she will marry into another family. The countries ratios between men and women have grown farther apart due to the fact that a couple can only have one child. China’s cultural factors in the aspect of sexual preferences with having a baby have made the one-child policy in China hard to achieve. Hong Xiao, advocate of human rights, says that the one... Free Essays on One-child Policy Free Essays on One-child Policy China has had a population problem for nearly 30 years now. This population problem has caused the Chinese government to create the one-child-per-family policy to counteract the problem. This policy helps reduce the country’s population but it also generates many other problems which are debated. Proponents and opponents argue over China’s economy and morals. The argument is now more heated as the population is under control and the people are making unmoral decisions. China’s â€Å"one-child† policy per couple has been a controversial issue for over 25 years and is still one today. China has always had a problem with over-population. The problem of a growing population is dated back to the Mao Zedong era when the population was just over 602 million people. He believed that if there were more people, then there would be more workers. The Chinese government noticed the problem of feeding, clothing, housing, employing and educating the numerous amount of people in the early 1980’s. China came up with the solution of producing a fewer amount of people. The government officials decided to create the one-child policy. With this, married couples would have to sign a one-child certificate which enforced the policy. This certificate served as a contract between the couple and the government to have only one child. China’s culture promotes a married couple to have a son. This feature of their culture is promoted by the idea that the son will act as a security system in the couples old age (Jowett). The security system does not work if a daughter is born because she will marry into another family. The countries ratios between men and women have grown farther apart due to the fact that a couple can only have one child. China’s cultural factors in the aspect of sexual preferences with having a baby have made the one-child policy in China hard to achieve. Hong Xiao, advocate of human rights, says that the one...