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CORPORATE SOCIAL RESPONSIBILITY AND MILTON FRIEDMANS MANTRA

CORPORATE SOCIAL RESPONSIBILITY AND MILTON FRIEDMAN’S MANTRA

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Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc376284965” Abstract PAGEREF _Toc376284965 h 3

HYPERLINK l “_Toc376284966” Introduction PAGEREF _Toc376284966 h 3

HYPERLINK l “_Toc376284967” Milton Friedman’s theory PAGEREF _Toc376284967 h 4

HYPERLINK l “_Toc376284968” Milton Friedman’s Theory and CSR Analysis PAGEREF _Toc376284968 h 4

HYPERLINK l “_Toc376284969” Economic and Legal Responsibilities of Business PAGEREF _Toc376284969 h 8

HYPERLINK l “_Toc376284970” Corporate Social Responsibility Matters PAGEREF _Toc376284970 h 9

HYPERLINK l “_Toc376284971” Conclusion PAGEREF _Toc376284971 h 11

HYPERLINK l “_Toc376284972” Bibliography PAGEREF _Toc376284972 h 12

AbstractThe underlying public perceives that business managers make decisions solely to maximize profits though they most perceive the behavior to be wrong. Examining the role of business organization in regard to generation of profit maximizing, structurally centered decisions making procedure rather than socially responsible, human centered view, which is fundamental. An unconventional characterization of business is aimed at maintainable organizational performance and places social responsibility on stakeholders and on managers. CSR is accepted by numerous modern companies as one of a significant section of the business strategy thus acknowledging the benefits that normally comes along with adoption of the corporate social responsibility activities. Moreover, it is ranked the escalating pressure for the social concern as the greatest significant business challenge to the modern companies. Corporate social responsibility is considered as variants in regard to citizenship and sustainability is the new business mantra. Introduction Corporate Social Responsibility had been taken for a relatively longer period as a tendency that reached when the current Generation X arrived the labor force and becoming a sturdier consumer occurrence within corporate America. The underlying arguments concerning the role of business within society have erupted as companies that are normally subscribe to searching for suitable methods to lessen the dare necessity for CSR or for methods to turn social responsibility into the corresponding factor of profit making (Godet, 2006, 123). Whereas populace normally believes that corporate social responsibility is an interruption that ceases business performing to their probable and crippling the economy. Efficient and effective Corporate Social Responsibility and corresponding effectual marketing and business strategy are capable to aid a business grow to relatively bigger profits whilst promoting the society at large (Orts, 2013, 112). CSR has been accepted by numerous modern companies as a significant section of the business strategy thus acknowledging the benefits that normally comes along with adoption of the corporate social responsibility activities. Moreover, it is ranked the escalating pressure for the social concern as the greatest significant business challenge to the modern companies.

Milton Friedman’s TheoryIn the year 1970 an economist Milton Friedman summarized that underlying social responsibility of business in regard to utilization of resource and activities is mainly designed to escalate its profit (Flynn, 2008, 237). He asserts the main purpose of any business is making profit (Porritt, 2007, 453). Nevertheless, this perception of business responsibility that is challenged via stakeholders and corresponding political consumers, which put pressure on the underlying companies to manufacture their products and service through means that conforms with national and intercontinental standards and demand. The literature on the underlying corporate social responsibility provide no solitary designation of CSR and diverse definitions are utilized within maintain able growth, corporate citizenship and corresponding the threefold bottom line are normally instantaneously utilize in the description of CSR. The underlying common features the charitable perspective meaning that companies go yonder the preparation in an exertion to meet community encounters encrustation the creation. Social challenges are seen as massive significance since CSR efforts mainly depend on the way social challenges are apparent by society (Godet, 2006, 124).

Milton Friedman’s Theory and CSR AnalysisMilton Friedman is the main designers of the association alongside the prevailing social responsibility by taking into consideration numerous influential pieces of work disapproving Corporate Social Responsibility, and corresponding business organizations that promoted CSR credentials. He asserted that prevailing business persons who practice CRS are the main puppets of knowledgeable forces that undermine the underlying foundation of the free society in the previous decades. Friedman’s believed that only populace can possess responsibilities but not the business organizations and that the populaces that have been employed by the companies have responsibility primarily to their corresponding workers in regard to accomplishing the requirements of attaining profits (Godet, 2006, 226). He acknowledges that an individual is capable of having responsibilities in other places apart from business, but the responsibilities such as social responsibilities ought to be accomplished as a foremost and not an agent by spending own resource, time and energy. Moreover, social responsibilities ought to be business.

Milton Friedman’s method is disassemble in regard to the personification of the underlying businesses within corresponding specific businessmen but rather than presenting them as collectives of an individual s who normally remunerated to work at the request of the vendors. Thus, workers ought to be only motivated in order to accomplish their underlying responsibility to generate profit for the owners hence should not be a concern with the role of the company in regard to benefiting society (Porritt, 2007, 457). This can be conversely being perceived as the craving to function with the underlying social conscience possesses no place within the free market. Whilst there is little concurrence with the Friedman’s arguments, populace feels that Friedman understands in regard to Corporate Social Responsibility to be extremely narrow. This is because it decently focused on the underlying business and its role within a free market, which have become outdated for the prevailing contemporary culture (Flynn, 2008, 237). Milton Friedman makes valid points on the deconstruction of the underlying personification of the business; nevertheless, he mainly forgets the major attributes that are the prevailing CSR’s strengths and benefits to the general public. Friedman perception of the business is mainly in a factual manner that depicts workers working to get the owner of the business profit but not the corresponding public (Goodman & Hirsch, 2010, 265).

Milton Friedman argument of business enterprise social responsibility entirely depends on making of profit within the modern business. The main aim of operating business is to realize a profit without which the business cannot survive. Friedman’s theory does not support the idea of social responsibility to the underlying society. This is because the increase of revenue within any company normally leads to the development of the economy which subsequently benefits the populace. He thought that social responsibility ought not to be compelled by the prevailing administration. Whereas numerous economists concur with Friedman’s point of view as the underlying companies can still uphold their underlying efficacious path whilst in an attempt to shadowing numerous diverse methods in regard to the social responsibility. Moreover, responsibility to the corresponding investors can be accomplished in the process of strengthening the society. There are numerous means that any organization can be socially responsible and they solely foster social responsibility to the environment, society and underlying workers. These means are normally in line with Friedman’s theory.

The underlying perception of the company as an entire representative and in case an individual makes nay mistake within it results to an error which is social judgment as populace normally judge the entire company but not the individual. CSR can be harnessed to generate important positive change to the underlying profits; negative strategy can destroy profit within a company (Godet, 2006, 125). For instance, an individual agent operating with Friedman is supported by Nike since the manager opt to operate within countries where child labor is acceptable in order to reduce cost thus making Nike company to increase their profits. Friedman’s theory made a mistake was in the separation of the public from the corresponding customers within his evaluation thus neglecting the understanding of the customer base of the company that could be influenced by broader public (Flynn, 2008, 241-2).

Researchers believe that Friedman’s main focal point in regard to the business ought to focus on escalation of profits that will correspondingly benefit a society best. Moreover, the main responsibility of business in retard to economic performance is making a profit. This is business that normally realizes minimal profit that equate to its underlying cost of capital is considered to be socially irresponsible (Sandbu, 2011, 146). Nevertheless, economic performance is not normally considered as the sole responsibility of prevailing business enterprises since power ought to balance by responsibility. Moreover, Corporate Social Responsibility as a strategy is normally seen as cost-effectiveness as espoused by Friedman. The best CSR strategy that ensures profitability is normally marketing based. Significant issues associating with every CSR dimensions are not exclusively marketing associated. For instance, pollution control at the chemical plant is a manufacture associated matter; standard background for the supplies is mainly procurement connected topic while the background of the fair reimbursement is normally a human resource issue. Significance of marketing mainly regard to developing a CSR approaches cost-effective (Goodman & Hirsch, 2010, 266).

The concept against the CSR basically commences with the classical economic argument mainly articulated forcefully by Milton Friedman who held the opinion that the organization has the responsibility of maximizing the profits of its underlying owners and shareholders (Sandbu, 2011, 149). Moreover, social issues are not the main concern of the business populace and that these problems ought to be resolved by the unencumbered workings of the free markets system. TH objection of adoption CSR normally put business into the fields’ endeavor that is not associated to the underlying suitable objectives (Orts, 2013, 118).

Economic and Legal Responsibilities of BusinessThe underlying remarks pertaining to the economic and legal responsibilities of business economic responsibilities and concerns the production of good and service that is desired by the profit. Companies normally accomplish their primary responsibility as pecuniary units within society. Nevertheless, the underlying standard transformed to profit maximization. The doctrine of profit maximization is sanctioned by the underlying classical economic interpretation led by Friedman. Lack of any conclusive business case concerning corporate social responsibility is the center of debate over the corresponding business in disentangling community and corresponding environmental problems. Even though the connection amidst Corporate Social Responsibility activities coupled with company financial performance depicts that association relies on the CSR initiative implemented (Godet, 2006, 128-9). Decision by the company to assimilate CSR into its prevailing corporate approach incorporates numerous things. The elements that are normally taken into consideration are reliant on the underlying company’s production and location operation that makes selective activities and corresponding programs to be more suitable as compared to others. Moreover, stakeholders and customers’ demands are taken into consideration in the process of initiating CSR by companies. According to Godet (2006, 128-9), companies that manufacture products within developing states ought to center on certifying appropriate working circumstances by further engaging within the underlying local community and finding means of aiding meeting of social challenges. Big industrial company’s utilization of treacherous chemicals within their productions might look at options and execute supply chain.

Corporate Social Responsibility MattersPopulace is currently skeptical of the underlying positive impacts of executing CSR. The fundamental argument pertains to venturing money within CSR. Nevertheless, solid reasons for execution of CSR into the corresponding business strategy. Ethically correct making of income rather than the underlying fundamental human rights can never be vindicated. Appropriate communiqué the exertions can be outlined as a massive in aiding the company to brand in regard to the constructive coupled with character among customers. As asserts Sandbu (2011, 148-9), good CSR performs can entice social venture. Inclusive, CSR matters might attract social investments coupled with consumers who require a product that are not manufactured rather than other populace’s health, security and human rights.

The impacts of social responsibility in regard to the environment mainly focus on safeguarding environment. This purely entail careful disposal of the wastes to the environment and following outlined regulation by the government. Companies that are normally aware of the prevailing space purely share within the local community their accomplishment. Moreover, companies ought to strategize new advancements via taking into consideration local pecuniary and corresponding social outlines. Business normally promotes. Workers that promote escalated benefits and corresponding better working situations are extremely important for any company. Caring about the employees by the company’s is healthy fir the development of community. Conversely, poor relations within underlying relations can make members of the community to stop cooperating with the company thus leading to poor performance and low turnover.

Milton Friedman asserts that sole business of the underlying managers of an overtly held corporation is mainly to maximize the prevailing value of its outstanding shares (Kinley, 2009, 26). Effort of utilizing corporate resources for purely altruistic purposes is normally equated to the act of socialism. Friedman projected that the underlying corporation law ought to preclude prevailing managers from straying off the arrangement to join the altruists, authority currently unanimously given by the state legislation (Flynn, 2008, 236-7). It is cumbersome to differentiate a profit motive from a benevolent motive in any specific corporate action, a strong regulation against corporate selflessness in regard to the Friedman’s assertion thus inviting judges to assess the respectability of a significant set of administrative decisions.

Corporate Social Responsibility concept possesses dual different focuses namely internal and corresponding external. Main social challenges are increasing quantity of the underlying resident getting communal welfares and corresponding fear pertaining to the social marginalization that is relatively expensive for the entire society. In the context of CSR internal mainly focus on the workers who are in vulnerability of dropping their prevailing employment opportunities due to the reduction capability to work for diverse reasons such as downheartedness, anxiety and work calamity (Goodman & Hirsch, 2010, 262-3). The administration ought to present variety of strategy mechanisms that enhance and aid companies in keeping employees at their respective company special terms such as working duration and hefty labor where the management would fund companies that might loss workforce. The internal emphasizes extremely associated to the Human Assets thus not rampant and broadly connected with the Corporate Social Responsibility. Nevertheless, it is a section of the Corporate Social Responsibility and ought to continue. The common understanding of the CSR is associated with external focus. Within a progressively globalized universe commodities are manufactured in developing countries where the salaries are reasonably lower and the laws on working circumstances are less severe and less subject to the mechanism by the underlying government examinations (Sandbu, 2011, 144). Efforts of making a income and for the corporate to endure, companies might concession transnational recognized standards on fundamental human rights and utilize production procedures which destruction the environment. In the present universe human rights defilements and the setting are depicted as chief worldwide social challenge (Orts, 2013, 116).

Ethical approach to CSR according to Henry Mintzberg

Mintzberg states that the corporate management demands its underlying executives to sign directive 20.5 that explicitly forbade price fixing and any other violation of the antitrust laws. This opposes the Friedman theory that say that companies ought to strive to make profit without considering society. Conversely, severely managed system of reward are subjected to punishment since they require annual advancement in regard to earnings, return and market share, which is applicable indiscriminately to all divisions. Thus, forces within a diversified firm tend to strip away economic fat and corresponding social tradition from the underlying management aspects of the entire issues facing the division management. Without responsible and ethical populace within significant positions then the society can never survive. Seven organizational blocks ethical approach to CSR allied with Henry Mintzberg strong role models, strict lines of command that discourage questioning of such practices, task group cohesiveness and ambiguity concerning the priorities.

According to Freeman, and Liedtka in the stakeholders theory assert that corporations ought to take into consideration the impacts of their underlying actions upon the prevailing customers, suppliers, general public, workers and other personalities having stake or interest within the corporation (Donaldson, Werhane, & Cording, 2002, 178-9). They also reason that by offering for the needs of stakeholders, corporations ensure their continued accomplishment. Freeman also asserts that the responsibility of business entails more than its primary economic duty to shareholders; business has a duty to other stakeholder. Thus, the narrow sense of stakeholder mainly refers to any identifiable group or corresponding individual on whom the organization is dependent for its continued survival (Goodman, & Hirsch, 2010, 125). This is completely in contrast to the Friedman’s perception that business organization only ought to make its own profit without giving back to the society.

CSR scholar Carroll (2004) asserts that companies have ethical and moral obligations to the society. Moreover, stakeholder theorists argue that while there are normative, ethical elements to the corresponding stakeholder theory yonder its managerial, social science application that are separate and distinct (Flynn, 2008, 93). CSP model is deemed to be not important since it partially solved by integrating underlying stakeholder perspectives in those traditional approaches (Carroll, 1991, 2004). Freeman and Liedtka suggest that CSR appears exclusively to grant a human face to capitalism but with a complete separation pertaining to economics and ethics (Flynn, 2008, 88).

According to Freeman and Liedtka the prevailing idea of corporate social responsibility has its roots in the writings of the Andrew Carnegie (Flynn, G. 2008, 89). The dual principle was essential for capitalism to work. The first principle of charity demanded more fortunate members of the prevailing society to support its less fortunate members including the jobless, the disabled, the sick and the elderly. Moreover, the less fortunate can be supported either directly or indirectly via institutions such as churches, settlement houses and other corresponding community groups (Goodman, & Hirsch, 2010, 128). Stewardship principle demands that businesses and wealthy individuals to focus on the stewards of their property. Nevertheless, it is a function of business to multiply society’s wealth by increasing its own via prudent investments of resources.

ConclusionUnfortunately for the Milton Friedman in regard to CSR has persisted for considerable longer time to be considered as a movement but a self-sufficient approach fundamental to a business that normally desires to accomplish within the fashionable socio-economic weather. In areas which are widely believed that Philosopher Karl Marx’s biggest blunder was ignoring the natural human predisposition to concur, Milton Friedman’s appear to have bargain-basement the natural requirement to endure by sticking with the underlying herd. Thus, Friedman decided to explore the prevailing opportunities that Corporate Social Responsibility depicted in regard to aiding a company generates solutions to social issues devoid affecting its underlying profit performance at the expense of striving to stifle the development on one of the most fundamental corporate policies of the last part of the twentieth Century. The argument offer rational justification for the CSR initiatives from a primarily corporate economic and financial perspective. There exist tension amidst the need for business to make profits and the corresponding requirements of the society, but the issue has been intensive in the past times. Consumers’ lack of trust in main companies such as Enron normally avoids goods and services from particular companies when the companies do not act at the interest of the society. There is escalating pressure from society on companies to take relatively more responsibility.

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Flynn, G. 2008. Leadership and business ethics. [Dordrecht], Springer.

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Corporate Social Responsibility at HSBC Bank

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Corporate Social Responsibility at HSBC Bank

Introduction

Corporate social responsibility is an important regulatory aspect that has been continuously employed by businesses to ensure that their activities are in line with the legal, ethical and environmental expectations of the community within which they are located. Effective functioning of an organization is usually influenced by a host of factors that characterize both its internal and external environment. Corporate social responsibility constitutes an obligation that all businesses have on the society. Its goals seek not only to encourage active involvement of stakeholders and shareholders in management, but they also eliminate practices that are likely to undermine its performance in the corporate sphere. Essentially, public interest is given preference in corporate decision making to enhance sustainable development. It is against this background that this paper reviews the role of HSBC bank in social corporate responsibility. It also underscores a specific strategic thing that the organization did and the implications it had on the community as well as HSBC.

HSBC is an international bank that has close to seventy six branches across the globe. It has a large clientele and offers a wide range of activities to the society. In order to maintain optimal growth, it partners with different organizations and individuals at all levels. Its corporate social responsibility services are all inclusive and factor in the needs and interests of the environment, community and its stakeholders. This has enabled it not only to attain its business goals but also to have public approval. This can be used to explain why the bank has prospered over time.

With regard to the environment, the organization believes that climate change is an actual phenomenon that can have far reaching implications on human survival. It is for this reason that HSBC (2006) cites that the need to incorporate the concept of sustainable development in its activities was imperative. This was done in light of the basic definition that postulates that sustainable development should not only satisfy the needs of present populations but should also be in position to safeguard those of future populations.

The organization has established a professional and fully operational team that addresses issues pertaining to environment and sustainability. In particular, it is charged with the responsibility of formulating as well as implementing an EMS (Environmental Management System) that is imperative for managing the environmental impacts that accrue from the organization’s activities. In addition, EMS is also elemental in identifying specific areas that require improvement. This is attained through frequent assessments, measurement and monitoring.

HSBC has attained significant results with respect to environmental management, protection and sustainable development. In particular, HSBC (2010) notes that here are credible systems in place that have enhanced environmental reporting. This covers different areas that range from waste production, water consumption, carbon dioxide emissions to energy consumption. Recent reports in this regard indicate that the organization managed to reduce waste production, energy consumption and water consumption. Of great importance is the fact that it is working towards adopting the vital principles of ISO14001.

Specific approaches that have been instrumental in helping the organization to attain these goals include e-procurement that reduces the costs related to purchasing the relative implications on the environment. Essentially, it has ensured that all transactions in all areas are carried out electronically. The employment of green electricity in the United States has been a major step in enhancing sustainability by curbing the level of pollution. With respect to use of paper, the organization acknowledges the fact that it uses significant quantities of this.

However, it has put strategic measures in place to reduce the quantities employed by recycling. Further, the vehicles employed in running operations are hybrid and environmentally friendly. Of great importance according to HSBC (2010) has been the partnering with other environmental organizations such as Erath watch Institute and The environmental group to protect watershed areas and biodiversity as well as carry out relative research aimed at attaining similar goals.

Ravichi (2010) ascertains that HSBC also supports the communities within which it is located through donations and enhancing the involvement of employees in community activities and voluntary work. Furthermore, it liaises with other organizations to support a wide range of local efforts on a global scale. To begin with, donations made to the community are sourced from staff and customers in different countries. This is done through cash machines, e-banking and through the telephone. Perhaps the most important contribution that has benefited the community in the recent past has been the education program. Efforts in this respect are concentrated on financing education, helping the disadvantaged children, making diverse contributions to primary as well as secondary education, teaching local languages and initiating projects that seek to enhance international understanding. These projects lay emphasis on active involvement of employees.

The most important project form the above has been financing education. This has been carried out under the Financial Literacy program and has currently been running for the past three years (HSBC, 2006). A total of twenty seven countries have benefited from this goal of enhancing literacy to the population between 26 and 25 age cohorts. Another group of individuals that have equally benefited significantly from this project are the women entrepreneurs.

The organization funds the relative programs that are implemented with the help of Student in Free Enterprise (SIFE) organization across the globe. Notably, these programs are sustainable and of great value to the communities. Students form deprived areas in primary and secondary learning institutions benefit immensely from these programs. This is undertaken under the department of philanthropic services within the organization. Also, it partners with Junior Achievement, a renowned nonprofit organization that seeks to educate young people and provide value in areas of business economics and free enterprise.

With respect to enhancing literacy among the adults, the organization collaborates with The Center for Neighborhood Enterprise (CNE) to deliver workshops that enhance adult literacy. In particular, The Center for Management Research (2005) indicates that the organization provides funding that is imperative for the development of a viable curriculum. The main area of concern of this project is to assist the consumers in different aspects of credit. Furthermore, it imparts vital skills that pertain to home ownership.

Also worth mentioning is the role of the organization in nurturing the talents of young people. In this respect, HSBC (2006) ascertains that the organization identifies young people with exemplary talents in different countries and provides them with financial support. The respective students are given scholarships and to fund for their tuition fees in colleges; both at home and abroad. For instance, it is indicated that the Hong Kong Bank foundation reserved a significant US$900000 to go towards bursaries, scholarships and a wide range of development programs (HSBC, 2006).

The program is also active in Malaysia and thirty seven universities in this have had their scholarship programs funded by the bank. Notably, the education program has been instrumental in enhancing the literacy levels of different persons across the globe. The bank has in return benefited by not only attaining public approval through awards and accreditation but also by exposing its employees to different work environments and enhancing awareness about different issues. Most importantly, they have ensured that their moral standards are within the expectations of the society. It is certain that this is fundamental for effective functioning and sustainable development.

Another area of corporate social responsibility that the bank has had an exemplary performance is stakeholder engagement. The inherent interaction provides the organization with credible knowledge with respect to the expectations of business associates. It also enhances transparency and helps to boost trust that is fundamental for this area of business. Objective feedback from these stakeholders also provides the organization with fresh and useful insights that are essential for organizational success (HSBC, 2006).

Customers are the first group of stakeholders that contribute significantly to the success of these organizations. HSBC has improved and maintained viable customer relations by ensuring a quick response to their demands. Regular monitoring and research derives important information from the customers that are then incorporated in decision making. Specific customer concerns about personal money management, identity theft, savings and credit are employed in aligning education programs to the needs of the customers. The relative practical measures that address the concerns in a sustainable manner include development of education programs and dissemination of vital information about the respective issues.

The employees of this organization are also an important asset and engaging them in management has been accorded utmost attention by the bank. In this regard, HSBC (2006) cites that employees are trained and allowed to participate in different voluntary programs at the community level. In particular, they are involved in development of education curriculums with which they carry out workshops in communities. This has significant benefits to the organization as it diversifies the skills of the employees and enhances their performance. Employees are encouraged to complete employee surveys after every 12-18 months.

These evaluate different issues that affect the employees such as job satisfaction, employee intention to stay at the organization and their capacity to make references to other individuals about the bank. The results of these are then employed in developing important regional plans and benchmarks of decision making. Further, there are employee unions that are imperative in addressing different concerns of the employees. These have enabled the organization to develop viable ways of adapting to the dynamic environment. It also enhances understanding that enables the organization to address the emergent employee needs with ease.

With respect to the needs of the investors, Gitshami (2005) ascertains that the organization has close to 200,000 registered shareholders that have diverse needs and interests. These encompass insurance companies, mutual funds and pension funds that provide the bank with a very large client base that is interested in the services that they provide. The organization has enhanced their participation in management by improving information flow and communication with them. The characteristic direct dialogue during meetings has been instrumental in promoting trust. This has improved the number of investors in the recent past (HSBC, 2010). The organization also partners with the government in ensuring that it maintains a legal standing in its operations. It has refrained from funding political activities over time but instead participated actively in advocating for policy positions that enhance public welfare.

Finally, the bank liaises with different nonprofit oriented organizations in attainment of sustainable development. This relationship enables it to maintain a high degree of transparency in its operations. In particular, the Nongovernmental organizations investigate the operations of the organization to ensure that they are in line with the legal and ethical expectations of the society. Frequent consultations and reviews have been imperative in keeping the bank in check and enhancing its effectiveness and credibility. Of great importance has been the ability of the bank to emphasize on the impacts of their products and tailor the same to meet the desires and interests of the consumers.

Conclusion

Corporate social responsibility is an important aspect of organizational management and regulation. It enables the organization to address the emergent and complex needs of the society without compromising its ability to meet its goals. Most importantly, it enables the organization to maintain a good moral standing that enhances public approval. The diverse benefits accruing from this also entail improvement of employee performance and overall productivity of the organization.

HSBC is an international bank that has gained prominence over time and expanded to international levels. This is attributed not only to the basic factors of production but also to its active participation in corporate social responsibility. Its emphasis on the environment, community and stakeholders has enabled it to address holistic interests of the community in a sustainable manner. From this, it has derived different benefits that continue to boost its performance. At this point, it can be concluded that its exemplary performance in the corporate sphere is contributed to by its social corporate responsibility.

List of Reference

Center for Management Research, 2005, Corporate Social Initiatives at HSBC, Making Good Business Sense, Retrieved 16th May, 2010 from, HYPERLINK “http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/CSR%20Initiatives%20at%20HSBC%20-%20Making%20Good%20Business%20Sense.htm” http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/CSR%20Initiatives%20at%20HSBC%20-%20Making%20Good%20Business%20Sense.htm

Gitshami M, 2005, An Assessment of HSBC Corporate Social Responsibility Report, 2004, Retrieved, 16th May, 2010 , from: HYPERLINK “http://www.ethicalcorp.com/content.asp?ContentID=3881” http://www.ethicalcorp.com/content.asp?ContentID=3881

HSBC, 2006, HSBC Corporate Social responsibility Report, 2005, Retrieved, 16th May, 2010 from, HYPERLINK “http://www.hsbc.com/1/PA_1_1_S5/content/assets/csr/hsbc_csr_report_2005.pdf” http://www.hsbc.com/1/PA_1_1_S5/content/assets/csr/hsbc_csr_report_2005.pdf

HSBC, 2010, Corporate Responsibility, Retrieved 16th , May 2010, from, HYPERLINK “http://www.hsbcusa.com/corporateresponsibility” http://www.hsbcusa.com/corporateresponsibility

Ravichi M, 2010, CSR in Banking, HSBC Steps Beyond the Equator Principles, Retrieved, 16th, May, 2010 from, HYPERLINK “http://www.justmeans.com/CSR-in-Banking-HSBC-Steps-Beyond-Equator-Principles/14735.html” http://www.justmeans.com/CSR-in-Banking-HSBC-Steps-Beyond-Equator-Principles/14735.html

Corporate Social Responsibility Final

Social Responsibility

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Most companies’ major aim is to maximize their profits; they work towards making sure that their shareholders wealth is maximized. Companies however have now realized that they should make sure that all the wealth of the company should not belong to shareholders. This is why companies now aim at maximizing the stakeholder’s welfare. The stakeholders are the employees, the shareholders, the customers and the society in general. This is why most companies now engage in corporate social responsibilities. This is recognizing that you owe the society you operate in, they have given the company a place to exist and welcomed them hence an obligation to cater their needs (Purdy, 2008). Corporate social responsibilities involve ensuring that businesses comply with the law, ethical standards and also the international norms.

Thomas Cook group is one successful leisure travel groups company. This can be seen by the fact that they make sales of up to 9.5 billion pounds according to their financial statements in 2012. Their customers are around 23 million that is in their economic year. The company has branches in 21 countries hence increasing their sales. The company was founded in the year 2007 and has June, and its main consumer brands consist of Thomas Cook, My Sunquest, Aitours, Direct holidays, Neckermann, Condor airlines and also Ving (Thomas Cook Group, 2010).The company has continued to invest in many countries with their aim being to provide inspiring soul searching journeys and they have continued to emphasize that the fact that they get more customers because of their ability to personalize their services and the fact that they can be trusted.

Thomas Cook group services include selling package holidays; this includes the flight and also the hotel. They offer their services through making calls but with the development of technology now they can easily do that by using online websites. Good governance has also led to the growth of this company; their board of directors has certain responsibilities to ensure that there is good governance. They have a close look at all the projects that the company can invest in and choose the most viable one; this also includes approving business plans. Board of directors also approves both the yearly and half yearly financial statements and looks for any loopholes just in case there are any. The shares of Thomas Cook group are actually listed in London Stock Exchange and the board of directors approves recommendation of final shares (Thomas Cook Group, 2010).

Thomas Cook group take corporate social responsibilities very seriously, this is because they know that their clients destinations should be places where they can enjoy. Their corporate social responsibilities are not only for the society and consumers but also the employees. The company has a large number of employees whom their associate with their success. They come up with ways to motivate them and the company sues the behavior modification approach to motivate them (Purdy, 2008) whereby the human resource manager ensures employees have positive attitude towards their job. They also ensure that their employees have good salaries and allowances; they also give them benefits like health insurance, vacation and time off. It has always been said that happy employees offer the best services and hence by being socially responsible to employees it increases their sales. It will also reduce employee turnover.

The company defines CSR as a way to enhance positive environment and they have board that’s actually involved with CSR especially in terms of taking care of the environment. They have the health; safety and environmental committee so as to evaluate if their activities harm the environment and if they do how to minimize them and them also come up with ways to make the environment better (Karp, & Thomas, 2010). They also have a hazard prevention program whose aim is to safeguard the society from harmful substances and they do this by educating the society. The company is involved in charitable activities and fundraising in the community where they also involve their employees. Thomas Cook group plc should ensure that they involve in more environment friendly activities like planting trees and also cleaning the environment. This way they will be able to improve their brand image and reputation hence gaining competitive advantage.

Ethical leadership can lead to the growth of a company; this is leadership where the leader is expected to load in a way that they respect the rights and also dignity of others. They have integrity (Cohen 2011) which makes the others trust them and follow their example. Thomas Cook Group plc leaders aim is to put the interests of others first and this is why they have established websites to listen to their customers and act effectively.

The leaders in Thomas Cook Group also ensure that the employees follow their example of good ethics. They work towards ensuring services provided are fair to all consumers and that the company is a corruption free zone. Ethical leadership in the company has helped in molding the employee’s attitudes and values leading to offering good service to their customers (Duggar, 2009).

Thomas Cook group trains their employees before hiring them and they should take this opportunity to educate them on business ethics to enhance ethical leadership. They should have a code of ethics that should be clear to all employees on what the company identifies as ethical behavior. They should be consequence to those who do not adhere but at the same time there should be rewards to those who adhere. The leaders should also come up with ways to socialize with society as their obligations are not only to motivate their employees but to ensure their customers are happy with their existence (Duggar, 2009). Ethical leadership increases employee morale and productivity.

Organizational viability is the ability of a company to survive for a long term. There is more that is needed to ensure a company’s viability. Thomas Cook has recognized that for the organization to have long term survival they need to check on their economic viability, their ethic viability and also the manageability system viability. The company’s spirit of innovation has helped in their growth and they believe it will come in handy to ensure their future existence. Thomas Cook Group plc has embraced technology and used it wisely, they have websites where customers get their services online and also where they can communicate with them by answering their questions about their products (Karp, & Thomas, 2010). This reduces costs and gains more customers for such strategies.

Thomas Cook should actually invest fully in online advertising and get more employees to work on that sector so that customers can feel like they have a one communication with them. The company should also be aware that they will have competitors who have better ways of getting customers and shareholders hence taking care of their future include having strategies to keep their stakeholders (Purdy, 2008). The company needs to have strategic plans and also get strategic leadership that is based on ethical conducts.

Legal considerations are something that all business is aware of. The government can control businesses both directly and also indirectly. They can control what businesses produces so as to safeguard interest of the consumers. There is also protection for employees to ensure that there is no discrimination in the work areas and also to ensure fair pay. There are also the legislations for health and safety working environment to protect the employees as they work and ensure no harm comes to the environment (Kish-Gephart, Harrison, & Trevino, 2010). The most common is the consumer protection legislation to protect them from fake products and also to ensure the prices are fair.

Thomas Cook Group is not an exemption and hence has to operate within the law since there is a penalty for those who do not adhere. Adhering to these laws also ensures company’s reputation is protected (Whitley, 2000). Thomas Cook group being in the tourism sector have to comply with all the environmental standards required. They have someone responsible of ensuring that they adhere to all legal requirements.

Thomas Cook Group plc ensures that they are aware of the disparities in cultures and institutional environments in most countries they operate in. This gives them competitive advantage over those companies that have no knowledge of where they are operating in. The headquarters of Thomas Cook Group is the United States and they enjoy the fact that the political scene there is very much stable (Duggar, 2009). One of the benefits they have enjoyed is being able to conduct their business in other foreign countries because the US government has enacted trade agreements with foreign countries.

The company should ensure that in all their activities they comply with government and legislations. This will enable them work peacefully without incurring costs of penalties actually having a committee that works to ensure no government or environment legislations are not adhered to. Engaging in social responsibility has led to increase in sales of Thomas Cook Group plc. People want to be associated with a company that is not selfish; one that looks at the society’s needs and provides quality products (Karp, & Thomas, 2010). Corporate social responsibility leads to a better brand image and reputation for the company hence increasing their profits.

References

Cai, L. A., Liu, J., & Huang, J. (2010). Effects of population migration on rural tourism. International Journal of Services Technology and Management, 13 (3), p. 192.

Duggar, J (2009). ‘The role of integrity in individual and effective corporate leadership’, Journal Of Academic & Business Ethics, 3, p. 1-7.

Jingting, M, Shumei, W, & Jian, G (2010). A Study on the Influences of Financing on Technological Innovation in Small and Medium-Sized Enterprises’, International Journal Of Business & Management, 5, 2, pp. 209-212.

Karp, T, and Thomas I. H. (2009). “Leadership as Identity Construction: The Act of Leading People in Organisations.” The Journal of Management Development 28.10: 880-96.

Kish-Gephart, J. J., Harrison, D. A., & Trevino, K. L. (2010). Bad Apples, Bad Cases, and Bad Barrels: Meta-Analytic Evidence About Sources of Unethical Decisions at Work. Journal of Applied Psychology, Vol. 95, No. 1, 1–31.

Purdy, J. (2008). Job Satisfaction Within a Nonprofit Organization: An Application of Hertzberg’s Motivation-hygiene Theory. Michigan: ProQuest Publishers. Print.

Thomas Cook Group. (2010).Corporate governance retrieved on 6th January 2013 from < HYPERLINK “http://www.thomascookgroup.com/” http://www.thomascookgroup.com/>

Whitley, R., (2000). The institutional structuring of innovation strategies: business systems, firm types and patterns of technical change in different market economies. Organization Studies 21/5, 855 – 886.

Corporate Social Responsibility In The Tobacco Industry

Corporate Social Responsibility In The Tobacco Industry

Author

Institution

Introduction

The performance of contemporary corporations is highly reliant on the business activities, and the efforts they make to sustain long term goodwill and reputation, which in other words is referred to as Corporate Social Responsibility (CSR). CSR refers to the subset of the overall corporate governance practices of firms pertaining to ethical and legal practices, as well as business procedures focusing on the protection of the investors’ rights and the firm’s social stakeholders. In the last number of years, there has been growing public awareness on firms’ role as far as corporate social responsibility is concerned. Quite a large number of firms that contribute immensely to economic growth have been accused of creating social problems in the host societies. In most cases, the issues that are brought up include employee safety and health, waste management, environmental proactiveness and resource depletion, as well as product quality. Corporations, therefore, are induced to show accountability to the public and not the shareholders only. As much as the manager has a social responsibility of maximizing the profitability of the company to the shareholders, there is the wider corporate governance role where the maximization of the shareholders’ wealth has to be done alongside sustainable returns for all societal stakeholders. Corporate Social Responsibility came from the realization of the need to be accountable for, as well as redress the adverse impact that transnational corporations have on society. These impacts specifically relate to labor practices, the environment and human rights. As numerous companies take on this trend, tobacco companies have not been left behind. Key tobacco corporations have come up with programs aimed at enhancing small business development, prevent crime, as well as alleviate poverty. In essence, the tobacco industry has used CSR tactics to enhance its corporate image with the press, regulators and the public who have for a long time viewed it as the merchant of death (Dorgan, 1995). However, there exists an obstinate problem that these tactics may cover up but not resolve. It is noteworthy that the products of the tobacco industry are deadly even when the products are utilized in line with the directions. In essence, no amount of effort pertaining to corporate social responsibility would reconcile the fundamental contradiction with the principles of ethical, corporate citizenship. This study aims at gaining an enhanced understanding of the CSR efforts made by the tobacco industry, as well as assess there is any significant modification in the manner in which it conducts business.

Thesis: The tobacco industry has not made any considerable modifications in the way it does business even after adopting CSR tactics. In essence, the CSR practices have only been a public relations exercise.

Youth smoking prevention

One area that quite a large number of the tobacco industry players have invested intensively in an effort to enhance their corporate image is the establishment, as well as the promotion of programs aimed at preventing youths from smoking. These programs have been created established so as to appear as if they are dissuading youths from smoking by incorporating stickers to portray smoking as an activity for adults. In addition, they incorporate stickers saying that cigarette smoking can harm one’s health. However, research shows that these programs, while aligned to the Principle of Protection of Public health and aimed at addressing the concerns of the public, have only produced contrary results (Harned 1994). The programs enhance the appeal that cigarettes have on adolescents once they depict them as a precinct of adults only. These programs have also proposed that young people be required to prove that they are above a certain age in order to purchase tobacco products at the counter (Farell, 2007). Unfortunately, these restrictions are ineffective since young people have their own way of circumventing them. In essence, it appears that these programs only serve the purpose of bringing about the appearance that the tobacco companies are providing solutions for the problems that they have created (Muller 1976). However, it is noteworthy that they, in reality, distract attention from effective and proven solutions that would be more effective than the programs. In addition, it is noteworthy that key transnational tobacco companies, as well as their trade organizations were, in 1999, found guilty of a number of offenses including “intentionally marketing their tobacco products to underage smokers while viewing them as replacement smokers” (Friedman, 2009). This, therefore, puts a question mark on the sincerity of these companies to lower underage smoking. After all, their profits are dependent on the number of people who smoke, in which case they may not have the incentive to discourage young smokers from smoking, (Fredrick, 2006).

In line with the dignity principle which encompasses health and safety, the tobacco industry has seemingly played a key role in enhancing environmental cleanliness. In 2000, BAT Malaysia’s annual report indicated that it would tackle global warming issues in line with the efforts of the government (Barraclough & Morrow, 2008). The company, supposedly, aimed at becoming a carbon-neutral business operation and was involved in negotiation for a collaborative partnership in afforestation. In essence, the company engaged in intensive projects that involved planting trees in Sabah and Pahang. However, as much as the company’s operations were said to have gone beyond carbon neutrality, the company has been skimpy about the issue of discarded packets and cigarette butts citing insufficient data on the impact. In addition, the company has never addressed the issue of passive smoking and environmental tobacco smoke, which pose a higher and more immediate risk on the health of public and the smokers (Plan 2009).

In line with the citizenship principle, the tobacco industry has been playing a key or significant role in development of communities and other philanthropic activities. When PM was changing its name to Altria, its CEO stated that it aimed at focusing its attention away from tobacco to responsibility, compliance, environment and philanthropy, among other things that it wanted the company to be associated with at the time (Hirschhorn, 2004). However, as much as it made statements founded on CSR concepts, the company soon realized that philanthropy and public relation statements were not enough to sway the investigations, and litigations, as well as internal documents that were coming to light about its underhand dealings (Hirschhorn, 2004). It is also noteworthy that while the company seeks to comply with CSR principles, it claims that the adult smoker is one of its principal stakeholders, in which case his right to make an informed choice has to be maintained. However, there is no way that the company can claim to be committed to CSR principles while half of its products’ users die of the effects, not to mention non-users who are exposed to secondhand smoke.

In Kenya, the tobacco industry has taken up community development projects. For example, the Kerio Trade Winds Project is a partnership between the community in Kenya and BAT that has the sole aim of enhancing tobacco growing activities (Harned 1994). These are seen as options of alleviating poverty thereby conforming to the poverty alleviation strategy of the Kenyan government. In addition, the Tobacco Association of Malawi joined in ILO efforts aiming at discouraging and preventing child labor practices that are deemed as abusive in Malawi’s tobacco farms (Plan 2009). However, it is noteworthy that these efforts came at almost the same time when a report by the Christian Aid that had investigated Souza Cruz, a BAT subsidiary, had exposed a wide range of abusive labor practices (Monbiot, 2006). These practices included suspected price control abuses, failure to give their workers protection against hazardous chemicals that they work with, as well as the failure to enhance the conditions where children were forced to work in the tobacco field in an effort to alleviate their family (Fredrick, 2006).

In conclusion, it is evident that the tobacco industry efforts that aim at contributing to the social welfare have not been genuine. It is, obviously, a tall order for tobacco companies to reconcile their key goal, which is to maximize profits through productions and sale of a lethal product, with the CSR goals that are based on respect for employees, communities, and even the environment (Barry, 1991). It would be foolhardy for them to call for open dialogue among the key stakeholders whereas legal testimonies and public enquiries in numerous countries around the globe attest to their strategies and actions to conceal the lethal nature of their products, destroy incriminating evidence and ruin efforts aimed at protecting public health (Hastings & Angus, 2008). As much as tobacco products are perfectly legal, they are also deadly. In essence, this fact in itself renders all efforts that tobacco companies may make at social responsibility useless (Monbiot, 2006).

References

Madeley, J , (1983), presentation to the 5th World Conference on Smoking and Health, Canada,

Frederick WC (2006). Year 1978 Walking the Talk: From Social Responsibility to Social Responsiveness. In Corporation, be Good! The Story of Corporate Social Responsibility. Dog Ear Publishing

Muller, M (1976). Tobacco in the Third World: Tommorrow’s Epidenic?, London: War on Want

Hastings G B & Angus K (2008). Forever Cool: The Influence of Smoking Imagery on Young People. London: British Medical Association Board of Science

Taylor, P (1994), “Smoke Ring: The Politics of Tobacco”. London: Panos Briefing Paper

Harned, D.A (1994). Pesticides in surface and ground water at four sites of intensive tobacco cultivation in the Piedmont of North Carolina: Proceedings of the American Water Resources Association, National Symposium of Water Quality. Chicago, Illinois, November 1994.

Plan, 2009. Hard work, long hours and little pay. Research with children working on tobacco farms in Malawi.

Farrell, B (2007). Tobacco stains. The global footprint of a deadly crop. In These Times.

Barry, M, (1991). The influence of the US Tobacco industry on the health, economy and environment of developing countries. New England Journal of Medicine

Dorgan CA (1995). Statistical record of the environment, 3rd ed. New York.

Barraclough. S & Morrow, M (2008). A grim contradiction: The practice and consequences of corporate social responsibility by British American Tobacco in Malaysia. Social Science & Medicine

Hirschhorn, N. (2004). Corporate social responsibility and the tobacco industry: hope or hype? Tobacco Control

Corporate Strategy McDonalds in Chinese Market

MCDONALD’S IN CHINESE MARKET

Name

Class

Professor

University

City, State

Date

Corporate Strategy: McDonald’s in Chinese Market

Introduction

McDonald’s is the best and largest centralized international company today. The company was started in San Bernardino California, in 1940 by two brothers Mac McDonald and Dick. McDonald’s specializes in supplying fast foods like French fries, hamburgers and many other consumable products. Currently McDonald’s operates in 121 countries worldwide and has 30,000 restaurants. For McDonald’s to invest and market its products in foreign countries, it employs three primary methods: company owned restaurants, franchising and joint ventures (DAVIS, 2000).

In China, McDonald’s is located in Beijing and other major cities and towns. McDonald’s was first opened in Beijing, which is termed as a localization or adaptation of American cities. McDonald’s opened in 1992 with approximately 700 seats and 29 cash registers serving 40,000 customers within the first few days of operation. The opening of McDonald’s restaurant in China became an instant attraction for the domestic tourists who flocked the premises and enjoyed the American culture. After opening the restaurant in Beijing, a series of restaurants spread in city of Beijing and by the end of 1996, 29 outlets were already opened all over the city. In China, Beijing has the largest market for McDonald’s that the company can capitalize on to open more outlets countrywide since the company has plans to open over 600 outlets in China by the end of 19th Century (ALON & WELSH, 2001).

The introduction of McDonald’s in China was at first greeted with a negative attitude, but later the political system accepted the idea of eating in a foreign restaurant. In fact during the National Day in China in 1993, the government organized a dinner at McDonald’s restaurant located at Wangfujing Street. Unfortunately, the largest McDonald’s in Beijing was demolished to paved way for the construction of the Oriental Plaza. The management of McDonald’s has introduced franchising method to help in the introduction of new styles of eating in the unfamiliar markets. This method has helped so many locals in China to eat from McDonald’s, which is a foreign restaurant, without fear.

The residents of Beijing see McDonald’s as a symbol of America and value it as a way of modernizing the country and the Chinese society. The success of McDonald’s products is the high standard procedures used by the staff in food production, its current executive methods and its scientific recipes (REES & POLLACK, 2004). McDonald’s is known as a large company in the American market and many youths prefer working at McDonald’s before moving from their country to go and look for work in other states or countries. McDonald’s gives the youth adequate experience that is crucial when they later seek jobs with other companies.

The introduction and incorporation of McDonald’s restaurant in the Chinese market has boosted the economy of the country because of the high sales of their products to both the domestic tourists and the international tourists visiting the country. The restaurant has high quality foods that attract many repeat customers to eat there hence is gains competitive advantage in the Chinese market (BERGSTROM, 2012).

Market and Customer

The market scope is defined as the target consumers who are interested in the products being offered by an organization. The market is defined by the total populations, which are triggered by factors such as increase in a product price and government policies. To understand the market scope of MacDonald’s, the marketing segment needs to have an understanding of the customers to satisfy their needs by offering a marketing mix that could be satisfactory to the consumers. These could be done by identifying the market segment, the distribution channels to access the target market and the resources needed to reach the market scope as MacDonald’s restaurants needs a large market size in order to have enough customers. The market scope is made of customers of different cultural differences and the customers’ behavior is affected by beliefs, custom and values (Anna, 2006).

Product

McDonald is the second largest fast food chain in China. The company has placed adaptive measures to cater for the Chinese clients’ preferences. The menu has been localized based on chicken and a few products derived from beef (Ritzer, 2009). McDonald’s offers different types of chicken sandwiches, chicken wings, fish sandwich and McNuggets. McDonald’s carry ice cream cones, the McFlurry, pineapple pies and sundaes. Their breakfast menu consists of a ham, an egg, cheese sandwich and pancakes. McDonald’s also offers soft drinks in McExpress stores and ice cream desserts, which could be delivered to the clients at a small fee. The introduction of McDonald’s McCafe in stores offers coffee, special drinks such as lattes, and sweets for the growing number of coffee customers.

Technology

Technology has played a major role in McDonald’s food stores and restaurants in the modernization of their restaurants. This is evident in the strategy to evolve their menus and their customers experience to the new nutrition- based products. McDonald’s Corporation has revolutionized the use of technology in restaurants in a bid to increase sales in terms of the speed in serving customers (Svetlana, 2008). McDonald’s has installed plasma and wireless internet platforms for free thus incorporating modern professionalism to satisfy its customers’ requirements. In addition, McDonald’s provides laptops outlets and video games kiosks to its customers making its stores a hang out place for its demographic market. The use of technological innovation has shortened the time spent on payment, processing and the preparation of McDonald’s products.

Geographic Area

McDonald’s Corporation is based upon a geographic structure that keeps major markets while expanding into emerging markets. The penetration strategy of McDonald’s restaurants in China has been enhanced with the issue of the development license, which has led to the expansion, and the creation of opportunities for the local enterprise in the Chinese market. The first McDonald’s restaurant opened in China was established in the South City of Shenzed in Beijing (Watson, 2006). Despite its late entrance to the Chinese market, it enjoys an advantage being one of the famous brands in the food industry leading to its wide expansion. Presently, McDonald’s has established its stores in over 1,100 locations in Beijing.

McDonald’s Stakeholders

Customers

At McDonald’s, the customers are treated with equality and democracy. Regardless of status or any other criterion, a customer at McDonald’s will be treated with a lot of friendliness and warmth in the restaurant. Customers therefore, patronize McDonald’s to experience moments of equality. In the Chinese restaurants, banquets are very competitive and customers try to outdo one another by ordering for the most expensive food which, in turn, causes the person sitting next to lose face. The competition banquets competition compels customers to rent private room so that they do not experience such embracement (COOMBS, 2013).

At McDonald’s, there are such occurrences since the menu is limited, there are standardized foods and the customers receive items that are of equal quality. Therefore, for people who have less money but need good meals, McDonald’s is the best alternative. The foods offered at McDonald’s offers the customers all the nutritional constituents a needed for a healthy life including water, fat, starch, protein, sugar and vitamins (BERGSTROM, 2012). Therefore, when a customer decides to spend money on a single meal at McDonald’s, he is guaranteed enough nutrition at least for half a day.

Employees

Most of the employees at McDonald’s are the youth. People prefer to work at McDonald’s because it prepares workers to be able to work in any position and from any other company. For example, the Canadian youths look for employment at McDonald’s restaurants before they seek employment elsewhere to broaden their skills. Each employee at McDonald’s plays a major role to ensure the productivity of the company. Employees work as a team and enjoy numerous benefits of being part of the McDonald’s big happy family (RITZIER, 2010). There are picnics offered to the employees that significantly motivate the employees to form lasting friendships.

Employees have the freedom to choose the time they feel is best for them to work. The restaurant ensures that employees work under very safe conditions including catering for their health and security. The employees receive promotions and motivations regularly so that they perform their duties appropriately (RITZIER, 2010). The benefits the employees get at McDonald’s include:

Group insurance plan where the Employees and their families are entitled to health and life insurance plan.

Profit Sharing where the employees get good share of profits of the company and McDonald’s is the greatest profit sharer in the whole world.

Matching Donation Programs where any charitable donation an employee’s gives is compensated by McDonald’s.

The positions at McDonald’s are categorized as follows:

i) The Second Assistant Manager whose roles are to train, motivate and coach the employees.

ii) The First Assistant Manager ensures aspects like: recruitment of new staffs, scheduling the staffs’ activities and managing all the equipment used in the restaurant.

iii) Other functions executed by the managers include performing field operation services, training the employees, developing the employees, human resource management, marketing and supply chain management.

The Suppliers

McDonald’s relies on independent suppliers who can efficiently deliver products by maintaining the company’s standards and specifications. One of the main suppliers of McDonald’s is the Bama Foods which supplies McDonald’s mainly with pineapples, apples and bean curd pies. The other supplier of McDonald’s is the McKey Food Services Ltd which is majorly based at the Shenez city. The Chinese Livestock Company also provides McDonald’s with meat. The suppliers of McDonald’s have outstanding appeal because there are no other suppliers who can meet McDonald’s high quality standard requirements.

Economics Trends of McDonald’s

The numerous branches of the McDonald’s always experience hardships whenever the economies of various countries experience inflation. Exchange rates also have effects on McDonald’s economy. McDonald’s being a business entity usually faces a lot of economic variables in its macro environment. McDonald’s should be well acquainted with the global supply changes and appreciate how the frequent currencies changes because the company sources most its products from the international markets. It is therefore evident that any change in currency and especially the dollar will affect the cost of purchasing McDonald’s products.

McDonald’s faces governmental regulations on taxes in all the nations where it operates branches. The countries have different scales of taxation which makes it rather tricky for the company to allocate funds effectively and this pose a great challenge to the company’s economy. The company also pays a certain percentage of revenue to the mother company in the U.S. The economic conditions of a country also have an impact on the business. Whenever the company tries to price products a bit higher than other foods, people will buy the cheaper foods as the consumers will prefer what they can afford. This is another challenge to McDonald’s as it must strive to capture as many customers as possible. The effect is that the company might end up making great loses. If the economy of a country is good, the consumption of the company’s products would increase regardless of the food pricing.

The Political trend of McDonald’s

The Government policies on the regulations of fast foods have great effects on McDonald’s operations. The main justification why the Chinese government is regulating the fast food markets is to promote the nation’s health by avoiding issues like the cardiovascular diseases, high cholesterol level foods and even obesity. These health issues are basically experienced by the young generations. The government also ensures that only recognized fast food restaurants get the license to carry out the business. McDonald’s needed to create good rapport with the government so as to succeed in the business. When employing the staff, the company must ensure that the employees are hired, compensated and trained according to the stipulated laws of the nation.

The Social Trends of McDonald’s

McDonald’s is taking into consideration the changes in lifestyle of China which is as the result of the development of the economy. The customers are able financially and can eat in very expensive outlets, but despite this fact, customers expect to be served with quality services. McDonald’s is working towards providing the best quality services to the customers and to therefore enjoy the market advantage against other restaurants. The best services given by McDonald’s that makes it different from others restaurants derive from the cutting edge technology. McDonald’s offers several convenient services for the customers including credit card payments, wireless internets, cozy and ambient relaxing points and refreshments.

McDonald’s has also tried to offer menus that favor different cultural beliefs; for example, the Hindu people don’t take meat therefore the company has a menu that favors the Hindus; the Muslims don’t take pork products therefore the company offers an alternative menu for the Muslims. The Chinese also have menus that favor their culture; the Asians like rice while Americans have preference for big sized menus (STOJIC & PFAJFAR 2010). McDonald’s should continue doing more market research and establish what the customers eat as far as culture is concerned.

The Technological Trend of McDonald’s

Technology is not a major macro environment factor in a fast food restaurant. Nevertheless, the company should do a deeper market research to know the new trends that will help in managing its operations. The main technological trends that the company should look into are the supply chain trends so that they supply their products to the customers in the most current technology. The payment systems should also be of modern technology, and the customers should also be able to access the restaurant through the internet (STOJIC & PFAJFAR 2010). The technological methods can be good cost savers both for the customers and the company.

McDonald’s Global Trend

In the first quarter, the leading fast food restaurant in the world had a marginally higher income which was at $ 1.27bn, but the global sales later on fell by 1%. The company says that the drop was due to the harsh winters in the U.S and the Europe. McDonald’s is also facing great pressure from its competitors. The Yum Brands which is the owner of the Pizza Hut, Taco Bell and the Kentucky Fried Chicken is posing a great challenge to McDonald’s as it is rising very fast. The Burger Kings have also redesigned their products in a more appealing way posing another great challenge to McDonald’s (OVERSEAS MISSIONARY FELLOWSHIP, 2008). Following the disappointing third quarter, McDonald’s is trying to make up for the fall so as to get a better response to the continuing financial crisis that is faced globally.

The major focus of McDonald’s for the year 2013 has been to improve its menu and develop innovative products that are very profitable. The company is also working towards producing products that are less time consuming like the chicken bacon and onion sandwich (OVERSEAS MISSIONARY FELLOWSHIP, 2008). Even though McDonald’s is trying to globalize its products, it is vastly experiencing great resistance from different cultures, for example, Japan resisted McDonald’s foods saying that the food caused obesity.

McDonald’s Regulatory Trends

McDonald’s company has taken strong measures to ensure that the business is conducted in a very ethical way and that the business activities comply with the rule of law. The commitment to attain the rules derives from McDonald’s core values. McDonald’s employees have the responsibility to abide by each value including the values of honesty and respect. The commitments are clearly spelt in the company’s Standards of Business Conduct that guide employees to conduct themselves in an ethical fashion (OVERSEAS MISSIONARY FELLOWSHIP, 2008). All the employees of McDonald’s must read McDonald’s Standard of Business conduct and accept to abide by the set rules. McDonald’s organizes a number of workshops and seminars to train the employees on the standards, laws, regulations, and policies that govern the company. All the employees of McDonald’s must obey the Foreign Corrupt Practices Act (FCPA). The (FCPA) act generally strives towards ensuring that politicians or political parties do not use their powers to manipulate or exploit businesses.

The act also ensures that giving bribe to any government official, private businesses, or individuals is prohibited. The employees of McDonald’s must certify yearly that they agree with the FCPA and their local act. The global compliance office of McDonald’s regularly monitors the company’s policies so as to prohibit unethical acts like bribery, money laundering and the chances of conducting business with terrorists (BARNEY & HESTERLY, 2012). This monitoring process is directed by the United States Patriot Act, the FCPA and the Executive order which is 13224. McDonald’s is also required to adhere to the general laws of business operation set by the Chinese government.

Uncertainties of McDonald’s restaurant in China

McDonald’s China faces several challenges despite having a strong brand in the industry. Some of the uncertainties are the pressure derived from the competitors, the government control and political risks, the market cultural differences, an increased labor cost, and the inherent inefficiency in the supply chain.

Competitors

The major competitors to McDonald’s are the Kentucky Fried Chicken and other Yum Brands. This is due to the late entry of McDonald’s in the Chinese market, its strategic decisions, and the localization of the products offered in China by the competitor Kentucky Fried Chicken. McDonald’s faces a major problem from its competitors through its weak copyright issue. Being a globally known brand McDonald’s facing the challenge of the imitation of its product and logo design (Chan, 2009). McDonald’s has the least market share in comparison to its competitors which leads to wrong customer’s perception about the available products and services. This is due to the food quality, diversification and maintenance of lower prices on the products by competitors like Kentucky Fried Chicken in comparison to those of McDonald’s.

Government Policy and Legal Factors

China is faced with the challenge of corruption in the political and legal system that has been catalyzed by lack of transparency in its judicial structure, which does not have binding precedential value. Foreign companies, therefore, do not receive adequate legal and political representation in China. Land ownership is not transparent inevitable, as the government owns the land. The business operation of McDonald’s faces numerous challenges since it entails large amounts of property transaction and privatization of land does not exist (Brown & Ganguly, 2008).

Cultural differences

The diverse Chinese consumption habits are based upon the different cultural beliefs. These consumption habits dictate the taste preferences of the people in towns like Beijing. The cultural food practice determines which foods qualities are accepted by the people. Some cultures in China castigate the consumption of fast foods leading to poor sales of these foods in such regions. McDonald’s Corporation operates a few stores in China as compared to Kentucky Fried Chicken owing to the culture barrier. Kentucky Fried Chicken adapted their products to fit the cultural expectations of the local people before McDonald’s discovered the strategy. McDonald’s has consequently conducted several market researches and initiated strategies to ensure that its fast foods are consistent with the local cultural beliefs. Tailoring the fast foods to fit the local taste and to obey the local cultural beliefs is the only sure strategy for McDonald’s to maintain its undisputed fast food leadership in China (Rein, 2012).

High labor cost and food price inflation

The Chines government’s decision on labor and the one-child policy have caused a decline in the labor pool. The decrease in population in China has increased the labor cost (Scharping, 2000). The cost of living has become expensive hence the wages that McDonald’s pays its employees have also increased. McDonald’s Corporation is faced with the challenge of the rising expectation of customers who want to pay less for products. Such customers perceive the fast foods offered to be of low quality just like their counterparts in America. The price of food has increased affecting the fast food chain in China. The high global commodity prices have broadened the inflation rate and threatened economic growth. Due to this situation, McDonald’s and other food stores have escalated the food prices leading to customers’ frustration. Despite China having the largest population in the world, its food supply chain relies on the small food producers. The big difference between the producers and consumers of fast foods In China calls for mass production that has made McDonald’s to face numerous challenges in managing its supplies (Schütte & Ciarlante, 2010).

Uncertainties Description

Competitors The major competitors of McDonald’s are the Wendy’s, Burger King, Subway, Pizza hut, KFC and the local fast foods. The competition is heightened by strategic decisions, and the localization of the products offered to in China by McDonald’s competitors. McDonald’s has the least market share as compared to its competitors, a situation that creates wrong customer’s perception about its product and services.

Government Policy and Legal Factors

Corruption in the political and legal system has been catalyzed by lack of transparency in China’s judicial structure, which does not have binding precedential values. Foreign companies therefore do not receive legal and political fairness. The operation of McDonald’s business endures numerous challenges as it is involved in large amount of property transaction and privatization of land does not exist.

Cultural difference The Chinese consumption habits differ from the American consumption in various respects. Various Chinese cultures have their unique consumption habits that explain the differences in their taste preference. McDonald’s Corporation operates a few stores in China as compared to Kentucky Fried Chicken. This is factual because the company tailors its products to fit the local taste as dictated by the local cultural beliefs. The reengineered strategy by Kentucky Fried Chicken is a product of several researches that have also motivated McDonald’s to come up with products that fit the local needs of the Chinese market and to appreciate the consumer habits of the Chinese people.

High labor cost and food price inflation

The Chines government’s decisions on the labor and the one-child policy have caused a decline in the labor pool. The increasing labor costs have ultimately raised the cost of living. The price of food has increased and affected the fast food chain in China. The high global commodity prices have broadened the inflation rate and threatened economic growth.

Basic Trends and Uncertainty

These are the factors that McDonald’s considered when examining China as an appropriate location for starting its business. These are also the appropriate approaches for highlighting the general business environment to help in managing the coming opportunities and threats. The potential changes in the environment are determined through analyzing the economic, environmental, political and regulatory, cultural, social conditions as well as technological issues to ensure that the business operates effectively. These trends are analyzed below in detail in relation to the Chinese market.

Economic

The growth of the economy in any environment or country has significant ramifications on the activities of small marketing enterprises (SMEs). The exchange rate, employment levels, banking policies, interest rates, inflation rates, Gross net product (GNP) trends, Gross domestic product (GDP) per head, fiscal and monetary policies, availability of raw materials and energy are some of the factors considered in economy analysis. The growth trend of GDP per capita of China in the 19th century provided a concord GNP indicator and highlighted that the country had sustained a continuous rapid growth in terms of GDP per person. This gives an indication that each person in the country is creating more value to the society leading in the high purchasing power of customers (Mathews & Lü, 2001).

Sometimes businesses are slowed down by economic development trends like higher prices of property and high rates of inflation though the situation of the economy seems to be good. Recent news of businesses in the Chinese market show that consumer price index went up by 6.1 percent from a percentage of 6.5. Food prices rose up by more than 13 percent; this is the most sensitive part in the government’s budget. The overall economy in the Chinese market with respect to McDonald’s restaurant has slowed down for three successive quarters but McDonald’s in Beijing have endeavored to reduce inflation and slow growth.

The interest rates have been increased for last five years by the people’s Bank of China and the Central Bank of China (BERGSTROM, 2012). The reserve requirement for commercial banks has increased nine times hence banks have reduced the lending limits on basic needs like food to control consumer and property prices. Turbulence in the economy is very significant since it can affect the shift of demands of segments in the Chinese market. For example, the world’s economy was recently shaken by forces emerging from citizens having less disposable income, issues with credit crunch, less gross demand of products and wild unemployment in nearly all the major economies.

High interest rates and inflations have also affected the major geographic markets of McDonald’s hence leading to decreased sales and increased costs of running the business. McDonald’s and many other businesses experience the aftershocks caused by a lagging economy. Reasonable prices of McDonald’s menu ad a wide range of foods have been adopted following the appreciation of the fact that economic turbulence are ever enduring (DAVIS, 2000).

Political

Legal issues, formal and informal rules which govern the company and government regulations are part of the political conditions in the Chinese business environment. Research shows that political conditions are the most turbulent forces in any business environment. The Chinese government has attached great significance in the past one decade focusing on the development of e-commerce. These steps that promote e-commerce include the summaries of the Middle/Long term Science and Technology Development Plans of government of China, the growth of the Development of Information Industry Plans in the Eleventh Five-year and Long term Plan in vision 2020 in the ministry of information industry.

The Chinese legal structure for e-commerce is in its promising phase in terms of the legal structure governing the Chinese people (DAVIS, 2000). However, the system has been experiencing some problems in its current stage. There is no sufficient knowledge in the Chinese government for drafting issue pertaining to e-commerce legislation like rights to intellectual property, security in transactions carried out in the country, protection of property and taxation of products in the country. All these laws help the government to earn some income from the transactions taken by the business people internationally and locally.

The Chinese government is drafting some laws supporting the critical areas like the rights of consumers, privacy in business sector and acknowledgment of digital signatures and validation of contracts in the electronic world. The Chinese legal system is developing slowly to meet the demands of the e-commerce sector (REES & POLLACK, 2004). McDonald’s is therefore, compelled to adjust its operations due to the Political shifts in China.

McDonald’s is developing ways to ensure that political changes in China will not directly affects its business in future, but it will remain stable in the midst of any political storm. This has been made effective by having partnership with Sinopec, which is the largest oil operator in China. The rapid growth of the Chinese population has really encouraged McDonald’s to open more restaurants in the country (DAVIS, 2000).

Social

The society needs to be analyzed keenly to understand the cultural and social environment in the world of business. Changes in demographics like movements, age distribution and population growth are significant because they have some effects on the cultural values and changes in social trends such as social behaviors and growth of the family (REES & POLLACK, 2004). Several other social factors that abound include environmental issues, immigration/emigrants, consumer lifestyles, religion, demography and education. As the Chinese economy grows, the growing population will require the use of the internet that McDonald’s has capitalized on to promote its sales.

China’s online shopping had a turnover of $80billion in 2010 and this is growing year in year out. 420 million Internet users in China spend approximately a billion, dollars every day on internet use, and around 15 million did purchase of goods online. Since the purchase of goods online is effective the Boston Consulting Group is predicting an increase of such by the year 2020. This will be easy because the e-commerce has changed the thought of consumers of goods in China about shopping online.

People are being warned about online, shopping since it has cheating and fake goods and this is a draw back to business world although the genuine business men try to ensure that the online products are quality. The Chinese business requires face to face transactions in order to build trust to the consumer, which is related to Hofstede’s notion of individualism-collectivism.

 Technology

Factors influencing technology include new mechanisms of purchasing, development of new products, new working methods, new mechanisms of distribution and new production technology. The largest technological problem affecting the development of the Chinese B2C industry is the lack of secure and stable online payment systems. According to research, the online payment system is affected by the Chinese consumer’s favorite for high Uncertainty Avoidance Index (UAI

CORRECTION UNIT 3, inmates working under various fields

CORRECTION UNIT 3, inmates working under various fields

Name

Institution

Several private industries provide employment for inmates who are still in incarceration. Various correctional institutions have an arrangement with private establishments to offer job opportunities to inmates with the aim of assisting them to reform. Indeed, this is a risky job but there are pros associated with such opportunities. Such jobs are community related works that may include clearing of bushes, painting public places such as schools, and making general repairs within public areas.

One of the pros associated with inmates working under various fields is that the offenders are able to earn on an hourly basis. In turn, this provides the inmates a legit source of money to cater for their needs. Inmates are expected to meet their financial obligations such as court-ordered fines and child support. Subsequently, having a job is a vital source of funds to sustain these needs. Other than the money, inmates are also able to source practical skills within the various places of work. In turn, the inmates are able to utilize these skills upon their release from prison. Additionally, providing the inmates with work offers them a chance to redeem themselves and have a feeling of appreciation and belonging (Skapinker, 2012).

Employing prisoners has key advantages, but at the same time has demerits. Some people feel that employing prisoners and paying them wages similar to the payments made to honest people that are not in incarceration is unfair. Additionally, cases may occur whereby the prisoners extend their hideous acts to the places of work, for example, stealing. Nonetheless, these programs have proven to work and provided chances for prisoners to reform. The Work In Lieu of Jail Program is an example of a program under implementation in Washington County (Sherriff’s office Washington County, N.D.). This is a successful weekend program that provides prisoners with a meaningful way of spending the weekend. In addition, the program has been a success because of the funds contributed towards its course from the inmates’ earnings.

References

Sherriff’s office Washington County, (n.d.). Inmate Work Programs. Retrieved on April 9 2013 from >http://www.co.washington.or.us/Sheriff/Jail/JailPrograms/inmate-work-programs.cfm<

Skapinker, M., (2012). The pros and cons of employing prisoners. Financial Times. Retrieved on April 9 2013 from >http://www.ft.com/cms/s/0/507ec196-fbf9-11e1-aef9-00144feabdc0.html#axzz2PxOTA0ap<

CORRECTIONAL SERVICE OF CANADA

CORRECTIONAL SERVICE OF CANADA

Name:

Institution:

Course:

Tutor:

Date:

Abstract

The Ashley case turned out to be an outspoken case on inhumane treatment of Canadian mental case inmates after she committed suicide in one of the confinements in attempts to attract attention to the institution’s management. She threw a crab to a mails courier while at 14 years of age and was imprisoned for five years with multiple relocation of charges, which saw her serve her sentences at different institutions in the country.

Discussion

The investigation into the case revealed that in the five years of her imprisonment, she suffered multiple violations to human rights, which included physical abuse, forced medical injections, having duct tape, hooded as well as physical harassment through being sprayed with pepper. As Moore reports, Ashley chocked to death while in prison after the seniors instructed the wardens on duty not to help her. Nevertheless, when investigations commenced on the cause of the inmate’s death, the report shows how the institution avoided accepting the facts of its negligence in handling inmates and this reveals the inhuman spirit dominating the penal system in Canada. The influence of the system comes in even during investigations where initial efforts to investigate the matter are halted prematurely on arguments of controversies and interference. The lawyers of the institutions in many instances motioned the blocking of exhibits presented before the court revealing Ashley speaking. However, this case is not in isolation as the recent past has seen a number of such cases being investigated in the country. This was confirmed by a report by Mr Saper who pointed out to grievous inadequacies over the entire penal system dealing with mental health cases of inmates. He argues that the systems cultivate lawlessness as well as disregard to rights of inmates. For instance, Julie Bilotta is said to have given birth in 2002 in a prison after the prison wardens failed to heed to her call on labor. This in brief reveals how corrupt the system of justice in Canada perpetrates violations to human rights under the coverage of purporting to instill justice and corrective measures within the nation (Moore, 2013).

The mental health functioning in the Canadian prisons is poorly acknowledged as shown by the physical conditions in which the inmates are confined. For instance, deprivation of necessities, isolation from fellow inmates as well as the physical separation from close relations and family are not appropriate conditions to have the mentally ill inmates subjected to. Besides, the prison facilities are often overcrowded, stressful, violent, unpredictable, restrictive and in instances very noisy, conditions that would worsen the cases of mental illnesses for the inmates. Moreover, some of the facilities are reportedly out of service and fails to have appropriate facilities to respond in therapy of such mental cases. It is also shown from the case of Ashley that the prison staff, who are expected to be professional fail in delivery of service to the inmates and create about conflicts of interest. Such conflicting objectives create dilemmas such as treatment versus security, patients versus inmates, control versus assistance as well as hospital versus prison, which are all basic tenets to be taken care of for the sake of effectiveness in handling inmates for correctional purposes (Sapers, 2011).

The foregoing discussion shows inadequacies with the CSC (Correctional Service of Canada) to handle the ever-increasing cases of mentally ill inmates confined within the state’s prison facilities. Through the system shows increased efforts towards reforming the correctional service in Canada, the cases shown above reveals high need to have the reforms for effectiveness and efficiency. Besides, reports show increased number of such cases of suicide of inmates with mental illnesses in the recent past (Perkel, 2013). For instance, the case of Ashley as have been in discussions over a long period shows that there are conflicts of interests between the management and the service delivery towards inmates. Ashley’s death occurred amidst her appeals for help from the prison wardens but who had received an instruction not to attend to her. It should be understood that responding to mental illness needs for inmates is a technical process, which requires special skills and physical facilities. Julie Bilotta’s case shows that the system fails to have appropriate mechanisms to attend to such emergencies, which are expected within confinements of inmates. The wardens on duty overlooked Bilotta’s calls on labor and this shows the increased conflict of interest between human rights as well as corrective systems. It is the responsibility of the prison system to ensure safety and security to inmates, regardless of their physical conditions. Security and safety in this case implies shield against physical torture or mistreatment by the authorities in the prison as well as assurance on matters of health and good living conditions. This insinuates the incorporation of human rights in corrective system in Canada as represented by CSC (Correctional Service of Canada) is poor and as such would need to be addressed. Besides, prisoners are equal human beings and are therefore entitled to such rights as security, food, housing, health, legal aid/representation as well as rights to interactions with other people (though to some restrictions as deemed right by authorities) (“Prisoner’s Rights”,nd).

Women form the most misunderstood and neglected segment in systems of justice and according to the relational psychology as applied in psychologists, women’s offending behavior may result from violations of their rights (Covington, 1998). The case of Ashley’s death reveals offending behavior by the inmate towards the warden, which would be explained through the rational. This therefore is evidence that the CSC has not taken the rational into account while handling the women inmates especially the mentally ill ones.

Recommendations

Effective management of social vices from mental illnesses requires early detection and intervention through such means as medical care right from the society and not necessarily through incarceration. Nevertheless, the inter-sectoral disciplinary agencies and organizations within the justice system need a national strategy, which would coordinate such efforts towards confinement of mentally ill inmates. The strategy would ensure integrity in coordination as well as integration of services accorded to such inmates. The country needs to address such issues that result to stress and in the event raises levels of vulnerability of persons to criminal justice system. This means that a national system to address cases of vulnerability such as drugs and substance use, social marginalization and exclusion among other factors is necessary to aid in management of prison and such correction facilities in the nation.

References

Covington S. S., (1998). Women in Prison: Approaches in the Treatment of Our Most Invisible Population. Women and Therapy Journal, 21(1): 141-155

Moore D., (2013). Ashley Smith case: Time to end ‘the ugly spirit of our penal system’ Retrieved from http://www.theglobeandmail.com/globe-debate/ashley-smith-case-time-to-end-the-ugly-spirit-of-our-penal-system/article7354170/

“Prisoner’s Rights”,(nd). Prisoner’s Rights. Retrieved from HYPERLINK “http://nolegalfrontiers.org/general-information/prisoners-rights?lang=en” http://nolegalfrontiers.org/general-information/prisoners-rights?lang=en

Perkel C., (2013). Ashley Smith inquest: Gaps persist in managing mentally ill prisoners. Retrieved from HYPERLINK “http://www.ctvnews.ca/canada/ashley-smith-inquest-gaps-persist-in-managing-mentally-ill-prisoners-1.1499019” http://www.ctvnews.ca/canada/ashley-smith-inquest-gaps-persist-in-managing-mentally-ill-prisoners-1.1499019

Sapers H., (2011). Mental Health and Corrections. . Retrieved from http://www.oci-bec.gc.ca/cnt/comm/pdf/presentations/presentations20120318-eng.pdf

Corrections Past and Present

Corrections: Past and Present

Name

Institution

Corrections: Past and Present

Punishment in the form of prison sentences, form an integral part of the current United States justice system. The previous system within which the prisons were used to house individuals unable to pay fines, or awaiting trial, if it had been allowed to exist to date, would no doubt have led to a situation in which there was not only overcrowding, but also numerous injustices to those accused of minor crimes (Fellner, 2006). Housing individuals even for very small crimes would serve to perpetuate the labeling theory and serve as an injustice a huge majority. More so considering that concepts such as innocent until proven guilty, which play an integral role in contemporary society would be massively abused, more so if those awaiting trial were held in the same place as those who have been tried and found guilty (Barnes, 1921). The prison system also provides an opportunity through which rehabilitation, and rehabilitative services can easily be offered. Sticking to the old system would not only have brought about a situation in which the prison systems were easily open to undue abuse and easily distorted the main reason behind the concept of denying an individual, or one found to be guilty their rights to freedom. Conversely, the existence of the current systems of incarceration serve two aspects of justice that the old system as it was, definitely would not accomplish: the prison sentences act as deterrents to future criminals, as well as serve to remove the dangerous criminal elements from society, and preventing any further participation in crimes, by the individuals identified to have been culprits (Langan & Levin, 2002). The system as currently exists, also provides an opportunity for the correctional approaches and any rehabilitation engagements to be applied uniformly to the incarcerated individuals.

References

Barnes, H. (1921). The Historical Origin of the Prison System in America. Journal of theAmerican Institute of Criminal Law and Criminology 12(1), 35-60.

Fellner, J. (2006, November 30). U.S. Addiction to Incarceration Puts 2.3 Million in Prison.Human Rights Watch. Retrieved from HYPERLINK “http://www.hrw.org/en/news/2006/11/30/us” http://www.hrw.org/en/news/2006/11/30/usaddiction-incarceration-puts-23-million-prison

Langan, A., & Levin, D., (2002). Recidivism of Prisoners Released in 1994. Bureau of JusticeStatistics.

Responses

Demond J. Lemieux

Demond raises valid arguments that the existence of prison sentences is the only sure way of ensuring justice. Indeed, although the prison sentences meted out to the criminals are usually in order to punish them for their wrongdoing, these sentences also usually serve as deterrents to any such future behavior. While it does follow the principle of retributive justice, it does fall in line with what the justice system mainly aims to accomplish, if due to anything; the simple fact that it removes the criminal elements from society preventing any further engagement in criminal activities as already stated above. Indeed Lemieux’s claim that some rehabilitative programs do not work is very valid, as a huge majority of such programs are hinged on the ability of the perpetrator to seize the initiative and genuinely want to change, a question that is more often than not unsuccessfully pursued.

Christine Morgan

Christine Morgan’s arguments are very succinct and aptly capture the importance of the prison system as it currently is. The current arrangement has served to eliminate the unnecessary use of excessive punishments such as the death penalty, and made punishment proportionate to crimes committed. Morgan also highlights the important role of deterrence that the system plays, not to mention the level of retribution it offers, especially to those who are affected by the crimes committed. She also seems to agree with the main concept of incapacitation, in the sense that prison terms as they currently exist, deny perpetrators the opportunity to commit further similar crimes, as would otherwise be possible in the past, following the payment of fines as would previously be required by law. I therefore, agree with a majority of the arguments posted by Christine Morgan.

Corrections Trend Evaluation

Corrections Trend Evaluation

Name

Institution

Corrections Trend Evaluation

Introduction

Correctional facilities have been part of the judicial system in many countries for a long time. Their continued existence is a product of the important functions the play in the judicial system. These includes ways that have been defined in law for dealing with criminals and offenders as retribution for their actions and to enable rehabilitation so that they are fit for integration back into the community by the end of the recommended period. Correctional facilities are used in the rehabilitation of individuals who have been caught and tried for breaking a law. The main aim of correctional facilities is to protect the members of the public from dangerous and potentially dangerous criminals who are a menace to the society. It then deals with the offenders to prepare them from re-entry into the society once they have served their time. Institutional corrections facilities are prisons where offenders and criminals are sent, away from the community, for incarceration so as to correct their behavior. They ensure the offenders cannot harm the community by putting them away, usually for the duration of their sentence or until they get paroled, when they are allowed back if they have demonstrated change from their previous behavior. Community based corrections are as a result of these and involve the rehabilitation of the offender within the society. They include options such as probation, community service and fines. In this system, it is hoped that the dominant values express concern for the victim, offender, community and agency (Sieh, 2006). The society has a crucial role to play in the successful and complete rehabilitation of an offender and their eventual integration into the society. This paper seeks to identify the evolution of institutional and community based corrections including expected future trends, as well as issues facing them. Alternate correction systems are also considered as they are an essential aspect of future correctional system that should be integrated in the judicial system.

Institutional and Community based Corrections

The concept of using institutions such as jails and prisons as correctional facilities for offenders became popular in the nineteenth century. Societies, both past and present, that are viewed as barbarous typically maintain inhumane prisons in which inmates have few civil rights (Whitehead, Dodson & Edwards, 2012). During the early times, the main use of these facilities was to detain and control individuals who were disturbing peace. Cells were used to accommodate those detained. However, the needs of the detainee were not taken care of while within the cell. The cells were not well taken care of, and those detained did not get proper care and food (Siegel, 2010). The detainees were released through pardon. During this period, the jails were indiscriminate, and men, women and children were all placed in the same jails. The conditions were still not up to par and those inhabiting these jails were not accorded proper care. As a result of these, there were constant pressures to improve the conditions in the jails and provide proper cells for offenders. An example is the Pennsylvania legislature in 1790 which called for the renovation of the prison system (Siegel, 2010). The result of the law was the rise of modern prisons and penitentiary that served the purpose of housing offenders and criminals. The initial prisons were used to contain prisoners in solitary cells and harsh punishment and silence were used to rehabilitate them. However, the current trend in prisons involves the use of physical and hard labor as part of the rehabilitation process as well as advocating for the rights of prisoners. Prisoners are involved in production of goods and working in the prisons at low wages. In addition, they incorporate information technology in the protection, supervision, time management and collection of biometric data from the prisoners (Siegel, 2010). They assist in easing the procedures and making them more accurate and efficient. Prisoners are housed under better conditions and provided with uniforms and other utilities that they require. Release of the prisoners is dependent on the duration of their sentence, parole and pardon. As the most popular correction system during the late 19th and 20th century, prisons have become quite overcrowded hence compromising their effectiveness in keeping prisoners safe and rehabilitating them.

The federal government and the state continuously experience exponential growth in the prison population yet resources are diminishing as a result creation of alternative form of punishment both prior to and after incarceration is becoming a necessity rather than an alternative (Bandy & Steen, 2007). To addressed the issues that have been brought about as a result of overcrowding in prisons such as reduced supervision as the ratio of prison wardens to prisoners is high, the has arisen a need to explore other correction options within the justice system. Community based corrections are a form of alternative correction systems that have become popular in the recent past. They provide lighter sentences for offenders who have not committed serious crimes under the supervision from officers in the justice system such as parole officers and police officers. Most of these are first time offenders or those who have been given parole from prison as a result of good behavior or other such attributes. Community based corrections come in the form of probations, halfway houses, community services, house arrest, day reporting centers and fines. These are the most common present day trends in community based corrections.

The current issues facing prisons include budget cuts, overcrowding and prisoners’ medical needs especially mental health. With the recent budget cuts for prisons, there are fewer funds for their management. This affects the conditions of the prisons as expenditure adjustments have to be made to accommodate the new budget allocations. As the prisons are already facing pressure concerning the conditions and civil rights of the prisoners, lower funds will make the situation worse. Overcrowding is also a substantial problem as it compromises the safety of the prisoners and the public as well due to the high numbers of prisoners. Prison administrators are not added as required when the number of prisoners increase and hence it is hard to control them and, therefore, more likely for incidents like prisoners escaping to occur. Another key issue is that of medical health among prisoners. In some cases, prisoners with mental issues are put in the same area as the rest of them thereby posing a risk to the prisoners. Mentally unstable prisoners are likely to commit heinous crimes even within the prison walls as they are not in full control of their actions. These issues are likely to continue into the future if not addressed thereby causing major problems within the community and prisons themselves. Prison administrators are also faced with many issues as a result of changes and conditions in the prisons. They include reduced training capacity when dealing with prisoners as well as high ratios of prisoners to prison wardens. It hinders them from effectively carrying out their work as they may not have the right training to deal with certain issues. Training on the current changes in the system and ensuring adequately trained officers are some of the ways in which the issue can be tackled within the prison system.

The use of alternate correctional systems within the judicial system has become a developing trend over the last few years. They include community based corrections that allow the rehabilitation of a prisoner outside the prison. This will contribute to the reduction in overcrowding in the prisons and provide an opportunity for behavioral reforms in individuals with the help of the community. Such alternate corrections will require the use of more supervisors in order to make sure that the affected persons adhere to the regulations set for their community based corrections. “Unemployment, broken families, lack of housing, alcohol and drug abuse, histories of psychological problems and mental illness, domestic violence are realities that are likely to be found in most offenders’ lives” (United Nations, 2006). When these are addressed, some individuals who have been led to commit crimes as a result of the above are likely to become law abiding community members. Alternative correction methods are some of the ways through which issues in prisons can be addressed.

Conclusion

Institutional based correction systems are closely being analyzed to determine whether they are the only adequate ways of dealing with offenders. Due to the current issues of overcrowding which have compromised the safety of the prisoners and the public in general, other alternative systems such as community based corrections are being explored as a way of dealing with offenders of less serious crimes. Community based corrections include half way houses, community service, rehabilitation centers and probations under the supervision of an officer to ensure no conditions set are violated. They allow the judicial system to relieve the pressure of prisons by only sending in those offenders who pose a threat to the community hence reducing overcrowding. More alternative corrections system should be explored to provide opportunities for effectively handling offenders within the judicial systems.

References

Bandy, Rachel & Steen, Sara (2007). When the Policy becomes the Problem: Criminal Justice in the New Millennium. Punishment & Society, 9(1), 5–26.

Siegel, L.J. (2010). Introduction to Criminal Justice. Belmont, C.A: Cengage Learning.

Sieh, E.W. (2006). Community Corrections and Human Dignity. Sudbury, M.A.: Jones & Bartlett Learning.

United Nations. Custodial and Non-custodial Measures: alternatives to Incarceration. Vienna: United Nations.

Whitehead, J.T., Dodson, K.D. & Edwards, B.D. (2012). Corrections: Exploring Crime, Punishment and Justice in America. Waltham, M.A.: Elsevier Inc.