CSR- the impact of organizational goals and design Essay

CSR- the impact of organizational goals and design - Essay Example A newer concept but still very similar to social responsibility is social responsiveness, which in simple terms means â€Å"the ability of cooperation to relate its operations and policies to the social environment in ways that are mutually beneficial to the company and to the society (Fredrick, Davis and Post, 1988). Both definitions focus on corporations but these concepts should be expanded: The main differences between social responsibility and social responsiveness is that the latter implies actions and the ‘how’ of enterprise responses. It is not enough to be philanthropic and not think in terms of consumers and other relevant stakeholders. It is not enough to be law abiding and leave matter at that for a business rival round the corner can raise the stakes by introducing commodities and services, as well as conditions of production that are much higher than those required by law. Consumers today are alive to these changes and react to them in a fashion that tells on the bottom line of a firm. Therefore, the fact of corporate social responsibility has to be carefully devised keeping in mind the specifics of the organization and the kinds of demands that can be made upon it as a corporate citizen by all its relevant stakeholders. At the same time, no company can afford to let its profits fall. In fact if that were to happen then it would be letting down i ts stockholders and employees, who are two of its very important stakeholders. The question then is how to devise a system of CSR that is related to business so that both can be sustained in synergy. Defining corporate social responsibility (CSR): In an influential essay entitled ‘social responsibility of business’ Nobel Laureate Milton Friedman argued that the espousal of ‘social responsibilities’ by the corporate sector was not just bad for business, but was tantamount

Emotional Quotient And Spiritual Intelligence In The Workplace Essay Example for Free

Emotional Quotient And Spiritual Intelligence In The Workplace Essay As the world progresses and advances towards globalization, the global economy is demanding for the existence of well-managed companies and organizations. Responding to this demand, organizations are trying to find more effective formula that will enhance or improve their outputs. Two of the latest discoveries that attract companies and organizations are the concepts of emotional and spiritual development of their human resources. More and more companies are integrating the said formula in their programs and action plans as they recognize the need of these concepts that were long been neglected. In this paper, we will analyze the arguments of two chosen articles which focus on Emotional Intelligence (Must Have EQ by Anthony Landale) and Spiritual Intelligence (The Practical Application of Spiritual Intelligence in the Workplace by Mike George). Anthony Landale, in his article entitled â€Å"Must Have EQ†, argued that Emotional Intelligence or EQ (Emotional Quotient) the key for an organization to meet the challenge of getting people work together more effectively (Landale, Andrew Feb/March 2007, page 24). In line with this, the author presented his stand in four clear points. First, he argued that EQ is vital in keeping the organization or team members intact. Second, he argued that each team member must be able to learn how to manage our emotions by constantly checking our own individual behaviors. Landale made it clear that behaviors are innate in humans and that every person has his own set of good and bad behaviors. Relative to this, a person who has high emotional intelligence is able to manage even the undesirable behaviors by expressing them in the right place, time and manner. Third, Landale argued that EQ development requires empathy, which is putting oneself in the place of others. This means that one is required to constantly deal with others at work, learn to adjust as needed and be able to adapt with the situation. Lastly, the author stressed that communication is vital in the development of emotional intelligence and of keeping the organization healthy. To be able to do this, every member must maintain an open and honest communication. It was also stressed that a two-way communication line is required which means that feedback to and from management must be kept working. Emotional intelligence is therefore measured according to the person’s skill of managing his or her emotions and behaviors because EQ is actually â€Å"Self-Management. † In partnership with EQ, a company must also train its human resources to develop Spiritual Intelligence (SQ). The author centered his arguments on the practical applications of SQ especially in the workplace because SQ development focuses on the three deepest motivations of humans: creativity, meaning and purpose (George, Mike 2006, page 3). The author argued that since Spiritual Intelligence directly work with these three human motivations, SQ development will definitely make a company a vibrant workplace. If a person’s SQ is well-developed, he will be able to have a clear sense of his identity and a definite purpose. Spiritual intelligence enables a person to live with integrity by setting a good example. Because SQ gives the individual the power the flexibility to adapt to the environment, a person with high SQ is able to be cool and focused even in a stressful situation. By developing one’s self-awareness, a person with high SQ also will have the power to find the cause of his emotions, its meanings and be able to manage them. This in turn will develop one’s empathy. Spiritual intelligence focuses on the development on a person’s ability to fight the ego in order for him to adapt to changes. Finally, development of spiritual intelligence enables a person to recognize the non-material reality of his being that is humans have non-material needs which when recognized alleviates life’s insecurity. If cognitive intelligence is about thinking and emotional intelligence is about feeling, then spiritual intelligence is about being† (McMullen, Brian 2003). In line with the arguments of Landale and George, this statement is parallel with their point of view that EQ has something to do with self-management while SQ deals with self-awareness of the non-material reality of the being. In the modern world, people are inclined to boosting their cognitive intelligence (IQ) as this may seem the measuring device for one’s success in life. But the real working world does not acknowledge the importance of IQ alone, rather the development of all four basic intelligences that define the successful individual. â€Å"IQ appears to be related to minimum standards to enter a given a profession† (Wiggleswoth, Cindy ). In line with Landale’s claim that EQ is of managing emotions, a study of store managers in retail chain proved that efficient management of emotions especially with stress is important for success (Cherniss, Cary 2000). However Cherniss stressed that this is just one aspect of the complex scope of emotional intelligence. He said that â€Å"emotional intelligence has as much to do with knowing when and how to express emotion as it do with controlling it. † This statement corroborates Landale’s idea that EQ is of acknowledging and identifying the emotions and learning how to express them in a proper behavior (Landale, Andrew 2007, page 24). The importance of this aspect of EQ was proven worthwhile in modern organizations as with the experiment done in the US navy wherein researchers found that â€Å"the most effective leaders in the US Navy were warmer, more outgoing, emotionally expressive, dramatic, and sociable† (Barsade, S. t. al 1998). Another aspect of emotional intelligence is empathy which is proven by researchers that it contributes to occupational success (Cherniss, Cary 2000). This is the aspect that overlaps with the concept of spiritual development which also acknowledges the importance of empathy in recognizing the cause of the emotions and be able to utilize them in adapting to changes. â€Å"EQ is the development of the capacity for self-control and the ability to respond with sensitivity and empathy† (Oxford Leadership Academy). This is also important if a manager or someone in the organization would like to positively influence the work behaviors of other members. A practical application of this as cited in one article is that one’s effectiveness can influence others depending on one’s ability to connect with them particularly of understanding the feelings of others (Goleman, Daniel 1999). To effectively influence others we also need to be able to manage our own emotions. Connected to EQ development is the spiritual intelligence which centers on developing the skills of the person in managing the inner self or the non-material reality of one’s being as claimed by George. One author defined spiritual intelligence as â€Å"the ability to behave with Compassion and Wisdom while maintaining inner and outer peace (equanimity) regardless of the circumstances† (Wigglesworth, Cindy). Since compassion encompasses the ability to understand the feelings of others, as what empathy suggests, the concepts of EQ and SQ therefore work together towards the complete success of a person and the organization where he belongs. The practical point of this is that when someone is emotionally and spiritually intelligent, he will be able to make the most out of his skills, emotions, behaviors and traits in managing himself and in turn will give him the power to positively connect with others. That optimism is brought about by the fact that the person, with empathy and compassion, understands the emotions of others which give him the ability to stay calm and focused no matter what the situation brings. Relative to George’s argument that spiritual intelligence in necessary for a person to live a life with integrity and in line with the clear purpose, one author has the same perspective. According to 1Wigglesworth, spiritual intelligence development encompasses self and universal awareness including the ego and social mastery. In the management world, spiritually intelligent manager is a â€Å"wise and effective change agent† who makes compassionate and wise decisions. Wigglesworth further said that SQ enables managers to have the calming and healing presence in the midst of stressful workplace. In contrast with George who did not acknowledge the importance of communication in the development of SQ, Landale stressed that EQ development requires a manager to â€Å"prioritize the giving and receiving of feedbacks† (Landale, Anthony 2007). Connecting with other members of the organization builds and cultivates relationships and that can only be possible when open communication is active in the organization. Putting the essentials of emotional and spiritual intelligence, we clearly draw out the idea that the development of these basic intelligences focus on relationships which is especially important in building an effective, efficient working environment. The human resources of the organization are its most valuable assets so it is vital that that training and development should include the wholeness of their being. Companies of the modern economy is already recognizing the fact the business is not all about making money, rather it encompasses the building of organization members with multiple intelligence. An organization with personnel, especially leaders, who have well developed cognitive, emotional and spiritual intelligence, is a happy and enthusiastic working environment. Developing the emotional and spiritual intelligence is the answer to the intangible needs of the organization: healthy working relationships.

Exporting US Engineering Labor Overseas, an Ethical Perspective Essay e

Exporting US Engineering Labor Overseas, an Ethical Perspective Introduction The recent trend of outsourcing white collar jobs overseas to countries such as India has angered many American Technology professionals. This is occurring specifically in areas such as computer software, chip design and technical support. This trend has contributed to the increasing difficulty many Americans, who are looking for technical jobs, are experiencing. The purpose of this paper is to determine whether this anti-outsourcing attitude has any moral basis and to discuss the conflict of interests involved. This trend has a huge number of stakeholders, impacting engineers working for US companies as well as the entire economies of the US and the nations who benefit from the practice. The consequences of this trend are newly established markets and improved standard of living in other countries at the expense of technical professionals in the United States and other countries with established technology industries. History of Overseas Outsourcing Outsourcing is defined as services provided for a company by a secondary company that would otherwise be supplied internally. The purpose of this is process is to reduce costs by subcontracting the work to an external company which can provide the service at a lower cost. In addition to lower cost, the benefits also include more predictable costs. This allows companies to concentrate on their core business. This system is advantageous to the secondary external company because they can achieve the benefits of the economics of scales in performing the same specialized work for many companies. Additionally the company can provide lower costs for a service if they can find lower labor costs. Duri... ...; I.B.M. Explores Shift of Some Jobs Overseas.† New York Times Late Edition – Final, Section C, Page1, Column 2. July 22, 2003. Country Profile: India. TechRepublic, 11/18/03, < http://techrepublic.com.com/5100-6298-1029727-4.html> Rachels, James. The Elements of Moral Philosophy. McGraw-Hill Companies, Inc. 2003 McLaughlin, Laurianne. "An Eye on India: Outsourcing Debate Continues." IEEE Software, IEEE Computer Society. May/June 2003. Bardhan, Ashok Deo, and Kroll, Cynthia A. "The New Wave of Outsourcing." Fisher Center for Real Estate and Urban Economics. University of California, Berkeley. Fall 2003. 11/18/03, <http://repositories.cdlib.org/iber/fcreue/reports/1103/> Breslin, David A. "On the Ethics of Outsourcing," PM, November - December 1999. 11/19/03, <http://www.dau.mil/pubs/pm/pmpdf99/breslind.pdf> Ulrich von Hutten (1488-1523)

The short story ‘The Bath’ Essay

?The short story ‘The Bath’ by Janet Frame tells of an old lady who has been widowed and now lives alone. It tells of the small, meaningless tasks that now make up her existence. She grieves for lost loved ones and frequents their graves. In this particular story, the mediocre activity of having a bath becomes a hugely difficult task for the woman as she struggles to get out once finished. The main themes portrayed in this story are: loneliness, the plight of the elderly and helplessness. The theme of loneliness is shown through the graves. One of the only things the old woman can do now is visit the graves of her loved ones as she has no other way to remember them and no people left in her life to provide company for her. She plants flowers on their graves showing tender care and talks to the graves as if they were living people. These actions make the reader feel sorry for the old lady, and the companionship she gets from the graves shows just how lonely she really is. This leads to the next theme, the plight of the elderly. Partway through the story it becomes apparent that the old woman cannot get herself out of the bath as a result of her weakened, elderly body. This proves to be incredibly frustrating for the old woman as this really is a very simple task but try as she might she simply cannot get out of the bath. As well as feeling sorry for the old woman the reader also begins to feel scared for her as she is all alone and cannot call for help. The author also uses symbolism to help get across the message of the old woman’s plight. The bath is described as being in a dilapidated state and this parallels the state of the woman’s frail body as she struggles to pull herself out of the bath. This in turn leads to the last and possibly most important theme; helplessness. In the prior paragraphs I have talked about all the things that have happened to the old woman but the one important factor that links them all together is that she is powerless to change any of it. Her body is failing her and she can’t help it, all her loved ones are dead and she can’t help it, and most of all, she is dying too, and she can’t help it. Symbols of death are all around her. The cemetery, a decaying house, and the bath. Being trapped in the bath makes it coffin-like, representing where she will eventually lie forever. The story of the old woman makes us fully aware of what growing old is really like. It is not graceful or fun, it is scary and lonely.

Hydrogen vehicle

The riots are still raging In the streets and gas prices are $200 a gallon. It has been 15 days since we have been told that there Is no more fossil fuels. Our civilization Is at the tipping point; Like I said there is violent riots in the streets the lights are not turning on and neither Is the water. My mom tells me it's like this because when she was a kid everyone abandoned the Idea of â€Å"clean energy† because they were told that scientists figured out how to clean up the pollution. No one thought of when we were going to run out fossil fuel and now e have.We need a new source of power, a clean and unlimited reserve of energy, hydrogen. Hydrogen Is a clean and unlimited resource. Hydrogen Is a completely clean resource, when used in cars it's only emission is water vapor and heat. Hydrogen is virtually unlimited when hydrogen runs out our universe will have ended ( most likely one hundred trillion years) years from now. Hydrogen is extremely efficient, it is 3 times mor e efficient than gasoline. You can get 480 miles a tank with the Toyota FICHE. From coral you can make it all the way to San Diego, CA and go another 156 mi on one tank.Some argue that hydrogen is very flammable and can explode. Those that argue this are 100% correct but it is not any more flammable than the gasoline in your car right now. Hydrogen is only $1. 80 gallon and 3 times more efficient than gasoline. You would be paying half the price of gasoline and going 3 times as far. Hydrogen would be saving you a lot of money for family trips or Just every day getting around and doing errands. Hydrogen fuel cells would be saving people money and time used filling up the tank. Hydrogen fuel is extremely efficient and will be getting people around everywhere.

What is Sarbanes-Oxley Act

What is Sarbanes-Oxley Act Free Online Research Papers Sarbanes-Oxley Act has been implemented since 2002. It main purpose was to regain the confidence in the capital market by forcing mandatory standards and rules for companies. This paper studies the reasons for the Sarbanes-Oxley Act and the positive and negative impact that Sarbanes-Oxley Act has placed on companies. Reason for SOX The reason for the Sarbanes-Oxley Act of 2002 came about because of Kenneth L. Lay, CEO of Enron Corp. Enron began in 1986 but originally was Houston Natural Gas a gas pipeline operator in 2001 Enron was the number one energy trader in the world. Enron direct competition was Duke Energy, El Paso, and Williams Companies to name a few. However, in 2002, Enron filed for bankruptcy and Lay was involved in one of the biggest accounting fraud crimes. Lay hide sales of the company’s shares and said that he was buying more shares (Henry, 2006). No one ever questioned Lays acts and never questioned or investigated the trading rules for someone trading within an organization. In that time, executives did not have to report their transactions with their companies the end of a company’s fiscal year and after 45 days and some times it they could take up to 12 months (2006). â€Å"Congress clamped down and directed the Securities Exchange Commission to require reporting of tra nsactions within two business days, effective Aug. 29, 2002. At the time, recalls then-SEC Chairman Harvey L. Pitt, regulators didnt even know companies were backdating options grants† (Henry, 2006, pg.38). As result of Enron’s scandal and public bankruptcy of such a well recognized corporation. Congress passed the Sarbanes-Oxley Act of 2002 known as the Sarbanes-Oxley Corporate Accountability Bill. The Sarbanes-Oxley Act requires for all public companies that have business in the United States must have an accounting framework (Nelson Staley, 2006). Sarbanes-Oxley Act of 2002, made it mandatory for all public companies to contain internal financial auditing controls and to present the results in annual assessment their internal financial auditing control efficiency. This must be reported to the Securities and Exchange Commission (SEC) in an annual basis. Also, the Sarbanes-Oxley Act of 2002 required for all public companies to have an external auditor and the external auditor would have audit and test on the company’s internal control reports of management and the company’s financial statement (Baker, Bealing Jr, Nelson Staley, 2006). Sarbanes-Oxley Act of 2002 The following provides an overview of the Sarbanes-Oxley Act in which public company are required to comply. Title I of the Act – established the Public Company Accounting Oversight Board (PCAOB). Title I which was given broad oversight over public accounting firms who perform audits of publicly traded companies. According the Public Company Accounting Oversight Board states, section 103(a)(1) of the Sarbanes-Oxley Act of 2002 that Board establishment and their responsibilities and to establish auditing standards and rules. In addition, this Board defines the ethics standards for the audit reports that registered accounting firms must prepare and submit (Baker, Bealing Jr, Nelson Staley, 2006). Title II of the Act – established the Auditor Independence which pro services. The Securities and Exchange Commission adopted amendments to its existing requirements regarding auditor independence to enhance the independence of accountants that audit and review financial statements and prepare attestation reports filed with the Commission. In addition, these rules and standards affect the foreign accounting firms that perform audits of foreign subsidiaries and affiliates of U.S. issuers, as well as of foreign private issuers. According to Baker, Bealing Jr, Nelson, Staley: Many of the modifications to the proposed rules, such as those limiting the scope of partner rotation and personnel subject to the cooling off period, have the added benefit of addressing particular concerns raised about the international implications of these requirements. Moreover, additional time is being afforded to foreign accounting firms with respect to compliance with rotation requirements. The release also provides guidance on the provision of non-audit services by foreign accounting firms, including the treatment of legal services and tax services (2006, p.5) Title III of the Act – established the Corporate Responsibility which imposed public company audit committees. It defined the corporate responsibility for financial reports. It defined the improper influence on conduct of audits. It clearly points the penalty of certain bonuses and profits. In addition, section 302 is one the most important sections of the SOX Act. Established the Corporate Responsibility for Financial Reports it demands for CEO and CFO to review all financial reports. The financial reports must not have any fabrication or faulty information. It also directs the responsibilities to the companies CEO and CFO for the internal accounting controls. The CEO and CFO have the obligation to report any leakage in internal accounting controls. In addition, CEO and CFO must report any management of the audit committee for fraud actions or participation. They must point out any internal accounting controls information modification. Title IV of the Act – Established Enhanced Financial Disclosure. Section 401 Disclosures in periodic reports conflict of interest provisions. Section 402 Enhanced conflict of interest provisions. Section 403 Disclosures of transactions involving management and principal stockholders. Section 404 is another most important section of the SOX Act of Title IV. Section 404 established Management Assessment of Internal Controls this demands for management that all annual financial repots must have an Internal Control Report stating that management is responsible for an â€Å"adequate† internal control structure. Any shortcomings in these controls must also be reported. In addition, registered external auditors must attest to the accuracy of the company management’s assertion that internal accounting controls are in place, operational, and effective. Sarbanes-Oxley Section 404 (SOX 404) requires a security management process to protect against attempted or successful u nauthorized access and use with system operations. Sarbanes-Oxley Section 404 also involves security management for disclosure, modification, or interference with system operations. Section 405 is defines the exemption to the TITLE IV. Section 406 is the Code of ethics for senior financial officers. Section 407 is the disclosure of audit committee financial experts. Section 408 is the enhanced review of periodic disclosures by issuers. Section 409 Real time Disclosures states that must disclose information on material changes in the financial conditions or operations of the issuer on a rapid and current basis. Section 409 is another most important section of the SOX Act of Title IV. However, section 409 is the only section that is not currently in effective. This section is Real Time Issuer Disclosures meaning companies are required to disclose on almost real-time basis information concerning material changes in its financial conditions or operations. Title V of the Act – established the Analyst Conflicts of Interest. Section 501 the treatment of securities analysis by registered securities associations. The national securities exchanges and registered securities associations must adopt conflict of interest rules for research analysis who recommend equities in research reports. Title VI of the Act – established the Commission Resources and Authority. Section 601 is the Authorization of appropriations. Section 602 is appearance and practice before the commission. Section 603 is Federal court authority to impose penny stock bars. Section 604 Qualifications of associated persons of brokers and dealers. Title VII of the Act – established the Studies and Reports. In section 701 is GAO study and report regarding consolidation of public accounting firms. Section 702 is commission study and report regarding credit rating agencies. Section 703 is the Study and report on violators and violations. Section 704 is the study of enforcement actions. Section 705 is the study of investment banks. Title VIII of the Act Corporate and Criminal Fraud accountability. In section 802 are criminal penalties for altering documents. Section 803 Debts non-dischargeable if incurred in violation of securities fraud laws. Section 804 is Statute of limitations for securities fraud. Section 805 is review of Federal Sentencing Guidelines for obstruction of justice and extensive criminal fraud. Section 806 is Protection for employees of publicly traded companies who provide evidence of fraud. Section 807 defines the criminal penalties for defrauding shareholders of publicly traded companies. Title IX –White-Collar Crime Penalty enhancements. Section 902 is the attempts and conspiracies to commit criminal fraud offenses this section is another of the most important section of the SOX Act. It states that any person who attempts or conspires to commit any offense under this chapter shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy. Section 903 states criminal penalties for mail and wire fraud. Section 904 is criminal penalties for violations of the Employee Retirement Income Security Act of 1974. Section 905 is the amendment to sentencing guidelines relation to certain white-collar offenses. Section 906 states it is corporate responsibility for financial reports. Title X of the Act – established the corporate tax returns. Section 1001 Sense for the Senate regarding the signing of corporate tax returns by chief executive officers. Title XI of the Act – established the corporate fraud and accountability. Section 1102 is the tampering with a record or otherwise impeding an official proceeding. Section 1103 is temporary freeze authority for the SEC. Section 1104 is the amendment to the Federal Sentencing Guidelines. Section 1105 Authority of the Commission to prohibit persons from serving as officers or directors. Section 1106 is increased criminal penalties under the Securities Exchange Act of 1934. Section 1107 protects whistler blowers section 1107 is the retaliation against informants. The Impact of Sarbanes-Oxley Act The Sarbanes-Oxley Act has applied positive effect to companies. The public companies are forced to compliance with the Act and ensure that their accounting operations are up to standards with SOA. However, private or non profit organizations are being exempt from this Act. â€Å"Still, many such entities are finding that certain aspects of the act can benefit their overall operations and are cherry-picking those parts that will do them the most good† (Savich, 2006, pg. 71). In addition, many private organizations are taking advantage of only select the sections of the Act that beneficial. Why would these private organization voluntary adopt SOA knowing how public companies struggle to comply with the SOA standards? One reason why private organization would want to comply with SOA standards is if the private organization is planning to merge with a public organization. Then they have advantage of preparing for the cost and sufficient time to prepare to meet those required for Sarbanes-Oxley Act. A second reason for an private organization to voluntary adopt SOA would be if the private company knows that is going to become public then they adopt the Sarbanes-Oxley Act since they know it will be mandatory (Savich, 2006). Another reason would be if a private company is forecasting a IPO within next years it would be benefit for them to start compliance with the Sarbanes-Oxley guidelines earlier than later to avoid any delay and expect cost (Savich, 2006). Even non-profit organizations are volunteering to comply with Sarbanes-Oxley provisions. â€Å"In California, for example, the Nonprofit Integrity Act of 2004 requires charitable organizations with over 2 million in gross revenues to have an audit committee, which also approves non-audit services, and audited financial statements† ( Savich, 2006 ). Private organizations are in position that they adopt the sections that they want with advantage of not having to spend excessive amounts of money to set up for an auditors assessments of internal controls. Instead, their company can intake the benefits of the Sarbanes-Oxley Act without incurring significant costs (Bednarz, 2006). Congress intended for the Sarbanes-Oxley Act to apply only public companies. But a national study by Foley Lardner LLP, showed that Sarbanes-Oxley Act took another path. It has been revealed that these private and nonprofit organization continue to adopt provisions of the act as best practices with out have obligation. The study concluded nonprofit organization was more impulsive to adopt the Sarbanes-Oxley standards, while private companies have been steadily adopting Sarbanes-Oxley standards but not as much as nonprofit organization. In addition Nonprofits organization are more likely to implement or plan to implement whistle-blower procedures, board approval of non-audit services by auditors and restrictions on executive compensation, among other changes. According to study findings of Foley Lardner LLP: Private companies tend to adopt the least expensive reforms, as opposed to more costly initiatives such as section 404 audits of internal controls. Some 84% of private organizations responding to the survey believed corporate governance reform was about right, an increase over the 78% who had responded that way in 2005. Survey respondents estimated an average annual price tag of $105,000 for corporate governance procedures, a 26% increase over their estimated costs before Congress Foley Lardner surveyed 56 private entities in January 2006-20 nonprofit organizations and 36 for-profit private companies enacted Sarbanes-Oxley (Savich, 2006) In another study named Voluntary Compliance survey conducted by CEO’s of â€Å"fast-growing† private companies. 27% said their companies had adopted Sarbanes-Oxley best practices in areas such as governance and transparency. 73% opposed any future federal or state regulations that would impose Sarbanes-Oxley provisions or entities other than public companies. 67% of those considering going public said the cost of Sarbanes-Oxley compliance was a potential barrier (Savieh, 2006) Many public companies are struggling to comply with the Sarbanes-Oxley because of the high costs and implementations complexity. Even larger companies like: General Electric, Lockheed, and Emerson Electronic are struggling to meet the Act standards. In meeting held in Washington, D.C. the Executives of these corporations emphasis the challenges they face to comply with Sarbanes-Oxley Act. (Bednarz, 2006) Executives stated, that cost for comply with Sarbanes-Oxley does compensate for benefits of having Sarbanes-Oxley. The cost for implementing software that complies with Sarbanes-Oxley Act is very expensive. This is affecting smaller public companies that do not have the funds to implement these softwares. According to Robilliard, In the recent study of IT managers in the US, the Aberdeen Group found that most companies plan to leverage their existing software tools to fill any gaps to comply with the Act, (Ismail, 2005, p 4). Critics of regulation argue that the Sarbanes-Oxley Act has raised the cost of being a public company so much that it is unreasonable to impose this burden on smaller public companies. The critics main concern is Section 404, which deals with internal control audits. These critics assert that the high cost of being a smaller public company will stifle economic growth and ultimately hurt U.S. competitiveness (Hermanson, 2006). According to Hermanson, For honest corporate officers, this is classic governmental over-regulation-a dagger aimed at the heart of the U.S. economy. . . . The most dangerous aspect of this regulatory overkill is a further inclination by corporations to hold onto money rather than put it into productive investment, thereby threatening to stifle economic growth. Even the SECs advisory committee concluded, after hearing testimony from various parties, that Section 404 is a burden for smaller public companies. In an August 18, 2005, letter to SEC Chairman Cox, The committee stated, The costs of implementing Section 404 have been far more expensive than originally forecasted and these costs are disproportionately larger for smaller companies. (200 According CPA Journal survey by Financial Executives International reported that small companies are projected to spend $824,000 in order to comply with Sarbanes-Oxley Act. In addition, the average cost for all companies is $4.3 million estimates. However, public companies are estimated to spend $6.1 billion in order to implement Sarbanes-Oxley Act (Koehn DelVecchio). The Sarbanes-Oxley Act and the Security Exchange Committee rules can impact internal auditors in numerous ways. One way is internal auditors probably will be asked to expand their internal control evaluation and testing work in order to provide assurance to upper management when they attest to the relative strength of their internal control system (Aldhizer III, Cashell Savlyor, 2003). Pricewaterhouse Coopers in a discussion document stated, that good internal controls are no longer just a best practice, but are now reinforced in the Sarbanes-Oxley Act as a critical component of good corporate governance (Aldhizer III, Cashell Savlyor, 2003). Upper management and the audit committee are depending on internal auditors to help them comprehend difficult financial reporting issues and their impact on the quarterly and annual report (Aldhizer III, Cashell Savlyor, 2003). If the Sarbanes-Oxley Act increase internal auditors responsibilities companies take the risk of this having an impact on the current level of services provided by internal auditors. Many organizations may be unwilling to increase internal audit resources to the level required to completely fulfill both existing and new responsibilities. If this occurs, internal audit departments will have to decide either which services to cut or how to continue providing the same level of service with fewer resources (Aldhizer III, Cashell Savlyor, 2003). Audit fees are arise because of the need to present more in depth audit work in order to gain the necessary information and the loss of income from higher-margin consulting work are affect the higher costs. Eventually, it will affect the relatively few companies that were involved in the accounting frauds, but all companies and consumers (Gifford Howe, 2004). According to a recent Financial Executives International (FEI) survey conducted, it reported that the first-year compliance costs ranging from $2 million to $5 million. (Gifford Howe, 2004) consulting firm The Johnsson Group has estimated total 2004 costs to run upwards of $15 billion, with many large companies seeing thousands of hours diverted from staff support and research activities to compliance work. Many of the smaller companies are affected by this because they do not have money to obtain staff support and necessary requirements. Another provision that may notably increase audit fees relies in the Sarbanes-Oxley Acts to far-reach authority. The act affects any firm that audits a publicly traded U.S. company (Gifford Howe, 2004)). For example, any foreign subsidiaries or affiliates of public accounting firms may conclude that they do not want be involved with a clients operations in its native country because of U.S. regulations. Therefore, U.S. firms would have to conduct the audit for client’s foreign subsidiaries, at the client’s expense. This sufficiently require more time and cost. â€Å"In addition, the move by U.S. regulators to review the work of foreign accounting firms could prompt retaliation by other countries in the form of reviewing the work of U.S. firms that audit U.S. subsidiaries of foreign multinationals† (Gifford Howe, 2004, p. 7) Another reason for fees to arise can the fact that auditor have the obligation to include in the audit report the effectiveness of internal controls over financial reporting and managements assessment of it (Gifford Howe, 2004). Although Sarbanes-Oxley Act is not intended for increase of charge fees be based on the auditors evaluation be the basis given the increased political costs and potential legal liability associated with such an assertion, audit firms and management will probably need to spend significantly more time evaluating controls, particularly for engagements or audit areas with low reliance on controls (Gifford Howe, 2004). The expectation that audit firms would accept additional risk without doing additional work, and that they would perform the additional work without increased compensation. Conclusion The Sarbanes-Oxley act has provided negative and positive impacts to companies regardless of the size of the company. However, small companies are definitely being more deeply affected by the Sarbanes-Oxley Act in their pockets. The positive impact of compiling with Sarbanes-Oxley Act has provided standards and rules for organization that needed them. Even though Sarbanes-Oxley Act is not mandatory for private and non-profit organizations many are adopt Sarbanes-Oxley Act because of its positive benefits to the organization. Reference Aldhizer, G.R., III, Cashell, J.D., Saylor, J. D. (2003) Ten months later: Internal audit directors assess the impact of the Sarbanes-Oxley Act. Internal Auditing, 18(3), 3. Baker, R. L., Bealing, W. E., Jr., Nelson, D. A., Staley, B. A. (2006). An institutional perspective of the Sarbanes-Oxley Act. Emerald. Retrieved from May 15, 2006, from emeraldinsight.com/0268-6902.htm Bednarz, Ann. (2006, May 15). Sarbanes-Oxley: Too much for too little? Network World, 23(19) 1-2. Gifford, R. H., Howe, H. (2004). Regulation and unintended sequences: Thoughts on Sarbanes-Oxley. The CPA Journal, 74(6), 6-10. Hermanson, D. R. (2006). What to do about smaller public companies’ internal controls? Internal Auditing, 21(1), 41-43. Henry, D. (2006, June 12). A SarbOx Surprise. Business Week. Retrieved May 22, 2006, from http://0-proquest.umi.com.novacat.nova.edu/pqdweb?did=1051235551sid=1Fmt=3clientId=17038RQT=309VName=PQD Ismail, I. (2005, April 7). Raising awareness of Sarbanes-Oxley Act. New Straits Times, pp.04. Koehn, J. L., DelVecchio, S. C. (2006). Revisiting the ripple effects of the Sarbanes-Oxley Act. The CPA Journal,76(5),3. Savich, R. S. (2006). Cherry-Picking Sarbanes-Oxley. Journal of Accountancy, 201(6), 71-74). 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Human behavior Essays

Human behavior Essays Human behavior Essay Human behavior Essay After instinct theories were discredited, explanations for behavior shifted to needs. A need was defined as an internal state of disequilibrium or deficiency which has the capacity to trigger a behavioral response. The cause of the deficiency could be physiological, such as hunger; psychological, such as a need for power; or sociological, such as a need for social interaction. The presence of a need motivates an individual to action to restore a state of equilibrium, as shown . A basic assumption of all need theories is that when need deficiencies exist, individuals are motivated to action to satisfy them. One of the earliest theories of needs was the manifest need theory proposed by Henry A. Murray. Murray believed that needs are mostly learned rather than inherited and are activated by cues from the external environment. For example, an employee who has a high need for affiliation will pursue that need by associating with others only when the environmental conditions are appropriate. Only then would the need be manifest. When the need was not cued, the need was said to be latent or not activated. Murray identified a wide range of needs that people supposedly acquire to one degree or another through interaction with their environment. Murray first developed a list of fifteen needs that were classified as viscerogenic (primary) and psychogenic (secondary). The needs for food, water, sex, urination, defecation, and lactation, all associated with physiological functioning, are examples of Murrays viscerogenic needs. Murrays psychogenic needs include abasement, achievement, affiliation, aggression, autonomy, deference, dominance, and power. Murrays need categories attempted to focus on specific, relatively narrow need-related issues and a separate need was created for almost every human behavior. Murrays list of needs was not derived from empirical research but from his personal observations and clinical experience. Periodically he added additional needs to his list, and the length of the list increased with his career. Maslows need hierarchy Abraham Maslow was a clinical psychologist whose theory of motivation was part of a larger theory of human behavior. Maslow was a humanist who was deeply concerned about the dignity and worth of individuals. He frequently talked of the differences between healthy and unhealthy individuals, and believed that individuals had a positive capacity to improve the quality of their lives . His theory of behavior emerged from his clinical experiences as he was able to sift and integrate the ideas of other leading psychologist. Maslow formulated a hierarchy of five general needs. The term drive was first introduced by Woodworth (1918) to describe the reservoir of energy that impels an organism to behave in certain ways. While Woodworth intended the term to mean a general supply of energy within an organism, others soon modified this definition to refer to a host of specific energizers (such as hunger, thirst, sex) toward or away from certain goals. With the introduction of the concept of drive, it now became possible for psychologists to predict in advance-at least in theory-not only what goals an individual would strive toward but also the strength of the motivation toward such goals. A major theoretical advance in drive theory came from the work of Cannon in the early 1930s. Cannon (1939) introduced the concept of homeostasis to de- scribe a state of disequilibrium within an organism which existed whenever internal conditions deviated from their normal state. When such disequilibrium occurred (as when an organism felt hunger), the organism was motivated by internal drives to reduce the disequilibrium and to return to its normal state. Inherent in Cannons notion was the idea that organisms exist in a dynamic environment and that the determining motives for behavior constantly change, depending upon where the disequilibrium exists within the system. Thus, certain drives or motives move to the forefront and then, once satisfied, retreat while other paramount. This concept is also reflected in the works of Maslow. The first comprehensive-and experimentally specific- elaboration of drive was put forth by Hull. In his major work Principles of Behavior, published 1943, Hull set down a specific equation to explain an organisms impetus to Effort = Drive X Habit. Drive was defined by Hull as an energizing influence which determined the intensity of behavior, and which theoretically Habit was seen as the strength of relationship between past stimulus and response (S-R). Hall hypothesized that the resulting effort, or motivational force, was a multiplicative function of these two central variables. If we apply Hulls theory to an organization setting, the motivation to seek employment would be seen as a multiplicative function of the need for money (drive) and the strength of the feeling that been associated with the receipt of money in the past (habit). Later, Hull added an incentive variable to his equation. His later formulation thus read: Effort = Drive x Habit X Incentive. This incentive factor, added in large mea- sure in response to the attack by the cognitive theorists, was defined in terms of anticipatory reactions to future goals. Just as drive theory draws upon Thorndikes law of effect, so do modem reinforcement approaches (e. g. , Skinner, 1953). The difference is that the former theory emphasizes an internal state (i. e. , drive) as a necessary variable to take into account, while reinforcement theory does not. Rather, the reinforcement model places total emphasis on the consequences of behavior. Behavior initiated by the individual that produces an effect or consequence is called operant behavior (i. e. , the individual has operated on the environment), and the theory deals with the contingent relationships between this operant behavior and the pattern of consequences. It ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action. Thus, strictly speaking, reinforcement theory is not a theory of motivation because it does not concern itself with what energizes of initiates behavior.