Moral Philosophy Essay Example for Free

Moral Philosophy EssayHargon exercisings the indirect version of utilitarianism. hare believes that somebodys can deliberate at the a priori level. In dire situations where there is no time to evaluate determinations on a critical level, intuition maybe used to commit most acts. learn utilitarianism follows a rigid rules approach to utilitarianism. Hares approach implies that certain acts done intuitively will become clean because the decision was made on a catgut level instinct instead of simply following a set of rules. Hare attempts to distinguish his theories from crude or direct utilitarianism. However, it would see that he does not remove the problems of direct utilitarianism, but he manages to create new ones. An act (for act utilitarians) or rule (for rule utilitarians) is right if and merely if the act or rule maximizes the utility of all in all persons (or sentient beings). 1 Following the direct utilitarianism approach, there is no flexibility for human emotio n or consequences. In addition, there is no true definition of what is right for all persons. An example would be a decision by a surgeon in an emergency room to save the life of an elderly priest or that of a young man that was in a terrible car accident.By the direct utilitarianism approach, the surgeon would have to ascertain what would be best for all persons. Such a decision would realistically be made deliberation and gut instinct. The direct utilitarianism approach does not answer what is best for everyone in this grapheme of circumstance. The problem with Hares approach is one can prove close to any moral dilemma with custom tailored and non-realistic circumstances where gut instinct would be used as the determining factor for the situation. There are no set guidelines for defining what is moral for these extenuating circumstances.Hare in general often speaks about conflicting desires, and he seems to adhere to Platos tone that being good coincides with being informed. Wh at Hare fails to address is that some individuals might desire to do evil. Hare presumes that the individual is going to conform to the standards of society and use deliberation to not commit heinous and horrific acts. With the direct utilitarianism approach, individuals will act for the good of everyone thus more likely to conform to moral restrictions lay upon them by society.Hares approach states that individuals will follow gut instinct to do what is moral but at the same time Hares approach calls for individuals to follow deliberation when making some decisions. For the individual that is a sociopath, Hares response would be that the sociopath would condemn those desires at a critical level. 2 With the assumption of individual conformity to the groups standard, Hare is contracting his gut instinct part of the decision making progress.Hare argues that direct utilitarianism cannot accommodate political rights because the government is an institutional set of rules and regulation s. orchestrate utilitarianism assumes that the government knows what is best for the majority. Hares approach would consider the individual to deliberate as to follow the rules set forth by the government. Using Hares approach it would be ethical for an individual to avert to pay taxes or speed on the highway because there wouldve been a deliberation and analysis based on the critical level of thinking.Hares approach is more direct utilitarianism on the political issues because the individual will most likely make a choice that is inherently good for everyone to forefend negative consequences such as a speeding ticket or imprisonment. Each decision or choice that the individual makes results in some type of consequence. Hares approach to indirect utilitarianism does not address consequences. The direct utilitarianism addresses consequences because the individual is going to follow rules that are set forth for the good of the whole.Direct utilitarianism requires conformity to soc ietal standards to maximize individual happiness. Hares approach requires that the individual deliberate and make a decision. Yet, the other part of his approach requires the individual to follow gut instinct while conforming to good of the whole to make an ethical decision. Instead of refuting the direct utilitarianism approach, Hare is supporting the notion that we all have a set of rules that we inherently follow.To strictly follow Hares approach to indirect utilitarianism, society would be in total crazy house because virtually any circumstance can be manipulated to appear as though the individual was following instinct and thus making a moral decision. There are no overall guidelines for extenuating circumstances with Hares approach to indirect utilitarianism. Hare creates more chaos in trying to refute the direct utilitarianism approach instead of providing solid arguments for the nature of human beings and ethical decisions.

Two Men Destroyed by a Secret Essay Example for Free

Two Men Destroyed by a Secret stressThe characters of Oedipus from Sophocles Oedipus the King, and Torvald from Henrik Ibsens A Dolls House, while coming from two different periods in time, are in some ways very homogeneous. Torvald and Oedipus share many qualities, such as arrogance and a fiery temper. Their lives also mirror each other in many ways. They were both prestigious well-off men with powerful positions, joyous families, and everything to lose. Both men were destroyed by the revelation of a secret, which had been kept from them by their wives. Oedipus and Torvald both seem to be created by the author to have their lives burst by a secret, and this premeditation by the author is the cause for the similarities between both the personalities and biographies of the two characters. Torvald and Oedipus share a great number of traits and flaws giving them similar personalities. Oedipus and Torvald are both arrogant stubborn men who are quick to anger and are often too cur ious for their own good.We are provided with dramatic evidence of Torvalds temper during the last act of the play. Torvalds explosion of anger upon the discovery of Noras secret, shows us the extent of his fiery temper. Torvalds statement, You Miserable thing, what have you done? (Ibsen, pg 104) shows us clear the rage, which can erupt from his gentle exterior. The same blind rage is also present in the character of Oedipus. On several occasions in the play, he becomes deeply incensed and abandons his wits.This is true of his lengthy dialogue with Tiresias, the following melodic phrase with Creon, and the encounter with the Shepard at the end of the play. During this dialogue with Tiresias he remarks, Enough I drug abuse listen to this sort of talk from you. Damn you My execrate upon you (Sophocles, pg 29) He is so angry that he dismisses the warning of Tiresias, failing even to consider their dire predictions. The curse he utters against Tiresias was truly a dire action sinc e the ancient Greeks took curses much more seriously than we would today.In the play we see the fulfillment of the curse that Oedipus by chance brings upon himself, and from this we can gauge the seriousness of Oedipus statement. Another shared characteristic of Oedipus and Torvald is stubbornness. Oedipus stubbornness is evident in both the scene with Tiresias and the scene with the Shepard. Tiresias is unwilling to speak alone (Sophocles, pg 23) Oedipus drives him to it. Oedipus is so stubborn that he ignores the warning of Tiresias, Jocasta and the shepherd not to pursue the issue of his parentage and the identity of Laius murderer.He pushes past all resistance and learns the accuracy to his own detriment. Torvald also is at times very stubborn. Torvald comments several times that Nora is incredibly stubborn, (Ibsen, pg 61) but it is Torvald that prevails in the battle of will that occurred over Krogstads dismissal. In this argument Torvald shows his resolve by resisting the ch arms of Nora, leads to the revelation of Noras secret, which shatters their marriage.

Culture of Silence: Talking About Death and Terminal Illness

Culture of Silence Talking About Death and Terminal affectionIn the past, it may have been acceptable for specifys non to tell a uncomplaining they had female genitalscer. There was a culture of silence around talking almostwhat last and final stage illness (Heyse-Moore 2009). In On Death and Dying (Kubler-Ross 1973) Kubler-Ross said it was often the wife or husband who was told the diagnosis and then had the heart and soul of whether to tell the painful truth. However, the development of the Hospice movement and Palliative C ar in the past 30 years has made it the duty of wellness veneration professionals to pronounce patients of their diagnosis. Now, in that location are General Medical Council guidelines (2006) that make it an ethical duty for the dilute to set forth the patient of the diagnosis (Heyse-Moore 2009).Parkes (Parkes Markus 1998) discusses the importance of breaking bad word effectively and mass mediumly. Parkes sees this as an element in preparing f or red. He is specifically discussing how to care for the terminal patient, so this may be a limitation (Parkes Markus 1998).He describes how the doctor should primp and meet with patient. It is nonable he does not provide exceptions and does not discuss involving family or speaking to a spouse first.Parkes provides practical guidance possibly gained from clinical experience. He advises finding a homely area where everyone can be comfortable. This can be a place where everyone can sit and not be disturbed. The decor should be the opposite of clinical if doable. He discusses giving as much tuition as the patient can cope with, and suggests bite coat chunks of information (Parkes Markus 1998, p. 8). He suggests inviting questions from the patient and using this to guide how to prevent information. The difficulty in talking about death is where the patient becomes distressed and anxious, they may not take in what has been said, and may not fully understand the diagnosis or te rminal nature (Parkes Markus 1998).If the dying person has a thinking act style then the doctor can begin to help him/her point on the feelings involved and expressing them and vice versa for the person with a feelings coping style where the focus might be on the problem solving (Parkes 1996b).In Bereavement Studies of regret in adult life (Parkes 1996a) discusses the tendency for the family to conceal the truth from the dying person. He is clear that the patient should be told of the terminal illness. According to Hinton (1967) (see Parkes 1996a), dying people tend to know and value the chance to talk about their terminal illness. There is some evidence that older people contemplate the end of their life and possibly want to talk to others about it. In a handsome study of 20 older residents in care homes in the UK, only 2 residents did not wish to discuss dying and death and neither objected to be asked (MacKinlay 2006). Further, Parkes sees giving bad news as a process. It i s the rootage of an anxious and stressful period. The doctor should take the time and with empathy help the patient to adjust to the mental transition of terminal illness (Parkes 1996a).In Speaking of Dying (Heyse-Moore 2009) Heyse-Moore discusses how it is possible to move the focus from the patient to the family if they are included in this initial discussion. to a fault it is possible for hidden or concealed barriers between family members to come to light while breaking bad news. She also writes of bad news as the beginning of a process that becomes part of the dying persons life. She advises universe honest with the patient, including saying I dont know. There is an emphasis on balancing giving information and musical accompaniment the patient with his/her feelings and reaction to the news. The point is also made that an older generation of patients can react passively as they are used to doing as the doctor tells them.There has been some research in communicating with the dying that agrees with Parkes. In a study in USA involving 137 individuals in 20 focus groups of patients, family members and health care professionals, on that point were some common themes identified around effective communication. The best communicators were suggested as being honest and using understandable language. Qualities elicited were being willing to talk about dying being sensitive in giving the news listening to the patient encouraging questioning being sensitive to when patient will discuss dying (Wenrich et al. 2001).Information is necessary to cope and adjust in life in general. If the doctor fails to confine correct information or even perhaps mislead the patient, this can cause cloudiness and distress as the patient may feel betrayed. The lie if told may not be consistent across teams and even silence can give information and be distressful to patients. This can undermine the trust implicit in modern health care (Parkes 1996b).Parkes is speaking of the doctor as the professional who will break the bad news. This has probably been the sole duty and responsibility of the doctor in health care traditionally. Nurses and other professionals would face sanctions if they accidently gave information about the diagnosis. However, with the development of the multi disciplinal team and professional roles for other health care workers it is possible for other members of the team including nurses to be involved in the meeting to discuss a terminal diagnosis (Heyse-Moore 2009).Parkes however, conceives of the doctor as the agent of change for the patient. He argues that the medical profession should acquire the skills and knowledge to help the process of necessitateing with loss and with ill fortune. He does not argue for a speciality role merely instead argues that General Practitioners are ideally placed to facilitate this change process as they tend to build up a relationship with the patient over time and know the person well (Parkes Markus 199 8).For Parkes the process that begins with breaking the bad news is not just about an ethical imperative to inform patients of their diagnosis. He believes that grief some(prenominal) for the dying person and the spouse and family involves grief work that is difficult and painful. For Parkes, breaking the bad news although this can be painful, allows the dying person and family to begin to prepare for loss (Parkes Weiss 1983). He argues that anticipatory grief is less severe than grief due to unexpected death (Parkes Weiss 1983).This preparation can allow spouses to come closer together before death and there is possibility of working through some grief prior to death (Parkes 1998) (Schaefer Moos 2001). Kubler-Ross echoes this with her design of unfinished business. She states that the dying person can share how she works through her grief and that this may allow the family to begin the process of grieving before death (Kubler-Ross 1973). Walter when examining the concept of un finished business discusses the need to sort things out before death and if not attended to then this can lead to torment for the bereave spouse and family (Walter 1999).Death means a fundamental change to the persons world. Distress and anxiety can result due to the difficulty in making mother wit of this seismic shock (Parkes 1997). A theoretical concept of Parkes is Psychosocial Transitions which he applies to losses in the broadest sense. He talks of a life changing event and an turbulence in the psychological internal world or assumptive world. Parkes view is that the dying and death of a love one involves changes in meanings and relationships, status and roles and value which is why it can be so traumatic (Parkes 1993).Parkes had done some research in one of his interview studies in Boston where he compared how twain groups of bereaved spouses reacted depending on how much warning they had of impending death. In one group there was less than 2 weeks of notice and in the ot her there was over 2 weeks and even up to over a years knowledge of terminal illness. Parkes found that the long forewarning group fared better and much effectively in dealing with grief and this was consistent over significant period of bereavement (Parkes Weiss 1983). Stroebe and Stroebe (Stroebe Stroebe 1987) agree with this idea that forewarning can help deal with anticipatory grief and help spouses to share and resolve difficulties.Parkes does not advise any exceptions to breaking the bad news. His approach is based on the universality of bereavement and the experience of loss. This may be a limitation for his work, if research suggests that grief and the process of bereavement is not universal to the human condition. Parkes, although he acknowledges concepts of pathological grief and mental illness, sees the process of loss as part of the human condition (Parkes Markus 1998).However, Heyse-Moore (Heyse-Moore 2009) provides a list of those who should not be given the bad ne ws of a terminal diagnosis. Any patient who clearly states he doesnt want to know his diagnosis or treatment options. The only caution here might be that often the dying person could change his or her mind and be ready to talk and discuss at some future point. Implicit in this example is the idea that the patient is autonomous and capable of making an effective decision regarding their healthcare and indeed their life.Secondly, there is demented person whose loss of stock means she has forgotten what you told her half an hour later (Heyse-Moore 2009, p. 78). Thirdly, is the confused patient who cannot understand and fourthly, the psychotic patient who are liable to incorporate the information you give them into their paranoid delusions (Heyse-Moore 2009, p. 78).The reciprocal ohm example is the crux of the dilemma when dealing with Mr Brown in the incident in this essay. Together with the third and fourth examples about confusion and psychosis, the issue here is whether the patien t has the capacity to make an informed decision about their treatment and ultimately, their life. Heyse-Moore argues that there should be a full discussion with the family and the multi disciplinary team with the aim of arriving at a consensus on how to proceed (Heyse-Moore 2009). This should also be done within the relevant health legislation framework, for example, in Scotland the Adults with imbecility (Scotland) Act 2000 (Griffith 2006).One example to illustrate this is sharing information with children. A study of a series of interviews with 20 social workers about their work with a total of 53 children of dying parents, revealed some guidelines in avoiding euphemisms with children and updating children regularly and giving information in bite sized chunks (Fearnley 2010, p. 453). However, one finding was that often the younger children were not given as much information and were not perceived by parents as understanding as much (Fearnley 2010).A second example is with people with acquisition disability where withholding information about a dying relative can still be common. Read discusses several(prenominal) barriers to breaking bad news such as lack of understanding about learning disability some of sensory, behavioural and cognitive impairments of specific learning disabilities and also, a continuing paternalistic attitude towards people with learning disability. This means treating people with learning disability as less than adult (Read 1998).With dementia patients there is evidence that patients with Alzheimers are not told their diagnosis. Family members can be ambivalent towards disclosing diagnosis to their loved ones. However, in a study 69% of people experiencing keeping problems give tongue to they would like to know if further diagnosed with Alzheimers (Elson 2006). A systematic review suggested that disclosure of diagnosis with dementia is under researched. Euphemistic terms such as memory problems and confusion can be used. Clinicians reported difficulties in disclosing diagnosis to both patients and carers (Bamford et al. 2004).On one level it is understandable that patients who perhaps lack capacity are not given full information about their own health or of those in their family or even details about death of loved ones. However, what is left if information is withheld but deception?In a study of 112 staff working (in North East England) with dementia diseased persons in care settings, 106 admitted to some form of be to residents 90% to ease distress 75% to ease care givers distress and 60% to promote treatment compliance. Staff recognised both benefits and problems in using lies to help manage care (James et al. 2006).In a further article, Wood-Mitchell et al (Wood-Mitchell et al. 2006) state that the most common reason given for a lie is when the dementing resident wants to see a deceased relative. Wood- Mitchell et al argue for a realistic stage response to such situations starting with sensitively transp ort the truth then trying meet the need by an alternative means then trying distraction to some other activity and at last using some form of a therapeutic lie. One of the problems care giving staff recognises in lying is inconsistency amongst the staff team and Wood-Mitchell et al argue that care planning should be considered to ensure consistency and also when lie should not be told.A debate on the ethics of lying to dementing patients ensued in the Journal of Dementia Care in 2007, involving 6 separate articles for a variety of responses.Walker (Walker 2007) argues that although lying to patients will happen but cannot be justified. She suggests finding alternate ways of interacting with patients using a Validation approach. She advocates being silence if the truth is judged too painful to give, though she emphasises staying with the person. The aim is to try and marry with the patient and workout the symbolic or hidden meaning.Wood-Mitchell et al (Wood-Mitchell et al. 2007) th en discuss the range of lies from outright lies down to not telling someone or not correcting them and so being deceptive. They argue against Walkers Validation or symbolic meaning approach describing dealing with dementia as problem solving where the sufferer has to sort cues out and find the correct behaviour. They argue that communication should be conceived of directly else in the search for hidden meanings the nurse may ignore a basic need like going to the toilet.Pool (Pool 2007) says the focus should be on emotions and feelings rather than factual information. She advocates using Rogerian principle of Congruence with person centred care for dementia sufferers and therefore cannot agree with Wood-Mitchell et al as this is fundamentally dishonest. While Muller-Hergl (Muller-Hergl 2007) describes care giving as being about integrity and that suffering cannot unloose lying or treating someone unethically. Fowler and Sherratt (Fowler Sherratt 2007) does little but raise some fur ther questions and acknowledge this in their article.Bender (Bender 2007) makes a good case that the background is most important here. She argues that ethical absolutes are not useful for poorly paid and trained care staff. Bender advocates a realistic approach that accepts that in everyday life lies are tolerated and accepted and can even be valued to protect and care for someone. She suggests there is value in understanding a persons life story and biography to aid communication and understanding. She also raises the question of new approaches to loss and bereavement around ideas of continuing bonds instead of accepting loss and moving on. Finally, she states the value of strong caring and therapeutic relationship that can withstand, if necessary the lie.

Pros and Cons of budgeting in modern environment

Pros and Cons of budgeting in modern environmentBudgets be recognized as time-honored tools for homework and setting presidential terms goals, for communicating among merged constituencies, and for providing basis for operating results review as well as mathematical process evaluation. While it is difficult for firms to have perfect budgets that make use of all functions evenly well, differential emphasis on the respective uses of budgets reflects the environment variation and contracting needs. The modern economic environment is associated with a rapidly changing environment, flexible manu facturing, mulct product life cycles and highly customized products and services (Abdullah N.B. 2008). The delineates to survive is flexibleness and rapid response whereby companies are able to move quickly to exploit opportunities as they lift and does not operate according to elaborate business plans (Abdullah N.B. 2008).We were being overtaken by events. Traditional planning and budge ting strategy had to give. Senior vice-president in Fujitsu Computer Products of America, Kevin T. Parker said that, division managers budgeted at the detail level before the company had agreed on strategic objectives. (Banham, R. 2000.) Fujitsu were long on answer and short on valuable culture to run the business. Department managers would forecast product availability and customer expectations independent of one another, then negotiate with top management for few times until they were final. This circuitous routine took two months, an exceptionally long period of time in the fast-paced computer industry. (Banham, R. 2000.)Most organizations recognize budgets as a key element in their management control systems, that the expedientness of budgets has generated intense discussion and debate. Budgets have been proven by some of the researches that budgets are less useful in todays highly contend business environment. Traditional budgeting, budget planning is a top-down process which will not support the types of extreme decentralization and employee authority initiatives that are required for firms to be competitive today (Libby T., and Lindsay M., 2007).Budgets are no longer useful in the current environmentBudgets constraint responsiveness and flexibility and are often a roadblock to change. Traditional budgeting is focused on the achievement of the specific plan or budget and this resulted in organizations eyesight to unendingly focus on how to achieve and beat the budget. But indeed, the objectives of a company should not be to beat the budget but to beat the competition. (Leone, A.J and Rock, S. 2000) Whereas, in traditionalistic budgeting there is rarely an opportunity to amend, change or update the budget once it has been approved, should there be any changes in the environment or assumptions diligent (Abdullah N.B. 2008). Thus, managers only can decision within the budget, but the particular decision that he make, might not be the perfect sol ution managers are tended to forego best solution due to not exceed the budget, and thus inhibits management response to change. This focus can act as a constraint, decreasing the firms flexibility and ability to adapt and deal with unexampled opportunities, threats or changes in customers requirements (Abdullah N.B. 2008).Traditional budgets prevent empowerment and the opportunity for employees to contribute to the achievement of strategic objectives. It is blocking employee initiatives and demotivated employees, where employee initiative and pauperization are needed in todays highly challenging environment, which can make a marked improvement in proceeding and productivity, thus it is a barrier to continuous improvement and success, because, less focus is given on how to maximize the organizations potential. According to the Shastri K. and Stout D.E., many segment-level employees1 than corporate-level employees felt that budgets had negative behavioral consequences in name of employee initiatives, motivating short-term decision making, and pressure to achieve targets.Budgets encourage caper and dysfunctional behavior. (Abdullah N.B. 2008). Libby T., and Lindsay M., (2007) explicitly addressed the issue of budget fun. Majority of the respondents surveyed indicated that three gaming phenomena occur at least occasionally spending money at year-end to avoid losing it the old-age use it or lose it syndrome, deferring necessary expenditures and negotiating easy targets theSegment-level was specify variously as a subsidiary, division, department, or product level.sandbagging syndrome (Libby T., and Lindsay M., 2007).This is especially the case when meeting the budget is directly linked with rewards and incentive payments to individuals and/or team. Indeed, many organizations check budgetary performance subjectively into the overall performance evaluation of managers (Libby T., and Lindsay M., 2007). Moreover, managerial compensation plans, including ince ntive compensation formulas, incorporate achievement of specified budget objectives for monetary performance measures. (Shastri K. and Stout D.E. 2008) The dual roles of budgeting gives rise to agency problems in the budget-setting process and affect the accuracy of budgets. Majority of participants seek to maximize their personal gain during the process of setting budgets. Once, goal congruence is not achievable, there are conflicts of interest between company and employees, and this is where the agency problems are occurred. Tying budget targets to compensation contracts encourages managers to back up the budgeting system to increase the probability they will sire positive performance evaluations and, therefore, any related bonus (Libby T., and Lindsay M., 2007). Budget gaming is when managers are use to receive positive performance. For examples, when companies are using budget integrated with incentive program, managers will try they best to show a good performance but gaming the budgets. Managers might defer necessary expenditures (such as, maintenance of machine, advertising cost, research and development) to meet current period budget targets, which will affect effectiveness and efficiency of company. as well that, managers will take big bath when budget targets could not be attained, which mean the effort of producing the budget is not appreciated. Using budget as the tools of evaluating performance will lead to negative behavioral consequences.Budgets can still be useful in the current environmentBudget should use as the canonic for performance evaluation but not the only means to evaluate performance. As mentioned above, solely focus on budget as the only bearing to evaluate performance and compensate managers will result in agency problems. Agency problems will lead to company underperformance. Budget can be useful once, the incentive program is not mostly depending on it. In order to measure performance, budget is not the only option companie s should design an effective performance measurement system by integrated financial2 and non-financial3 indicators as tools of measuring efficiency or performance. Moreover, companies should design an effective system which can link to strategy and goals of the organization to encourage goal congruence, recognize controllability and emphasize on employees empowerment. By designing a system besides budget to measure performance can realize agency problem. Measure performance of managers based on controllability and responsibility, which mean top management should back out non-controllable variances before comparing actual to budget. For instance, companies such as Allstate, Fujitsu, Nationwide Financial Services, Owens Corning, Sprint and Texaco, are compensating the managers for achieving measurable results (Banham, R. 2000). For example, when evaluate performance of production managers should back out the machine breakdown hours, because it was not under his controllability but is engineers responsibility. Besides that, provide incentive to managers who manage to generate an accurate budget, managers will tend to provide secret information to the budget, thus, it make the budget more accurate. In addition, Hope and Fraser propose a new management object lesson to take the place of budgeting for control purposes. This new model is based on employee empowerment and alternative methods of performance management, which to suit the requirement of todays highly challenging environment (Libby T., and Lindsay M., 2007).Financial indicator such as, return on investment (ROI), residual income (RI) and economic respect added (EVA).Non-financial indicator such as, benchmarking, balance-score card, customer satisfaction measures, defect measures, product quality measures, accident measures, machine downtime measures, delivery time measures and etc.Moreover, there is a new model which known as beyond Budgeting was developed by two consultants, Jeremy Hope and Robin Fra ser, in order to find and develop alternative tools to the planning and budgeting process (Abdullah N.B. 2008).This new model is based on employee empowerment and alternative methods of performance management (Libby T., and Lindsay M., 2007).Most of the organizations which are high profile companies, have addicted the major annual budget preparation, the beyond Budgeting Round Table (BBRT4) members realized that attempts to make incremental changes to improve the budgeting system by introducing zero-based, activity-based or faster budgeting are not solving the problems caused by the fast-changing business world (Abdullah N.B. 2008), but to change the underlying culture of contract, compliance and control embedded in the traditional budgeting. Beyond Budgeting model, BBRT have developed a generic model that is based on 12 principles to create a flexible a responsive management model with an underlying culture of responsibility, enterprise and learning. Companies that operate in a bu siness environment that is market led, highly competitive and unpredictable, and in which intellectual capital is the key strategic resource and which have already successfully implemented various management tools like the Balanced Scorecard, Activity-Based Management and Rolling Forecast, should be the ideal view for the Beyond Budgeting model.The BBRT is the combination of a new concept (beyond budgeting) and a community (round table). The BBRT community is an independent research collaborative that shares its knowledge crosswise its global interlock through conferences and workshops.Source Abdullah N.B. 2008. Chapter 3 Scenario of Corporate Planning and Budgeting in a rapidly changing environment.These 6 principles (Table 1.a) concern creating a flexible organizational organise in which authority is devolved to employees. The following 6 principles (Table 1.b) deal with designing an adaptive management process for a flexible organizational structure.Table 1.b The 12 Beyond Bud geting Principles and PracticesSource Abdullah N.B. 2008. Chapter 3 Scenario of Corporate Planning and Budgeting in a rapidly changing environment.ConclusionBudgeting, despite being proven to effectively act as one of the building blocks of management control system, was commonly viewed as a restriction of companies flexibility and competitive ability. Yet, despite various criticisms, budgets are in fact alive and well, rather than becoming obsolete, most organizations use a traditional budget because they are easy to put together and simplify coordination of budget assumptions across different departments. This is the simplest method of budgeting. But, indeed, with a traditional budgeting, company might be underperformance. In order to be more competitive in today challenging world, adopting advanced budgeting approaches is needed as it is focus on empowerment employees as well as responsibility.

Foreign Exchange Risk Management In Multinational Corporations Finance Essay

Foreign Exchange Risk Management In Multinational Corporations Finance EssayCorporations (MNCs)IntroductionGlobalisation has had scotch, cultural, technological and political effects. Over the last few decades the increase in globalisation has led to rapid growth in several industries around the world and it has besides had a strong influence on the flexibility of firms. Hundreds of new MNCs have emerged globally due to the liberalisation of trade and capital merchandises. MNCs are not modified to the big firms with huge investments like Coca Cola, Nike and Shell, due to advances in technology and liberal markets many small firms operate internationally to maximise their profits. This growth has highlighted the mixed gambles faced by MNCs operating(a) in different countries. One such risk is the monetary risk involved with the unconnected specie metamorphose markets. about of the time MNCs deal in more than than one national money and hence the changes in the impertine nt substitution rates posterior have an adverse effect on the firms profits. This paper discusses the various overseas tack risks faced by multinationals around the globe and the necessary steps taken to manage these risks. A study on the Malayan MNCs has also been covered in the paper.Foreign Exchange RisksForeign Exchange risks also known as moving-picture shows can be termed as an concord, projected or contingent capital flow whose dental plate is not authentic at the moment. The magnitude depends on the value of the changes in the irrelevant substitute rates which in turn depends on various variables such as the interest rate parity, purchasing power parity, speculations and government policies on change rates. tally to G.Shoup (1998), a order has exposure if there is a currency mismatch in any(prenominal) aspect of the business such that a transform in foreign deputize rates, nominal or real, affect its performance either positively or negatively. These exposu res may be classified into three different categories variant exposureTransaction exposureEconomic exposureTranslation Exposure this is the net asset/liability exposure in the home currency of the MNC. In early(a) words, it is the profit gained or expiration incurred in translating foreign currency financial statements of foreign subsidiaries of the MNC into a single currency which it uses in its last reports (Yazid Muda, 2006). In essence, translation risk can be defined as the effect of exchange rates on the figures shown on the parent companys consolidated rest period sheet. Although this exposure does not affect the shareholders equity, it does influence the investors due to the changing values of the assets or liabilities. (Shoup, 1998)Transaction Exposure it is a risk associated with a exercise that has already been contracted. It is as a endpoint of unexpected changes in foreign exchange rates affecting approaching cash flows which the MNC has already committed itse lf to. Usually MNCs calculate an international contractual obligation, the payment or receipt of which is expected on a future date, hence any change in the foreign exchange rate during that period will expose the MNC to transaction risks. Transaction risks can be easily identified and thus get more attention from the financial managers. (Eiteman, Stonehill, Moffett, 2007)Economic Exposure this is the most complex risk as it not only involves the known cash flows but also future unknown cash flows, hence also termed as a hidden risk. It is a comprehensive measure of a companys foreign exchange exposure and therefore sometimes termed as a combination of translation and transaction exposure. Identifying economic risks involves measuring the change in the present value of the company resulting from any changes in the future operating cash flows of the firm ca utilize either by adverse or desirable change in the exchange rate. (Eiteman, Stonehill, Moffett, 2007). As Dhanani (2000) no ted, economic risk can be viewed as the consequence of long-term exchange rate fluctuations on a firms predicted cash flows and as the cash flows linked to the risk are not certain to materialize, the risk is hard to identify. Economic exposure to a MNC may last for a long duration making it difficult to be quantified and hence confining the use of possible precaution techniques. (Shoup, 1998)Foreign Exchange Risk ManagementForeign exchange risk focusing is a process which involves identifying areas in the trading trading operations of the MNC which may be subject to foreign exchange exposure, studying and analysing the exposure and finally selecting the most appropriate technique to eliminate the affects of these exposures to the final performance of the company. (Shoup, 1998)Risks involving misfortunate term transactions can be dealt with using financial instruments but long term risks often require changes in the operations of the company. As in the case of translation expo sure the MNC can have an equal amount of exposed foreign currency assets and liabilities. By doing so the company will be able to offset any gain or loss it may have due to changes in the exchange rates of that currency, also known as balance sheet hedgerow. (Eiteman, Stonehill, Moffett, 2007)In dealing with economic exposures efficiently, a MNC may have to diversify either its finance or its operations. It can diversify its operations by either moving to locations where the cost of production is low, or having a flexible supplier policy, or changing the target market for its products and the types of products it deals in. As it can be illustrated from the 1994 framework of Toyota, when a strong Yen made Japanese exports to US more expensive, it decided to shift its production from Japan to US, where it achieved comparatively freeze off costs of production, enabling it to compete in the US car market. (Eun Resnick, 2007)The management of transaction exposures may either involve hedging using special techniques or applying pro-active policies. The pro-active policies commonly used include (Eiteman, Stonehill, Moffett, 2007)Matching currency cash flowRisk sharing agreementsBack to back loansCurrency swapsLead and Lag payments white plague of re-invoicing centresHedging is the act of protecting a pre-existing position in the spot market by trading in derivative securities that is guarding of existing assets from future losings. According to Eiteman et al (2007), hedging is the taking of a position, acquiring a cash flow, an asset or a contract that will rise or blood in value and hence offset a fall or rise in value of an existing position. Several studies on this be intimate have emphasized that MNCs have a higher probability of facing exchange rate volatility in their operations as they expand their elaborateness throughout the world. Therefore, the extensive use of various hedging techniques by most companies has been widely recognized to ensure the c ompanys overall interests, cash flows and equity are safeguarded. whatsoever of the most commonly used hedging techniques include in advance market hedgeMoney market hedgeOptions market hedgeForward market hedge this is the case where the MNC in the forward contract has a legal obligation to buy or allot a attached amount of foreign currency at a specific future date which is known as the contract maturity date at a price agreed upon at present. (Nitzche Cuthbertson, 2001)Money market hedge under this hedging technique, the transaction exposure can be hedged by lending and borrowing in the local and foreign markets. For instance a MNC may borrow in a foreign currency to hedge the amount it expects to receive in that currency at a later date and similarly it could lend to hedge payables in a foreign currency. By doing so, the MNC will be matching its assets and liabilities in the same currency. (Eun Resnick, 2007)Options market hedge this is a technique used by a MNC which gives it the right but not the obligation to buy or sell a specific amount of foreign currency at a specific price, by or on a specific date. Although not a widely used tool, it can be useful when a MNC is uncertain about the future receipt or payments of foreign currency. (Nitzche Cuthbertson, 2001)Hedging helps in cut back the risks involved in international transactions and also improves planning capability. By hedging a MNC can ensure its cash flow does not fall below a necessary minimum, particularly in cases where there is a tendency of a company to run out of cash for necessary investments (Eiteman, Stonehill, Moffett, 2007). A very good example would be that of Merck, a pharmaceutical company. Kearney and Lewent (1993) identified that Merck was one of the pioneers to have used hedging to ensure that its key investment plans could invariably be financed, which in their case was the research and development aspect of their business. Mathur (1982) came to the conclusion that, to decrease the negative out deals caused by fluctuations of foreign exchange rate on meshwork and cash flows, most companies employ a hedging program. He also noted that a formal foreign exchange management policy is more common among larger firms. According to Bartov et al (1996), if MNCs do not institute a hedging program, they are more likely to be exposed to risks which may result in substantial losses.Despite its advantages, hedging does not increase the companys expected cash flows, on the other hand it uses up the company resources in the process (Eiteman, Stonehill, Moffett, 2007). According to G.Shoup (1998), unless there are clear defined objectives, safeguards in place and clear communication at every level of management, a hedging program may turn into a disaster. As the chairman of Zenith Electronic Corporations, Jerry K Pearlman once said, It is a, damned if you do and damned if you dont situation. (Shoup, 1998, p15.)In 1984, Lufthansa a German airline company placed a major purchase order for airlines from an American firm. The financial managers at Lufthansa had forecasted a stronger dollar in the days to come and therefore locked up the German Duetsche mark against the American dollar. Due to an unfavourable effect, a weak dollar, in one category Lufthansa lost around US$150 million and half of the financial managers team lost their jobs (Shoup, 1998). In another instance, two years later in 1986, the chairman of Porche found himself fired as he had engineered the company into a dependence on the US market for 61% of its revenue without hedging against a downturn in US$, as a result forcing Porche to suffer major financial losses. (Shoup, 1998)According to a study by Marshall (2000), the trend in the objectives of managing foreign exchange risks was quite similar between the UK and US multinationals who gave significant importance to certainty of cash flow as well as minimising fluctuations in earnings. On the other hand, a higher number of Asian multinationals managed these risks to minimise fluctuations in their earnings. The trend observed is summarised in Figure 1 below.Figure 1 Foreign exchange risk management in UK, USA and Asia Pacific multinational companies by Andrew P Marshall, Journal of Multinational Financial Management, 2000.Belk and Glaum (1990) undertook a study which involved look into several UK MNCs. The study revealed that although majority of the companies considered translation exposure to be important, not all were prepared to hedge this risk actively. On the other hand transaction exposure was given most importance in the management of foreign exchange risks. The level of hedging the transaction exposure varied between the companies investigated, some hedged totally while others did so partially. The study also seemed to show that the size if the MNC influenced its involvement in foreign exchange risk management, the larger the company the higher the propensity.In another study carried out by Makar and Huffmann (1997), it was found that there is a linear relationship between the amount of foreign exchange derivatives employed and the degree of foreign currency exposure in US MNCs.Foreign Exchange Risk Management in Malayan Multinational Corporations (MNCs)During the financial crisis of 1997, most Malaysian MNCs suffered foreign exchange losses due to currency fluctuations, thus track to the increased involvement of Malaysian MNCs in foreign exchange risk management (Yazid Muda, 2006). It can be seen that to begin with the financial crisis fewer MNCs considered hedging their foreign exchange risks to be vital, as the General Manager of the Malaysian Monetary Exchange Bhd indicated that local MNCs were very passive and reactive in managing their financial risks (New Strait Times, 30 May 1998 11). A similar statement was given by the then Minister for International Trade and Industry, Rafidah Aziz, which implied that MNCs should manage their foreign exchange risks well (New Strait Times, 3 July 1998). A very good example of the losses suffered would be that by Malaysian Airline System (MAS), MAS lost around M$400 million in the first half of 1998 because of its foreign debt of about M$3.16 billion. Yazid and Muda (2006) studied 90 out of the then 113 MNCs listed under the Bursa Malaysia. The main objectives cited by MNCs in this study relating to the foreign exchange risk management were to minimise the followinglosings on operational cash flowCash flow fluctuationsLosses on consolidated balance sheetLosses on shareholders equityBusiness questionForeign exchange risk to a comfortable levelAccording to Yazid and Muda (2006), Malaysian MNCs became very proactive in managing their foreign exchange risks during the financial crisis and once the crisis was over, the priority attributed to foreign exchange risk management decreased slightly but not to the point it was before the crisis. This has been illustrated as a summarised result of the survey sho wn in table 1.ObjectivesBeforeDuringCurrent inform Losses on operational cash flow3.594.624.09Minimise Cash flow fluctuations3.294.413.88Minimise Losses on consolidated balance sheet3.263.913.82Minimise Losses on shareholders equity3.243.563.50Minimise Business uncertainty3.213.503.41Minimise Foreign exchange risk to a comfortable level2.913.533.29Table 1 (Yazid and Muda, 2006)Note The results are based on five-point progressive Likert scale (1 is the least important 5 is the most important)Large MNCs in Malaysia are more likely to get involved in foreign exchange risk management compared to smaller firms or firms with relatively lesser operations outside Malaysia. This trend seems to be consistent with other MNCs around the globe (Yazid et al, 2008). Majority of the Malaysian MNCs centralise their foreign exchange risk management and it can be said that foreign exchange risk management in Malaysia is still at its infant stage in comparison to other MNCs in the west. Their managemen t practices are very informal and no proper documented policies can be found in regard to foreign exchange risks. Although the use of hedging tools is on a steady rise amongst the Malaysian MNCs, the objectives behind their involvement hold on uncertain (Yazid and Muda, 2006).The past decade has seen rapid growth of a new segment in the global finance industry, the Islamic finance sector. To qualify for Islamic foreign exchange hedging, transactions must involve tangible assets. Malaysia, which is pre-dominantly an islamic country has highlighted the need of hedging tools which are compliant with Islam. Hence CIMB, a leading Malaysian bank among others, have introduced an Islamic foreign exchange hedging instrument, which would assist their clients to manage their risks. (Reuters, 2008)Astro, which is a leading services provider in the Asian entertainment indutry is based in Malaysia. Being a MNC, foreign transactions are dealt in different foreign currencies other than the Malays ian Ringgit. Consequently, there is an exposure to foreign currency exchange risk. Astro uses foreign currency derivatives such as forward contracts and interest rate swap contracts to hedge currency exchange risks. Forward contracts are commonly used to limit exposure to currency fluctuations on foreign currency receivables and payables as well as on cash flows generated from judge transactions denominated in foreign currencies. In 2007 Astro made a loss of RM 137,000 due to foreign exchange fluctuations and henceforth decided to emphasize the use of hedging techniques. This can be proven by Astros estimated principal amounts of outstanding forward contracts which as at thirty-first January 2009 was RM188,083,636, whereas at the same time a year before it was at RM 5,109,000. The emphasis on risk management resulted in a substantial gain of RM 7,680,000 for Astro in the year ended 2008. In addition, as Ringgit Malaysia is Astros functional currency all the financial statements hav e to be consolidated into this currency. Hence Astro is exposed to translation risk due to the fluctuating exchange rates. According to Table 2.0, the significance of the foreign currency risk management is noticeable as Astro experienced a huge gain in 2008 relative to the loss they suffered in 2007.Table 2.0 ASTRO Result of Foreign Exchange Risk ManagementCash Flow due to Operating Activities2008RM0002007RM 000Net Effect of Currency Translation on Cash and Cash Equivalents4854(1529)Gain on Realisation of Foreign Forward Contracts7680(137)However, hedging of foreign exchange does not always yield a positive result, as illustrated in the case of AirAsia, one of the leading budget airlines in Asia. AirAsia like many international airlines used a technique refered to as give the axe hedging, this allows the airline to purchase kindle at a price fixed at an earlier date despite an increase in the fuel price. During the fuel crisis of 2007-2008 when prices rose to over US$150/barrel, AirAsia made a significant loss as it had hedged for fuel prices not to exceed US$90/barrel and as a result AirAsia recorded its first ever full year loss of RM471.7 million for the year ended 31st December 2008, despite achieving a growth of 36.6% in revenue. This led to the removal of all hedges on fuel prices and AirAisa declared itself as completely unghedged. Although AirAsia intends to re-introduce fuel hedging in 2011, for now it deals in spot prices for its fuel. (Leong, 2009) (Ooi, 2008)ConclusionMultinationals are exposed to various kinds of risks, which includes the foreign exchange risk. This risk which is as a result of exchange rate volatility is said to have a pervasive impact on the profitability and certainty of a MNC. Globally, multinationals face translation, transaction and economic risks due to the frenzied system of floating exchange rates. To avoid the adverse effects of these risks, multinationals often take measures which although do not entirely eliminate t he losses they do enable the firms to minimize the losses. Hedging is very common risk management tool used by multinationals and has often resulted in positive results when used after a correct analysis of the exposure is made. Despite its advantages, not all multinationals around the globe decide to manage their risks in this way. The objectives behind foreign exchange risk management and the techniques used to manage are seen to differ across regions.In the case of Malaysian multinationals, foreign exchange risk management is deemed to be at a lower level relative to their counterparts globally. Until recently, majority of the Malaysian multinationals were not actively managing these risks. The Asian financial crisis in the late mid-nineties had a significant effect on their stance and the level of foreign exchange risk management amongst Malaysian multinationals has since increased considerably.

Sustainable Energy Sources Essay -- Environmental Energy Solar Power E

Sustainable Energy SourcesEnergy is life. Life on this planet depends upon a fixed amount of push button. The modern industrialized energy sources such as coal and petroleum were originally utilized for their seeming promiscuity and high energies yielded per unit volume. The world has now become painfully aware of how finite petroleum reserves are, not to mention the political complications associated with being dependent upon foreign countries for an energy supply. To add insult to injury, the limitedness of petroleum resources is not the most pressing problem, their polluting byproducts are. The abundant amounts of byproduct waste that finds its way into our environment is having effects which even the most celebrated of experts cannot determine in magnitude. Speaking from an economic standpoint, petroleum will soon become more expensive to find and utilize than reasonable alternatives, raising its costs far above its advances. Some could already make the point that the social and environmental costs never were weighed appropriately into the cost/benefit analysis of petroleum and that the benefits associated with petroleum combustion have rarely or never outweighed its costs. This point will gain a painful lucidness in the years to come if the predictions of some meteorologists come true and the effects of global warming are felt. For years developing societies have been taking enormous amounts of potential energy locked within pressurized biomass that took millions of years to store in the Earths crust and releasing it into todays world. The Earth is a comparatively closed system and the enormous release of spent energy and its polluting byproducts will have untold effects upon societies for generations to come. The most brazen ... ...echreview/www/articles/july95/Smith.html) Absorbers, Their Coating and Performance, The introduction Directory of RENEWABLE ENERGY Suppliers and Services, 1996 Solar Glass and Its Transmissivity The World Directory of R ENEWABLE ENERGY Suppliers and Services, 1996 Overview of Solar Water Heating in the Caribbean, Griffin R. Carrison , REIA 94 Conference (http//www.solarenergy.net/tsen/database/griff.html) Institute of quad and Astronautical Science Solar Power Satellite Working Group, 1997 (http//www.reston.com/nasa/solar.sats.html) Chemistry 4th Edition, Steven S. Zumdahl, 1997, Houghton Mifflin Company, New York http//www.eren.doe.gov (U.S. Department of Energy) http//www.solarenergy.net/ (Solar Energy Network) http//www.hawaii.gov/dbedt/ert/ert_hmpg.html (State of Hawaii, Department of Business, Economic Development, and Tourism)

Southwest case analysis Essay -- essays research papers

Southwest has made an organization out of providing low-fare, short hang back routes between city pairs. It has c erstntrated specifically on offering low-fares on all of its flights by maintaining its no frills attitude and high frequency of flights. This has afforded Southwest Airlines with the final cost structure in the industry. Southwest has created a niche for itself by flying a network of flights between smaller U.S. cities that average just wiz hour apart. This has differentiated them from their competition and avoided many clashes with industry giants who concentrate more on coast-to-coast flights. Kelleher, who is the president, chairman and CEO of Southwest Airlines is the companies single biggest asset and driving force. Kelleher runs the political party very tightly and makes all the major decisions through a very centralized decision making process. This brings to light two potential problems. Firstly, how can a friendship such as Southwest airlines maintain such a centralized organization in the face of growth. Secondly, how is this company going to survive once Kelleher is no longer running it.The problem that Southwest Airline is facing, is how are they going to survive in an aggressive industry without Kellehers leadership. It is a of import problem as the company is a symbol of Kelleher. However, unlike the company, Kelleher has a limited life-span and because the company provide likely outlive him. This problem therefore requires some urgency as the succession of Kelleher could be the airlines biggest problem. The consequences of Kelleher leaving could be that the company loses its corporate identity. Employees whitethorn not respond well to new management. Customers may perceive that the company go out not be run in the same manner and will therefore lose its niche market. This could also fool to stakeholders, who will see the departure of Kelleher as a serious decrease in the value of the company. Competitors may also try to ta ke advantage of the company during this unstable period.Kelleher is the face of Southwest airlines, even going as far as starring in most of their TV commercials. He also in person maintains an excellent relationship with a virtually all-union workforce. He has single handedly given Southwest the lowest employees turnover rate in the industry. Kellehers personal motiva... ...with the reality of the firm.The implementation of this decision will require a marketing campaign that will be used to phase out Kelleher. The major resistance will be from the employees who will be fearful of new management. This will be addressed by the management team reinforcing the corporate strategies to the employees and reiterating the fact that Southwest airlines will remain the same company and the employees should expect things to stay the same. The ramifications of this plan is that power within Southwest could become to decentralized, therefore changing the core competencies of the firm. In run for this plan to work it would require Assembling a team to head the marketing campaign, restructuring of upper management, and decentralize decision making. The objective is to redefine and restructure the upper management in such a way that the loss of Kelleher is manageable. This plans effectiveness will be measured by employee and customer satisfaction throughout the transition. The tramp will be concluded when the new structure has been phased in and the reaction to Kellehers departure is under control.