More Than Just Race

More Than Just Race: Being Black In The Inner City William Julius Wilson Chapter One Synopsis In this Chapter, the author introduces his backstops and the way people react around him despite the fact that he Is a Harvard professor. Many of the residents in his bullying get nervous because he Is black when he rides the elevator with them. However, despite the fact that he Is discriminated against when he Is out of his suits, he states that he cannot blame them for being nervous around him.Due to the criminal and violent history that African Americans have today, as well as the media arterial of African Americans, many people get a pre conceived racist notion of how all black males are. Wilson thoroughly explains that because of the changing society, racial Inequality has continued. â€Å"In the last several decades, almost all of the Improvements In productivity have been associated with technology and human capital† (Wilson 182). Although the changes in the work force have bee n helpful to higher skilled workers, they have made finding Jobs for lower skilled workers almost impossible.Because of the segregation in housing, schools are also segregated and African Americans do not receive the same education that whites do. The fact that African Americans are restricted to communities that have higher unemployment rates, and lower education opportunities, blacks suffer at a disproportionate rate. The culture already instilled into inner cities, racism continues to prevail. â€Å"Culture is closely intertwined with social relations in the sense of providing tools and creating constraints in patterns of social interaction†. (Wilson 319).Chapter Two Synopsis In this Chapter the author describes â€Å"structural forces† that have made an impact on the black community. He discussed forces that were influenced by race and those that still had an impact on the black community nonetheless. In the late sass's there was very little discussion about the ch allenges inner city blacks faced. The lack of public awareness of the challenges inner city blacks face has contributed dramatically to the declining neighborhoods and the huge gap between race and income between inner city ghettos and urban areas.The Second Migration from the South to the North in 1970 was put to an end because of the decline in employment in the inner city. Because of this migration, areas that were once greatly populated by grants were left almost completely abandoned by the employed middle class. Cultural forces as well as Structural forces play important roles in understanding the effects of living in poor segregated areas. Although culture is a major part of the outcomes inner city blacks face, they are nothing near the impact political forces in combination with economic forces produce in the inner city areas.Structural forces on poverty stricken areas have a much greater significance than cultural forces. Chapter Three Synopsis In this Chapter, the author ex plained that even though both structural and cultural explanations restrict African American male progress, structural explanations of the economic downfalls of low skilled African Americans play a much larger role than cultural explanations. The computer revelation in today's Job market has decreased the demand for low skilled employees and has restricted African Americans males from finding employment in Jobs that in the past would offer them positions.The growth of service industries has also put a holt in the availability of employment to black males because of the demand for workers with education and at least a small amount of skill. Service industries only offer Jobs that require workers to serve and relate to customers. Black males have a difficult time getting into this type of industry because often times, employers believe that women and â€Å"recent immigrants of both genders are better suited than black males†. The employers beliefs that women are better suited t han back males comes from the high violence rates in the inner city ghettos.Because of these violence rates, employers view blacks negatively. This violence also played a major role in the legal system and resulted in the higher incarceration rates of black males. Because of these forces, both cultural and structural, the demand for employment of low skilled black males has become increasingly lower, especially for the ones who have prison records. Chapter 4 Synopsis In this Chapter, Wilson discussed the downfalls of poor black families. In a study collected about poor families, it was found that in the U.S. Poor families tended to be ran by black woman and 31% of all poor households were ran by young black women. Account for only 12% of the United States population. Willow's study of family life in Chicago revealed that marriage has declined at a much faster rate among young, unemployed black fathers than it has for young employed black fathers. However, findings from research did not find a string correlation between employment and rates of marriage. In the case of marriages among black cultural influences trump structural ones.Studies also revealed that responses between employment and marriage among poor women, despite race remain similar. Just like in all previous chapters, the segregation of inner city blacks, as well as the issues of Joblessness and lack of opportunity, continue to play a great role in all aspects of African Americans lives. Chapter 5 Synopsis In this Chapter, Wilson sums up all his findings to create a conclusion on how to unite both structure and culture in order to create a more equal society.Cultural patterns in the inner city ghetto relate to informal rules that shape how people act with one another and make decisions. The decisions made in the inner city ghettos often correlates with the way inner city residents view the way the world works. Residents of the ghettos find ways to adjust and respond to such negative racial economic segregation. These ways develop into the regular behavior that many urban students view as repulsive, influencing their racism even further. Structural patterns play a greater role in the suppression of African Americans as well as other people of color.Political powers also play a role in the segregation of minorities, and even though there are some policy makers who are dedicated to ending the problems of race and poverty, they still face many challenges. It has become extremely important to discuss how the issues of race and poverty are viewed in public policy discussions because these reveal so much about our commitment, as a society to change. 20 Most Important Points 1 . The portrayal of black men in the media as well as their rates of incarceration is problematic when employers evaluate the credibility of black males form employment. . As long as the high rates of incarceration and violence persist, people of all races will react to black males in public and private places ne gatively. 3. Structural forces contribute directly to racial group outcomes such as employment rate and differences in poverty. 4. The growth of new technologies in the workplace has changed the demand for different types of workers. 5. The development in use of genealogy in the work place is especially problematic for African Americans because they have a higher average of low skilled workers. . Even before the restructuring of the economy, low skilled African Americans were the last to be hired and the first to be let go. 7. The future of families, especially poor working families, depends on how the government decides to react to changes in the economy. 8. Employers in the service industry feel that consumers perceived inner city black males to be dangerous or threatening. 9. In the past, black males only had to demonstrate strong useless because of the Jobs they were performing (assembly lines, construction, etc).

Fermentation of Carbohydrates: Ethanol from Sucrose Essay

Objective: To demonstrate a fermentation process, isolate the ethanol produced by fractional distillation, determine the composition of the ethanol solution recovered, and make stoichiometric and yield calculations. Procedures: Fermentation Weigh out 20.0 g of sucrose and place it into a 250-mL Erlenmeyer flask. Add 100 mL of water and gently shake until all the sucrose has dissolved. To this solution add 0.60 g of dipotassium hydrogen phosphate (K), 1.8 g of sodium phosphate hydrate (Na3PO4ï‚ ·12HO) and 2.0 g of dried baker’s yeast. Vigorously shake the contents to mix them thoroughly. The Erlenmeyer flask is fitted with a one-hole rubber stopper containing a short piece of glass tubing. Latex tubing (8 -12 in.) is attached to the glass tubing. An overhand knot is loosely tied in the tubing. The low part of the loop is filled with just enough water so that the passage is blocked, but gas from the fermenting chamber will be able to push the water out of the way and escape (brewers call this an airlock). This setup excludes air (and oxygen) from the system (which allows anaerobic oxidation) and prevents further oxidation (by aerobic oxidation) of the ethanol to acetic acid. Label the fermentation setup with you r name and place the flask in the incubator chamber Isolation by Fractional Distillation Do not shake the flask; avoid disturbing the sediment on the bottom! Get your flask from the incubator bath or chamber. Carefully remove the rubber stopper from the 250-mL Erlenmeyer flask. Prepare a vacuum filtration assembly using two 250-mL side-arm filter flasks, a 5.5-cm Buchner funnel (with a Filtervac or neoprene adapter), and two lengths (each 12 in.) of vacuum tubing. [N.B. We use the second flask so between the aspirator and our filter flask so that the filtrate will not become contaminated if tap water is pulled back through the hose.] Place a piece of filter paper into the Buchner funnel so that it covers all the holes and lies flat. Into a  250-mL beaker, place 100 mL of water and one tablespoon of Celite. Stir vigorously and pour the mixture into the Buchner funnel while the water is running and a vacuum is applied. A thin layer of the Celite Filter Aid will form on the filter paper. Discard the water collected in the filter flask. Do not suck too much air through the filter pad; if it dries, it may crack and be unusable. Carefully decant the liquid in the fermentation flask above the sediment through the Celite Filter Aid, using suction. This technique traps the small yeast particles in the Celite Filter Aid but lets through water, ethanol, and any other liquid impurities. This liquid filtrate will be distilled. Obtain a distillation setup and assemble the glassware for distillation. Note the placement of the thermometer bulb in the adapter take-off to the condenser. Securely clamp the apparatus and condenser, and secure joints with plastic clips. Use a small dab of silicone grease on all the standard-taper joints as you connect them. Collect the distillate in a graduated cylinder. Use a round-bottom distilling flask that will be filled approximately one-half to twothirds full; a 250-mL round-bottom flask should do. Add 2-3 boiling stones to the flask. Use a heating mantle for the heat source and a Variac to control the heat. Your mantle may have a built in voltage controller. Gradually turn up the heat until the liquid in the distillation flask begins to boil. As the vapors rise in the head, you will see liquid condensing; this ring of condensate will rise in the column. Control the setting on the Variac so that the condensate rises slowly through the column and at an even rate. (If the rate is too fast, the column will flood.) The temperature readings at the distillation head will rise; when the temperature reaches (about) 78 °C, begin to collect the liquid that distills. Discard any liquid distilling before this temperature is reached. Collect liquid distilling between 78 and 90 °C. Collect 10-15 mL of distillate. Turn off the heat source and remove the heating mantle from the distillation flask. Weigh a 50-mL beaker to the nearest 0.001 g. With a 10-mL volumetric pipet, transfer 10 mL of distillate to the beaker (V). Do not pipet with your mouth; use a pipet bulb. Reweigh the beaker and liquid (5), and by difference, determine the weight of the distillate. Determine the density,  and by referring to the graph, determine the percent composition of the ethanol.

Aci Financial Statement

ASA University Review, Vol. 6 No. 2, July–December, 2012 Cash Flow Statement Disclosures in Pharmaceutical Companies: Bangladesh Perspective Mst. Joynab Siddiqua* Mohd. Takdir Hossan* Abstract Cash flow statement is a vital part of the financial statements. Preparation of cash flow statement is required as per Companies Act 1994 and the public limited companies enlisted with stock exchange are to prepare this statement as per other statutory laws and regulations. The acceptance of International Accounting Standard- 7: Cash Flow Statement has added a new dimension to the preparation and presentation of financial statements in Bangladesh.The companies are now preparing this statement as an integral part of their financial statements. This paper examines empirically the current practices followed by sample companies in preparation of cash flow statement and concludes that the sample companies are in line (with few exceptions) with the requirements of International Accounting Stan dard (IAS)-7 or Bangladesh Accounting Standard (BAS)-7. It also proposes some suggestions for improving the presentation of the statement Key words: Cash flow statement, IAS/BAS, Listed Company, Disclosure.Introduction The purpose of a cash flow statement is to provide information on the cash flow from a company’s operating, investing and financing activities to enable the users of its financial statements to evaluate the ability of the company to generate cash and to use the historic cash flows to predict future cash flows. The cash flow information enhances the comparability of the operating performance by various companies, because it eliminates the effects that arise from the use of different accounting treatments for the same transactions and events.The use of cash flow information is gaining importance in the analysis of financial statements (Epstein 1991; Yap 1997; Jones and Widjaja 1998; Previts and Bricker 1994). Cashflow information is considered less open to manipu lation than information on earnings, because it is based on the actual receipt and payment of cash only and not on the accrual and other accounting principles. Rees (1995:75) adds that the cash flow statement can be more informative than the other statements. However, he literature on the cash flow statement indicates that there are grey areas in cash flow reporting that are open to various interpretations (Everingham and Watson 2002). The perceived simplicity of the cash flow statement may therefore create synthetic confidence in the reliability of companies’ cash flow reporting and the comparability of various companies’ cash flow information. The acceptance of IAS-7: The Cash Flow Statement has added a new dimension to the preparation and presentation of financial statements in Bangladesh.This paper is an attempt to investigate into the state of cash flow reporting by the listed Bangladeshi * Lecturers, Department of Business Administration, ASA University Banglades h 210 ASA University Review, Vol. 6 No. 2, July–December, 2012 Textiles and Clothing companies in general. The focus is not on the quality of the reporting of the companies but rather on what the reporting levels are in general. Objectives of the study The major objectives of the study are as follows: 1. to identify the current practice of cash flow statement of Pharmaceutical companies in Bangladesh. 2. o provide present cash flow statement format, structure and reporting on the basis of information provided in the annual reports of the selected listed Pharmaceutical companies in Bangladesh. Methodology of the study The study was conducted in accordance with secondary information obtained from various sources. The overview of standardization of financial reporting and the regulatory framework has been based on laws, regulation, and guideline and also on various published sources of information taken from International Accounting Standard Board (IASB) and Bangladesh Accountin g Standard 7 (BAS 7).A limited survey has also been made covering a total of 12 Pharmaceutical companies’ annual reports (2009) enlisted in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). These are selected on the basis of convenience sampling procedure. In order to make the study more revealing it also covers some research articles, textbooks, publications and web sites of various accounting bodies. Limitations of the study 1. Applied non profitability techniques have been used. 2. Due to limitation of the extensive materials, books and previous studies in Bangladesh literature review could not be extensive. 3.This study consists of only 12 listed Pharmaceutical companies due to time and resources constraints. Literature review Cash flow statement: A historical surroundings/background Cash flow Accounting (CFA) was the main system of accounting up to beginning of the 18th century (Watanabe, Izumi: The evolution of Income Accounting in Eighteenth and Nineteent h Century Britain, Osaka University of Economics, Vol. 57, No. 5, January 2007, p. 27-30). Till then, accounting allocation and profit measurement were relatively unimportant; the profit and loss account being used to close off ledger accounts at each period end.However, with the advent of concept and practices of business continuity, periodic measure and statement of financial position began to grow. Thus the basis of cash transaction becomes foundation for the allocation based systems of accounting today. Although there has been a reasonably sustained interest in fund flow statements (based on allocated accounting data) since the beginning of the twenty century, CFA appears to have received little or no support from accountants until the early 1960s.At that time there was little concern over the use of ‘cash flow’ data in the financial analysis- cash flow being interpreted as ‘profit plus depreciation (. Winjum, J. o, 1972). In 1961 AICPA recognized the importan ce of fund statement by publishing Accounting Research Study (ARS) Cash Flow Statement Disclosures in Pharmaceutical Companies 211 NO 2â€Å"Cash flow analysis and fund statements†. Before that, accountants had prepared funds statements primarily as management report. The Accounting Principles Board (APB) responded in October 1963 by issuing APB Opinion NO. : â€Å"the statements of and application of funds†, which recommended that a statement of sources and application of funds be presented on a supplementary basis. Because of the favorable response of the business community to this pronouncement, the APB issued Opinion No. 198: â€Å"Reporting changing in Financial Position† in March 1971. This opinion required that a statement of changing financial position be presented as a basic financial statement and be covered by the auditor’s reports. In 1981 the Financial Accounting Standard Board (FASB) reconsidered fund flow issues as part of the conceptual fr amework project taken in 1976.At this time the FASB decided that the cash flow reporting issues should be considered at the standard level. Subsequent deliberation resulted in Statement of Financial Accounting Standard (SFAS) No. 95: ‘Statement of cash flows’ in Nobember1987 (Weygandt, Kieso, Kimmel 1998: 1936). Fund flow statement Vs Cash flow statement Both fund flow statement and cash flow statement serve as a fundamental parts of the financial statements. In 1961, the AICPA issued ARS No. 2, â€Å"Cash Flow Analysis and the Fund Statements† which recommended that a fund statement covered by auditor’s opinion be included in companies financial reports.According to paragraph 5 of Preface to Statement of International Accounting Standard [approved by the IASC Board in November1982 for publication in January 1983 and supersedes the preface published in January 1975 (amended March 1978)], â€Å"the term ‘financial statements’ covers balance sh eets, income statement or profit and loss accounts, statements of change in financial position, notes and other statements and explanatory materials which are identified as being part of financial statements† (IASC, 2000:32).As per paragraph 7 of framework for the Preparation and Presentation of Financial Statements (approved by IASC Board in April 1989 for publication in July 1989): â€Å"A complete set of financial statement normally includes a balance sheet, an income statements, a statements of change in financial position (which may be presented in a variety of ways, for example as a statement of cash flow or a statement of fund flows) and those notes and other statements and explanatory materials that are an integral part of the financial statements† (IASC : p. 3-44). As per paragraph 4 of the previous IAS 7 (October 1977), statements of change in financial position, the term ‘ funds’ referred to cash, cash and cash equivalents or working capital (IFA C, 1992: p. 813). Funds provided or used in operation of an enterprise should be presented in the statements of changes in financial statement separately from other sources and uses of fund.Unusual items, which are not part of ordinary activities of the enterprise, should be separately disclosed (IASC: Para 21). But many users of financial statements consider current practices of reporting fund flows as confusing because too much information is compressed in the statements of change in financial position, and because no single definition has been established (Mosich and Larsen, 1982; p. 935).In order to develop a conceptual framework for financial accounting and reporting, the FASB issued in December 1980 a discussion memorandum â€Å"reporting Fund flow, Liquidity and Financial Flexibility† which was issued for the following reasons: (1) for assessing future cash flow, and (2) current practices regarding the reporting of funds flow information are not entirely satisfactory. As a result of deliberation, FASB issued SFAS NO. 95 ‘Statements of Cash Flow’ in 1987.The statements require the inclusion of statements of Cash Flows rather than a statement of Change in Financial position when issuing a complete set of financial statements 212 ASA University Review, Vol. 6 No. 2, July–December, 2012 which was made effective for annual periods ending after July 15, 1988. The major requirements of the statements are of the following two areas: Basis of Presentation: The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents.Classification of cash flows: Cash flows are to be classified according to operating, investing and financing activities. The basis of such classification is derived from the financial theory, which state that the enterprise derives the cash used for investing activities and settlement of outstanding financial obligation in an accounting period from internal and external s ources. Internal cash sources emanate from the net cash generated from current operation and perhaps disinvesting and depletion of cash resources at the start of the period.External cash sources come from financing activities such as borrowing and receiving cash from the sale of equity shares to existing and new shareholders (Wallace et,al). Benefits of Cash Flow Information – The information in a cash flow statement helps investors, creditors, and others to assess the following aspects of the firm’s financial position. – Such statements serve as a mechanism for predicting the ability to generate future cash flows for the investors, creditors and others. – This enables managers or management to plan coordinate and control financial operation in an effective manner. It gives an indication of the relationship between profitability and cash generating ability thus of the quality of the profit earned. – It furnishes information to the management regard ing the entities’ ability to pay dividend and meet obligations. – Analyst and other users of financial information often, formally or informally, develop models to assess and compare the present value of the future cash flow of entities. Historical cash flow statements could be useful to check the accuracy of past assessment (ACCA Text book part 2. P. 324). It is free from manipulation and is not affected by subjective judgments or by accounting policies. – Such a statement dictates situations when a business has made huge profit but has run out money or it has sustained loss but has enough cash availability. – The extent of cash generated from operational activity and external finance in order to meet capital, tax, and dividend requirements can be obtained from such statements (Lee, T. A: 1972:27-36). – It aids in the evaluation of risk, which includes both the expected variability of future return and probability of insolvency or bankruptcy ( Hen drickson, Eldom.S, 1982: 237). – Such statements reveal the capability of an enterprise to pay its short obligation as and when due to the lenders. – A cash flow statement in conjunction with a balance sheet provides information on liquidity, viability, and adaptability. The balance sheet is often used to obtain information on liquidity, but the information is rather incomplete for this purpose as the balance sheet is prepared at a particular point of time. Cash Flow Statement Disclosures in Pharmaceutical Companies 213 It may assists users of financial statements in making judgments on the amounts, timing and degree of certainty of future cash flows. – This statement provides information that is useful in checking the accuracy of past assessment of future cash flows and in examining the relationship between profitability and net cash flow and the impact of changing price (IAS 7: Para 3 & 4). – Information on cash flows classified by three groups of activ ities (Operating, investing and financing) that allow users to assess the impact of those activities on the financial position of the enterprise and the amount of its cash and cash equivalents.This information may also be to evaluate the relationship among those activities (IAS 7: Para 11). – This statement is of special importance in assessing future cash flows, quality of income operating capability, financial flexibly and liquidity, and information on financing and investing activities. Using cash flows from operating activities from the cash flow statements, different ratios such as liquidity, ratio, solvency ratio, and profitability ratios can also be calculated to evaluate an enterprise’s liquidity, solvency, and profitability. Aziz uddin and Bala, 2001: p. 14) Overview of Cash flow statement The cash flow statement explains the changes that have occurred in the company’s cash and cash equivalents during the year by classifying the cash flows in its operat ing, investing and financing activities. The statement must focus on cash receipts and payments and must explain the change in cash plus cash equivalents. The classification is done in a way that is most appropriate to the company’s business.The following are the definitions of the components of the cash flow statement: Cash: cash on hand and demand deposits Cash equivalents: short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Operating activities: the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash equivalents.Financing activities: activities that result in changes in the size and composition of the equity capital and borrowings of the enterprise (Epstein, p. 93). Objective and Scope of IAS 7 Information about the cash flow of an enterprise is useful in providing users of financial statements with a basis to assess the ability of the enterprise to generate cash and cash equivalents and the needs of the enterprise to utilize those cash flows. The economic decision taken by users requires an evaluation of the ability of an enterprise to generate cash and cash equivalents and timing and certainty of their generation.The objective of IAS 7 is to require the provision of information about the historical change in cash and cash equivalents of an enterprise by means of a cash flow statement that classifies cash flows during the period from operating, investing and financing activities. An enterprise should prepare a cash flow statement in accordance with the requirements of IAS 7 and should present it as an integral part of its financial statements for each period for which financial statements are prepared.Users of an enterprise’s financial statements are interest ed in how the enterprise generates and uses cash and cash equivalents. This is the case regardless of the nature of the enterprise activities and irrespective of whether cash can be viewed 214 ASA University Review, Vol. 6 No. 2, July–December, 2012 as the product of the enterprise, as may be the case with a financial institution. Enterprises need cash for the same reason however different their principal revenue- producing activities might be.They need cash to conduct their operations, to pay their obligations and to provide return to the investors. Accordingly this standard requires all enterprises to present a cash flow (Para 1 & 3). Presentation of Cash flow statement under IAS 7 Cash and cash equivalent: The definition of cash and cash equivalent are central to the preparation and interpretation of cash flow statements. Cash consists of cash in hand and demand deposits, coins and notes of an organization, etc. In our country deposits in postal accounts may be termed as c ash (Cooper and Ijiri, 1984: 88; Ghosh, 2001).Cash equivalents are short-term, highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value. According to the definitions of paragraph 6 of IAS 7 cash comprises cash in hand and demand deposits; usually ‘cash on hand’ includes currency, notes, and coin in the cash box of the enterprise. It also includes prize bond, negotiable money orders, postal orders, and under posited checks, bank drafts or pay- order.Demand deposits refer to deposits in checking accounts in banks and other financial institutions that may be withdrawn without notice usually subject to deduction of outstanding check. Thus cash equivalents – 1. are short-term investments but the ‘term’ ‘short’ not clearly specified, although a period of three months and less is suggested to be taken as short term period. 2. are highly liquid investments. Here ‘liquid’ means having in a situation where cash equivalents are available in sufficient amount to meet obligation of payments. . are investments that are both: (a) readily convertible, to known amounts of cash and (b) subject to an insignificant risk of change in value. According to SFAC No. 95, the risk categorically refers to risk of change in interest rate. The short-term investments are so near their maturity that they represent insignificant risk of changes in interest rate. Examples include treasury bills, commercial papers, and money market funds purchased with cash that is in excess of immediate needs.However, although by definition, cash equivalents refer to short term highly liquid investments, they are usually held for the purpose of meeting short term cash commitments rather than for other purpose. For an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to insignificant risk of change in value. Therefore an investment normally qualifies as a cash equivalent only when it has a short maturity of, say, three months and less from the date of acquisition. Equity nvestments are excluded from the cash equivalents unless they are, in substance, cash equivalents, for example in the case of preferred share acquired within a short period of their maturity and with a specified redemption date (Para 7). Cash Flow Statement Disclosures in Pharmaceutical Companies 215 Preparation of Cash flow statements IAS 7 requires cash flows to be classified into operating, investing, and financing activities. Example of cash flows by category Operating Activities Inflows Receipts from customers Outflows Payments to suppliersAdvance deposits from customers Wages and salaries to employees Income tax refunds Income tax payments Interest received on customers’ notes or Other tax payments accounts Dividends and interest received from Interest paid on bank debt or bonds outstanding and inve stments and included in determining net included in determining net income income Investing Activities Cash received from sale of capital assets Payments for purchase of capital assets Cash from sale of debt or equity investments Cash flows capitalized as intangible assets, such as:  · development costs  · start-up costs  · capitalized interest  · exploration Costs Collection of principal on loans to others Purchase of debt or equity securities of others Interest and dividends received on investments Loans extended to others and not included in determining net income Financing Activities Net proceed of issuing debt or equity securities Payment of principal on bonds or bank loans Cash proceeds received from bank loans Purchase of the entity’s own shares Interest paid on bank debt or bonds outstanding and not included in determining net income Dividends paid to shareholders Variations in Reporting activities for Cash flows A. Operating or Financing activities Transactio ns with different categories included in cash flows are classified in a different manner. According to IAS 7, Para 12, â€Å"A single transaction may include cash flows that are classified differently.For example, when the cash repayment of a loan includes both interest and capital the interest element may be classified as operating activities and the capital amount is classified as financing activities†. B. Operating or investing and financing activities Some cash flows may be classified as arising from any activities such as ‘interest’, ‘dividend’ ‘income tax’. The detailed provisions of these types are as follows. 216 ASA University Review, Vol. 6 No. 2, July–December, 2012 Interest: a. For a financial institution, interest paid and interest received are usually classified as operating cash flows (para 33). b. For other enterprise, interest paid and interest received may be classified as operating cash flows because they enter into the determination of net profit or loss.Alternatively, interest paid may be classified as financing cash flows, because they are costs of obtaining financial resources. Interest received may be classified as investing cash flows, because they are returns on investments (para 33). Dividend: a. For a financial institution, dividends received are usually classified as operating cash flow (Para 33). b. For other enterprise, dividends received may be classified as operating cash flows because they enter into the determination of net profit or loss. Alternatively dividend received may be classified as investing cash flows, because they are returns on investments (para 33). c. Dividend paid may be classified as financing cash flows, because they are costs of obtaining financial resources.Alternatively dividend paid may be classified as component of cash flows from operating activities in order to assist users to determine the ability of an enterprise to pay dividend out of operating c ash flows (para 34). Income tax: a. Taxes on income arise on a transaction that gives to the cash flows that are classified as operating, investing, and financing activities in cash flow statement. While tax expense may be readily identifiable with investing or financing activities, the related tax cash flows are often impracticable to identify and may arise in a different period from the cash flows of the underlying transactions. Therefore taxes paid are usually classified as cash flows from operating activities.However, often it is practicable to identify the tax cash flow within individual transaction that gives rise to cash flows that are classified as investing or financing activity as appropriate. When tax cash flows are allocated over more than one class of activity, the total amount of taxes paid is disclosed (Para 36). In the light of SFAS 95, â€Å"Transaction that enter into the determination of net income† are defined as operating activities and hence, interest re ceived or paid, dividend received and taxes on income are rigidly treated to arise from operating activities. Dividend to stakeholders are treated as cash outflows classified as financing activities (Keiso and Weygandt, 1998: 1275-76) Cash flow statement Practices in BangladeshRegulatory Framework, in the eyes of the Companies Act 1994 (Act no. 18 of 1994): According to Section 183 of the Companies’ Act 1994 (which came into effect from 1 January 1995), a company is required to present balance sheet, profit and loss account (income and expenditure account, in case of non profit companies). Under section 185, the balance sheet and the income statement have to be prepared according to the forms set out in Part –1 and Part –2 of Schedule XI respectively under which information on consecutive two years (concerned year and Cash Flow Statement Disclosures in Pharmaceutical Companies 217 preceding year) are to be provided.However according to note (g) of the general in struction for preparation of balance sheet (given in part –1 of schedule XI after the horizontal format of the balance sheet), â€Å"a statement of change in financial position shall be included as an integral part of the financial statements, and shall be presented for each period for which the profit and loss account is prepared†. However no specific format of cash flow statement has been prescribed in Companies Act 1994. In the light of the Security and Exchange Rule 1987 (S. R. O No. 237-l/87 dated on 28 September 1987): Under the provision of rule 12 (1) of the Securities and Exchanges Rules (SER) 1987(amended by the section notification No.SEC/ Section 7/SER/03/132 dated 22 october1997 published in the official gazette on 29 December 1997), the annual report to be furnished by an issuer of listed security shall include â€Å"a balance sheet, profit and loss account, cash flow statement and notes to the accounts collectively hereinafter referred to as the financi al statement’. In the part III of the Schedule of the SER 1987, issues relating to interest paid on short-term borrowing, interest and dividend received income taxes are clearly guidelined. For example, interest paid on short-term borrowing shall be a cash outflow under operating activities; ‘interest and dividend received’ shall be a cash inflow under investing activities. And ‘interest paid on long term borrowing’ and ‘dividend paid’ shall be a cash outflow under financing activities.Under paragraph 35-36, ‘taxes on income’ should be treated as operating cash outflow unless they can be identified in financing and investing activities. Findings of the study To know the extent of cash flows statement reporting practices by Pharmaceutical companies, a survey has been conducted covering twelve annual reports (2009) (For detailed the name of the companies see Appendix-1). The major findings of the study are given below in terms of general variations in reporting and voluntary disclosure. General findings It includes the current format and structure of cash flow statement and the extent of compliance of IAS-7, followed by sample Pharmaceutical Companies in Bangladesh. All the sample companies prepare cash flow statement as required by IAS-7/BAS 7 adopted by the Institute of Chartered Accountant of Bangladesh and present it as an integral part of the financial statements. Notes to cash flow statement have been presented as part of the financial statements in case of all the sample companies.  · The sample companies prepare cash flow statement in vertical form and shows figure of cash flows of the current year and the previous year.  · All the sample companies’ cash flow statement contains a classification of operational, investing, and financing activities.  · The sample companies did not illustrate the policy dopted in determining the formulation of cash and cash equivalents although this is r equired by paragraph 36 of IAS 7. 218 ASA University Review, Vol. 6 No. 2, July–December, 2012 Variation in Reporting Another objective of the survey was to determine which alternatives, permitted by IAS-7, are used most in practice by Bangladeshi pharmaceutical companies. It is found that there are not many differences between companies in their reporting of cash flow information. This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. The results are set out in table 1.Table-1 Variations in reporting [Cash flow statement (CFS)] Factors 1 Notes to CFS Options Separately, following the CFS Part of the notes to the financial statements Incorporated in the CFS Total Direct method Indirect method Total Operating activities or no interest Financing Investing activities Total Financing activities or no dividends Operating activities Investing activities Total Part of accounti ng policy note Nothing disclosed Total Operating activities or no tax Financing activities Investing activities Total Number of companies 0 12 0 12 12 0 12 12 0 0 12 12 0 0 12 12 0 12 12 0 0 12 2 Operating activities 3 Interest received and Interest paid 4 Dividend received and Dividend paid 5 Definition of cash and cash equivalents 6 Income tax Notes to table 1  · Refer to point 2 of Table 1.According to IAS-7 and SEC Rule 1987, the enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows which is not available under the indirect method. All the sample companies followed the direct method in reporting operating cash flows. One company (Pharmaceutical Mithun Knitting & Dyeing Ltd. ) discloses cash flows from operating activities under indirect method in notes of financial statements as additional information. Cash Flow Statement Disclosures in Pharma ceutical Companies  ·  · 219 Refer to points 3 & 4 of Table 1.All the companies studied have shown ‘interest received and paid’ under operating activities and ‘interest paid on long term borrowing’ and ‘dividend paid’ under financing activities. Refer to points 5 & 6 of Table 1. All the companies studied have shown â€Å"definition of cash and cash equivalents† in the notes of accounting policy and â€Å"income tax† under operating activities. Voluntary disclosure The survey also included an examination of any additional information that is disclosed regarding the company’s cash flow which is not required by IAS-7, but which may be helpful to the user. For example, separate disclosure of cash flows increases operating capacity and cash flows that maintain operating capacity, disclosure of segmental cash flows, cash flow per share etc.The survey found no company to disclose such additional voluntary information in its ca sh flow statement. Conclusion and Recommendation A materially misstated cash flow statement, whether it is in terms of incorrect classification in the categories or numerical accuracy, can be misleading to the user and can lead to wrong decisions taken by the users of the statement. The survey has revealed that although sample companies prepare cash flow statement according to International Accounting Standard-7 (BAS-7), there is also a degree of non-compliance. It is, however, found that there are not many differences between companies in their reporting of cash flow information.This is expected because the preparation of cash flow statement does not allow for many choices, differences of interpretation or different accounting treatments. To make cash flow statement more informative and useful for users, the companies should disclose additional voluntary information such as cash flow per share in their cash flow statements. Items consisting of cash flows from operating, investing a nd financing activities should also be clarified in the notes of the financial statements. Due to the limited scope of the present study, a large number of research issues have not been attempted but are identified in the course of the study.Disclosure practices of additional items other than operating, investing and financing activities, disclosure practices differences between listed and unlisted companies, disclosure practices differences between financial and other institutions are some such potential issues for future research. 220 ASA University Review, Vol. 6 No. 2, July–December, 2012 References Annual Reports of Sample Pharmaceutical Companies Listed in Dhaka Stock Exchange and Chittagong Stock Exchange 2009. Aziz Uddin, A. B. M and Bala. , S. K. ( 2001), â€Å"Cash Flow Reporting in Bangladesh†, The Cost & Management, Nov- Dec. ICMAB, p. 13. FASB Discussion Memorandum (1980), Reporting Funds Flow, Liquidity and Financial Flexibility, FASB, Stanford. Thomas H. Beechy. Joan E. D. Conrod, Intermediate Accounting, second Edition, Chpter 5, Exhibit 5-1 pp. 91 Ghosh, Santi N. (2001),â€Å"Workshop Material on IAS # 7 : Cash Flow Statements† compiled under the Institute of Chartered Accountants of Bangladesh (ICAB)Project, Development of Accounting and Auditing Standards in Bangladesh, The World Bank. Government of Bangladesh (GOB) (1994), The Companies Act 1994 (Act No. 18 of 1994). Gup, B. E. & Samson, W. D. 1993. An analysis of patterns from the statement of cash flows. Financial Practice & Education, 3(2):73-79. Hendrickson, Eldom. S(1982), Accounting Theory, Richard D. Irwin, Inc. , Illinois, p. 236. Hertenstein, J. & McKinnon, S. 1997. Solving the puzzle of the cash flow statement. Business Horizons, 40(1):69-76.International Accounting Standards Committee (IASC) (2000), International Accounting Standards 2000 International Accounting Standards Committee, London, â€Å"International Accounting Standard IAS 7 (revised 1992): Cash Flow Statements† in pp. 139165. International Federation of Accounting (IFAC) (1992), IFAC Handbook 1992: Technical Pronouncements (New York: IFAC). â€Å"IAS 7 (October 1977): Statement of Changes in Financial Position† in pp. 812- 816. Khan, M. H. & Akter, M. S. & Ghosh, S. K (2005), â€Å"Cash Flow Statement Disclosures: A Study of Banking Companies in Bangladesh†. Available at www. pcte. edu. in/site/OJMR/Finance/cashflow. pdf Keiso, Donald, E. and Jerry. J.Weygandt (1998), Intermediate Accounting, John Wiley & Sons, Inc. New York, 9th Edition, pp. 1275-76. Lee, T. A. 1982. Cash flow accounting and the allocation problem. Journal of Business Finance & Accounting, 9(3):341-352. Lee, T. A (1972), â€Å"A Case for Cash Flow Reporting†, Journal of Business Finance, Vol. 4, No. 2, pp. 27-36 as quoted in Studies of Accounting Theory, Steyn, B. W. & Hamman, W. D. 2003. Cash flow reporting: are listed companies complying with AC 118? Meditari, 11:167-180. Weyg andt, Kieso, Kimmel, Accounting Principles, 9th edition, John, Wilely and Sons, Inc, pp. 732-733 Wallace, R. S. O. and Choudhury, M. S. I. And Pendelbary, M. 1997), â€Å"Cash Flow Statements: An International Comparison of Regulatory Positions†, The International Journal of Accounting, Vol. 32, No, 1, pp. 1-22 Cash Flow Statement Disclosures in Pharmaceutical Companies 221 Appendix-1 List of the twelve Pharmaceutical companies studied. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. GlaxcoSmithKline Bangladesh Limited (2009) The IBN SINA Pharmaceutical Industry Ltd. (2009) BEXIMCO PHARMACEUTICAL LTD. (2009) ORION INFUSION LTD. (2009) ACI Formulation Limited (2009) Ambee Pharmaceutical Limited (2009) Square Pharmaceutical Ltd. (2009) Libra Infusions Limited (2009) BEACOM Pharmaceuticals Limited (2009) Rahman Chemicals Limited (2009) Renata Limited (2009) Therapeutics (Bangladesh) Limited (2009)

SE Machinery Pty Ltd (SEM) Term Paper Example | Topics and Well Written Essays - 2000 words

SE Machinery Pty Ltd (SEM) - Term Paper Example When the customer contributed $500,000 as capital contribution to SEM in May 2011, it appeared in the books as part of the Equity or Capital Account and reported as part of the gross profit by yearend which ended June 2012.. In such a transaction wherein actual cash was received and SEM chose to recognize the cash inflow as capital, the tax law provides that this be considered as ordinary income. Division 6 – Assessable Income and Exempt Income, Section 6.5, states that Australian residents’ ordinary income are assessed whether derived from within Australia or outside, including those derived indirectly or directly â€Å"from all sources† (Australian Parliament 1997, Section 6.5). As Flynn, M.(2009, p.171) had stated, â€Å"The second test is to ask whether the receipt represents a flow produced by an item of capital. If it does, the receipt is revenue.† B. However, the Arthur Murray principle will apply for the prepayment. According to Kater, E. (2009), u nder that principle, income is generally not derived until after services or products have been delivered, except in a situation wherein there may not be a refund of prepayment according to a contract. There was no contract which specifically stated there can be no refund under certain conditions. Income was recognized in June 2012 even though products were yet to be delivered in August 2012. The prepayments were recognized as revenue so that the gross profit includes the value of that prepaid order. But requirements for such a capital contribution to be considered an Income of SEM were not yet completed although prepaid. The goods (Teftoffelex) were delivered only in August 2012. Since there is no contract stipulating that the prepayment was not refundable, the Arthur Murray principle will allow for the delay in payment of Income Tax corresponding to the $ 1,200,000 worth of orders. SEM has received payment and delivered the orders only in August 2012. Thus, this will result in hav ing unearned income as of yearend, June 2012. The Arthur Murray Principle will be applicable because income should be recognized only after the fulfilment of an order and after payment had been received. But this only means that in the next income declaration, income tax would have to be paid for the $1,200,000. The book entries should have been as follows (Appendix 1) It is only after the delivery of goods that the liability account, Unearned Revenues, amounting to a total of $ 1,200,000 should be reversed to consider the entire $ 1,200,000 as Sales. Thus, the proper advice to SEM is to adjust the Sales by $ 1,200,000 because it is in fact still a liability (as Unearned Income) and will remain that way until the goods are delivered. II A. Explanations for Revenue and Expense Accounts 1. Bad Debt Deduction After Write-Off = $8,000 Section 63 paragraphs 34-39 allows for deductions of bad debts only after they have been written off. (AG/ATO 2012, TR 92/18). The Australian Taxation Law under Act No. 55 as amended, in Division 21-5. 2. Interest Expense on Working Capital = $ 25,000 Borrowed @ 8% Interest From February 1, 2012 to end of June 2012 which is 5 months, SEM should recognize the accrued interest expense. This would amount to 25,000 x 0.08 x 5 mos. / 12 months = $ 833. According to the AASB 123 Core Principle (AG/AASB 2009, p. 7 & 9), â€Å"Borrowing Costs that are directly attributable to the acquisition, construction, or production of a qualifying asset form part of the cost of that asset. All other borrowing costs are recognized as an expense.† This should include interest (Section 6a p. 9). Usually, interest expenses are prepaid upon release of borrowed money. And based on the Principle of Profit Determination of the AASB(AAT & Willis, D. 1997, p.7), the expense should be matched with the revenue given a certain period. Thus, upon receipt of the loan, interest expenses should have been treated as Prepaid Interest. And the Prepaid Interest asset account should be reduced by the accrued expense value which would amount

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How Hard is it for a Woman to Start a Food Companie In The Indonesian - Assignment Example The gender of the entrepreneur is also not much of a factor that determines the possibility or otherwise of succeeding with the business opening. Again, as to whether the business would survive determines on how well the person, be it a male or female can apply very basic and common economic principles. To this end, it would be said without an iota of doubt that it is feasible for the 33 year old Indonesian woman to start the cooking oil company. Instead of thinking that the age and gender would be a limitation to inhibit the feasibility of the possibility of the business, it they may rather be seen as blessing in disguise because the fact that the entrepreneur is young means she would have more years ahead of her to manage her company, correcting all wrongs that may come her way along the running of the company. As far as the business experience of the entrepreneur is concerned, it can be said that is will never be too late to learn the basic rudiments of business operations. A theo ry that supports this assertion is the genuine leadership theory that argues that leaders are born rather than made. According to genuine leadership theorists, leadership is an innate characteristic and feature of a person that cannot be acquired externally (Khan & Ghani, 2004). According to the theory, the only time that an external condition comes in is to polish up what is already possessed by the leader (Williams & McGuire, 2010). With this justification, it can be said once this entrepreneur sees herself as a born leader she would not have to worry so much about her experience in business. What must be a concern is how to polish up what she is born with, the result of which is the zeal she has to go into business. With this said, it would be noted that the fact that she sees herself as a respectable person in her school and community will come with a great benefit or advantage in the creation of business connections. As noted by McDermott (2010), the kind of connections that n entrepreneur is able to develop from about her most immediate background goes long way to influence the creation of social capital and socio-economic networks positively. The respectability gained among colleagues in school and community must therefore be a first step into establishing social capital and socio-economic networks. The concentration of food companies in the Indonesian city where she lives would mean that she will be in strict competition, of which she has to device a competitive advantage to survive. Most often, new entrants are identified to face very hostile and stiff competition in emerging markets such as Indonesia. The reason as explained by Salehizadeh (2005) is because government macroeconomic strategies and interventions are often targeted on established firms rather than new and upcoming ones. To this end, new entrants are often forced with the need to structuring their competitive advantages based on microeconomic strategies and interventions. As far as the g overnment biases are concerned, Salehizadeh (2005) has said that governments in emerging markets, the size of their gross domestic products do not often have the luxury of testing the waters. They would rather want to invest where their returns can be guaranteed. The concentration of food companies in the city of the intended entrepreneur is therefore going to be a challenge to entry that must be addressed. As indicated earlier, there could be attempts to use competitive advantage that are structured around the use of more microeconomic based

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Interpersonal communication - Research Paper Example ther it’s the process of thinking or indulging in a soliloquy interpersonal communication is the phenomenon wherein two or more individuals communicate, that is, share meaning either through their usage of words (verbal communication) or through the means of symbols or gestures (nonverbal communication). Therefore, study of the process of communication in general and interpersonal communication in particular can serve to build harmonious and mutually beneficial and empowering relationships which in turn can promote progress and prosperity for the entire world. This paper seeks to explore the phenomenon of interpersonal communication with specific reference to interpersonal communication competence. After delving into the concept of communication competence at large this paper will endeavor to look into the multifarious issues surrounding the phenomenon of interpersonal communication in the contemporary world. Basically, the communication is the process of transmitting or getting information, messages or any type of data. This quality facilitates humans to share attitudes, knowledge and skills. There are so many ways to conduct the communication. For instance, verbal communication in which people make use of words to communicate their ideas and viewpoints. In the same way, in non-verbal communication people use body language to transfer their ideas and messages. For instance, a person can wave their hand in the air in order to say hello to a person. In fact, there are also a large number of methods that are used to communicate ideas and messages. However, the basic objective of communication is to convey ideas and messages from one place to another. Communication is the most significant attribute of an organization. No company or business can be run without communication. In an organization, people work to accomplish the particular goals and objectives. In order to accomplish the organiza tional objectives, the people working in the organization need to share

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Election speach to student reptresentative - Speech or Presentation Example As this new approach to renovate the activities and achievements of the previous Council can be best demonstrated by first-year students, I'd request you to offer me the opportunity to represent Level 1 law students of our institution. As a candidate for this year's student representative election, I'd like to highlight my experience of working as the vice chairman of the Student representative council of my high school where I was also the football team captain for 5 years. I also take this opportunity to express my positive strategy to represent the common feeling of my friends to the management in a genuine manner. I'll try my best to communicate the student voice to the university management and work to achieve the student needs as a true representative of their feeling. I also promise never to be biased with a group of students against the others nor to be blind or deaf to the burning issues of my friends.

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Wireless and Mobile Technologies - Assignment Example Basically, one can develop a mobile technology on mobile technology on a mobile device or on a computer to develop another mobile technology. For example, WAP is a mobile technology, and so are the mobile applications and SMS and mobile websites etc. These technologies are utilized by organizations in different ways so as to improve their efficiency. They are utilized by organizations so as to realize an unprecedented connectivity level between employees, customers, and/or vendors. Employees are able to download applications on their phones that enable them to connect via social media like Twitter, Facebook, and LinkedIn, or the organization may utilize web-site based applications so as to facilitate for direct communication with their customers in different ways. Real-time communication in very important in realizing business benefits, like improved customer service, efficient use of staff time, and a range of products and services delivered (Smyth, et al. 2004). Because of the interactive nature of these technologies, organizations are able to get urgent feedback on products and services from their customers through sharing of information through this medium.Rapid development and business research are some of the results of efficient wireless communication technology. Besides, it offers a competitive advantage to firms in their different industries hence increased productivity and quality of output. In this respect, consumer community is also made to have a feeling of having a direct role in the development of a company. Mobile technology introduced fresh ways of product promotion and advertisements. There are apps incorporated in the mobile phones which enhance people’s awareness on various goods and services and market trends which effectively offer companies platform to promote diverse brands. Besides, prospective customers are able to read the required information by the individual on his/her mobile phone and it

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Ratio Analysis to Determine Corporate Health Essay One must consider many factors before deciding whether or not to invest in a company. The following is an analysis and comparison of the health of two well known companies, Exxon and Wal-Mart. Some of the factors that were analyzed include current ration, inventory turnover, accounts receivable turnover, and days’ sales in inventory. Most of the values used for the calculations were obtained from Yahoo Finance. Current ratio evaluates a company’s ability to pay its short-term obligations (Wild, 2008). Exxon’s current ratio of 1. Â  indicates that it should not have any issues paying its short-term obligations. In contrast, Wal-Mart’s current ratio of 0. 88, indicates that the company’s current liabilities exceed current assets and thus investors should be doubtful of its ability to pay short-term obligations. Inventory turnover is another indicator of a company’s ability to pay short-term debt. Specifically, it is the number of times a company’s average inventory is sold during a period (Wild, 2008). Wal-Mart’s inventory turnover of 9. Â  indicates that it may be holding more inventory than it needs, and thus it may be using its assets in efficiently. Exxon’s inventory turnover of 28. 31 is more preferable, as long as inventory adequately meets demand (Wild, 2008). These numbers show that Wal-Mart may be having difficulties paying its short-term debt and thus caution should be warranted. Accounts receivable turnover measure the quality and liquidity of accounts receivable. Thus it indicates how often receivable are received and collected during the period (Wild, 2008). Exxon’s accounts receivable turnover is 15. Â  while Walmart’s is 107. 3. Exxon’s low turnover suggests management should consider stricter credit terms and more aggressive collection efforts to avoid its resources being tied up in accounts receivables. On the other hand, Wal-Mart’s high turnover implies the opposite; management should consider using more liberal credit terms. While accounts receivable turnover measures the liquidity of accounts receivables, days’ sales in inventory is useful in evaluating liquidity of inventory (Wild, 2008). Exxon’s days’ sales in inventory is 13. 2 and Wal-Mart’s is 38. Â  Exxon’s lower days’ sales in inventory value indicates that the company uses its resources more efficiently. Conclusion All things considered, Exxon appears to be a more solid company in which a first time stock-buyer should invest. While both are major companies, which appear to have solid numbers, Exxon seems to be the more stable and reliable company. Specifically Exxon seems to manage its assets better and seems more likely to be able to pay its short term debt. Nonetheless, one should invest in stock that he or she feels better represents his or her goals.

Leadership Style And Power Tactics Of Gandhi History Essay

Leadership Style And Power Tactics Of Gandhi History Essay With the aid of leadership theory and specific examples, this paper reflects upon and analyses the leadership style and power and influence tactics of Mohandas Karamchand Gandhi as portrayed in the movie Gandhi. The analysis is primarily based on Gandhis personal identity and behaviour in relation to others and the external environment. More so, the relationship shared between him and his followers is embedded throughout the paper to further support the analysis. Lastly, this paper makes a short comparison between the leadership style of Gandhi and Jinnah. Gandhi is popularly referred to as Mahatma Gandhi, meaning great soul, and is commonly called bapu in India, meaning father. He is officially honoured in India as the father of the nation, as it was under his leadership and guidance than the freedom movement in India gained momentum, ultimately leading to Indias independence in 1947. Gandhi was a national leader, a freedom fighter, a visionary, a humanist, and a socialist reformer. He has been a source of inspiration and role-model for not only the common man, but various other leaders such as Martin Luther King and Nelson Mandela as well. Defining Leadership According to Yukl (2010), Leadership is the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives. Gandhis Leadership Style Gandhi was not a born leader, but he certainly had traits of one (Exhibit 1). He was a simple man leading a simple life, but strongly believed in and practiced the values of unity, equality, truth, non-violence, justice, and honesty. His values and personality were instrumental in fighting the might of the British. He was patient but persistent, as he knew it was no simple task attaining Indias independence. While he was defiant, resistant, daring and provocative at times, he always remained calm, caring, humble and polite. He exhibited distinct characteristics, qualities and behaviours of a charismatic leader, transformational leader and level 5 leader, which are analysed below. Charismatic Leadership According to Weber (1947), charismatic leaders are more likely to emerge in crisis situations. As depicted in the movie, India was suffering from the atrocities of the British rule for decades, causing widespread distress. People were desperate to end the suffering, but were unable to find a solution. Gandhi provided the vision of Independent India, and led various movements from the front. Indias social crisis provided Gandhi with the perfect stage to rise from amongst the masses and lead India to independence. Most importantly, his actions were highly unconventional. He fought the British using the methodology of truth, non-violence, non-cooperation and peaceful resistance, rather than using violent means. These unconventional means of protest impressed and inspired his followers, who saw him as extraordinary and charismatic. Yukl (2010) states that leaders are more likely to be viewed as charismatic if they make self-sacrifices, take personal risks, and incur high costs to achieve the vision they espouse. In the movie, there were various instances when Gandhi made personal sacrifices and took personal risks. For example, he stopped wearing western clothes and donned a simple dhoti to blend with the masses; he was jailed on numerous occasions for lengthy durations; he led a simple life without materialistic pleasures; and even got beaten on occasion. Gandhi was highly trusted by his followers, given the fact that he was not motivated to free India for personal self-interest, but for the betterment and concern of the people. He drew vast admiration due to his noble intentions, high moral values and ethical standards. During his funeral procession in the movie, the commentator rightly stated, The object of this massive tribute died as he had always lived. A private man without wealth, without property, without official title or office. Mahatma Gandhi was not the commander of armies, nor a ruler of vast lands. He could not boast of any scientific achievement or artistic gift. Yet men, governments, dignitaries from all over the world have joined hands today to pay homage to this little brown man in the loincloth who led his country to freedom. Gandhi was highly self-confident, and strongly believed that India would gain independence. It was his belief that it was just a matter of when and in what form. It was his confidence and enthusiasm to free India that united his followers to jointly accomplish what seemed impossible to achieve. Gandhis vision, inspiration, confidence and positive attitude motivated and enhanced the collective efficacy of the people, inspiring the belief that unity is critical in order to free India. This collective belief fuelled the determination of his followers to willingly put in additional effort, and persist the long, hard road to freedom. Gandhi was by no means an impressive leader by appearance either. Despite being old, short, and slim-built, he had the ability and charisma to appeal to the masses through his public speaking and interpersonal skills, which had a widespread effect. In short, he was a crowd-puller. Meindl (1990) explains this spontaneous spread of emotional and behavioural reactions among the people through the process of social contagion. The people of India were emotionally and physically prepared to make self-sacrifices in order to gain independence. Gandhi activated this social identity amongst the people, at a time when their survival was being threatened. For example, the movie shows how the people of Champaran were facing a social crisis, and how Gandhi travelled there to see, hear and feel their pain. Gandhis mere presence in Champaran led to his arrest, and what followed was extraordinary. Being a crowd-puller, rioting ensued in the region, and the people swarmed the court room at his hearing . Without any heroics, Gandhi was able to pressurize the British to make changes. However, his followers viewed him as heroic and exceptional, and this feeling began to spread spontaneously among the people, stirring the whole nation. There is little doubt that Gandhi was a positive charismatic, and that he had a socialized power orientation. According to Yukl (2010), leaders with socialized power orientation exhibit the following characteristics, as did Gandhi: Strong self-control Motivated to satisfy the need for power in socially acceptable ways More emotionally mature Exercise power for the benefit of others Hesitant about using power in a manipulative manner Less egoistic and defensive Accumulate fewer material possessions Have a longer-range view His leadership influence emphasized internalization rather than personal identification. He was self-sacrificing and led from the front to communicate his commitment to the freedom struggle. Gandhi once stated, You must be the change you want to see in the world. Gandhis followers were responsive to his ideologies and appeals, and became increasingly involved in this socialized charismatic relationship. According to Yukl (2010), the affective reaction charismatic leaders arouse often polarizes people into opposing camps of loyal supporters and hostile opponents, and the intense negative reaction by some people to charismatic leaders explains why they are often targets for assassination. Nathuram Godse, a Hindu fanatic, assassinated Mahatma Gandhi on 30th January, 1948, as he felt Gandhi was personally responsible for the partition of India as well as for the deaths of thousands of Hindus. Transformational Leadership According to Bass (1985), transformational leaders possess unique charismatic behaviours that include sacrificing personal gains for the benefits of the group, setting a personal example for followers and demonstrating high ethical standards. Gandhis leadership style clearly showcases the essence of transformational leadership. For example, his followers were motivated by him, trusted him, admired him, were loyal to him, and respected him. Transformational leaders also appeal to higher values like liberty, justice, peace and equality. Gandhi lived for such causes, and fought his entire life to stand by them. Gandhis transformational leadership encouraged his followers to transcend their own self-interest and fight in unity. Thousands of Gandhis followers went to jail, and at times were violently beaten as well (e.g. Hundreds of Gandhis followers willingly gathered at the Dharasana Salt Works and stood together while being beaten with sticks by the British officials. Nevertheless, they not once resorted to violence because they respected Gandhis sentiments). In fact, according to Dirks and Ferrin (2002), transformational leadership is highly correlated with trust in the leader. According to Bass (1985), transformational leaders exhibit the following behaviours: Idealized Influence This behaviour arouses strong follower emotions and identification with the leader. Gandhi was able to influence the masses because he was a man of his words, and always practiced what he preached. He was a role model for the masses, and won their respect and trust through his actions. He demonstrated high ethical conduct (non-violence), self-sacrifice (voluntary poverty and non-materialism), dedication and persistence in order to attain Indias independence. Intellectual Stimulation This behaviour increases follower awareness of problems and influences followers to view problems from a new perspective. Gandhi was always supportive of his followers, and encouraged them to think openly, ask questions, and solve problems. He was willing to accept wrong-doing and mistakes, and was not ashamed to discard a strategy that didnt work as planned. For example, he called off the non-violent campaign despite opposition from his subordinates because there were some people who used violent means. Individualized Consideration This behaviour includes providing support, encouragement and coaching to followers. Gandhi was always supportive of his followers. For example, he patiently listened to the grievances and concerns of the poor with regards to their inability to maintain a livelihood due to British policies. Gandhi was also extremely supportive of other leaders such as Jawaharlal Nehru and Vallabhbhai Patel. He nurtured them, encouraged them to share ideas, and even empowered them to make decisions, never making them feel dependent on him. Inspirational Motivation This behaviour includes communicating an appealing vision, and using symbols to focus subordinate effort. Gandhi stood by his personal values, and consistently communicated his vision of independence. By openly communicating his vision, and using symbols such as the Salt Satyagraha movement, he provided his followers with a sense of meaning, which in turn inspired them to remain optimistic and increase their effort. Level 5 Leader Jim Collins (2005) states that a Level 5 Leader is someone who has genuine personal humility blended with intense professional will. Gandhi exhibited distinct characteristics of such a leader (Exhibit 2). He was extremely humble and modest, and lived a life on the principle of simple living and high thinking. He wore the traditional Indian dhoti and shawl, which was woven from yarn spun by hand using a charkha. He was humble and appreciative, and never hesitated in saying Thank You. However, he was extremely persistent in his resolve to gain Indias independence. Despite facing various challenges and set backs in the pursuit of independence, he never gave up. Leader Member Exchange (LMX) Theory Gandhi developed and shared a high-exchange relationship with his subordinates, followers and other leaders. This relationship grew stronger over time, resulting in a high degree of mutual dependence, loyalty, trust, respect, support and affection. According to Graen and Uhl-Bien (1995), high-quality leader-follower relationships are positively associated with transformational leadership behaviours. Even Deluga (1992) found a significant relationship between the transformational leadership behaviours of charisma and individualized consideration and high-quality LMX. While Gandhi provided the vision and inspiration, most of the ground work was carried out by his subordinates and followers, who were highly committed to the freedom struggle. They also took considerable initiative on their part to carry out the planning. For example, Nehru used his contacts in the press to take Gandhis message to the masses. It can also be stated that the exchange relationship Gandhi shared with his subordinates was favourable. Gandhi was highly supportive of his subordinates, and used to frequently consult them. He acted more as a mentor to them. He was non-dominating in conversations, and had to be highly persuasive with Jinnah on multiple occasions. His subordinates began demonstrating organizational citizenship behaviour, as their trust in Gandhi grew stronger. Dirks Ferrin (2002) validate this by stating that a favourable exchange relationship is highly correlated with subordinate trust. Gandhis Power and Influence Tactics A leader needs to be influential, and so was Gandhi. In the movie, Gandhi primarily used the process of internalization to influence his followers. According to Kelman (1958), under the internalization process, the target person becomes committed to support and implement proposals espoused by the agent because they appear to be intrinsically desirable and correct in relation to the targets values, beliefs, and self-image. Gandhi was able to influence the masses by invigorating their values of freedom, justice and self-respect to fight against the British. To a certain extent, personal identification was also depicted. Kelman (1958) states that under personal identification, the target person imitates the agents behaviour or adopts the same attitudes to please the agent and to be like the agent. In the movie, Jawaharlal Nehru was initially shown as wearing western clothes. But after Gandhis influence on him, he chose to wear clothes made of Indian fabric (khadi), thereby adopting the same attitude of Gandhi. Similarly, millions of Indians boycotted English garments in their support of Gandhis view that we should wear khadi. According to Yukl (2010), power is the capacity to influence the attitudes and behaviour of people in the desired direction. Gandhi was shown as exhibiting the use of referent power in the movie. According to French and Raven (1959), referent power is derived from the desire of others to please an agent toward whom they have strong feelings of affection, admiration and loyalty. Gandhis friendly, attractive, charming and trustworthy character empowered him with high referent power. He was able to increase this power by showing concern towards to needs of the people, by demonstrating trust and respect, and by treating people fairly and equally. Moreover, his high levels of personal integrity and consistent values allowed him to maintain this referent power. According to Yukl (2010), most power studies have found that referent power is positively correlated with subordinate satisfaction and performance, and that effective leaders rely more of referent power to influence subordinates. He further states that people are more likely to cooperate with an agent who has strong referent power. This partly explains the effective leadership of Gandhi, and reasons why his followers were highly attracted to him. Comparison Between Leadership Style of M.K. Gandhi and M.A. Jinnah Gandhi and Jinnah, as portrayed in the movie, seem to be very different in their traits, behaviour, appearance, lifestyle and leadership style. Jinnah is shown to lead a comfortable, sophisticated and lavish lifestyle, and in certain ways emulates the British. Gandhi led a lifestyle quite opposite to that. While Gandhi was the leader of the masses, Jinnah by no means came close. While Gandhi has been portrayed as warm and affectionate, Jinnah appears to be intimidating, arrogant, stubborn, manipulative, and at times sarcastic. In terms of leadership style, Jinnah exhibits characteristics of a negative charismatic. Negative charismatics have a personalized power orientation. In the movie, it can be noticed that while Jinnahs original ideology was that of an independent India, by gaining power over time, his ideologies changed. He later personally advocated creating a separate Muslim state Pakistan. While his concerns were valid, they seemed to be highly exaggerated. More so, even though Gandhi persuaded and tried to reason with Jinnah, he remained stubborn. It is only when Gandhi told him he could become the 1st Prime Minister of India with full freedom to choose his cabinet that he seemed content. Hence, it seems that Jinnah had a greater concern for self-glorification and maintaining power. In contrast, Gandhi was never in the chase for power, which is supported by the fact that he never held an official title or office. Conclusion Gandhi has been a role-model and source of inspiration for many generations. His unconventional means to fight injustice (truth, non-violence, non-cooperation and peaceful resistance) have earned him high admiration and respect. He led from the front to attain Indias independence, and influenced millions of followers to fight for a moral and just cause. He epitomised life based on moral conduct, and showed its strength to the world. While laying the foundation for democracy in India, he has also showed how unity and humanity can fight the strongest of forces. While it is highly unlikely to witness another Gandhi in our lifetime, humanity has critical lessons to learn from his leadership and life.

Aims And Objectives Used In A Study

Aims And Objectives Used In A Study The main purpose of this research is to investigate the impact of corporate social responsibility on the organizational performance case study of TESCO. Research and objectives are the back bone of the research. They give the direction to conduct the research affectively without this research seems to be useless. There are followings research objectives and aims To understand the impact of corporate social responsibility on organizational performance. To understand what are the derivers behind the implementation of Corporate social responsibilities How CSR play important role for the success of the company Find out the ways how company can perform CSR effectively and profitably What are the benefits which company getting by performing CSR 1.3 RESEARCH QUESTION As it been discussed above this study seeks to investigate into the impacts of corporate social responsibility on organizational performance as a case study of Tesco. To addressed the problems in research work some research question was really vital To what extended does the corporate social responsibility impact the overall performance of the Tesco? BACKGROUND INFORMATION In 1960 the concept of corporate social responsibility was introduced. It is understandable from the word of corporate social responsibility that how organizations engage in environmental and social activities in their business and their operations and how they cooperate with their stack holders including employees, suppliers, and customers. Initially the main concerns of corporate social responsibility were employment equal opportunities, health and safety issues. Nowadays, corporate social responsibility is not just focusing the health and safety issues but it is also focusing on Environmental and Ethical matters. Now corporate social responsibility is the competitive tool for the organizations and it is the source to get the competitive advantages and corporate resources. The basic definition of corporate social responsibility was given by European Commission. It is the process of implementation of social and environmental activities in daily business operations. Many experienced scholars and experts are trying hard to find the standard definition of corporate social responsibility but unfortunately they are not successful in this regard. Corporate social responsibility related activities and issues are controlled by various economic bodies. World Business Council for Sustainable Development explains corporate social responsibility; it is the responsibilities of the organizations to help the economic development by working together with workforce, national communities to improve the life style and standards. It is the duties of the corporations to perform activities which helpful for the organization as well for the society and community. It the obligation of corporations to do justice with their stakeholders as well their shareholders and also to take steps for the improvement of the society as well as the community. There are numbers of authors and scholars who have given their own ideas and views about the corporate social responsibility. They also explained what activities are good and what are bad. Different organizations commit that they are performing a lot corporate social responsibilities activities for the beneficial of the society and environment. If we study about the corporate social responsibility issues we will see there are number of companies who have committed that they are very responsible for the CSR but in real they were not doing this. Take the example of BP in 2007 BP promote their self that, they are very environment friendly and they promote their self as a green company. By violating the health and safety laws in USA BP image was very much disturbed. NIKE is one of the famous and well known brand in the world. Most of the products of Nike manufactured in developing countries. In developing countries they were not following the standards they paid very low wages to the worked and the working environment and working place were very bad and below standards and poor health and safety conditions in the working place. Due to these issues their brand name and brand personality was really disturbed and it created a bad image on their brand. (Weatherly and Otter, 2008) Porter and Kramer (2006) explained that corporate social responsibility is a source of getting competitive advantages .Corporate social responsibility plays a very vital role for marketing and it is very useful tool for attracting the customers. (Piercy and Lane, 2009) Corporate social responsibility is a source and tool to create strong brand awareness for the company. By practicing the CSR activities there are more chances of the organizational growth and it leads towards the profit. Corporate social responsibility is very helpful tool to create strong brand awareness as well as for the reputation of the organization. Retailing is very vast and essential sector in the UK economy providing huge range of products, goods and services. There were 305,000 retail outlets in 2004 in UK and they helped to generate the turnover of  £250B (ABI 2005). .Tesco is one of the largest store in the UK supermarket. According to the BBC News 24 (09.05.06), Tesco, Sainsbury, Asda, Morrisons are the big giant in the super market of UK. There is a competition like war among these four companies. There is great competition among these by providing the good quality products and services. All these companies are performing corporate social responsibilities according to their strategies. BBC news stated that in 2007  £1 of £3 was spent in Tesco.(BBC News 24, 23.01.07). Tesco operating 2,482 stores in UK and there are 287,669 employees working for the Tesco .There are 287,669 stores in UK. They are performing a lot of CSR works in UK. According to the Tesco CSR2010 report they mentioned that they are working too much for the beneficial of the community, society and environment. Tesco is giving 100 percent diversion of waste by recycling and effective waste management system, and all the waste directly goes to landfill. Tesco donated  £61.6M for noble causes and charities. Tesco is the first one in the world which opened zero carbon super markets in UK. Tesco create this thing in the mind of their customers that they are doing very well in CSR activities and they are serving a lot for their community society and environment. Tesco also highlights this slogan Every little helps means they are here to helping every on including customers, society, environment and communities. UK government allows companies to define corporate social responsibilities according to their own actions and standards. There is no fixed standards and rules for implementation of CSR in organizations. All organizations are freely performs CSR activities according to their resources and their corporate strategies. In UK mos t of the companies are serious to perform CSR activities. And they believe they can get competitive advantages by doing better CSR activities inside the organization as well outside the organization. Tesco is working hard for applying corporate social responsibilities as a vital part of their business. They believe that CSR activities are great opportunity for the growth of their business. (Tesco plc) IMPORTANCE OF THE RESEARCH Now a days the companies are responsible and serious about their activities and operation, how they are affecting the environment (Waddock and Graves, 1997a). Traditionally firms were engaged to plan strategies just for short term profit to invest in social and environmental activities with no direct payoff. Companies who will be socially responsible and their main focus in long- term objectives they will enjoy more profit in long-term (Kane, 2002).share holders and stake holders are interested to taking actions to encourage and promote CSR activities (c.f., Marens, 2002). There are a lot of theories which are focussing on CSR. CSR is a broad topic it covers many areas. The importance of this research is to find out the factors and derivers why the company are expending money for CSR what are the reasons behind this. How CSR play important role for the success of the organization. What practices are being following in the company which are the ethical and unethical activities in the organization and how they are affecting the organizational performance? This research will help how CSR is important for the organizational performance and what are the benefits Tesco is gaining from CSR activities. How much CSR is contributing for their success. There are many theories and models about CSR which explains CSR play very important role for the success of the organization. This study will help to understand how CSR create the important role for the brand loyalty and brand awareness. Girod and Michael (2003) arguing that CSR is just a tool to develop and create the brand awareness and brand differentiation. This study will help how much impact of CSR for the brand associations and brand awareness of the Tesco. CSR in business give the enormous benefits this include the long term customer relationships, reduce operating cost, increase the financial performance and profit as well. CSR in business help for sustainability of companies (Bevan et. al 2004). This study will he lp to understand how much CSR is helping to Tesco. There are some unethical practicing following in the organization and we will see how they impact on the organizational performance. This study will help to investigate that the organization is in winning position or loosing position when they are embraces CSR. It been noticed that some companies are not fairly performing CSR internally as well externally. This research will help to investigate that how Tesco is implementing CSR internally as well externally and what are the outcomes of those practices on the business. This research will help the reader to understand the importance of CSR. We can evaluate weather CSR practicing in the company and outside the company create good or bad impact on the organizational performance. If company does not perform CSR activities then what will be the impact of its on the organizational performance. This study will facilitate the readers to get the overall knowledge about the CSR and its import ance for the organization. This study will help to get the knowledge about the CSR activities performed by Tesco. What the categories of CSR are being following in TESCO and how they are performing them and what they should do better in future by performing the CSR activities in the organization as well outside the organization 1.6 SCOPE AND LIMITATIONS OF THE RESEARCH