Equal Employment Opportunity Commission – Church and State Violation

Equal Employment Opportunity Commission. Church and state violation If the criteria of Matthew and Thomas’ â€Å"Christian-only† hiring policy was spread across to all religions, then they could probably get away with it as long as the employment contracts with employees state such. If this were for a school and they had more than 15 employees, then they would have to have posters posted under Title VII of the Civil Rights Act of 1964 informing employees of their rights with the utilization of the language approved by the EEOC. Under the Great Commission Perspective this policy would be advisable. Being raised Baptist, currently non-denominational,some of my old Baptist fundamentalist views came into play. Being raised Baptist, I was taught that it is our rights as Christians to setup outreach ministries, missionaries, and bring as many souls to the kingdom as possible by ministering to people we meet on a day to day basis, even if this means going door to door. This goes hand in hand with several passages from the Bible. In re-reading Genesis 12: 1-3, the Great Commission Perspective, Gen. 8: 14-15 and Matthew 28: 18-20, we see the promise of God for our lives as well as the duties expected of us as Christians. â€Å"And Jesus came and spake unto them, saying, All power is given unto me in heaven and in earth. Go ye therefore, and teach all nations, baptizing them in the name of the Father, and of the Son, and of the Holy Ghost: Teaching them to observe all things whatsoever I have commanded you: and, lo, I am with you always, even unto the end of the world. Amen. † (Matthew 28: 18-20, KJV). In verse 19, Jesus charges us to teach all nations and baptize them in the name of the trinity. Verse 20 is our assurance, His promise that he is with us always, until the end of the world as we know it. â€Å"And thy seed shall be as the dust of the earth, and thou shalt spread abroad to the west, and to the east, and to the north, and to the south: and in thee and in thy seed shall all the families of the earth be blessed. â€Å"And, behold, I am with thee, and will keep thee in all places whither thou goest, and will bring thee again into this land; for I will not leave thee, until I have done that which I have spoken to thee of. (Genesis 28:14-15, KJV). In verse 14 we shall travel all ends of the earth saving souls for Christ and as a result of our faithfulness to God’s word, our children and generations to come will be blessed. Verse 15 is God’s promise that he is with us until the end and will keep us, protect us, and will not forsake us. Other scripture that comes to mind that gives the same instruction based on the Great Commission Perspective is,  "And he said unto them, Go ye into all the world, and preach the gospel to every creature. † (Mark 16:15, KJV). We can also look at the book of Luke for the same instructions, â€Å"And that repentance and remission of sins should be preached in his name among all nations, beginning at Jerusalem. † (Luke 24:47, KJV). Like Paul, some of us are meant to be apostles, setting up churches for the greater good of the kingdom and overseeing them to ensure that kingdom work is being carried out. Even though Thomas and Matthew have a good idea in regards to their hiring policy of Christians only, in my opinion it would only be foreseeable in a perfect world and in my own utopia. With so many laws that protect others religious beliefs, it makes it hard to turn a profit with such a policy in place, especially if they are looking for federal assistance in regards to utilizing tax payer dollars. My answers would change drastically if Thomas and Matthew were opening a Christian school rather than a manufacturing company. The conditions and laws change in matthew and thomas’ favor greatly. Being a school means that they have the freedom to carry out these hiring policies. Under the Civil Rights Act of 1964, Title VII allows churches and religious organizations to discriminate on the basis of religion (Bagley & Savage p. 68). Under the RFRA, Religious Freedom Restoration Act 1993, federal grant programs can exempt Christian relief organizations from prohibitions against hiring only those of its own faith, (p. 136). During the Bush Administration, more funds were appropriated for expansion of religious hiring rights, including issuance of an executive order t hat set the policy for federal administration agencies, (Esbeck, Carlson-Thies, Sider). Christian schools need a Christian only hiring policy in my opinion because it protects the morals, values and ethics of the Bible and how each professor uses it in accordance with everyday learning. You have people who study the word and know the word, but don’t live by the word, including some Christians, but when it comes to instructing others on how to live according to the Bible (Basic Instructions Before Leaving Earth), then a hiring policy that discriminates against religious preference makes sense. These principles are maintained by the federal government when it comes to hiring for Head Start programs and for the Workforce Investment Act References Carl H. Esbeck Stanley W. Carlson-Thies Ronald J. Sider http://www. religionandsocialpolicy. org/docs/religiousstaffing. pdf

Discuss the presentation of Curleys Wife Essay

      The dog comes to represent Candy’s precarious situation as an elderly and increasingly unwanted part of society. He sees the dog as foreshadowing of his eventual fate when he grows too old to work. He is afraid of being cast out as a nuisance, unworthy of life or protection and despised by the younger generation. His proposal of giving all his money in exchange for a place on George and Lennie’s planned farm is a marker of his desperate situation. The prospective of leaving the farm briefly endows Candy with the confidence to stand up to Curley’s wife after she threatens Crooks. This suggestion of bravery and friendship is indicative of the type of man Candy would be if not for his loneliness, which has crippled his self-belief and has left him near destitute and subservient. The above characters demonstrate the pitfalls of loneliness, and the dangers it poses to people and their well-being. In contrast to this George and Lennie, through a mutually beneficial relationship, are able to deflect the negative attributes of their solitary professions by travelling together (â€Å"I got you.. and you got me†). Most people have needs that require social interaction with people, something which George and Lennie are able to achieve through their mutual friendship, in spit of their hard living conditions. This enables them to function in a more stable and happier way. Their stability stems from a mutual dream of their own farm (â€Å"We got a future†); a dream that sustains them throughout their journeying, and as a result they’re not aimless like so many of the other workers in their situation who squander their monthly pay packets on alcohol, gambling and female company. This is in contrast to other itinerant workers, whose lives do not depend upon anyone, and so nobody depends on them. The memory of a former occupant of the bunkhouse, who â€Å"upped and quit, the way a guy will† represents those who are resigned to their situation, and demonstrates the desultory manner in which they lead their lives. Lennie and George enjoy a symbiotic relationship in which each is able to obtain something from the other. From Lennie, George acquires an emotional baseline which enables him to better assert himself, as well as a responsibility and duty towards others. George is aware of a meanness in himself (â€Å"a real smart guy†¦ ain’t hardly ever a nice fella'†), but through looking after Lennie he pacifies his character (â€Å"well, I ain’t done nothing like that no more†). From George, Lennie acquires a carer and sense of purpose through their shared dream of buying a farm. The stability George is afforded from Lennie gives him the ability to stand up for people without fear of reproductions, because he has protection in the form of Lennie, and even if he were to be sent away he wouldn’t be alone. His behaviour was calm but unwavering when he confronted Curley and Curley’s wife. His compassionate nature is shown when he tries to change the subject in the bunkhouse when his cohabitants are pressuring Candy to kill his dog (â€Å"I seen a guy in Weed that had an Airedale could heard sheep†), but Carlson recognises this attempt and was â€Å"was not to be put off†. Candy recognises this moral integrity in George and so decides to trust him with his money and enter into a partnership with him and Lennie and buy a farm. Because of the proposed partnership with Candy they do, briefly, have a chance of realising their dream. Steinbeck here demonstrates that trust in people is required in order to achieve your dreams. After George kills Lennie he chooses not to buy and live on his own farm with Candy as a form of self-punishment, (â€Å"I’ll work my month†¦ an’ I’ll stay all night in some lousy cat house†). George now accepts that without Lennie his dream of owning a farm is dead, so chooses to face a life of cruel loneliness as a normal itinerant worker with no goals or aspirations other than to numb the pain of existence. In conclusion Steinbeck continually uses characters that, in the context of their society, live with prior afflictions (such as skin colour, infirmity, mental ability, and even gender) which hinder them from functioning in society as isolated individuals, so must form alliances and partnerships to enable them to survive. This element of symbiosis stems from the environment in which they exist, where a man is only as powerful as his ability to work. He attacks the capitalist system in which people are regarded as labour and not given the rights or freedoms to enable them to put down roots and start families. His criticism of the American Dream of hard work promising prosperity and success, and a compassionate look at its victims, are core themes throughout the book. The lack of social security and level of expectation upon the individual to support themselves, or else face starvation, forces people like Lennie into work to survive, even if they’re danger to themselves or others. The inevitable tragedy was Lennie’s slowness being kept secret from Lennie’s wife, who unknowingly set the tragedy in motion. Steinbeck tells us the only way to improve things is to enable trust and openness in the workforce, and that this depends on workers rights and freedoms being protected. Though the enabling of trust and openness in the workplace, people would be empowered to work from a position of strength rather than need, vulnerability and defensiveness; and with loneliness reduced as a consequence life would improve for everyone. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE John Steinbeck section.

The Effectiveness of Employee Stock Ownership Plans Essay

The Effectiveness of Employee Stock Ownership Plans - Essay Example Employees do not have to pay taxes on the contributions when they work in a company. Only when they leave their job, they have to make all payments. It means that employees have a strong motivation to increase their productivity and generate higher revenues for the company in general not only because it increases their personal wage but also because they are the co-owners of the company. Thus, the effect on employees’ motivation is highly positive. Another important aspect is that employees are interested in the successful implementation of job functions of their colleagues while in the absence of this plan, they are primarily neutral. If other employees work more efficiently, it will lead to a higher gross output, and the market value of the company will increase. Consequently, the given employee may receive higher revenues even if his/her personal productivity has not increased. Thus, it may be expected that the corporate culture within such organizations will be better than in other companies. ESOP encourages the development of non-material assets in the company. However, ESOP also has some disadvantages for employees. I particular, it concentrates all employees’ shares in one company. It leads to over-concentration of risks that is generally considered as being highly negative. Therefore, employees tend to become too dependent over the dynamics of market prices of the company. In some situations, this dynamics does not correspond to their productivity. For example, during economic recessions, stock prices usually fall dramatically that may decrease the revenues of employees even if their productivity keeps rising. Another problematic aspect is that ESOP does not always result in a higher productivity of employees. It means that motivation alone is not sufficient for higher output and better overall economic results. Moreover, some employees may hope to receive a higher remuneration in an

Fundementals of finance Math Problem Example | Topics and Well Written Essays - 2000 words

Fundementals of finance - Math Problem Example The same goes for stock b. By adding the product of the proportion and the return of these two stocks that form the combination, we get the portfolio return of 24.4% In order to get the risk of the combination of projects a and b, we use the formula for 'p=sqrt (wa2'a2 + wb2'b2 + 2wawb'ab'a'b), where we get the products of the variances of the proportions and the individual risks, adding them and adding them to the last figure which incorporates their correlation. With projects a and b's correlation of 0.7, we get a risk of .081191. By applying the same formula for projects b and c, we get the portfolio return of 29.2%, higher than the combination of projects a and b. The portfolio standard deviation on the other hand is 0.119917-the higher risk accompanying the higher expected return for the portfolio. Combinations of projects b and d have the highest return at 31.6%, with the highest risk of .120216 compared to the other two combinations. This higher return, when expected to have a drastic counterpart in the increase in risk is offset by the correlation of the two projects. This combination offers the lowest correlation at 0.3, which means that the projects' returns are not strongly correlated to the movement of the other, although the positive sign of correlation suggests the same direction of the two stocks in terms of movement. Recommendation The four projects offer seven possible combinations; however, because these projects are indivisible, the only three possible combinations left which are possible within the 2,000,000 limit are the combinations a and b, b and c, and b and d. These three combinations are assessed according to their returns and risks, measuring the returns by getting the proportion and weighted return, and then getting the risk by getting the portfolio standard deviation. Because the investors require a minimum return of 25%, combination of projects a and b is already eliminated from the choices.

The Growing Population And Their Fight For Survival Essay

The Growing Population And Their Fight For Survival - Essay Example The author believes that the 9/11 tragedy emphasizes the scope of the danger which â€Å"weapons of mass destruction, and especially nuclear weapons, present to the humanity† (432). Prior to the catastrophe, many of its ingredients had already been obvious, including suicide bombers and the exaltation of the Asian hatred toward the West (Schell 433). The emergence of suicide bombers and the expanding market of nuclear weapons were both responsible for the escalation of violence (Schell 433). However, the hidden danger of the nuclear weapons in Russia and the United States can be more serious (Schell 433). Understanding the sources of the hate toward the United States is the task crucial for the future safety and stability in the U.S. (Schell 435). Atwood describes her visit Afghanistan in February 1978, several weeks before one of the most significant military conflicts broke out. Atwood writes that her relatives tried to change her plans (279). Yet, she could not lose the cha nce to see the houses of Kabul carved wood and taste the cultural and political atmosphere in the country (Atwood 279). Atwood visited the country with her child, and she hired a car to see the disastrous retreat of the British from Kabul (279). She felt the pressure of the cultural norms – men never talked to her directly, whereas women in the streets were wearing chadors (Atwood 280). She bought a chador in the market, and once put on, Atwood could feel turning blank in the visual field, being both there and not there (280).

Report Research Paper Example | Topics and Well Written Essays - 250 words - 2

Report - Research Paper Example though most companies usually fail to offer any incentives to the franchisees they are engaged with owing to the fact that they (franchisees) are residual claimants, there are a bunch that have seen this as a noble action. Incentives to franchisees can come in the form of discounted franchise fee, reduced royalties and buy-back assurance. Also, a contract extension has been seen by many economists as a major incentive that has produced incredible results in many franchise business models (Barkoff and Selden 101). Discounts and reduced royalties are noticeably the most widely used incentives when it comes to franchising. According to Hero (121), different brands have incorporated these types of incentives because of their effectiveness. It has been reported by many economists as the real motivator that boosts the performance of the franchisees. When brands reduce the royalties and allow discounts, their franchising partners become more enthusiastic and initiate programs and strategies that aim at improving the brand’s marketing. Those brands that extend contract (especially if the franchisees benefits) are also involved directly in offering

In disadvantaged areas around the world, young men find expressions of Essay

In disadvantaged areas around the world, young men find expressions of their masculinity through violence. discuss - Essay Example Additional factors such as social class, poverty, culture and race are also involved, and this makes it difficult to isolate the element of gender and analyse its role in society. This paper introduces recent theories about gender in society and suggests an appropriate way of approaching the subject. It then considers how far and why young men in disadvantaged areas might choose to use violence as a means of expressing their masculinity. Finding an appropriate vocabulary is an important first step in understanding how gender affects behaviour: â€Å"Talking about gender for most people is the equivalent of fish talking about water.† (Lorber, 1994, 21) A great deal of human experience of gender is taken for granted because it occurs on an unconscious level. It is not something that individuals work out themselves, but rather it is the result of repeated interactions with other people who convey the prevailing values and boundaries of society. Lorber stresses the social nature o f gender: â€Å"To explain why gendering is done from birth, constantly and by everyone, we have to look not only at the way individuals experience gender but at gender as a social institution.† (Lorber, 1994, 21). ... From birth babies are assigned to male or female gender, and this results in a whole set of traditional responses which reinforce that gender. Because there is pressure from the family, and from society at large, boys and girls internalize a lot of these notions of gender and grow up â€Å"doing gender† themselves, in ways that are defined by others. This is what it means when we say that gender is socially constructed. The dominance of patriarchy in most human societies ensures that there is a widespread tendency to accord more status and prestige to men, in relation to women. Organized violence tends to be the work of men, and this is a pattern that has been evident throughout history as successive male governments launch into wars with each other. Culture does have some influence in the way that this occurs, however, and Connell points out that â€Å"Commercial capitalism calls on a calculative masculinity and the class struggles of industrialization call on a combative on e. Their combination, competitiveness, is institutionalized in ‘business’ and becomes a central theme in the new form of hegemonic masculinity† (Connell, 1987, p. 156). Western industrialized capitalism, therefore, produces a particularly restrictive form of masculinity which has assertion of power and resistance to this power built into its fabric. Dominant males oppress females and also weaker males. This is the force that lies behind unfairness in comparative wage levels, inequality in access to jobs, promotions and all kinds of opportunities. In communities which are generally disadvantaged both men and women are subjected to prejudice from the more affluent parts of society and this brings their status closer together, at the bottom of social hierarchies. When

Gender and Ethnicity in Relation to Childhood Inequality Essay

Gender and Ethnicity in Relation to Childhood Inequality - Essay Example According to the report findings individuals are socialized by the society to both behave carryout duties and responsibilities and live like either males or females. This segregation based on gender however causes massive cases of unequal treatment among males and females. This discrimination is because of the roles that the society has specifically constructed for either gender. These equalities are experiences in a variety of aspects within life. These include massive income disparities among workers, preference of males for positions of leadership, and employing only females’ job descriptions. As the research stresses young children based on their sex, begin to be cultured by the society to conform to what the social order considers to be the roles, responsibilities and duties set aside for members of either gender. This socialization of the children results in numerous inequalities. In most societies the male gender is considered to be more superior and important that the female. Based on this children begin to face constant unequal treatment from very early in life. In certain societies around the world, unequal treatment of children has been quite rampant. This is because of the how the society views members of either gender. The society from time immemorial has often considered the girl child to be of lesser value than their male counterparts. Most of the societies around the world would prefer the male child.

Principles Of human Resources Management Essay Example for Free

Principles Of human Resources Management Essay INTRODUCTION The management of organization human resource to make them attain the organizational goals and work effectively towards contributing to the growth of the organization in contemporary times has taken a new dimension from the traditional way of personnel management. Human resource is considered as the most valuable resources in the organization; without which other resources cannot be coordinated and utilized to the optimal sue of the organization. The formation of effective relationship with workers and enabling a working environment where there is informal relationship goes a long way to motivating workers to performance. According to Farrazzi Gatti (2007), â€Å"†¦developing deep, genuine relationships- both internally among co-workers †¦is one of the most important skills need for performance in workplace† Thus, Human Resource Development (HRD) is a vital process used in contemporary times to make an organization Human resource inapt and adequately equipped to face the challenges of the time. According to Wilson (1999:27), â€Å"An alignment between strategy and training and development is now commonly regarded as a good business sense in all corners of the globe†. This is more adduced to the limited resources and finance to aid an organization in the attainment of its goal. Thus, HR development will go a long way in the organization to attain effectively set goals in the most efficient way. For Colours R Us (CRU) company to effectively get the best in its human resource management , the management of the organization need to put in place conducive working environment; one that would motivate workers to want to remain long in the organization. This is obtainable through formation of deep relationship among workers. Getting the right people at the right place is a function of human resource planning. Motivation of workers plays a significant role in maintaining and making the positioned ‘right people’ stay and build up a long career in an organization. IMPLEMENTING AN EFFECTIVE HRM IN CONTEMPORARY BUSINESS Effective Human Resource Management practices are recognises as to enhance an organisation’s competitive advantage by creating both cost leadership and differentiation. Today’s competitive global environment has made organisation maintaining a competitive advantage puts a premium on having a committed and competent workforce. Low-cost, high- quality products and services are a result of committed employees all working hard to produce the best products and provide the best services that they can at the lowest possible cost. Thus, it is important that the Human Resource Managers are made to get in touch and be included in the organisation’s strategic plan, since they have the wealth of experience in the motivation of the organisational workforce into putting their best in the attainment of the strategic goals of the organisation. Furthermore, the possession of information about human resource planning put the Human Resource Manager in a good position to partake in the strategic planning of the organisation. For example, with the available information on human resource planning, this along side with the organisation strategy would bring about the hiring of the best human resource that would be in a better position to efficiently meet the organisation’s goals. In this view, Sims (2002), has it that, As effective partners in helping organisations successfully achieve their goals, Human Resource Management managers need to have a clear understanding of exactly what are the organisation’s strategies, and then they must ensure that their own efforts are consistent with provide support for those strategies. To the extent that the Human Resource Management function is seen as a strategic partner and/or a centre of expertise, of course, its manager should also be actively involved in the formulation of corporate and business strategies as well as other functional strategies. A closer integration between top management goals and Human Resource Management practices helps to elicit and reward the types of behaviour necessary for achieving an organisation’s strategy. According to Matanmi (2001:7), â€Å"as a concept HRM has relatively recently, developed as a generic (i.e. broad, all-embracing), and yet specialised management field that particularly draws its strengths from such multi-disciplinary sources of knowledge that include (but) not exclusively restricted to) personnel management, organisation behaviour   (OB), industrial and labour relations, economics, law, psychology and sociology†. In the process of HRM, there is an increasing emphasis on the personal needs of the organisation and its members. Thus, how effectively an organisation’s employee contribute successfully to the attainment of the organisational goals depends to a larger extent upon the ability of its HRM staff. Hence, the challenges of the HRM are to create an organisational environment in which each employee can grow and develop to his or her fullest extent (Sims, 2002:4). Furthermore, Rowden (1999) have it that Human Resource Professional need to master global operating skills. They should learn to do business in non-native environments, with individual of different backgrounds and perspectives and with products and services used in different ways. Human Resource Professionals should also be masters of the business environment. They need to understand financial reports, business goals, and consumer and investor important. â€Å"Also they must have the business acumen necessary to understand and support the business function. This will make Human Resource Professionals and indispensable part of a team assigned the task of charting a business’s future†. (Hussey 1995). Thus, it is seen that for the Human Resource source professionals to actively partake in the strategic planning of an organisation they need to be vast with skills that cut across financial planning, critical visioning and thinking, analytical skill and be informed with the ever changing technological development and better utilisation of modern information technology packages. This will make them be equipped to put the organisation a head of its competitors. SITUATIONAL ANALYSIS OF COLOURS R US (CRU) HRM PROBLEMS The workers in Colours R Us (CRU) are not motivated enough to make their stay and build up a career in the organization. The working environment is not conducive; as workers find it difficult to meet their personal needs in the locality where CRU is located. These include restaurants services, baby day care services, security of workers who engages in night shifts. The necessary amenities are not there to aid the worker abide in their work and stay long in the company. Another major issue that is making CRU not to attract the best workers and to retain those it has is the level of remuneration available to the company’s staffers. However, CRU gives an average remuneration, the locality where the company operates from there is higher level of payment. The software companies and communication call centers are well positioned to pay more. This alone, would be an obstacle in motivating the right workers to want to be employed and build up a career with CRU. This is also a cause to make already employed workers in CRU to wanting to move out. Furthermore, the statistical number of workers in the organization shows that women are more than male permanent workers are. Women workers usually leave within short period of assuming their post as workers in the company. There is the problem of getting more workers to operate the company’s diversification operation in the production of ‘Magnificence in Miniature’ RECOMMENDATIONS FOR MANAGING THE COLOURS R US (CRU) HRM PROBLEMS As a Consultant with ‘Right People Right Place’, my recommendations for CRU Company, to solve its HRM problems, include the following: MOTIVATIONAL IMPROVEMENT FOR THE COMPANY’S HR CPU as an organization has not done very well in the motivations of its staffers. Though the company pays its staffers the average pay in the industry, the workers put in much time. Motivation would keep the staffers to contribute meaningfully in the organization and they will be interested and prepare to build up a lasting career with the company. Lindner (1998), argues, â€Å"Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. Monetary incentive is not only the channel of motivating workers. The sense of belonging and appreciation of workers contribution to the organization goes a long way to motivating workers. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employee changes constantly†. The CPU management should adapt different ways for motivating employees who serve long hours and permanent from short- term workers. Motivating short-term worker, this should be done differently from those workers who are overworked or who put in lengthy work performance in the organization (University of Chicago Newsletter for Supervisor and Managers, 2004). In motivating a short-term worker the management of CPU, need to adopt the following strategic approach: Reinforce the significance of short-term employees work by explaining their importance and how they contribute to the organization’s growth. Introduce short-term employees to the people who use their work to demonstrate the effect the quality of their work has on others. Counter assumptions that someone else will do the work if short-term employees do not come through. Discuss the role short-terms workers play in the CPU manufacturing and working process. They should be made to understand that their work is as important as that of other employees. The Management of CPU should demonstrate interest in their long-term plans for HRM for short –term workers. Plans should be devised to identify those areas where skilled short-term workers may have value elsewhere in the organization. The management should help short-term workers to identify other opportunities before their assignment in your department is over. On the other hand, to motivate those workers who have work lengthy period and over work for the organization, the CPU management can motivate this group by adopting a strategy that follows the sequence of: The CPU management should let the lengthy period and over worked employees know that the company value their stay in the organization and appreciate their contribution to the growth of the organization. They should be made to know they stand to be adequately rewarded. The management of CPU should display the quality of a team player by requesting from this category of workers what they require to made them comfortable and keep the work going. The management of CPU should provide a feedback to workers that put in lengthy work hours, stay, and make them fell appreciated for their contribution in the organization. ADOPTING A MUTUAL EXCHANGE MOTIVATIONAL STRATEGY Mutual exchange is another strategy the management of CPU can adopt in motivating their workers. Here, where a worker has accomplish an assigned task he or she should be given something in return based on   earlier promise made by the supervisor; this may come in form of   a day off, or early closure for the   day’s work etc. According the Moore (1991), the negative effect of this appraoch is that it is not the most effective approach for motivating   workers; as the workers and supervisor may not reach a balance on what should be exchanged for the accomplishment of an assigned task.   RECRUITING MORE MALE WORKER The management of CPU should engage in recruiting more males than females. The environment where the company is situated is not conducive for female worker to work adequately. There is absence of day care for nursing mothers and those women with little children; the vicinity is not safe enough for night female worker. Considering these facts, the male worker will do more to cope in the environment than their female counterparts will. STRATEGIC ALLIANCE FORMATION WITH OTHER INTENSIVE CARE AND FACILITY PROVIDING ORGANIZATION The major reason for the workers leaving the CPU Company within short period is adduced to the lack of amenities to contribute to workers convenience in working for the company. The locality where the company is situated lacks these basic amenities. The management of CPU can enter into strategic alliance by inviting and forming strategic partners with small organizations to provide basic services that the workers lack, such as children day-care services, security, inter-alia. REFERENCES Ferrazzi, Keith Gatti, Lisa (2007), â€Å"The Human Element of Successful Training† June Volume 61, 6c ABI/ INFORM Global P. 68 Hussey, D. (1995), â€Å"Human Resources: Strategic Audit† In International Review of Strategic Management Vol. 6 Pp 157-195. Lindner, James R. (1998), â€Å"Understanding Employee Motivation† in Journal of Extension. June 1998 Volume 36 Number 3 Matanmi, Segun (2001) Strategic Management of the Human Resources in Nigeria for the next Millennium: some notes   (unpublished article) Lagos State University. Moore, Dianne-Jo (1991), â€Å"7 Motivational Strategies Managers Motivation Of Workers† Modern Machine Shop http://findarticles.com/p/search?tb=artqt=%22Dianne-Jo+Moore%22 (2/11/06) Rowden, R.W (1999), â€Å"Potential Roles of the Human Resource Management Professional in the Strategic Planning Process† in SAM Advanced Management Journal. Vol. 64, Issue 3. Pp 22 Sims, Ronald R. (2002), Organisational Success Through Effective Human Resources Management West Port, CT: Quorum Books. Pp. 1-5, 8, 9, 20, 23. University of Chicago Newsletter for Supervisor and Managers’ (2004), â€Å"Strategies and Tactics Methods to Manage Your Work, Your Staff, and Your Results† Volume VI Issue 9 September http://hr.uchicago.edu/newsletter/itk20040901/toc.html (1/11/06). Wilson, John P. (1999), Human Resource Development: Learning and Training for Individuals and Organizations London: Kagan Page

Candys Dog being shot dead Essay Example for Free

Candys Dog being shot dead Essay I believe that Candys dog being shot dead is one of the most important parts of the novel and should definitely be included in a film version. In this scene Carlson starts moaning about how much Candys old dog smells. He then suggests that Candy should shoot him and even offers to do it himself. But it is the things that Carlson says in order to justify himself that are important for the readers because it helps us to see why George decided to do what he did at the end of the book. For example, when Carlson says, This old dog, just suffers hisself all the time, and you aint been kind to him, keeping him alive, when he is trying to convince Candy that it is almost cruel to make him live life any longer. Carlson also describes how Candy could kill the dog in a quick, humane way. He says, shoot him right in the back of the head hed never know what hit him. This is particularly important because George kills Lennie in this exact way. It is where he got the idea that mercy killing was even an option. Slim is then asked to give his opinion and he agrees with Carlson saying, That dog aint no good to himself. As Slim is the only person on the ranch to have natural authority, and his opinions were law. Candy reluctantly agrees to let Carlson shoot his dog. If this scene was left out we would not understand why George would even consider killing Lennie and we would get the impression that George carried it out in cold blood and did not care. The scene should be set in a dimly lit, dark setting. The darkness would help to emphasize the end of life. Carlson should be talking abruptly and quickly showing that he is not thinking about Candys feelings and is unaware of how much the dog means to Candy. Slim in contrast should be taking is time over his speech, showing that he wants this to be as painless as it can be for Candy. He shows that he cares when he instructs Carlson to take a shovel, so that he can bury the dog so Candy wont have to see his dog in the morning. The Fight Scene Another important scene is the fight between Curley and Lennie. In this scene Curley has just accused Slim of being with his wife and in return Slim shouts back at him. Carlson and Candy take advantage of the situation by insulting Curley. Curley feels degraded and wants to take it out on someone. Lennie is there and is the perfect person because Curley being small always feels as though he has something to prove and a real chip on his shoulder towards bigger guys. Lennie is smiling at the thought of the dream of living off the fat of the land and Curley uses it as an opportunity to pick a fight. He says, What the hell you laughin at? and punches Lennies face making his nose bleed. Lennie is described as being too frightened to defend himself. But under the instruction of George, Lennie grabs Curleys hand and cannot let go, even with George slapping him round the face telling him to. Lennie feels guilty afterwards and he shows it when he says, I didnt wanta hurt him, and I didnt mean no harm. It is this scene that enables us to see the extent of Lennies strength and how dangerous it can be when combined with such a simple mind. The scene gives us a clue towards the main plot. Without this scene we would not realise what a true accident Curleys wifes death was and the reader would not feel as sorry for Lennie as they do. It would make the ending much less effective.

Strategy Implemented In Starwood Hotels And Resorts Tourism Essay

Strategy Implemented In Starwood Hotels And Resorts Tourism Essay To critically evaluate the strategy implemented in Starwood Hotels and Resorts in responding to the Environmental Concern: A Case Study of Element Hotel ABSTRACT The purpose of this research is to critically evaluate the green initiatives implemented in Starwood Hotels and Resorts by introducing a green hotel chain, Element hotel. The author intend to assess to what extent the implemented strategies are all-encompassing in responding to environmental concern as one of major contemporary issue in todays hospitality industry. As the matter of fact that the global environment is severely affected by todays business, natural resources are predictably running out in next 50 years if no improvement is being made by all business. In the last decade, peoples awareness of environmental protection is significantly increasing. For instance, new emerging market of eco-conscious traveler and pressure from eco-ethic group act as the driven force to urge business companies rapidly launch environmental friendly program to support sustainability development. In this research, green initiatives implemented in Starwood Hotels and Resorts are critically examined basing on ISO 14001 model. The positivism philosophy with deductive approach will be adopted throughout the research. The author will critically review the literature related to environmental management. Secondary research will be used to investigate the green initiatives implemented in Starwood Hotels and Resorts with a case study focused on Element hotel, followed by a critical analyze on the strategies with application of ISO 14001 model. Last but not least, the author will assess to what extent the implemented strategies are all-encompassing in responding to environmental concern. The research has shown that Starwood Hotels and Resorts have successfully implemented comprehensive green initiatives by introducing a green hotel chain, Element hotel. The author suggests that further evaluation and improvement should be continuously carried out to strive be the leader in supporting sustainability development in hospitality industry. Moreover, the author advises that primary research should be carried out for future study in order to gain more generalized and specifically up-to-date result. TABLE OF CONTENTS _______________________________________________________________________________________ INTRODUCTION BACKGROUND INFORMATION Background of Starwood Hotels and Resorts Element Hotel NECESSITY TO RAISE THE IMPORTANCE OF SUSTAINABILITY IN LONG RUN Increasing pressure from ethical consumers New emerging market, Eco conscious traveler The impact of environmental problem onto hospitality industry AIM AND OBJECTIVES Aim Objectives THE ISO 14001 MODEL Environmental Policy Planning Implementation and Operation Checking and Corrective Action Management Review Continual Improvement RESEARCH STRATEGY AND METHODOLOG Proposed Study Design Secondary Research Limitations 3.0 FINDINGS AND ANALYSIS 3.1 Environmental Policy 3.2 Planning 3.3 Implementation and Operation 3.4 Checking and Corrective Action 3.5 Management Review Continual Improvement CONCLUSION 5.0 REFERENCES 6.0 APPENDICES 1.0 INTRODUCTION __________________________________________________________________________ In the past few years, environmental issue has severely plagued hospitality industry (Pasiuk, 2006). The significant changes in global environment and climate definitely draw attention to all business. People start to think about how the mother earth can be saved from harm and the way to sustain hospitality industry. The popularity of eco-friendly hotel is closely related to the growing awareness of global warming (Guitierrez, 2008) and also the new emerging market segment Eco-traveler (Patterson, 2007). According to Forbes (2007, cited in Go Budget Travel, 2007), it stated that traveler with sense of eco-awareness is a new trends nowadays. Hence, many hotels and resorts make effort to launch wide variety of initiatives on green management (Enz, 2010). As a global leader in hospitality industry, Starwood Hotels and Resorts steps forward responding to the trend with action on building up its own culture of sustainability by introducing its innovation Eco-Friendly hotel chain called E lement (Starwood Hotels and Resorts, 2010). The purpose of this report is to critically evaluate how Starwood Hotels and Resorts in responding to environmental concern by introducing a green hotel chain, Element hotel. In order to achieve the purpose, the author first highlights Eco-traveler as one of the mainstream in hospitality industry and identify the importance of taking environmental concern as a corporate social responsibility. Furthermore, the author is then illustrates the theoretical framework of ISO 14001 model and critically evaluates its application to the strategies implemented in Starwood Hotels and Resorts in responding to the contemporary issue of environmental concern. Last but not least, a brief summary and recommendation will be provided. BACKGROUND INFORMATION __________________________________________________________________________ 1.1.1 Background of Starwood Hotels and Resorts Element Hotel Starwood Hotels and Resorts grow to be a hotel behemoth through every effort made by Mr. Barry Sternlicht (Starwood Hotels and Resorts, 2010). At the present time, Starwood is widely renowned as one of the luxury hotel chain worldwide. Starwoods fleet is currently owns and operates approximately 750 hotels under premium leading brands including Sheraton, Four Points, St. Regis, Westin, W brand, the luxury collection and notably its latest innovation product Element, in 80 countries over every continent (Starwood Hotels and Resorts, 2010). Element hotel is a green hotel chain newly launched by Starwood Hotels and Resorts by the year of 2008 (Starwood Hotels and Resorts, 2010a). The inspiration is induced by travelers eco-etiquette. According to Savage (2008, cited in Press Release, 2008), most of the traveler adopts green routine at home however only a few of them do the same at the hotel. In response, Element hotels take the lead in going green. Element is built green to reduce from the ground up, as the first major hotel brand pursue U.S. Building Councils LEED Certification for every property (Press Release, 2008a), depicting the importance of the environment in todays world. Element is committed to provide the guest with a no-compromise, eco-chic experience and also as an easy way responsible to be eco-friendly without sacrificing guest experience, in addition, the element philosophy is to satisfy guests needs with the environment in mind (Elements hotel, 2010). Nowadays, Starwood is recognized as the environmentally friendly luxury brand within the hospitality industry (Rockmael, 2007). With the recognition of its remarkable green initiatives, the author is intended to critically evaluate the strategy implemented in Starwood Hotels and Resorts in responding to environmental concern. Green initiatives undertaken by Starwood Hotels and Resorts will be further elaborated in details by focus on the case study of Element hotel. Necessity to raise the importance of sustainability in the long run __________________________________________________________________________ Increasing pressure from ethical consumers It is not surprising to find that a significant growing number of large-scale corporate are experiencing an exerting pressure from consumer activist groups requiring betterment on the performance of both social and environmental aspect. An elevating level of these issues are gradually becoming mainstream and the consumers are commonly raising question about the general performance in terms of ethical, social and environmental of the service and product they consume. More enlightened companies treat these prompting changes as a golden opportunity of embracing social and environmental concerns integrated into their operation (Gupta, M.C., 1995). 1.2.2 New emerging market segment, eco-conscious traveler According to the research conducted by Green Hotel Association (2007), about 43 millions travelers in the United States are concerned about environmental consciousness in the hospitality industry. Meanwhile, referring to the survey done by USA Travel Association (2008), 54 million peoples search for companies that are concerned with the protection of local environment and incline to book travel arrangement with these companies. Korman (2008, cited in Press Release, 2008: 2) also agree that Todays consumers including guests who stay with us, corporate customers who select hotel providers and the development community who build our hotels are increasingly demanding green options when they select hotel brands. At the present time, eco-awareness is very popular in travel trends (Harding, 2010). And Chemla (2007, cited in Vora, 2007:1) also argued that now upscale travelers want to do whatever they can to be eco-conscious. The characteristics of eco-conscious traveler (refer to Appendix 1) can be concluded as lack of knowledge about environmental issue, however, they are keen to learn. Element hotel is tailor-made for eco conscious traveler, as Savage (2008: 1) stated that We know our guests want to be eco conscious, it is our job to make it easy for them. Eco-conscious traveler is defined as a person who yearns for making positive contribution while travelling with the companies that sustain development on environmental practices (Eco media group, 2010). With the emerging segment of eco-conscious traveler, in response many hotels and resorts started to launch green management program to emphasize their concern in environmental sustainability. Green initiatives are implemented into the hotel s operation to maintain brand image (Grant, 2007), reputation and remain competitive in the marketplace (Schulz, 2009). As Ryan (2006 :1) stated that Going green isnt necessarily about saving the environment, rather its about saving the business. All the undertaken green initiatives are viewed as marketing strategies helps to boost up the sales as well as the occupancy rate (Honey, 2008). According to the research conducted by Watkins (1994), the findings shown that about 71 percent of respondents would likely or extremely likely to stay in a hotel implemented with environmental strategy. Furthermore, in the case of The Sol Elite Falco Hotel, they recorded a significant growth of 15% in business after the adoption of environmental practices (Honey, 2008). 1.2.3 The impact of environmental problem onto hospitality industry In the past few decades, as a matter of fact that global population is dramatically escalating, it is not surpirsed to find that both rural and urban area are densely-populated. It leads to accelerating demand on not only living space but also resources to accommodate peoples physical need for basic living. Besides, with the promising stability of global economy, at the present time vast majority of people are capable to lead a better living, to pursue a quality of life. Driven by that reason, many businesses habitually utilize limited resource to fulfill the unlimited needs and wants from the consumer. In the meantime, the consequence is commonly neglected. Overusing resource on the mother earth, many negative impacts and problems can be severely affecting the society such as occasion of global warming, pollution and climate change. As Aldunce and Leon (2007:33) stated that disaster risk does not only exist because of the presence of a physical hazard, and it is compounded by the pr esence of vulnerable populations. In that sense, both direct and indirect impacts are possibly brought to hospitality industry. Greenhouse gases are the driven force to the elevating average level of temperature on the planet (Tisdell, 2008). It is resulted as rising sea level that leads to drastically changing of water availability geographically. Thats the reason why the weather is in instability correlated with the harvest of agricultural and the phenomenon of natural disasters happen more frequently in last ten years (Mckibben, 2007). Above mentioned circumstances are inevitably threaten hospitality and tourism industry (Kirby, 2007). For instance, in 2004, tsunami in Phuket (BBC News, 2009) brought relentless damage to the local community. The infrastructure and the landscape were completely destroyed. Phuket is as a renowned tourist destination with approximately 7 millions of tourist annually (TourismThailand Org, 2010). Tsunami was harshly hit the hospitality industry which is the mainstream sector in Phuket. Tsunami caused the local communities and business to spend large sum of money on reconstruction of the environment and infrastructure including numerous hotel property and facilitates. As mentioned, the changing climate is associated with the harvest of agricultural. It impacts on the reduction of the availability of agricultural thus the food cost raise up correspondingly. Likewise, due to water pollution, reduction of water supply leads to increasing price of water. As the result, hotels are undoubtedly affected with larger expenditure on acquiring water supply and food materials from the suppliers. To conclude, water and energy are the necessity to hotels daily operation. In the viewpoint of hotel, they would acquire this necessity to sustain the business at all cost. Consequently, hospitality industry should not hesitate and to take proactive measures to against the potential challenge and also encourage the sustainable development incorporated with environmental concern. Natural disaster is inevitably takes place, however, hospitality industry could strive to launch environmental management program to at least minimize the probability of its occurrence. 1.3 AIM AND OBJECTIVES __________________________________________________________________________ 1.3.1 Aim To critically evaluate the strategy implemented in Starwood Hotels and Resorts in responding to environmental concern by introducing Element Hotel 1.3.2 Objectives To identify the environmental concern as a contemporary issue affecting Starwood Hotels and Resorts To review the literature related to environmental management and ISO 14001 model To identify the associated challenges and factors of environmental concern in hospitality industry To critically investigate and evaluate the strategies implemented in Starwood Hotels and Resorts in responding to environmental concern by using ISO 14001 model THE ISO 14001 MODEL __________________________________________________________________________ Source: EnviroManager (2009) Environmental Management Software; (http://www.enviromanager.net/index.htm) According to Latham (2007), an appropriate theoretical framework can be guidance for the research study thus enhances the efficiency. ISO 14001 model is renowned as a global green standard, therefore, it is being chosen by the author as a tools to critically evaluate the strategy implemented in Starwood Hotels and Resorts in responding to environmental concern. In-depth explanations and critical analysis of this framework will be carried out in the following session. ISO 14001 is recognized as one of the most noteworthy initiatives on sustainable development. It is an Environmental Management System (EMS) providing any organization a theoretical framework for effectively managing environmental responsibilities to facilitate its efficiency and better integration into business operation (Hansen, Mowen Guan, 2007). This model is clearly presenting the whole procedure towards effective environmental management. Moreover, continual improvement is particularly emphasizes within the process which indicates that it is an essential component contributing toward the success of environmental management. On the contrary, Plan, Do, Check, Act Model known as Deming cycle, is another approach of Environmental Management System. However, it is not adopted by the author as its simplified structure, relatively low accuracy and the process of continual improvement is not encompassed in the model. Most importantly ISO 14001 model is basically built on the Plan, Do, Check, Act model. Hotels that efficiently integrate an Environmental Management System into organizations operation can enjoy so many benefits. Nowadays, majority of consumers seeking guarantee they are sustaining and choosing operations that encourage protection of the environment. An Environmental Management System helps to uplift the hotels reputation, awareness of the public and creates an opportunity to develop new market segment, environmentally conscious consumers (Bill and Monaco, 1999). In general, hotel can facilitate efficiency and achieve reduction of operating costs through setting an unambiguous and realistic performance goals and objectives that hotel can put efforts towards. It also helps to increase competitiveness in global market, expand tactical advantage over non-certified competitors, meet consumer requirement and demonstrate commitment to quality (Anderson, 2000). Moreover, the potential economic benefit is surprisingly far more than enough to launch an Environmental Management Systems in the property (Tibor and Feldman, 1996). Environmental Policy Establishing an Environmental Policy is certainly requiring the participation of top management of the organization to deeply define the policy that is consistent with the span of an EMS and suitable to the organization (Johnson, 1997). According to Moore (2000: 14-6), Environmental Policy is the statement by the organization of its intentions and principles in relation to its overall environmental performance which provides a framework for action and for the setting of its environmental objectives and targets. The Environmental policy should be embodied with an obligation to continual improvement, prevention of all kind pollution and obedience to the legal requirements (Woodside, Aurrichio and Yturri, 1998). Lastly, this policy ought to be documented and published to the public before communicating with all the personnel working for or the representative of the organization. A comprehensible vision of the policy helps the management in planning activities. Planning An effective planning is necessary and a crucial process to determine an assessable organizational goal and offer guidance to fulfill the achievement (Johnson, 1997; Montana and Chamov, 2000). For that reason, the author recognizes the importance of Planning process in ISO 14001 model. Besides, the organization should be pragmatically stipulating the objectives with reference to both direct and indirect impacts deriving from previous management for instance reduction of water consumption. According to Block (1999; 1), Organization shall ensure that environmental aspects related to these significant impacts are considered when setting environmental objectives. Furthermore, environmental activities should be inclusively all-encompassing supplies, waste management and notably obligation of responsibilities (Rao, 2008). From the authors point of view, a comprehensive planning would drive the organization to the right direction on developing its culture of sustainability program in respon ding to environmental concern. Implementation and Operation In this stage, the author suggests that the roles and responsibilities of job task need to be clearly assigned to every employee in order to efficiently implement the environmental management system. Furthermore, senior management must employ a representative especially in charge of environmental management. Representative is responsible to extract report on the performance of EMS and potentially offer recommendation for betterment on a regular basis. Senior management is also responsible to ensure the availability of the materials which is needed for implementation and further improvement on EMS in the property (Tibor and Feldman, 1996). Specific practice is necessarily established to facilitate internal and external communication as regards to environmental issues, For instance, company report of its adopted environmental practice can be issued to the public to maintain continual communication externally thus raise up public awareness to the company (Culley, 1998). Continuous train ing and regular meeting is essentially held frequently to increase awareness of employee on environmental practices and its impact (Cascio, Woodside and Mitchell, 1996) consequentially to ensure that employees are completely understand the system and their roles within the EMS (Sullivan and Wyndham, 2001). Checking and corrective action According to Withcer, Chau and Harding (2007), the significance of checking is in relations to the long-run strategy and effectively manages organizations performance. Checking process helps to identify and ensure the environmental performance in terms of quality and standard of ISO 14001 model is on the right track and facilitate betterment to meet the purposed organizational goals. Corrective action should be undertaken appropriately to the magnitude of the problem as immediate measurements (Rao, 2008). Management review It requires senior management of the organization to evaluate the EMS to make certain the continuous capability, aptness and effectiveness. Evaluation is necessarily undertaken to promote further improvements. Also, management review can benefit an organization to experience more extraordinary environmental performance (Rao, 2008). Continual improvement Continual improvement is the methodical approach to recognize the potential problem, seek opportunity, establish measurement, collect data, and make comparison to the trend purposing to verify if the progress is smoothly ongoing toward the set objectives embodied in the environmental policy and planning (Johnson, 1997). According to Rao (2008:87), continual improvement helps to achieve the fulfillment of the urge for contributing toward sustainability. RESEARCH STRATEGY AND METHODOLOGY __________________________________________________________________________ This section provides the reader with better understanding on the research method that the author has been adopted throughout the research. The research design and data collection method is justified in this chapter. Proposed study design The purpose of this research is to find out how Starwood Hotels and Resorts is responding to the challenge of environmental concern, therefore the author will adopt positivism as research philosophy for this study. And the author will use deductive approach to test whether the organizations strategy is all-encompassing with the theoretical framework of ISO 14001 model. In order to achieve the research purpose, the author conducted secondary research to collect information on environmental issues theories and the strategies that the Starwood Hotels and Resorts put on practice. Primary research is not conducted for this report, because the author recognized there is a bulk of data was published online that is sufficient for the author to make analysis. The author decided to analyze the strategy the organization adopted by using a theoretical framework and academic theories related to green management.. Since the author can easily access the information required for the research, therefore, only secondary research is conducted. Secondary research Veal (2006) stated that secondary research enriches the reader with existing information which has already been collected. The author collected both quantitative and qualitative data on the organizations environmental-friendly strategies and literature of environmental issues. Information was sourced from the SHMS-UC library; where textbooks with hospitality-related topics are available; in addition, online articles and journals were sourced from the online database such as Emerald. Through the use of internet, the author can access a wider range of up-to-date information about environmental issues. 3.0 FINDINGS AND ANALYSIS __________________________________________________________________________ In this section, an in-depth evaluation on how the Element Hotel responds to environmental concern with the application of ISO 14001 framework will be carried out. The green initiatives launched by Element Hotel will be elaborated and categorized into the process of ISO 14001 model. 3.1 Environmental Policy According to Element Hotels official website (2010), Element embrace the responsibility for continual environmental stewardship and are committed to integrating leading environmental practices and sustainability principles into the core business strategy. Element has focused on the conservation of natural resources, reduction on waste and pollution, betterment and enhancement of indoor environmental quality and raising awareness of environmental concern between employees, guests and local community (Element Hotels, 2010). Moreover, Element is committed to develop an economically responsible LEED-certified hotel concept that is promising a more sustainable future (Paasschen, 2008:1). In authors opinion, the statement of Element environmental policy is clearly showed the intentions and principles related to environmental practices by Element hotel and evidences of complying with legislation requirement. To contrast with the ISO 14001 model, Element hotel has developed a statement which is committed to green environment. The principles of the hotel are all about green. In addition, employees and customers can have a better understanding about the green strategies undertaken at the Element. In this section, the author strongly agrees that Element hotel has implemented the environmental policy successfully. Planning Element hotels are primarily introduced to the public by Starwood Hotels and Resorts as a strategic plan to against the challenges in environmental concern. The element philosophy is to satisfy guests needs while keeping the environment in mind (Element Hotels, 2010a). Element is actively make effort striving to minimize the environmental impact stemming from business activities and enhance continual improvement and innovation on practices. As McGuinness (2009) stated that elements efforts around green are great for the Earth and great for our guests. Element endeavors to launch green initiatives to diminish the operation cost as well as expend the market share by building up a reputable green image. The planning of green initiatives at Element are categorized into Reducing, Reusing and Recycling (Element Hotels, 2010a). At Element, departmental managers are participated in environmental management planning in order to fulfill different range of needs within each department, and establish a realistic and effective plan on environmental management. The author agrees that an accessible plan is essentials to provide employee a better understanding thus to take action properly following the proposed planning. In the planning process, the author mentioned the planning will establish an assessable organizational goal. The reducing, reusing, and recycling planning could help the hotel to achieve the hotels strategy which is to develop the green philosophy to the employees and customers. In the next section, the operations will be discove red in order to complete Elements planning. Implementation and Operation Element hotels score high marks from U.S. Building Green Council (USBGC, 2010), that indicates the significance of its variety of cost-effective green principle on the improvement of environmental sustainability. Element have launched a responsible business program to staff on seeking feedback. As Potts, Christenbury Wolak (1994: 41) mentioned that The hotel staffs are a key source of information, their input and suggestions for improvement are critical to implementation of a good plan. Feedback can make certain the inaccuracy and errors to be corrected before problem arise once again (Lancaster and Stanhope, 2004). Moreover, meeting holds in a regular basis in order to maintain staff awareness of the implemented environmental program at Element. The author suggests that social activities such as picnics and hikes or competition can be organized to encourage motivation and enhance communication within the workforce. Management can allow people to take ownership of certain project al so a means of motivation. In addition, suggestion boxes and reward staff for success in terms of introducing and educating the guest with on-site green initiatives. At Element hotel, a module on its comprehensive environmental policy is en-compassing in staff induction and also refresher training. Adequate Training is important to endow the staffs with necessary tools in order to maximize the benefits to staff member (Remenyi, 2007). Reduced water consumption According to Green Lodging News (2008), Element efficiency features saving 942,000 gallons of water per guestroom every year through the adoption of water conservation measures. Element implemented Grey water system which is any wastewater has been used within the property except toilet water can be re-used for watering plants and toilet water through filtering treatment. Dual-Flush toilet is installed in all guest room and public area that helps to lower water consumption up to 67%. Low flow shower heads and water-efficient faucet aerators also means to conserve water, all dramatically increase the efficiency and ease the burden of water supplies while giving the guest a great experience. Reduced energy consumption and carbon emissions Element conserve energy by launching energy conservation measures en-compassing an environmental friendly lighting system throughout the property supported by compact fluorescent light (CFL) and Light-emitting diode (LED), Energy-Star labeled appliances in each guest room and high efficiency ventilating and conditioning system. And the roof top is equipped with solar reflect panal that reflect heat from the sun so as to ease the burden on hotel air conditioning systems. Element also encourages the development of renewable energy technology through purchasing credits of renewable energy to compensate partial electricity consumption. According to Element Hotels (2010), 35% of the used electricity comes from renewable sources such as wind power at Element Hotel. Recycling by Element hotel is estimated to have already conserved enough energy to supply approximately 9 million households in United States (Press Release, 2008a). Improved indoor environmental quality measures Element hotel is in partnership with EcoLab for the implementation of Green Housecleaning practices, to encourage using environmental friendly cleaning products and facilitate day-lighting throughout the property by installing oversized window in every guest room (Green Lodging News, 2008). Smoking is strictly prohibited in and around the property to ensure good air quality. Furthermore, element hotel applies low Volatile Organic Compunds paints and carpets made of 100% recyclable materials. Traditional Do Not Disturb sign paper tag is replaced by the environmental friendly magnet (Press Release, 2008). Execution of waste management and Recycling At Element hotel, pa

Post Traumatic Stress Disorder :: Post-traumatic stress disorder, PTSD

Introduction There has been a proliferation of interest in the development and nature of individual’s thinking patterns and processes following traumatic psychological exposure (Ehlers, Mayou, & Bryant, 1998). In particular, previous research has suggested that specific thinking styles and patterns preceding trauma predict a greater vulnerability and a poorer long-term prognosis of posttraumatic stress disorder (PTSD) (Dalgleish, 2004). Moreover, the literature has illustrated that adolescents can be predisposed to developing PTSD which develops as a result of either direct or indirect exposure to a trauma. For example, witnessing a trauma directly or learning about a specific traumatic event experienced by others (Finkelhor & Dziuba-Leatherman, 1994). Previous research has highlighted that adolescents that have been exposed to a trauma and PTSD may also be more vulnerable to developing aggressive and antisocial behaviours (Falshaw, Browne & Hollin, 1996), alcohol and drug dependence, hypervigilance and impulsive misconduct (Lynam, Caspi, Moffitt, Wikstrà ¶m, Loeber & Novak, 2000). Erwin, Newman, McMackin, Morrissey and Kaloupek (2000) suggest that a reason for this is that early exposure to trauma can have severe impact on adolescent’s functioning in terms of their emotions, cognition and behaviour, poor self-regulation and information-processing. Adding to this, Tyson & Goodman, (1996) suggest that it is these deficits in functioning coupled with the individual’s inability to regulate emotions that predispose them to engaging in protective aggression and dangerous re-enactment behaviours as a way of dealing with their exposure to trauma. The link between dysfunctional cognitions and PTSD has been widely explored by various researchers, and it has been suggested that a tight relationship exists between PTSD and antisocial behaviour in youths (Danckwerts & Leathem, 2003). However, little is yet known about the psychological mechanisms which underlie the relationship. This literature review will explore the underlying mechanisms which predict a greater vulnerability to the onset, development and maintenance of PTSD associated with young offenders. More specifically, depressive cognitions such as rumination and counterfactual thinking will be explored with reference to their link with PTSD. Defining Rumination and Counterfactual Thinking Individuals affected by PTSD often report symptoms of incessant ruminative thinking associated with a traumatic experience. The DSM-IV (American Psychiatric Association, 1994) does not however distinguish intrusive rumination and intrusive memories associated with the trauma in the development of PTSD. However, more recently various theoretical perspectives propose that the two are functionally distinct and should be regarded as separate entities (Ehlers & Clark, 2000; Joseph, Williams & Yule, 1997; Ehlers & Steil, 1997).

Virus, Worms and Hackers :: Computers Technology Essays

Virus, Worms and Hackers Computer viruses were first widely seen in the late 1980s. They were caused due to several reasons. The first factor was rapid growth of personal computers. Before this decade personal computers were not seen in many houses. They only computers used were expert computers which were locked in laboratories around the world. During the 1980’s Computers started to sell to several smaller business’s and homes after the release of the IBM PC in 1982 [1]. After its launch, personal computers slowly started spreading to businesses, homes and universities around the world. The second reason was bulletin boards where users could dial up a bulletin board with a modem and download different programs [2]. The most popular programs were games. Users also downloaded simple word processors and spreadsheets. Bulletin boards led to the precursor of the virus which is know today as the Trojan horse. Trojan horse is a program which can trick the user in to downloading it. This can be done very easily changing the name of the file. When a Trojan program is downloaded on a local computer it can do a lot of harm to it. It can potentially erase all the contents of the hard disk on the computer. Trojan horses hit a small number of people because they are discovered easily. Either the bulletin board would erase the file from the system or the people would send out messages to warn one another. The third reason was growth of floppy disks. Many programs could fit into a single floppy disk. Most computers did have hard disks so computers would just load everything off the floppy when switched on including the operating system. Computer viruses can be very mysterious and grab our attention. Viruses can show us how vulnerable we are to attacks. A well engineered virus can have a very harmful effect on the internet. An example of this is the worms we have seen in the last few years. MyDoom worm which infected a quarter million computers in a single shook the whole internet community. In March 1999 the Mellisa virus was so powerful, it forced many large companies including Microsoft to completely turn off their email systems until the virus could be contained. The ILOVEYOU worm in 2000 had a similar effect. The most astonishing thing is that these worms were very simple in their implementation. Worms usually exploit some sort of security hole in a piece of software or operating system.

Cutting Down Trees

Cutting down too many trees will result in nature being gone very soon. We will not be able to survive because we live on the oxygen that trees and plants breathe out. Because we need O2 and give off CO2, and because trees and plants breathe CO2 and give off O2, if one group is not there then the other will die. It is a bad thing if we keep cutting down trees in an unlimited way. In addition to the impact on the balance of gases (O2-CO2), trees and plants provide habitat for huge numbers of creatures. It is possible to kill off many whole species of animal by destroying their habitats. Losses like that (large-scale habitat destruction) are not easily reversed, and will drive large numbers of creatures into extinction. Taking away the homes of creatures, allowing them to completely die off, and then restoring the habitat won't bring them back. Trees should not be cut down because most of the paper used is not RECYCLED so therefore it is a waste of time from God to make and plant the tree! Well it has air and oxygen and if u are cutting the trees down u re hurting the enivorment and animals that live near trees or on trees like rabbits and all could die and the it causes flooding to the world and near the forest so all the animals can die. Also school is wasting mire paper by thinking they have enogh but they dont. Some people also do littering and people who do that i would like to remind them that when u are older and u litter and the police caches u then u can get arrested. Schools are all coverd in litter and it very important that u dont because u can still get in trouble even when u are younger. By the lack of litter that i have found in this street and i am very dissapointed please dont litter it is very important that u dont. Headteachers at school are doing a brilliant job by picking up the litter. Even if it is not ur litter please just pick it up. If u see someone chucking rubbish on the floor say to them dont do that it is not gd for the enviorment. One of the most significant impacts of cutting down trees is that they are a source of shelter to many animal species and they become homeless because of this and it becomes difficult for them to survive. As a result the entire food chain is affected. Cutting down trees means that we have lesser number of tree species left and this decreases the biodiversity. Plants release oxygen into the environment and lesser number of trees means that we will have lesser oxygen content in the atmosphere. Tree leaves also give off water molecules to the environment that become a part of the water cycle and come down as rain. Fewer trees means lesser rains. Trees refresh the air we breath so by chopping them down we will have a poorer air type No shelter for animals. No oxygen for humans.

Queer Theory

Queer theory is not a theory of homosexuality, is an approach to sexuality and, more generally, identity, which builds on some of the ideas developed by Foucault (Reading). According to the reading, there is one point I think it’s very important. â€Å"We should challenge the traditional views of masculinity and femininity, and sexuality, by causing ‘gender trouble’†. It reminds me a real story happened in china. Last year, we have a national singer show just ‘American Idol’ but only for male competitor. One guy named Zhu, he become the most dramatic person in that show. He has long hair, wear a dress, heels, and perfect make up. He looks like totally a girl, especially his voice, is totally a girl. Every people shocked. When he starts singing, it’s totally girl’s voice. One of the judge interrupt him, ask him are you a guy? Our show only for male, he said yes, But this judge interrupt him again, because he can’t believe he is a man. The judge ask other stuff to check his Id. Afterward, the journalist interview ZHU, why he wants to dress like a girl, Zhu said I just feel comfortable when I dress like this. This video brings a big discussion on the internet. Some people think he should attend this show; he brings bad influence to tradition gender culture. Some people support him, every people has a right to do what they want to do. Apply queer theory to this event, Zhu is an example of challenging the traditional views of masculinity and femininity and sexuality, he caused ‘gender trouble’. A lot people think he is a guy, but he said I ‘m not a guy, there is no law don’t allow a man wear a dress and make up. Traditional view think male should men’ cloth, and a guy like Zhu must be guy, but the truth is no. Queer theory, is a approach encourage people can do what they want to do, can challenge traditional social view.

Micromax †The Indian consumer electronics MNC

Micromax is a rather big name today – in fact, it is the largest Indian mobile phone company. It is interesting to note that it took birth as a software company called Micromax Informatics Limited in the year 2000 by a group of four friends. – Rajesh Agarwal, Sumeet Arora, Rahul Sharma and Vikas Jain. In 2008, Micromax entered the mobile phone market and just about managed to get a foot hold, with a 0. 59% market share during the first half year of its existence. By the end of March 2010, its share was 6. 24%. Now it has 23 domestic offices across the country and international offices in Hong Kong, USA and Dubai. Presently, the company has about 1400 employees. It is one of the leading mobile phone manufacturer in India as well as in the world . According to industry analysts, as of 2012, Micromax leads the Indian tablet market with a share of 18. 4%, ahead of Samsung and Apple, and is the third largest mobile phone vendor in terms of volume. Also it is the 12th largest handset manufacturer in the world, according to global handset vendor market share report from strategy analytics. SWOT Analysis Strengths: Innovative products and features- Marathon battery mobile phones with a 30-day battery life, phone which is programmable as a universal remote control, gravity phones are some of the features which have increased the popularity of the product. Low cost of production – With its plants located in China, Micromax bears a low cost in production due to availability of labour at cheaper rates. Effective promotion campaigns- Micromax has been promoting its products through famous celebrities and has also had tie ups with MTV. Weaknesses: Weak brand image in urban areas- Micromax has still not been able to establish itself well in the urban market as its main concentration had been on the rural population. Perception of low-quality Chinese brand- Micromax has a manufacturing unit set up in china which has strengthened this perception among people. Opportunities: Increase penetration in urban market- Since Micromax has not yet entered this market; it has a very huge opportunity to establish itself in this market. Entry into international markets- Micromax has the potential to make its presence felt on global scale eventually as it establishes itself in the domestic market. Threats: Increasing competition from local and international players- With well-established players like Nokia, Samsung, etc. Micromax faces a tough competition from these players. Replication of business model by competitors- Micromax`s business model has been replicated by many new players which again pose a threat to Micromax. IPO offerings On July 28, 2011, Micromax withdrew its 4. 66 billion rupees (about $106 million) initial public offering (IPO) due to volatile market conditions. The withdrawal was recommended by its board in order to allow the company to focus on new product launches and product development. Micromax Informatics Limited has announced its foray into Maldivian telecom space through an exclusive partnership with Sense Wood Maldives (Pvt) Ltd. Objectives Objectives Present objectives: 1. Focus on urban market at large: On capturing major share of urban youth market, for next two years Micromax needs to focus on urban market at large like seiner citizens, physically handicapped etc. 2. Focus on smart phones as well as tablets: Micromax needs to continue focus on smart phones and launch more products and also it needs to focus on tablet market. For 2014: 1. To start new plant and reach market share of 20%: To increase market share, it is essential to increase production capacity. Micromax has plans to start a new plant in Tamil Nadu. With the help of this new plant, it will be able to reach a market share of 20%. 2. Focus on international markets: On making strong focus on rural market and urban market in India, Micromax needs to expand to international markets and enter into neighbouring Indian countries, south African countries etc. So we see that Micromax has established its place as a market leader in phones and tablets, not only in India but internationally as well.

Fraud Risk Management

Fraud risk management A guide to good practice 1 This guide is based on the fi rst edition of Fraud Risk Management: A Guide to Good Practice. The fi rst edition was prepared by a Fraud and Risk Management Working Group, which was established to look at ways of helping management accountants to be more effective in countering fraud and managing risk in their organisations. This second edition of Fraud Risk Management: A Guide to Good Practice has been updated by Helenne Doody, a specialist within CIMA Innovation and Development.Helenne specialises in Fraud Risk Management, having worked in related fi elds for the past nine years, both in the UK and other countries. Helenne also has a graduate certifi cate in Fraud Investigation through La Trobe University in Australia and a graduate certifi cate in Fraud Management through the University of Teeside in the UK. For their contributions in updating the guide to produce this second edition, CIMA would like to thank: Martin Birch FCMA, MBA Director – Finance and Information Management, Christian Aid.Roy Katzenberg Chief Financial Offi cer, RITC Syndicate Management Limited. Judy Finn Senior Lecturer, Southampton Solent University. Dr Stephen Hill E-crime and Fraud Manager, Chantrey Vellacott DFK. Richard Sharp BSc, FCMA, MBA Assistant Finance Director (Governance), Kingston Hospital NHS Trust. Allan McDonagh Managing Director, Hibis Europe Ltd. Martin Robinson and Mia Campbell on behalf of the Fraud Advisory Panel. CIMA would like also to thank those who contributed to the fi rst edition of the guide. About CIMACIMA, the Chartered Institute of Management Accountants, is the only international accountancy body with a key focus on business. It is a world leading professional institute that offers an internationally recognised qualifi cation in management accounting, with a full focus on business, in both the private and public sectors. With 164,000 members and students in 161 countries, CIMA is committed to upho lding the highest ethical and professional standards of its members and students.  © CIMA 2008. All rights reserved.This booklet does not necessarily represent the views of the Council of the Institute and no responsibility for loss associated to any person acting or refraining from acting as a result of any material in this publication can be accepted by the authors or publishers. Acknowledgements Fraud risk management: a guide to good practice 2 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fraud – its extent, patterns and causes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 1 What is fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 2 The scale of the problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. 3 Which businesses are affected? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. 4 Why do people commit fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1. 5 Who commits fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1. 6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk management – an overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 1 Wh at is risk management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 2 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 3 The risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2. 4 Establish a risk management group and set goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 5 Identify risk areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 6 Understand and assess the scale of risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 7 Develop a risk response strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 8 Implement the strategy and allocate responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 9 Implement and monitor suggested controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 10 Review and refi ne and do it again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 11 Information for decision making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 12 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Fraud prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 1 A strategy to combat fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 2 Developing a sound ethical culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. 3 Sound internal control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 1 Detection methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 2 Indicators and warnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 4. 3 Tools and techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Responding to fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 1 Purpose of the fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 2 Corpor ate policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 3 Defi nition of fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 4 Roles and responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 5 The response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 5. 6 The investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5. 7 Organisation’s objectives with respect to dealing with fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 8 Follow-up action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 9 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 1 2 3 4 5 3 Appendices Appendix 1 Fraud and the law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Appendix 2 Examples of common types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Appendix 3 Example of a risk analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Appendix 4 A sample fraud policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix 5 Sample whistleblowing policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Appendix 6 Examples of fraud indicators, risks and controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Appendix 7 A 16 step fraud prevention plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Appendix 8 Outline fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Appendix 9 Example of a fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Appendix 10 References and further reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Appendix 11 Listed abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Figures Figure 1 Types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 2 The fraud triangle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Figure 3 The CIMA risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Figure 4 Anti-fraud strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Figure 5 Ethics advice/services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Figure 6 Meth ods of fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Case Studies Case study 1 Fraud doesn’t involve just money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Case study 2 Size really doesn’t matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Case study 3 A breach of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Case study 4 Management risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Case study 5 A fi ne warning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Case study 6 Vet or regret? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Case study 7 Tipped off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Case study 8 Risk or returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Case study 9 Reporting fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Case study 10 TNT roots our fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 4 5 Periodically, the latest major fraud hits the headlines as other organisations sit back and watch, telling themselves that ‘it couldn’t happen here. ’ But the reality is that fraud can happen anywhere. While only relatively few major frauds are picked up by the media, huge sums are lost by all kinds of businesses as result of the high number of smaller frauds that are committed. Surveys are regularly carried out in an attempt to estimate the true scale and cost of fraud to business and society. Findings vary, and it is diffi cult to obtain a complete picture as to the full extent of the issue, but these surveys all indicate that fraud is prevalent within organisations and remains a serious and costly problem. The risks of fraud may only be increasing, as we see growing globalisation, more competitive markets, rapid developments in technology, and periods of economic diffi culty. Among other fi ndings, the various surveys highlight that: organisations may be losing as much as 7% of their annual turnover as a result of fraud †¢ corruption is esti mated to cost the global economy about $1. 5 trillion each year †¢ only a small percentage of losses from fraud are recovered by organisations †¢ a high percentage of frauds are committed by senior management and executives †¢ greed is one of the main motivators for committing fraud †¢ fraudsters often work in the fi nance function †¢ fraud losses are not restricted to a particular sector or country †¢ the prevalence of fraud is increasing in emerging markets. Introduction Despite the serious risk that fraud presents to business, any organisations still do not have formal systems and procedures in place to prevent, detect and respond to fraud. While no system is completely foolproof, there are steps which can be taken to deter fraud and make it much less attractive to commit. It is in assisting organisations in taking such steps that this guide should prove valuable. The original guide to good practice was based on the work of CIMA’s Fraud and Ri sk Management Working Group that was established as part of the Institute’s response to the problem of fraud. Since the publication of the original guide, we have continued to see high rofi le accounting scandals and unacceptable levels of fraudulent behaviour. This second edition of the guide includes updates to refl ect the many changes in the legal environment and governance agenda in recent years, aimed at tackling the ongoing problem of fraud. The guide starts by defi ning fraud and giving an overview of the extent of fraud, its causes and its effects. The initial chapters of the guide also set out the legal environment with respect to fraud, corporate governance requirements and general risk management principles. The guide goes on to discuss the key components of an anti-fraud strategy nd outlines methods for preventing, detecting and responding to fraud. A number of case studies are included throughout the guide to support the text, demonstrating real life problems th at fraud presents and giving examples of actions organisations are taking to fi ght fraud. Fraud risk management: a guide to good practice Management accountants, whose professional training includes the analysis of information and systems, can have a signifi cant role to play in the development and implementation of anti-fraud measures within their organisations. This guide is intended to help management accountants in that role and will also be seful to others with an interest in tackling fraud in their organisation. The law relating to fraud varies from country to country. Where it is necessary for this guide to make reference to specifi c legal measures, this is generally to UK law, as it would be impossible to include references to the laws of all countries where this guide will be read. It is strongly advised that readers ensure they are familiar with the law relating to fraud in their own jurisdiction. Although some references may therefore not be relevant to all readers, the general principles of fraud risk management will still apply and rganisations around the world are encouraged to take a more stringent approach to preventing, detecting and responding to fraud. 6 7 Defi nition of fraud The term ‘fraud’ commonly includes activities such as theft, corruption, conspiracy, embezzlement, money laundering, bribery and extortion. The legal defi nition varies from country to country, and it is only since the introduction of the Fraud Act in 2006, that there has been a legal defi nition of fraud in England and Wales. Fraud essentially involves using deception to dishonestly make a personal gain for oneself and/or create a loss for another. Although defi nitions vary, ost are based around these general themes. Fraud and the law Before the Fraud Act came into force, related offences were scattered about in many areas of the law. The Theft Acts of 1968 and 1978 created offences of false accounting, and obtaining goods, money and services by decept ion, and the Companies Act 1985 included the offence of fraudulent trading. This remains part of the Companies Act 2006. There are also offences of fraud under income tax and value-added tax legislation, insolvency legislation, and the common law offence of conspiracy to defraud. The Fraud Act is not the only new piece of legislation.Over the last few years there have been many changes to the legal system with regard to fraud, both in the UK and internationally. This guide focuses mainly on UK requirements, but touches on international requirements that impact UK organisations. In the UK, the Companies Act and the Public Interest Disclosure Act (PIDA) have been amended and legislation such as the Serious Crimes Act 2007 and the Proceeds of Crime Act 2002 (POCA) have been introduced. Internationally the Sarbanes-Oxley Act 2002 (Sarbox) has been introduced in the United States (US), a major piece of legislation that affects not only companies in the US ut also those in the UK and othe rs based all over the globe. Further information on these pieces of legislation can be found in Appendix 1. As well as updating the legislation in the UK, there have been, and will continue to be, signifi cant developments in the national approach to combating fraud, particularly as we see implementation of actions resulting from the national Fraud Review. Appendix 1 gives further information on the Fraud Review. There are also many law enforcement agencies involved in the fi ght against fraud in the UK, including the Serious Fraud Offi ce, the Serious Organised Crime Agency SOCA), the Financial Services Authority (FSA), and Economic Crime Units within the police force. Different types of fraud Fraud can mean many things and result from many varied relationships between offenders and victims. Examples of fraud include: †¢ crimes by individuals against consumers, clients or other business people, e. g. misrepresentation of the quality of goods; pyramid trading schemes †¢ em ployee fraud against employers, e. g. payroll fraud; falsifying expense claims; thefts of cash, assets or intellectual property (IP); false accounting †¢ crimes by businesses against investors, consumers and employees, e. g. i nancial statement fraud; selling counterfeit goods as genuine ones; not paying over tax or National Insurance contributions paid by staff †¢ crimes against fi nancial institutions, e. g. using lost and stolen credit cards; cheque frauds; fraudulent insurance claims †¢ crimes by individuals or businesses against government, e. g. grant fraud; social security benefi t claim frauds; tax evasion †¢ crimes by professional criminals against major organisations, e. g. major counterfeiting rings; mortgage frauds; ‘advance fee’ frauds; corporate identity fraud; money laundering †¢ e-crime by people using computers and technology to commit crimes, e. . phishing; spamming; copyright crimes; hacking; social engineering frauds. 1. 1 Wh at is fraud? 1 Fraud: its extent, patterns and causes Figure 1 Types of internal fraud Cash Non-cash Financial Non-fi nancial Confl icts of interest Bribery and extortion Asset misappropriation Fraudulent statements Corruption Internal fraud Fraud risk management: a guide to good practice 8 The fi nal of the three fraud categories is corruption. This includes activities such as the use of bribes or acceptance of ‘kickbacks’, improper use of confi dential information, confl icts of interest and collusive tendering. These types of internal fraud are summarised n Figure 1. Surveys have shown that asset misappropriation is the most widely reported type of fraud in UK, although corruption and bribery are growing the most rapidly. Further information on common types of internal fraud, and methods by which they may be perpetrated, is included in Appendix 2. This guide focuses on fraud against businesses, typically by those internal to the organisation. According to the Associa tion of Certifi ed Fraud Examiners (ACFE), there are three main categories of fraud that affect organisations. The fi rst of these is asset misappropriations, which involves the theft or misuse f an organisation’s assets. Examples include theft of plant, inventory or cash, false invoicing, accounts receivable fraud, and payroll fraud. The second category of fraud is fraudulent statements. This is usually in the form of falsifi cation of fi nancial statements in order to obtain some form of improper benefi t. It also includes falsifying documents such as employee credentials. 9 1. 2 The scale of the problem There have been many attempts to measure the true extent of fraud, but compiling reliable statistics around fraud is not easy. As one of the key aspects of fraud is deception, it can be diffi cult to identify and urvey results often only refl ect the instances of fraud that have actually been discovered. It is estimated that the majority of frauds go undetected and, even wh en a fraud has been found, it may not be reported. One reason for this may be that a company that has been a victim of fraud does not want to risk negative publicity. Also, it is often hard to distinguish fraud from carelessness and poor record keeping. Although survey results and research may not give a complete picture, the various statistics do offer a useful indication as to the extend of the problem. There can be no doubt that fraud is prevalent within organisations nd remains a serious issue. PricewaterhouseCooper’s Global Economic Crime Survey (PwC’s survey) in 2007 found that over 43% of international businesses were victims of fraud during the previous two years. In the UK, the fi gures were higher than the global average, with 48% of companies having fallen victim to fraud. Some surveys put the fi gures much higher. For example, during 2008, Kroll commissioned the Economist Intelligence Unit (EIU) to poll nearly 900 senior executives across the world. The EIU found that 85% of companies had suffered from at least one fraud in the past three years1. This fi gure had risen from 80% in a imilar poll in 2007. KPMG’s Fraud Barometer, which has been running since 1987, has also shown a considerable increase in the number of frauds committed in the UK in recent years, including a 50% rise in fraud cases in the fi rst half of 2008. According to the UK report of PwC’s survey, the average direct loss per company over a two year period as a result of fraud has risen to ? 1. 75 million, increasing from ? 0. 8 million in the equivalent 2005 survey. These fi gures exclude undetected losses and indirect costs to the business such as management costs or damage to reputation, which can be signifi cant. Management costs lone were estimated to be on average another ? 0. 75 million. Participants of the ACFE Report to the Nation 2008 (ACFE report) estimated that organisations lose 7% of their annual revenues to fraud. It is diffi cult to put a total cost on fraud, although many studies have tried to. For example an independent report by the Association of Chief Police Offi cers (the ACPO) in 2007 revealed that fraud results in losses of ? 20 billion each year in the UK. The World Bank has estimated that the global cost of corruption and bribery is about 5% of the value of the world economy or about $1. 5 trillion per year. It is thought that these stimates are conservative, and they also exclude other types of fraud such as misappropriation of assets. While it may be impossible to calculate the total cost of fraud, it is said to be more signifi cant than the total cost of most other crimes. According to the Attorney General in the UK, fraud is an area of crime which is second only to drug traffi cking in terms of causing harm to the economy and society2. 1 Kroll Global Fraud Report, Annual Edition 2008/2009 2 Attorney General’s interim report on the government’s Fraud Review, March 2006 Fraud risk managemen t: a guide to good practice 10 Case study 1 Fraud doesn’t just involve moneyCounterfeiting is one example of fraud that can have extremely serious consequences. Technology is ever improving, making it easier for counterfeiters to produce realistic looking packaging and fool legitimate wholesalers and retailers. Counterfeiting is a potentially lucrative business for the fraudster, with possibilities of large commercial profi ts, and it is a problem affecting a wide range of industries including wines and spirits, pharmaceuticals, electrical goods, and fashion. However, there are often many victims affected by such a fraud and not just the business that has been duped or had their brand exploited.For some, the outcome of counterfeiting goes way beyond fi nancial losses and can even be fatal: †¢ In late 2006, 14 Siberian towns declared a state of emergency due to mass poisonings caused by fake vodka. Around 900 people were hospitalised with liver failure after drinking indu strial solvent that was being sold as vodka. This is not a one off problem and sales of fake alcohol have been known to kill people. †¢ Also in 2006, a counterfeit product did result in more tragic consequences. At least 100 children died after ingesting cough syrup that had been mixed with counterfeit glycerine.The counterfeit compound, actually a dangerous solvent, had been used in place of more expensive glycerine. The manufacturing process had been sourced to China and the syrup passed through trading companies in Beijing and Barcelona before reaching its fi nal destination in Panama. The certifi cate attesting to the product’s purity was falsifi ed and not one of the trading companies tested the syrup to confi rm its contents along the way. It is thought that the number of deaths is likely to be much higher than the 100 cases that have been confi rmed. Fraud is often mistakenly considered a victimless rime. However, fraud can have considerable social and psychologic al effects on individuals, businesses and society. For example, when a fraud causes the collapse of a major company, numerous individuals and businesses can be affected. In addition to the company’s own employees, employees of suppliers can be affected by the loss of large orders, and other creditors, such as banks, can be indirectly affected by huge losses on loans. Consumers have to pay a premium for goods and services, in order to compensate for the costs of fraud losses and for money spent on investigations and additional security.Taxpayers also suffer due to reduced payments of corporation tax from businesses that have suffered losses. Fraud drains resources, affects public services and, perhaps of more concern, may fund other criminal and terrorist activity. According to the Fraud Review, fraud is a major and growing threat to public safety and prosperity. Case study 1 demonstrates just how much of a threat fraud can be to public safety and that there truly are victims of fraud. 11 1. 3 Which businesses are affected? Fraud is an issue that all organisations may face regardless of size, industry or country. If the rganisation has valuable property (cash, goods, information or services), then fraud may be attempted. It is often high profi le frauds in large multi-national organisations that are reported on in the media and smaller organisations may feel they are unlikely to be a target of fraudsters. However, according to the ACFE report, small businesses (classifi ed as those with less than 100 employees) suffer fraud more frequently than large organisations and are hit by higher average losses. When small companies are hit by large fraud losses, they are less likely to be able to absorb the damage han a larger company and may even go out of business as a result. The results of PwC’s survey showed that companies reporting fraud were spread across many industries, with at least a quarter of the respondents in any one industry suffering from f raudulent incidents. Industries suffering the highest average losses were insurance and industrial manufacturing. Losses in the fi nancial services industry, a sector frequently in the press and one with which fraud is often associated, were actually below average. Even not-for-profi t organisations are not immune to fraud, with government institutions nd many charities falling victim to unscrupulous fraudsters. As one director working in the international development and aid sector has pointed out, ‘In my sector, fraud is not a possibility, it is a reality and we are always dealing with a number of suspicious incidents on a more or less permanent basis. ’ PwC’s survey also revealed that incidences of fraud were highest in companies in North America, Africa and Central and Eastern Europe (CEE), where more than half of the companies reported fraud. It was lowest in the Western European region, although the UK was uch higher than the average for this region, with l evels of fraud similar to those in CEE. The EIU poll commissioned by Kroll in 2007 found that respondents in countries such as India and China have seen a signifi cant increase in the prevalence of corporate fraud in the last three years and this trend is likely to increase in businesses operating in emerging markets3. Although fraud is prevalent across organisations of all sizes and in all sectors and locations, research shows that certain business models will involve greater levels of fraud risk than others. The control environment hould be adjusted to fi t with the degree of risk exposure. Further guidance on risk assessment and controls is given in later chapters. 3 Kroll Global Fraud Report, Annual Edition 2007/2008 Fraud risk management: a guide to good practice 12 Case study 2 Size really doesn’t matter From a family affair†¦ A member of a small family business in Australia committed a $2m fraud, costing profi ts, jobs and a great deal of trust. The business owner s became suspicious when they realised that their son in law used the company diesel card to buy petrol for his own car.On closer scrutiny, they soon uncovered a company cheque for $80,000 made payable to the son in law’s personal account. BDO’s Brisbane offi ce discovered that the cheque and the fuel were just the tip of a vast iceberg. The company’s complex accounts system allowed the son in law to disguise cheques payable to himself as creditor payments. He then became a signatory and took ever larger cheques. He claimed that the poor cash fl ow was due to losses in one particular division which the family therefore closed, creating redundancies and losing what was in truth a successful business.The costs of ineffi cient accounting systems and undue trust can be massive. Every business should protect itself with thorough controls and vigilance. Adapted from ‘FraudTrack 5 Fraud: A Global Challenge’ published by BDO Stoy Hayward †¦ to a major corporate scandal WorldCom fi led for bankruptcy protection in June 2002. It was the biggest corporate fraud in history, largely a result of treating operating expenses as capital expenditure. WorldCom (now renamed MCI) admitted in March 2004 that the total amount by which it had misled investors over the previous 10 years was almost US$75 billion (? 2 billion) and reduced its stated pre-tax profi ts for 2001 and 2002 by that amount. WorldCom stock began falling in late 1999 as businesses slashed spending on telecom services and equipment. A series of debt downgrades raised borrowing costs for the company, struggling with about US$32 billion in debt. WorldCom used accounting tricks to conceal a deteriorating fi nancial condition and to infl ate profi ts. Former WorldCom chief executive Bernie Ebbers resigned in April 2002 amid questions about US$366 million in personal loans from the company and a federal probe of its accounting practices.Ebbers was subsequently charged with conspir acy to commit securities fraud and fi ling misleading data with the Securities and Exchange Commission (SEC) and was sentenced to 25 years in prison. Scott Sullivan, former Chief Financial Offi cer, pleaded guilty to three criminal charges and was sentenced to fi ve years in prison. Ultimately, losses to WorldCom shareholders were close to US$180 billion and the fraud also resulted in the loss of 17,000 jobs. The SEC said that WorldCom had committed ‘accounting improprieties of unprecedented magnitude’ – proof, it said, of the need for reform in the regulation of corporate ccounting. Adapted from CIMA Offi cial Learning System, Management Accounting Risk and Control Strategy 13 1. 4 Why do people commit fraud? There is no single reason behind fraud and any explanation of it needs to take account of various factors. Looking from the fraudster’s perspective, it is necessary to take account of: †¢ motivation of potential offenders †¢ conditions unde r which people can rationalise their prospective crimes away †¢ opportunities to commit crime(s) †¢ perceived suitability of targets for fraud †¢ technical ability of the fraudster expected and actual risk of discovery after the fraud has been carried out †¢ expectations of consequences of discovery (including non-penal consequences such as job loss and family stigma, proceeds of crime confi scation, and traditional criminal sanctions) †¢ actual consequences of discovery. A common model that brings together a number of these aspects is the Fraud Triangle. This model is built on the premise that fraud is likely to result from a combination of three factors: motivation, opportunity and rationalisation. Motivation In simple terms, motivation is typically based on either reed or need. Stoy Hayward’s (BDO) most recent FraudTrack survey found that greed continues to be the main cause of fraud, resulting in 63% of cases in 2007 where a cause was cited. Other causes cited included problems from debts and gambling. Many people are faced with the opportunity to commit fraud, and only a minority of the greedy and needy do so. Personality and temperament, including how frightened people are about the consequences of taking risks, play a role. Some people with good objective principles can fall into bad company and develop tastes for the fast life, which empts them to fraud. Others are tempted only when faced with ruin anyway. Opportunity In terms of opportunity, fraud is more likely in companies where there is a weak internal control system, poor security over company property, little fear of exposure and likelihood of detection, or unclear policies with regard to acceptable behaviour. Research has shown that some employees are totally honest, some are totally dishonest, but that many are swayed by opportunity. Rationalisation Many people obey the law because they believe in it and/or they are afraid of being shamed or rejected by eople the y care about if they are caught. However, some people may be able to rationalise fraudulent actions as: †¢ necessary – especially when done for the business †¢ harmless – because the victim is large enough to absorb the impact †¢ justifi ed – because ‘the victim deserved it’ or ‘because I was mistreated. ’ Figure 2 The fraud triangle Motivation Opportunity The fraud triangle Rationalisation Fraud risk management: a guide to good practice 14 Case study 3 A breach of trust A good example of the fraud triangle in practice is the highly publicised case of the secretary that stole over ? . 3 million from her bosses at Goldman Sachs. Motivation There were some suggestions that Joyti De-Laurey originally started down her fraudulent path because of fi nancial diffi culties she found herself in before starting work at the investment bank. De-Laurey had previously run her own sandwich bar business, but it was closed down due to ins uffi cient fi nances. According to her defence, De-Laurey’s ‘fi rst bitter experience of fi nancial turmoil coincided with a novel introduction to a Dallas-type world where huge, unthinkable amounts of money stared her in the face, day in and day out. The motive behind the fraud was primarily greed though, with De-Laurey spending her ill gotten gains on a luxury lifestyle, including villas, cars, jewellery, designer clothes and fi rst class holidays. De-Laurey has even admitted that she did not steal because she needed to, but because she could. She explained that she fi rst started taking money simply to fi nd out if she could get away with it. She says that it then became ‘a bit addictive’ and that she ‘got a huge buzz from knowing they had no idea what I was doing. ’ Opportunity In terms of opportunity, De-Laurey’s bosses trusted her and held her in high regard.She had proved herself indispensable, on both business and personal fronts , and was given access to their cheque books in order to settle their domestic bills and personal fi nances. A little over a year after starting at Goldman Sachs, De-Laurey began forging her bosses’ signatures on personal cheques to make payments into her own accounts. Realising she had got away with it, De-Laurey continued to steal money by issuing forged cheques and making false money transfers. Before long she was forging signatures on a string of cash transfer authorities, siphoning off up to ? 2. million at a time from supposedly secure New York investments. Rationalisation De-Laurey was able to rationalise her actions by convincing herself that she had earned the money she stole. De-Laurey believed that she deserved the plundered amounts as a just reward for her dedication, discretion and loyalty, and claims that she had the consent of her bosses to take money in return for her ‘indispensable services’. The fact that they were so rich they did not even noti ce the money was missing, only served to fuel De-Laurey’s fraudulent activities. She justifi ed her actions through the belief that her bosses had cash to spare.According to De-Laurey; ‘They could afford to lose that money. ’ Caught out After four years of siphoning off vast amounts of money, De-Laurey was eventually caught when her boss at the time decided to make a six-fi gure donation to his former college. He took a look at his bank accounts to see if he could cover the donation and was surprised to fi nd the balance on the accounts so low. He investigated further and realised that large sums had been transferred to an unknown account. De-Laurey was the obvious suspect. By this time, De-Laurey had actually stolen around ? 3. 3 million from this particular boss.De-Laurey was the fi rst woman in the UK to be accused of embezzling such a large sum and, after a long and high profi le trial in 2004, she was sentenced to seven years imprisonment. Various sources in cluding The Guardian, The Times, The Independent and the BBC News 15 One of the most effective ways to tackle the problem of fraud is to adopt methods that will decrease motive or opportunity, or preferably both. Rationalisation is personal to the individual and more diffi cult to combat, although ensuring that the company has a strong ethical culture and clear values should help. These methods and principles are developed further in later hapters of this guide. 1. 5 Who commits fraud? Different types of fraudster Fraudsters usually fall into one of three categories: 1 Pre-planned fraudsters, who start out from the beginning intending to commit fraud. These can be short-term players, like many who use stolen credit cards or false social security numbers; or can be longer-term, like bankruptcy fraudsters and those who execute complex money laundering schemes. 2 Intermediate fraudsters, who start off honest but turn to fraud when times get hard or when life events, such as irritation at being passed over for promotion or the need to pay for care for a family ember, change the normal mode. 3 Slippery-slope fraudsters, who simply carry on trading even when, objectively, they are not in a position to pay their debts. This can apply to ordinary traders or to major business people. In 2007, KPMG carried out research on the Profi le of a Fraudster (KPMG survey), using details of fraud cases in Europe, India, the Middle East and South Africa. The ACFE carried out similar research on frauds committed in the US. These surveys highlight the following facts and fi gures in relation to fraudsters: †¢ perpetrators are typically college educated white male most fraudsters are aged between 36 and 55 †¢ the majority of frauds are committed by men †¢ median losses caused by men are twice as great as those caused by women †¢ a high percentage of frauds are committed by senior management (including owners and executives) †¢ losses caused by managers are ge nerally more than double those caused by employees †¢ average losses caused by owners and executives are nearly 12 times those of employees †¢ longer term employees tend to commit much larger frauds †¢ fraudsters most often work in the fi nance department, operations/sales or as the CEO. The ACFE report also found that the type of person ommitting the offence depends on the nature of the fraud being perpetrated. Employees are most likely to be involved in asset misappropriation, whereas owners and executives are responsible for the majority of fi nancial statement frauds. Of the employees, the highest percentage of schemes involved those in the accounting department. These employees are responsible for processing and recording the organisation’s fi nancial transactions and so often have the greatest access to its fi nancial assets and more opportunity to conceal the fraud. Fraud risk management: a guide to good practice 16 Case study 4 Management riskIn 2007, a major British construction fi rm suffered from extensive fraud committed by management at one of its subsidiaries. Accounting irregularities dating back to 2003 were said to include systematic misrepresentation of production volumes and sales by a number of senior fi gures at the division. Management at the subsidiary attempted to cover their behaviour by selling materials at a discounted price and the fraud went undetected for several years despite internal and external audits. The irregularities were eventually uncovered by an internal team sent to investigate a mismatch between orders and sales.Following an initial internal investigation, a team of external experts and the police were brought in to identify the full extent of malpractice. The investigation found that the organisation was defrauded of nearly ? 23 million, but the fraud was said to cost the company closer to ? 40 million due to the written down value of the business and factoring in the cost of the investigation. The managing director of the subsidiary was dismissed, another manager faced disciplinary action and fi ve others left before disciplinary proceedings could be commenced. Civil proceedings were ruled out on the basis that osses were unlikely to be recovered. Operations at the centre of the incident had to be temporarily closed and more than 160 jobs were cut at the business. In addition to individual fraudsters, there has also been an increase in fraud being committed by gangs of organised criminals. Examples include false or stolen identities being used to defraud banks, and forms of e-fraud exploiting the use of internet by commercial businesses. SOCA is responsible for responding to such threats, with the support of the victim organisations. 1. 6 Summary A major reason why people commit fraud is because they are allowed to do so.There are a wide range of threats facing businesses. The threat of fraud can come from inside or outside the organisation, but the likelihood that a frau d will be committed is greatly decreased if the potential fraudster believes that the rewards will be modest, that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must be to establish a comprehensive system of control which aims to prevent fraud, and where fraud is not prevented, increases the likelihood of detection and increases the cost to the fraudster. Later chapters of this guide set out some of the easures which can be put in place to minimise fraud risks to the organisation. Before looking specifi cally at fraud risk, the guide considers risk management in general. Risk management is defi ned as the ‘process of understanding and managing risks that the entity is inevitably subject to in attempting to achieve its corporate objectives’ (CIMA Offi cial Terminology, 2005). For an organisation, risks are potential events that could infl uence the achievement of the organisation’s objectives. Risk management is about understanding the nature of such events and, where they represent threats, making positive plans to mitigate them. Fraud s a major risk that threatens the business, not only in terms of fi nancial health but also its image and reputation. This guide is primarily focused on managing the risk of fraud, but fi rst, this chapter looks at more general aspects of risk management and corporate governance. 17 2 Risk management – an overview Risk management is an increasingly important process in many businesses and the process fi ts in well with the precepts of good corporate governance. In recent years, the issue of corporate governance has been a major area for concern in many countries. In the UK, the fi rst corporate governance report and code of best practice s considered to be the Cadbury Report in 1992, which was produced in response to a string of corporate collapses. There have been a number of reports since, covering provisions around areas such as exec utive remuneration, non-executive directors, and audit committees. The principles of these various reports have been brought together to form the Combined Code on Corporate Governance (Combined Code). The Combined Code was fi rst introduced in 1998 and among other matters, calls for boards to establish systems of internal control and to review the effectiveness of these systems on a regular basis. UK isted companies are required to provide a statement in their annual reports confi rming that they comply with the Combined Code, and where they do not, they must provide an explanation for departures from it (the ‘comply or explain’ principle). The assessment of internal controls should be included in the report to shareholders. The Combined Code is reviewed regularly and the most recent version was published in June 2008. Following the original introduction of the Combined Code, the Turnbull Committee was set up to issue guidance to directors on how they should assess and report on their review of internal controls. TheTurnbull Committee made it clear that establishment of embedded risk management practices is key to effective internal control systems. The Turnbull guidance was fi rst published in 1999 and revised in 2005. In the revised report (sometimes referred to as Turnbull 2) there is now a requirement for directors to give explicit confi rmation that any signifi cant failings or weaknesses identifi ed from the review of effectiveness of internal controls have been, or are being, remedied. 2. 1 What is risk management? 2. 2 Corporate governance Fraud risk management: a guide to good practice 18 The Financial Reporting Council is responsible for aintaining and reviewing the Combined Code, although the Combined Code is annexed to the rules of the UK Listing Authority, which is part of the FSA. The FSA is responsible for ensuring that listed companies provide the appropriate ‘comply or explain’ statement in their annual report. While the guidance is generally applicable to listed companies, the principles are relevant to all organisations and have been widely used as a basis for codes of best practice in the public and not-for-profi t sectors. Fraud risk management practices are developing along the same lines. Many other countries have also produced reports on orporate governance, usually accompanied by codes of best practices. For example, South Africa has had the King Report (version I and now II) since 1994, Malaysia has had its Code of Corporate Governance in place since 2000 and Sri Lanka issued the Rules on Corporate Governance as part of its Listing Rules in January 2007. Corporate governance requirements in the US are now largely set out within the Sarbox legislation, further details on which are provided at Appendix 1. As previously mentioned, these requirements extend beyond the US, capturing any company that is SEC listed and its subsidiaries. Some other countries have lso introduced a statutory appr oach to corporate governance, such as that in the US, although none are currently as comprehensive. A number of international organisations have also launched guidelines and initiatives on corporate governance, including the Organisation for Economic Co-operation and Development (OECD) and the European Commission. An example of a growing area of corporate governance is IT governance, which has developed in light of rapid and continuing advances in information technology. The following box gives more information on IT governance. IT Governance IT governance is about ensuring that the rganisation’s IT systems support and enable achievement of the organisation’s strategies and objectives. It encompasses leadership, organisational structures, businesses processes, standards and compliance. There are fi ve specifi c drivers for organisations to adopt IT governance strategies: †¢ regulatory requirements e. g. IT governance is covered by the Combined Code and Turnbull gu idance in the UK †¢ increasing intellectual capital value that the organisation has at risk †¢ alignment of technology with strategic organisational goals †¢ complexity of threats to information security †¢ increase in the compliance requirements of nformation and privacy-related regulation. A key benefi t of an effective, integrated IT governance framework is the integration of IT into the strategic and overall operational approach of an organisation. There are a series of international Information Security (IS) standards that provide guidance on implementing an effective IT governance framework, known as the ISO 27000 series. For example, ISO/IEC 27001 defi nes a set of IS management requirements in order to help organisations establish and maintain an IS management system. The standards apply to all types of organisation regardless of size or sector.They are particularly suitable where the protection of information is critical to the business, for example in t he fi nance, health and public sectors, and for organisations which manage information on behalf of others, such as IT outsourcing companies. ISACA also offers a series of IS standards and certifi cation. ISACA is a leading global association in the IT governance and control fi eld. With a network across more than 160 countries, its IS standards are followed by practitioners worldwide. Figure 3 The CIMA risk management cycle Controls assurance Controls assurance is the process whereby controls are eviewed by management and staff. There are various ways to conduct these exercises, from highly interactive workshops based on behavioural models at one end of the spectrum to pre-packaged self audit internal control questionnaires at the other. These models all include monitoring and risk assessment among their principal components. 19 The risk management cycle is an interactive process of identifying risks, assessing their impact, and prioritising actions to control and reduce risks. A n umber of iterative steps should be taken: 1 Establish a risk management group and set goals. 2 Identify risk areas. Understand and assess the scale of risk. 4 Develop a risk response strategy. 5 Implement the strategy and allocate responsibilities. 6 Implement and monitor the suggested controls. 7 Review and refi ne the process and do it again. 2. 3 The risk management cycle Identify risk areas Review and refi ne process and do it again Implementation and monitoring of controls Implement strategy and allocate responsibilities Understand and assess scale of risk Develop risk response strategy Information for decision making Establish risk management group and set goals Fraud risk management: a guide to good practice 20 2. Establish a risk management group and set goals A risk management group should be established whose task it is to facilitate and co-ordinate the overall risk management process. Possible members of the group could include a chief risk offi cer, a non executive direc tor, fi nance director, internal auditor, heads of planning and sales, treasurer and operational staff. Depending on the size and nature of the organisation, the risk management group may be in the form of a committee who meet from time to time. The risk management group will promote the understanding and assessment of risk, and facilitate the evelopment of a strategy for dealing with the risks identifi ed. They may also be responsible for conducting reviews of systems and procedures to identify and assess risks faced by the business, which include the risk of fraud, and introducing the controls that are best suited to the business unit. However, line managers and their staff may also be involved in the risk identifi cation and assessment process, with the risk management group providing guidance. 2. 5 Identify risk areas Each risk in the overall risk model should be explored to identify how it potentially evolves through the organisation.It is important to ensure that the risk is c arefully defi ned and explained to facilitate further analysis. The techniques of analysis include: †¢ workshops and interviews †¢ brainstorming †¢ questionnaires †¢ process mapping †¢ comparisons with other organisations †¢ discussions with peers. Once risks have been identifi ed, an assessment of possible impact and corresponding likelihood of occurrence should be made using consistent parameters that will enable the development of a prioritised risk analysis. In the planning stage, management should agree on the most appropriate defi nition and number of categories to be used when ssessing both likelihood and impact. The assessment of the impact of the risk should not simply take account of the fi nancial impact but should also consider the organisation’s viability and reputation, and recognise the political and commercial sensitivities involved. The analysis should either be qualitative or quantitative, and should be consistent to allow compa risons. The qualitative approach usually involves grading risks in high, medium and low categories. Impact The assessment of the potential impact of a particular risk may be complicated by the fact that a range of possible outcomes may exist or that the risk may occur number of times in a given period of time. Such complications should be anticipated and a consistent approach adopted which, for example, may seek to estimate a worst case scenario over, say, a 12 month time period. Likelihood of occurrence The likelihood of a risk occurring should be assessed on a gross, a net and a target basis. The gross basis assesses the inherent likelihood of the event occurring in the absence of any processes which the organisation may have in place to reduce that likelihood. The net basis assesses the likelihood, taking into account current conditions and processes to mitigate he chance of the event occurring. The target likelihood of a risk occurring refl ects the risk appetite of the organisa tion. 2. 6 Understand and assess the scale of risk 21 Where the net likelihood and the target likelihood for a particular risk differ, this would indicate the need to alter the risk profi le accordingly. It is common practice to assess likelihood in terms of: †¢ high – probable †¢ moderate – possible †¢ low – remote. An example of a risk analysis is contained in Appendix 3. The resulting document is often referred to as a risk register. The overall risk registers at organisational nd operational levels should include the risk of fraud being perpetrated. Some organisations also prepare detailed fraud risk registers that consider possible fraudulent activity. The fraud risk register often directs the majority of proactive fraud risk management work undertaken by an organisation. Analysing fraud risks Fraud risk is one component of operational risk. Operational risk focuses on the risks associated with errors or events in transaction processing or ot her business operations. A fraud risk review considers whether these errors or events could be the result of a deliberate act designed to benefi t the perpetrator.As a result, fraud risk reviews should be detailed exercises conducted by teams combining in depth knowledge of the business and market with detailed knowledge and experience of fraud. Risks such as false accounting or the theft of cash or assets need to be considered for each part of the organisation’s business. Frequently, businesses focus on a limited number of risks, most commonly on thirdparty thefts. To avoid this, the risks should be classifi ed by reference to the possible type of offence and the potential perpetrator(s). Fraud risks need to be assessed for each area and process of the business, for example, cash payments, ash receipts, sales, purchasing, expenses, inventory, payroll, fi xed assets and loans. Fraud risk management: a guide to good practice 22 2. 7 Develop a risk response strategy Once the ri sks have been identifi ed and assessed, strategies to deal with each risk identifi ed can be developed by line management, with guidance from the risk management group. Strategies for responding to risk generally fall into one of the following categories: †¢ risk retention (e. g. choosing to accept small risks) †¢ risk avoidance (e. g. stopping sale of certain products to avoid the risk to occurring) †¢ risk reduction (e. g. hrough implementing controls and procedures) †¢ risk transfer (e. g. contractual transfer of risk; transferring risks to insurers). Before strategies are developed, it is necessary to establish the risk appetite of the organisation. Risk appetite is the level of risk that the organisation is prepared to accept and this should be determined by the board. The appetite for risk will infl uence the strategies to be developed for managing risk. It is worth noting that a board’s risk appetite may vary for different types of risk and over tim e. For example, the board may have a low risk tolerance on compliance and egulatory issues, but be prepared to take signifi cant strategic risks. The board may also reduce their risk appetite as the external environment changes, such as in times of recession. 2. 8 Implement the strategy and allocate responsibilities The chosen strategy should be allocated and communicated to those responsible for implementation. For the plan to be effective it is essential that responsibility for each specifi c action is assigned to the appropriate operational manager and that clear target dates are established for each action. It is also important to obtain the co-operation of those esponsible for the strategy, by formal communication, seminars, action plans and adjustments to budgets. The chosen strategy may require the implementation of new controls or the modifi cation of existing controls. Businesses are dynamic and the controls that are in place will need to be monitored to assess whether or n ot they are succeeding in their objectives. The risk management group should be empowered to monitor the effectiveness of the actions being taken in each specifi c area, as these can be affected by internal and external factors, such as changes in the marketplace or the introduction of new computer systems. . 10 Review and refi ne and do it again All of the elements outlined above form part of an iterative cycle where risk management is continually reviewed and developed. As the cycle continues, risk management should increasingly become embedded in the organisation so that it really becomes part of everyone’s job. 2. 11 Information for decision making Risk management should form a key part of the organisation’s decision-making process. Information is gathered at all stages of the risk management cycle and this information should be fed into the decision-making mechanisms. For more information on risk management, please refer o CIMA’s publication Risk Management : A guide to good practice. 2. 9 Implement and monitor suggested controls 23 There are risks in most situations. Risk management is an important element of corporate governance and every organisation should review their risk status and develop their approach as described in the CIMA Risk Management Cycle in 2. 3 to 2. 11 above. Managing the risk of fraud is the same in principle as managing any other business risk. First, the potential consequences of fraud on the organisation need to be understood, using the principles set out in this chapter. The risks should then be reduced by developing nd implementing an anti-fraud strategy across the organisation. This is best approached systematically, both at the organisational level, for example by using ethics policies and anti-fraud policies, and at the operational level, through introduction of controls and procedures. The following chapters expand on the fraud risk management process in the context of an antifraud strategy. 2. 12 Summar y Fraud risk management: a guide to good practice Given the prevalence of fraud and the negative consequences associated with it, there is a compelling argument that organisations should invest time and resources towards tackling fraud.There is, however, sometimes debate as to whether these resources should be committed to fraud prevention or fraud detection. Fraud prevention Based on the earlier discussion aroun