Csr – Evaluation Methods

Claremont Colleges Scholarship @ Claremont CMC Senior Theses CMC Student Scholarship 2011 An Evaluation of Corporate Social Responsibility Initiatives Implemented by Alcoa, Votorantim, and Vale as a Means to Aid in Poverty Alleviation in the Brazilian Regions These Mining Companies Operate Emily A. Coleman Claremont McKenna College Recommended Citation Coleman, Emily A. , â€Å"An Evaluation of Corporate Social Responsibility Initiatives Implemented by Alcoa, Votorantim, and Vale as a Means to Aid in Poverty Alleviation in the Brazilian Regions These Mining Companies Operate† (2011).CMC Senior Theses. Paper 198. http://scholarship. claremont. edu/cmc_theses/198 This Open Access Senior Thesis is brought to you by [email  protected] It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact [email  protected] claremont. edu. CLAREMONT McKENNA COLLEGE AN EVALUATION OF CORPORATE SOCIAL RESPONSIBILITY INITIATIVES I MPLEMENTED BY ALCOA, VOTORANTIM, AND VALE AS A MEANS TO AID IN POVERTY ALLEVIATION IN THE BRAZILIAN REGIONS THESE MINING COMPANIES OPERATE.SUBMITTED TO PROFESSOR WILLIAM ASCHER AND DEAN GREGORY HESS BY EMILY AIKO COLEMAN FOR SENIOR THESIS FALL 2010/ SPRING 2011 APRIL 25, 2011 Acknowledgements Thank you to my loving parents who supported me throughout my academic career from preschool to my degree at Claremont McKenna College. I would have never made it without you! Thank you to my excellent professors who have challenged me to stretch outside my comfort zone in order to help me grow academically and personally. A special thank you to Professor William Ascher for his undying support and constant critiques.You made this process enjoyable and stress free. I truly appreciate your invaluable contribution to my Claremont McKenna College education. Lastly, thank you to my friends, Career Services Center, Kravis Leadership Center, and the wonderful staff at Claremont McKenna College for you r friendship and support throughout my college career. Table of Contents I. The Role of Corporate Social Responsibility in International Development Corporate Social Responsibility Strategies Corporate Social Responsibility Implementation Techniques Corporate Social Responsibility Assessment Methods II.Historical Trends of Corporate Social Responsibility Strategies Implemented by Corporations in Brazil Background: Corporate Social Responsibility in Brazil Corporate Social Responsibility in Brazilian Business Culture Brazilian Government Social Policies Brazilian Government Environmental Policies Present State of Corporate Social Responsibility in Brazil Modalities of Corporate Social Responsibility in Brazil Corporate Social Responsibility in the Mining Industry Challenges Faced By Mining Companies The Mining Industry in Brazil III.ALCOA in Juruti, Para: Bauxite Mine and Shipping Port The Region Alcoa’s Perspective on Corporate Social Responsibility Corporate Social Responsib ility Initiatives Civil Society Organization Partners Conflicts with the Local Community Evaluation of Aloca’s Corporate Social Responsibility Program and Impacts Analysis of Aloca Corporate Social Responsibility Table 1. Alcoa corporate social responsibility programs and impacts analysis IV.Votorantim in Niquelandia, Goias: Nickel Mine and Processing Center The Region Votorantim’s Perspective on Corporate Social Responsibility Corporate Social Responsibility Initiatives Civil Society Organization Partners Conflicts and Community Challenges for Votorantim Program and Impacts Analysis of Vorotantim’s Corporate Social Responsibility Table 2. Votorantim corporate social responsibility programs and impacts analysis V.Vale in Carajas, Para: Iron Mine, Railroad, and Smelting Industry The Region Vale’s Perspective on Corporate Social Responsibility Corporate Social Responsibility Initiatives Civil Society Organization Partners Conflicts and Challenges at the Car ajas Mine Evaluation of Corporate Social Responsibility Program and Impact Analysis of Vale’s Corporate Social Responsibility 1 6 10 14 19 19 19 23 25 26 30 33 34 36 38 38 38 40 42 44 45 48 49 52 52 52 54 56 57 59 60 62 62 63 65 67 68 69 70 Table 3. Vale corporate social responsibility programs and impacts analysis VI.Analysis of Corporate Social Responsibility Strategies: Alcoa, Votorantim, and Vale Evaluation of the Data Collection Analysis of Alcoa, Votorantim, and Vale’s Corporate Social Responsibility Initiatives Degree of Monitoring and Evaluations Implemented by Alcoa, Vale, and Votorantim Can Companies Learn from Corporate Social Responsibility Experiences? VII. Assessment and Recommendations Considerations for Corporate Social Responsibility Development and Implementation Implementation of Evaluations Conclusion VII. Bibliography 65 73 73 74 84 87 89 90 94 99 100I. The Role of Corporate Social Responsibility in International Development Even though each year m illions of people in developing countries are rising out of poverty to join the emerging middle class, a large portion of the developing world still lives on less than $2 a day. Governments, non-governmental organizations, non-profits, and corporations acknowledge this disparity and aim to address the issue using a variety of methods. Mineral extraction corporations, in particular, have the potential to play a key role in alleviating poverty.These firms are eager to meet the increasing demands of the newly developing global middle class by spreading their operations further around the globe. Their sprawling presence creates new opportunities to serve the world? s impoverished through corporate social responsibility initiatives. Today, many of the problems seen in developing countries include inefficient distribution of resources, poverty, poor standards of living, overpopulation, malnutrition, disease, lack of education, gender inequality, and government corruption.Corporate social responsibility initiatives create new avenues to address these issues associated with developing nations. In the past 20 years, the private sector has been experiencing a paradigm shift from purely focusing on generating profits to also contributing to the social good. Today, civil society pressures corporations to not only earn profits, but also contribute to the betterment of society. Corporate social responsibility initiatives are methods of how companies can provide services to society.The term is roughly defined as â€Å"economic, legal, ethical, and philanthropic expectations placed on organizations by society at a given point in time â€Å"(Carroll and Buchholtz 2000, 35). Carroll and Buchholtz argue that each of these corporate social responsibility components must be met before the 1 subsequent component can be met (2000). Essentially, businesses must first fulfill economic responsibilities which include, making profits, providing employees with safe and fair paying jobs, and providing customers with good quality products. More broadly speaking: to be a functioning economic unit and stay in business.Secondly, businesses need to commit to their legal responsibilities. Meaning a business must obey the laws and follow industry norms. Since the government is viewed as an extension of society, the laws that the government enacts are social codes that must be met before any other social responsibilities are pursued. The third step of corporate social responsibility is to address a business? s ethical responsibilities. Carroll defines this element as what is generally expected by society, above and beyond economic and legal requirements (1991).Society generally expects corporations to be just, fair, and to do what is right. Lastly, businesses will focus on corporate social responsibility philanthropic initiatives. The Greek word â€Å"philanthropy† directly translated means â€Å"the love of the fellow human. † Thus, philanthropic corporate s ocial responsibility is how businesses can positively contribute to the overall quality of life (Hennigfeld et al 2006, 8). Corporations are driven to participate in corporate social responsibility by a compilation of altruistic and utilitarian motives.The stronger and more integrated application of these motives precipitate richer, fuller relationships capable of producing higher value for stakeholders on multiple levels (Austin 2004, 30-32). Altruistic components refer to a passion to help society. Utilitarian components refer to organization competitiveness. It is important to note that each factor does not represent a â€Å"right† or â€Å"wrong† corporate social responsibility method. There is not an innate tension between the two because both are essential in the corporate social responsibility process. While it is important to serve the needs of the community, it is equally important to meet the legitimate needs of a corporation. (Austin 2004, 33). Davis and Blo mstrom's â€Å"Iron Law of Responsibility† suggests that â€Å"in the long run, those who do not use power in a manner which society considers responsible will tend to lose it† (1975, 50). The most successful corporations must choose to intentionally and strategically become a part of the solution to complex issues today, in order to preserve their businesses for the future.Michael Porter, well-known for his work on competitive advantage, argues that if a corporate philanthropic activity does not have a strategy base, it is a disadvantageous activity. Thus, even though companies gear corporate social responsibility towards an altruistic element, a utilitarian element must be present, as well. Porter attests that certain philanthropic investments will create a long-term competitive advantage for business, industries, and communities (2003). In some cases, companies are better equipped than governments to meet society? needs because they possess specialized skills and te chnologies that are significantly more efficient than government. Similarly, the â€Å"bottom of the pyramid† method aims to tap into the nearly 4 billion person market in developing countries. When companies transform their products to meet the financial and resource needs of this market they simultaneously increase profitability and contribute to reducing poverty. In addition, when companies contribute to social, economic, or environmental community needs the company is investing in the region? s potential for business operations in the future.As a result, improving the company? s competitive advantage compared to those companies who do not participate in equitable quality corporate social responsibility. 3 Adversaries of corporate social responsibility business strategy refute that corporations should play a role in philanthropic activities. Milton Friedman once attested that the primary â€Å"social responsibility of business is to make profits (Friedman, 1970). † Within his argument, Friedman claims that only human beings are responsible for their actions and that corporations are not considered human beings.Therefore, corporations are not responsible for their business activities, but rather the individuals a part of the corporation must hold themselves responsible. Further, Friedman (1970) asserts that social issues should be the responsibility of the state, not business. This is because managers do not have the capacity to understand how to address society? s needs. This rests under government jurisdiction. Since legal restrictions on business activity are set in place by the government, who represents society, managers are obligated to solely act in the interest of shareholders, as long as the mandatory legal framework is being met.According to Friedman, shareholder interest revolves around fulfilling the corporation? s central purpose: profitability (1970). For managers to act otherwise, would be considered „theft? from shareholde rs. Friedman does not deny that corporations participate in such corporate social responsibility activities, however he argues that any business action performed for corporate-interest should not be classified as corporate social responsibility (1970). If actions are grounded in a central goal to produce profit, then Friedman reasons it should be not characterized as a corporate social responsibility activity.Either way, corporations are engaging in corporate social responsibility activities, therefore, investigating the most efficient models provides valuable information to these entities. Determining which element causes the other, corporate social responsibility initiatives or profitability, is nearly impossible to prove because of the ambiguity between 4 each factor. There is, however, a positive relationship (Porter and Kramer, 2002). So according to Carroll? four-level corporate social responsibility design, it is imperative that corporations take into account social concerns because corporate social responsibility promotes profitability, which is the first requirement of his corporate social responsibility model. Corporations are attracted to corporate social responsibility activities because of the multi-tiered benefits for the community and the corporation itself. For example, by using a socially responsible business structure studies show an increase in new consumers who are attracted to the company? s positive reputation.Further, companies who uphold social responsibility attract a higher quality workforce, which is even more committed to their corporation because of its perceived socially responsible mission. Establishing a positive mutual relationship with the government is also an advantage for corporations. They gain more autonomy from and influence over legislation in order to promote their own business practices. Overall, corporate social responsibility represents short-term and long-term investments in the local population, government, and ec onomy to secure a prosperous business in the future (Henningfeld 2006).Individual corporations participating in corporate social responsibility initiatives dictate their own strategies according to their industry norms, available corporate resources, and specific community needs. Some corporations commit to meeting the minimum governmental regulations. By doing this, corporations curb the most pressing public concerns, but do not go beyond their legal obligation. On the other hand, corporate social responsibility could be used to fulfill a philanthropic vision in which a corporation proactively and consistently contributes to society above and beyond the basic governmental requirements.Regardless of the differing corporate social responsibility 5 missions, each entity strategically formulates their corporate social responsibility agenda to, in some regard, meet the needs of the communities it affects. This agenda dictates how a corporation? s resources and expertise are administered . Discussed below are examples of methods in which corporations may construct corporate social responsibility initiatives. This information represents hypothetical strategies and possible results, not necessarily strategies proven to be most effective.Corporate Social Responsibility Strategies (1) Environmental Sustainability Environmental sustainability initiatives aim to provide an environment that meets the needs of those today, without compromising the ability for future generations to meet their own needs (United Nations, 1992). Since a wide range of people benefit from sustainable development and environmental activist groups strongly support these initiatives it is useful in influencing positive public opinion. In addition, corporations preserve future resources for their own business activities.The first step corporations take in pursuing environmental sustainability is to thoroughly research the environmental impacts of their operations. If corporations are producing negati ve environmental externalities, local communities are inflicted with present and future environmental challenges. In response, corporate social responsibility resources are used to create proactive and retroactive sustainable business responses, techniques, and technologies in order to reduce their direct environmental impacts. Further, environmental education and sustainable community development can be provided.This strategy places more responsibility on the local citizens to use their sustainability education to benefit their 6 own community. In theory, it creates a longer lasting sustainable influence because community members can use their knowledge throughout their entire lifetimes and pass on sustainable traditions to future generations. (2) Anti-corruption/ Anti-bribery Multinational corporations operating in the developing world typically possess more influence over political, social, and economic issues than local community members.This is due to the fact that the corporat ions have superior financial resources, connection with the government and knowledge about national legal issues. Despite this power disparity, it is in a corporation? s best interest to avoid engaging in corrupt activity. The news of questionable business operations eventually leaks out to the global community. Currently, international business etiquette disapproves of corrupt behavior and views it as immoral. A company that participates in corrupt activities negatively impacts its reputation, thus, diminishing shareholder confidence and ultimately decreasing overall business value.To avoid this, a corporation should adopt anticorruption and anti-bribery corporate social responsibility strategies. When a corporation refuses to engage in dishonest activities, it reflects positively on corporate operations and adds to a just political climate (Stewart 2009). In addition, a contribution to a smooth running government benefits corporations because they can operate with few governmental interventions and also save money by avoiding bribes. 7 (3) Local Economic Development Corporations may choose to invest in local economic development.As a method to spur business growth corporations provide microfinance loans to local start-up or small businesses within the community. Business management courses that extend knowledge concerning entrepreneurship and sustainable business are another beneficial corporate social responsibility economic development alternative (Stewart 2009). In addition, contribution to infrastructure such as roads, ports, and city centers are beneficial for local trade because goods can be more efficiently transferred over a broader region. 4) Education and Training If a corporation employs people from the local community, it is necessary that these people are trained adequately. Education integration into business operations is imperative for social development (Nelson 2006). Corporate social responsibility focused on educational development helps p eople become more self-sufficient by teaching them skills that will attribute to being more productive members of society. This type of corporate social responsibility strategy, creates valuable human capital. Corporations could choose to focus on primarily employee training or choose to extend services to the entire community.The latter would consist of supporting primary to tertiary schools in order to invest in local human capital for potential future employees. The locally operating corporations will be more efficient with trained and educated employees who gain business and operations skills. 8 (5) Health and Wellness Access to health care services attributes to healthier community members, therefore extending a person? s work life and improving productivity. â€Å"Business works best when operating in stable and secure societies,† (Plugge 2004) in which a healthy workforce plays an important role.Corporate social responsibility health and wellness strategies may include education about basic hygiene, nutrition, and sanitation. Corporations who open access to basic medicines reduce the risk of many common illnesses that could be avoided or significantly reduced. All of these benefits contribute to stronger, healthier, and more productive employees. (6) Gender Equality and Women Empowerment Evidence shows that empowering women contributes to positive socio-economic development within communities in developing countries (Malhorta et al 2002, 33).Female leadership programs, increase corporate employment of women, provide microfinance loans for female entrepreneurs, and establish strict sexual harassment corporate policies are all possible corporate social responsibility gender equality initiatives (Plugge 2004, 6). By empowering women, more people are added to the work force, more businesses are developed, and familial relationships are more equalized. As a result, the community becomes increasingly competitive. (7) Employee Volunteerism Highly qualif ied professionals immigrate into local developing communities when a large business opens.These people have received ample training and are intellectually 9 qualified to operate a business on multiple levels. Using employee volunteerism within the local community is another example of a beneficial corporate social responsibility strategy. Depending on each employee? s skill set, corporate volunteers serve the community by improving local business strategies, infrastructure, education system, and public services. Studies have shown that employees desire a sense of â€Å"self-worth and a belief that their work provides value to the community,† rather than solely receiving high salaries (Shayon et al 1975, 2).Employee volunteerism fulfills this desire for importance in corporate work. When employees participate in volunteer work they also gain and perfect skills that will be more effective within corporate operations. Hence, this corporate social responsibility technique improve s employee morale, provides needed services to the community, and advances employee skills. Corporate Social Responsibility Implementation Techniques Corporations choose from a variety of implementation techniques in order to maximize the positive effects of each corporate social responsibility strategy within communities.Specific techniques are â€Å"aimed at mobilizing not only money, but also the company? s people, products, and premises to help support and strengthen local communities and non-profit partners† (Nelson 2006, 7). Discussed below are examples of corporate social responsibility implementation techniques that multinational corporations invest in. 10 (1) Philanthropic Cash Donations The philanthropic corporate donation phenomenon began in the United States during the 20th century with business leaders such as Rockefeller, Mellon, Ford, Gates, Kellogg, and Packard.This type of relationship is based upon responses to non-profit requests for donations with simple à ¢â‚¬Å"check-writing,† rather than a deeper interaction with charitable organizations. Interactions between corporations and non-profits are usually infrequent, with low engagement, and do not apply strategic planning. The basis for this implementation technique is to promote company image in a way that consumers and stakeholders perceive a compassionate and responsible institution. On the flipside, nonprofits receive the necessary funding to maintain service operations (Austin 2004, 4). 2) Independent Service Provider Less commonly pursued, corporations may choose to develop an â€Å"in-house† philanthropic service department to carry out their corporate social responsibility strategies. This department would act as the management team for the creation and implementation of corporate social responsibility strategies autonomous from non-profits, non-governmental organizations or the government. Nonetheless, consultation from these service organizations and the government occurs because of their specialized understanding of philanthropic initiatives which the corporation does not possess.Employee volunteerism would be the most common resource used within this implementation technique because it is one of the most accessible assets the company holds. 11 Direct Corporate Humanitarian Investments represent another form of independent service provider implementation technique that corporations autonomously develop. This technique â€Å"involves a firm using its resources and know-how to alleviate a particular instance of human misery† (Dunfee ; Hess 2000, 95). Corporations with specific niches in a development sector best optimize this technique.For example, the pharmaceutical company, Merck, held the patent to the drug that controlled river blindness. Hence, Merck was the only entity that could distribute this drug independently to developing communities for a reduced price. (3) Partnerships Corporate and social sector partnerships resemble a jo int-venture relationship in order to achieve common philanthropic goals central to the mission of each institution. Within the partnership each organization shares its resources equally and frequently communicates about specific initiatives.In addition, the managerial complexity required within a partnership typically precipitates a separate department to directly manage and implement the bilateral exchanges (Austin 2004, 4-5). In contrast to the previous implementation techniques, corporations acting in a partnership focus on specific initiatives and programs. For example, cause-marketing, project development, and synchronization of strategies are all activities involved within corporate and non-profit partnerships. Multinational corporations play an additional role in partnership corporate social responsibility implementation.Specifically, multinational corporations frequently participate in cross-sector partnerships because most have a mission to engage with the local community. Not only do corporations transfer technology and economic 12 development, but also their values and social policies (Austin 2004, 35). This adds another level of influence within the partnership. Methods of how corporations establish partnerships include social networking, past relationships, connections through acquaintances, related institutions or an affiliation with a specific cause.Typically in developing countries partnerships are with reputable non-profits or non-governmental organizations. Corporations partner with mostly traditional institutions because of their established reliability and proven success. In more progressive developing countries relationships could be developed with local service organizations, but in more underdeveloped countries multinational western based service organizations are used. A partnership acts as a form of risk-management for both the corporation and non-profit organization.Corporations utilize a partnership as an effective tool to address in curred harm to the community from business activities or as a resource to resolve future issues (Austin 2004, 34). Specifically in industries that produce negative externalities, a preventative alliance with a non-profit that specializes in neutralizing harmful business activities is extremely advantageous. Businesses cut-costs, improve public image, and engage with the local community with an established partnership. Moreover, when a corporation partners with the government or provides a service to society, both parties create a â€Å"win-win† relationship (Steward 2009, 18).The government gains from the economic development, material wealth, and jobs that corporations provide. Corporations benefit from government investment in infrastructure and legal protections. In addition, the government determines laws and regulations that a corporation must abide by. Thus, positive and reliable partnerships would influence the government to be more willing to 13 responsive to accommod ating corporate needs. Governments are better off because corporations create an increase in GDP, provide jobs to local citizens and contribute to national development.Non-profits and non-governmental organizations further gain from partnering with corporations. Funding diversification and reducing dependence on public resources are the main examples of how these organizations reduce their business risks. Corporations provide a secure source of funding despite possible government fluctuations in monetary support. For example, if a non-profit organization relies solely on government funding and there is a change in government leadership, budgeting, or policy that reduces funding to the non-profit, the organization would be at-risk of losing many resources.By partnering with corporations, non-profits and non-governmental organizations reduce their financial risk and gain valuable business strategy consultation. Corporate Social Responsibility Assessment Methods The evaluation of corpo rate social responsibility initiatives is extremely important for organizational analysis and public awareness. Documenting corporate social responsibility investments may influence corporations to be more accountable and take more ownership over their activities because it will be appraised by corporate and public experts.Firms use a variety of corporate social responsibility assessment methods in order to internally assess and externally report their corporate social responsibility investments. Reporting assessments may be an important and efficient way to communicate corporate social responsibility investments and achievements with academia, the financial community, government, policy makers, regulators, interest 14 groups, non-governmental organizations, general public, the local community, employees, shareholders, and the industry (Tilt 1994).Jason Saul (2009) believes that â€Å"at the end of the day we have to demonstrate value, and the way we demonstrate value to business, and to society, is by speaking the language of the business—by speaking the language of measurement. † Therefore, he argues that quantitative analysis of corporate social responsibility initiatives and reporting is a key component of corporate social responsibility management. In addition, if companies choose to use the internet and their websites to disseminate their social and environmental activities they have the potential to increase their transparency.This is an advantageous mode of communication because of its wide accessibility, low-costs, and ability to easily create in-depth or interactive tools (Line et al, 2002). The information gathered from expert audits, annual reports, corporate social disclosure reports, environmental sustainability reports and corporate assessments can be used to assess the efficiencies and short comings of corporate social responsibility initiatives. Important factors to consider are generally firm transparency, corporate governance, code of conduct, corporate social disclosure, social mpacts, community relationships, product quality, and stewardship (Szablowski 2006, 49). Thomas Haynes (1999) further recommends all companies measure four critical areas of corporate social responsibility: 1) economic function, 2) quality of life, 3) social investment, and 4) problem-solving. However, Harold D. Lasswell would consider these four critical areas incomplete because it does not take into account the evaluation of corporate social responsibility investments and policies according to the appraisal results. The corporate social responsibility goals must be specific and clear in order for the evaluations to be 15 ffectively implemented to improve corporate social responsibility programs and investments or to propose alternatives. In the past decade, corporate social disclosure reports are being more commonly used. These reports consist of voluntary and mandatory accounting of community issues above purely economic activi ties, such as human resources, community involvement, energy, product safety, environmental issues). The Corporate Citizenship Company, an international corporate responsibility and sustainability consulting firm, uses seven categories to assess the effectiveness of corporate social responsibility activities.Assessment Factors by Corporate Citizenship Company (Yakovleva 2005, 23) 1) Shareholders a. Return on investment b. Corporate governance 2) Employees a. Salary and Benefits b. Health and safety c. Training and staff development d. Diversity e. Communications 3) Consumers a. Price/ value b. Quality of product c. Advertising policy 4) Business partners a. Jobs sustained b. Payment of bills c. Technology transfer 5) Government a. Tax contribution b. Local economic impact c. Transfer pricing policies 6) Community a. Charity contributions b.Local economic impact c. Transfer pricing policies 7) Environment a. Sustainable raw materials 16 b. Emissions to water and air c. Energy efficie ncy d. Waste management e. Reduced packaging f. Consumer education In partnership with the Corporate Citizenship Company, the London Benchmarking Group analyzes corporate social responsibility investments and gives each program and service quantitative value. The LBG was founded in 1994 and consists of over 100 companies dedicated to measuring Corporate Community Investment. Hundreds of companies round the world use the LBG method to quantitatively value corporate social responsibility activities. Monetary values are applied to 5 variations of business activities: 1) business basics, 2) mandatory contributions, 3) commercial initiatives in the community, 4) community investment, and 5) charitable gifts. These varying business activities allow corporations to classify a monetary value to a company? s corporate social responsibility inputs including cash, time, in-kind, and management costs (â€Å"Measure for Measure,† 2004).The companies also assess their corporate social resp onsibility outputs and impacts in order to equate the net gains of corporate social responsibility investment. For example, new availability of cash or other resource, quantity of people aided, and business benefits represent measurable outputs. Assessment tools have the potential to be extremely valuable in corporate social responsibility strategies. Companies should be evaluating the performance of their corporate social responsibility investments to gain further intelligence about how to efficiently improve the use of their corporate resources.However, currently corporations are not required by law to report their corporate social responsibility activities. Those that do report use different methodologies, creating inconsistencies in appraisals techniques. 17 Some models that companies are presently using could be omitting crucial key factors in corporate social responsibility efficiencies, thus, providing incomplete information. A comprehensive corporate social responsibility ev aluation model needs to be established in order to effectively assess and improve corporate social responsibility activities. 8 II. Historical Trends of Corporate Social Responsibility Strategies Implemented by Corporations in Brazil Background: Corporate Social Responsibility in Brazil Throughout Brazilian history, philanthropic and charitable donations were significantly represented in the nation? s culture. Since the colonial period, the Catholic Church has inspired the establishment of many civil society organizations that carry out needed services for society. This movement grew during the industrialization period and gained substantial public support.During military rule, civil society organizations diminished in quantity because of the extremely centralized government. By the democratization period during the late 1980s until present, more and more corporations have adopted corporate social responsibility initiatives, thus, influencing a shift in Brazilian business culture. B razilian society remains highly centered around philanthropic concerns, which is made evident through a study cited by Cappellin and Giuliani. In 2000, 70 percent of the adult population donated goods and money to social organizations or people in need (2004).Understanding the historical trends of the evolution from philanthropy to corporate social responsibility strategies will provide more insight into the analysis of mining company corporate social responsibility and how it could be most effectively implemented. Brazilian colonial development was originally based upon an agricultural slave economy under an authoritarian and centralized government. The country? s colonial origins also influenced the predominance of the Catholic Church in Brazilian society. The state collaborated heavily with the Church.Responsible for public services including education, health and social welfare, the Church played an important role in connecting 19 the state to its people. After the separation of Church and state in 1891, the Church continued to invest in schools, hospitals and charitable works (Landim 1998, 68). During this period, â€Å"popular Catholicism† inspired the establishment of the first societal associations, including the most notable â€Å"Brotherhoods of Mercy. † These endeavors were sponsored by the business elites, who helped in establishing a philanthropic cultural norm among many wealthy citizens.These associations were used for worship, as well as creating some of the first hospitals, homes and psychiatric hospitals (Landim 1998, 67). Corporations did not notably donate to philanthropic associations, but business leaders contributed individually. The state managed Brazilian society in a hierarchical fashion that maintained power and wealth within exclusive authoritarian elite. For example, societal changes generated by industrialization in the late nineteenth century were managed using agreements between the dominant elites (Landim 1998, 64 ).Under governance, the Brazilian rich became relatively richer while the poor became relatively poorer. This disparity is evident to this day. During the industrialization period between 1822 and 1930, the government established associations to provide services and resources to the unemployed as a strategy to attract foreign workers. Trade unions gained momentum during this period, as well. Thus, businesses were forced to deal with employee rights and services in order to contract with the trade unions.James Austin notes that if corporate social responsibility was implemented, it only extend to corporate employees (Austin 2004, 29) during the industrialization period. Military governments controlled the state from 1964-1985. They prioritized economic growth through expanding its industrialization system to diversify from the 20 previous mono-culture agriculture of sugar, rubber, coca, and coffee (Schroy 2006). In the mid-twentieth century the military government instigated anti-inf lation policies and invested in economic infrastructure: industry, transportation, and power, but failing in essential reform of public education (Evanson 2002).In addition, this period also marked the suppression of social organizations and social movements. The state controlled all social initiatives from education, to social security and health care. Consequently, the evolution of corporate philanthropy into Brazilian business strategy became extremely limited. However, the Brazilian non-governmental organizations, civil society organizations and non-profits that did operate during the period of military rule were given minimal supported by the government, so some organizations turned to corporations as a source of resources and funding.This process led to significant alterations to how Brazilian social organizations strategized their operating models (Austin 2004, 207). Corporate Social Responsibility in Brazilian Business Culture In Brazil, like elsewhere, companies are being c hallenged to better strategize their corporate social responsibility resources in order to become a part of the shifting paradigm that businesses should implement corporate social responsibility initiatives in their development. A survey conducted by Instituto Ethos (2002), a Brazilian corporate social responsibility on-profit organization founded in 1998, reveals that Brazilian consumers expect ethical behavior from companies. It is no longer acceptable for a corporation to produce negative externalities without engaging in activities to recuperate and compensate those who are affected. On the other hand, Brazilian consumers seek out 21 companies that operate sustainably, collaborate with the community, and provide quality working conditions (Instituto Ethos 2002). Corporations increasingly devote more resources to their corporate social responsibility initiatives as a result of public pressure and evolving business missions.In the 1990s, an increase in civil society organizations occurred because of the changing economy and collaboration of business leaders. Liberalizing the Brazilian economy presented many challenges due to over 25 years of strictly regulated military rule. After eradicating most trade barriers, local Brazilian businesses were faced with intense international competition that nearly suffocated local businesses. This created an extremely unfavorable economy for corporate commitment to factors outside of direct business activities, such as corporate social responsibility.Instead, business leaders personally founded third-sector organizations in order to influence legislation and public opinion regarding issues they were most passionate about. For example, a group of business people who all had a mission to mobilize, encourage, and help companies manage their business in a socially responsible way, established Instituto Ethos. Once the Brazilian economy began to recover in the mid-1990s, businesses slowly started engaging in corporate social r esponsibility initiatives once again, first with charitable giving (Austin, 2004) to many of the newly established third-sector organizations.The increase in research, academic studies, dissemination pieces, and broad media communication about corporate responsibility initiatives has further influenced businesses to participate in corporate social responsibility activities. The stronger spotlight on this shifting business paradigm further increases awareness and promotes widespread expectation of corporate social responsibility investment. 22 Brazilian Government Social Policies During the early part of the twentieth century, civil society organizations rapidly gained a strong presence within Brazilian culture.In 1938, the Decree-Law was enacted establishing the Conselho Nacional de Servico Social (National Social Service Council or CNSS): a linkage institution between the state and public sector. The institution? s main duties included implementing and assessing aid to the poor and determine which nonprofits should receive government funding. In addition, the Legiao Brasileira de Assistencia (Brazilian Legion of Assistance or LBA) was established to serve the needs of the noticeably vulnerable portions of the population, for example, young children, pregnant women, and the elderly.These services were carried out with the partnership of social or church organizations. These departments of state maintained a social network within the government and society that set a precedent for subsequent social governing and Brazilian culture. The military acted as a highly centralized functioning government from 1964 to 1988. Under military rule, the government directly controlled the economy, national development, and social service agencies. The military focused on rapid economic growth and expansion creating the â€Å"Brazilian Economic Miracle. From 1964-1972, Brazil experienced an average of 10% GDP growth (Schroy 2006). Despite its economic achievements, Brazil negl ected education and health care reform leaving a significant portion of the population in poverty (Evanson 2002). By the end of military rule, the economic disparities between the rich and poor were epic creating the societal need for poverty assistance. 23 The current democratic government and constitution were founded in 1988 after the military relinquished governing power. In light of the experience under the military governments, the 1988 constitution directly protects Brazilian civil rights.It is best known as the â€Å"Citizen Constitution† due to the state? s commitment to enhancing social policies and defending human rights (Austin 2004, 210). This philosophy aids in developing and maintaining civil society organizations that contribute to reducing poverty, improving health care and education, and protecting the environment. Government regulation of business also reflects the protection of civil rights. For example, in 1995 the Environmental Crime Law was enacted to g ive citizens the right to sue business executives in court if they do not comply ith health, environmental, or safety standards (Cardoso 2003). To understand the remaining needs and opportunities for corporate social responsibility contributions, it is important to understand existing social policies. Currently, the Brazilian government actively implements social service programs for poverty alleviation and social safety protection. The government of President Luiz Inacio Lula da Silva established the Ministerio do Desenvolvimento Social e Combate a Fome (Social Development and Fight Against Hunger Ministry or MDS) in 2004.This ministry enacted â€Å"Assistencia Social† (Social Assistance), â€Å"Bolsa Familia† (Family Bag), â€Å"Seguranca Alimentar e Hutricional† (Food and Nutrition Security), â€Å"Inclusao Produtiva† (Production Inclusion), and â€Å"Avaliacao e Gestao oa Informacao† (Information Management and Evaluation) all aimed at elevatin g poverty and promoting human development (Desenvolvimento Social, 2010). As a result, Brazil? s poverty rate declined by 20 percent during the 1990s (Cardoso 2003). Bolsa Familia was created in 2003 as a 24 ethod to reduce short-term poverty and combat long-term poverty by requiring children to attend school and become vaccinated. Currently, the program provides 11 million families with US$44 a month (Casanova 2009, 141). The past decade has shown even more social improvements. The World Bank justifies that living on less than US$1. 25 equates to living in poverty. In 2003, 22. 9 percent of the Brazilian population was impoverished, but by 2009 only 10 percent of the population was impoverished (Santos 2010). It is important to note that there are still many weaknesses within the social system. 3 percent of the active working population does not qualify for unemployment or social insurance, leaving them at risk against sickness, accidents or maternity leave. At the same time, 20. 3 percent of children are still living in poverty (Santos 2010). Overall though, the system as a whole has been effective in reducing poverty. Brazilian Government Environmental Policies The government has a formal commitment to sustainable development in addition to improving civil society. For instance, the Brazilian â€Å"Environmental Protection and Licensing Plan† requires corporations to receive a „Previous License? „Installation License? , and „Operation License?. At each stage, environmental risk assessments must be completed by the company and approved by the environmental government agency, Insituto Brazileiro do Meio Ambiental (IBAMA 2010). At any time in the application process, the Brazilian government has the right to halt construction. Government regulations appear to be strict; however, past precedent shows that the government encourages profitable resource extraction industries, such as mining. Mineral exports are a robust commodity for Brazi l contributing to GDP and tax revenue for the quickly 25 eveloping nation. Therefore, the government reduces regulation and loosens its monitoring system in order to promote rapid resource extraction and increase national revenue. At the same time of the increasing expansion of the mining industry, the International Council of Minerals and Metals, consisting of 19 robust multinational mining corporations, have set in place environmental and social commitments in an attempt to preserve environmental and social rights. Each mining project must receive a â€Å"Social License to Operate† from the International Council of Minerals and Metals.This requires consent by the local community through negotiations and written agreement of how the community will regulate mining activities. The firm is obligated to administer an environmental impact assessment to pinpoint potentially hazardous affects on the environment and how it plans to rehabilitate any degraded environments. However, th e International Council of Minerals and Metals does not regulate corporate social responsibility initiatives. Companies themselves are responsible for implementation and assessment.Present State of Corporate Social Responsibility in Brazil Instituto Ethos, Brazil? s prominent social change non-profit organization, reports that more than half of Brazilian companies implement social policies (2010). Public opinion continues to promote a shift in corporate culture to develop solutions to some of the country? s toughest problems such as, environmental degradation, poverty, and health care. The vast inequalities within Brazilian society have become a hot topic among international development organizations. For example, even though Brazil? s economy is 26 anked as the eighth largest economy in the world (IMF 2010), 50 million people are living on less than US$30 a month. Globally, Brazil is ranked 4th to last in income distribution and 73rd on the Human Development Index (Austin 2004, 215 ). This wealth disparity highlights the extensive potential corporate social responsibility initiatives could have upon the disadvantaged populations. Corporations operating in Brazil view corporate social responsibility as a tool to restore trust among the public by serving those who suffer from the unequal distribution of national wealth originally initiated by some of these corporations.SustainAbility ViceChairman Geoff Lye reasons that â€Å"if business leaders can make a difference but choose not to, they will live to regret the disruptive social, environmental, and economic consequences that will result from failing to achieve development goals† (Lye 2006). Purely focusing on firm profitability is not enough now. A corporation? s culture, impact, and global image play an imperative role in Brazilian business activity. Businesses that do, however, chose to participate in corporate social responsibility initiatives usually focus on issues that have relevance to their own business activities.For instance, Roberta Mokrejs Paro and Claudio Bruzzi Boechat (2008) researched business priorities and corporate social responsibility initiatives of 30 Brazilian companies. The study uncovered that corporations prefer corporate social responsibility activities that are important for business activities. For example, the top four corporate social responsibility initiatives among the participants are in the energy, water, education, and environmental sectors. These were also the top four sectors for the implementation of business activities (Paro 2008, 539). 7 The Brazilian government heavily promotes corporate social responsibility activities, as well as, implements extensive corporate regulations in order to protect its environmental, social, and economic identities. Even though some business philosophies behind corporate social responsibility activities appear to be clearly defined and structured, often the reality is a different scenario. Emilio Klein a resea rcher at the International Labor Organization remarks about corporate social responsibility in Brazil Hopkins 2007, 177): †¦in that country everything is there on paper, perfectly neat and rational. But when you check the reality then things are very different. I would say that roughly in Latin American large corporations, and almost all enterprises, lack something that is essential in the background of your definition: fairness. They are unfair with their stakeholders, both inside and outside, and they can be so because they have all the power, including of course the government. If you add to that their short-term perspective, then you get what we get [in Brazil].Employees, customers, purveyors or whatever, are being squeezed and pushed around by business, particularly those related to basic services (privatized), financial services and commerce. Even though the Brazilian government has set into place complex social and environmental protection laws, the enforcement and regul ation of these principles are extremely limited. Therefore, businesses easily take advantage of local communities by out maneuvering them through economic and political avenues. As a result, businesses typically operate according to their own motives, not the governmental guidelines.Instituto Ethos uses strategies such as expanding the corporate social responsibility movement, deepen corporate social responsibility practices, creating a more favorable business environment for corporate social responsibility, and articulating corporate social responsibility within public policies to achieve their mission. Currently, this Brazilian corporate social responsibility organization has 907 member companies 28 who combined employ about 1. 2 million people and contribute to about 30 percent of GDP. Business represents one of the most powerful groups in Brazilian society.Therefore, it is pivotal that this sector engages in corporate social responsibility activities to achieve development succe ss. In 1999, the UN Secretary General launched the Global Compact Program. This aims to coordinate business and corporate responsibility initiatives. Instituto Ethos organized a conference of over 107 companies to develop guidelines for Brazilian companies to participate in this Program. Fourteen principles were created: 1) Indivisibility of rights (all human rights must be considered as a whole) 2) Meeting employee human rights should be viewed as positive and productive for business 3) Companies are leading agents for hange because of their large presence in society, 4) Possible new labor relations could be developed 5) Refuse child labor 6) Implement multiple intervention corporate social responsibility programs 7) Business participation in policy development for long-term commitment 8) Promote women rights 9) Environmental protection 10) Exchange knowledge and methodologies 11) Increase interaction with UN agencies 12) Pro-active thinking 13) Create methods for discussion 14) Mo nitor Global Compact indicators 29These goals represent key factors that Brazilian companies could address while constructing their corporate social responsibility initiatives. Because of the scope of corporate social responsibility options is broad, the presence of corporate social responsibility and corporate social conscience create a favorable environment for further promoting corporate social responsibility into businesses not yet participating. Modalities of Corporate Social Responsibility in Brazil Within the Brazilian corporate social responsibility environment, corporations most commonly participate in civil society partnerships.A study conducted by James Austin (2004, 215) shows that of the 385 companies that participated, 85 percent rely on some variation of alliances with civil society organizations to implement social responsibility strategies. Of this group, 15 percent solely use partnerships to conduct their social practices, 37 percent use non-permanent partnerships, and 33 percent occasionally engage in partnerships. Most often these partnerships are multi-sectored, because each civil society organization has specific niches that aid in the common corporate social responsibility goal.For example, businesses often partner with non-governmental organizations and non-profits that already have social management expertise to reduce implementation and operating costs for business social responsibility activities. In addition, corporations are amenable to working with local non-governmental organizations or non-profits because it can lead to positive community relations. In addition, corporations may also choose to partner with the local, regional or national government to implement social initiatives. Business leaders often view Brazilian governmental organizations as non-cooperative, bureaucratic, slow, nd 30 inefficient. Therefore, business and government alliances tend to be infrequent in Brazil (Austin 2004, 220). However, these difficulties do represent an opportunity for businesses to enhance government entities and to provide advice on how to make the government processes more effective. For example, Naturas commitment to improving local public education in Itapeceriaca da Serra not only required the company to work closely with the local government quiz, but also led to the establishment of â€Å"Barracoes da Cidadania† (Community Shelters).This program is managed by the Municipal Secretary of Culture in order to provide needy children and youth social and cultural activities and equipment (Austin 2004, 220). Even though such partnerships are becoming more prevalent, a significant proportion of corporations? efforts remain un-partnered because of factors such as lack of confidence in civil society organizations, lack of information, and precedent frustration. 15 percent of the companies in the Austin? s sample do not engage in partnerships, but individually create and implement corporate social responsibility (A ustin 2004, 219).Some company executives believe that they can better manage their resources independently because they have â€Å"better control† (Austin 2004, 219) than those firms who engage in cross-sector partnerships to implement their social initiatives. Another finding is that companies that incorporate corporate social responsibility into their business models are more likely to make profits than if they treat these factors as expenses unrelated to business strategies directed to enhancing good will, educate potential employees or provide health care to the community (Hamman 2003, 238).Company executives frequently commit to carrying out ethical business practices as a component of their corporate responsibility. This includes refraining from using 31 child labor, providing fair compensation, creating safe and comfortable work conditions, and operating within the legal environmental regulations. This promotes ethical business behaviors, as well as benefits the produc t and companies because they will avoid potential labor rights issues. Further, environmentally friendly operations reflect positively on the company and its products.The company also reduces the risk for governmental fines due to negative environmental impacts. Often companies whose business leaders choose to invest in â€Å"green† technology and environmentally sustainable business practices tend to become industry leaders because they are evaluating and strategizing how to improve their operations, as opposed to maintaining the status quo. Joint commitments to practice corporate social responsibility among firms at the same level within a specific industry have proven to be an effective tool to promote company investment in corporate social responsibility initiatives.These commitments consist of each company dedicating a standardized amount of business resources to corporate social responsibility. Therefore, no company can gain a competitive advantage by not engaging in co rporate social responsibility, thus creating a â€Å"level playing field† within the industry. The International Council on Mining and Metals is an example of this type of alliance. The organization consists of 18 mining and metals companies, as well as 30 national and regional mining associations and global commodity associations.Its vision is to lead â€Å"companies to work together and with others to strengthen the contribution of mining, minerals and metals to sustainable development† (ICMM 2010). This alliance encourages mining corporations to participate in corporate social responsibility, which neutralizes potential disparities 32 between competitors because a significant amount of the world? s most prominent mining companies are members of the International Council on Mining and Metals.Corporate Social Responsibility in the Mining Industry Mining company leaders argue that the extraction of non-renewable resources is essential to world development (Jenkins and Yakoyleva 2006, 271). They declare that newly discovered mineral deposits and improved technologies will provide additional wealth into the world? s economy. Even though the mining companies claim that they are a part of an important source of global wealth, public opinion has largely focused on the negative externalities of mining activity.In response to this public cynicism, corporate social responsibility represents a valuable impression management tool that all prominent mining corporations utilize (Jenkins and Yakoyleva 2006, 272). Corporate social responsibility is treated as a strategic response to social challenges that inevitably arise from mining extractive operations. Almost all mining companies allocate resources to these initiatives. Thus, it is necessary for corporations in this industry to participate in corporate social responsibility initiatives in some capacity in order to remain current among industry competitors.It has become standard practice in the mining indus try to develop more environmentally and socially conscience operational strategies. â€Å"corporate social responsibility in the mining industry is viewed as a mechanism for maximization of positive and minimization of negative social and environmental impacts of mining, while maintaining profits† (Acutt et al, 2001). According to a poll of the ten largest mining companies in the world, the number one reason for participating in corporate social 33 esponsibility activities is to contribute positively to brand reputation. Additional incentives are to increase value to shareholders, maintain relationships with the domestic government, and satisfy socially conscience consumers (Hamann 2003, 242). Not only is corporat

Helga by Andrew Wyeth

The â€Å"Helga Pictures† by Andrew Wyeth are a fantastic compilation of tempera and dry brush paintings, watercolours and pencil studies secretly created within a span of over fifteen years. Andrew Wyeth created over two hundred and forty individual works of neighbor Helga Testorf from 1971 to 1985 without telling a single person, including his wife. He stated that he would not have been able to have finished the project with everyone looking at it. (Allen) The large number of works and the palpable charge that runs through them suggested more than a simple artist-and-model relationship.The Helga chapter landed on the covers of Time and Newsweek as the public speculated over whether Wyeth, then 69, had had an affair with the woman 22 years his junior. As the Wyeths tried to explain the relationship, the art world wondered whether the secrecy and subsequent revelation had been staged simply to raise the popularity and price of the paintings. â€Å"It was a love affair with th e burning love that I've always had toward the things I paint,† Wyeth said of the Helga paintings. â€Å"If I don't have it, the painting goes ordinary, routine. (Nelson/Oliver) Stung by criticism over the â€Å"Helga hoopla,† Wyeth denied there had ever been a sexual relationship, and his wife admitted that not all of the works had been kept secret from her. When critics accused the Wyeths, and Andrews, of being â€Å"hucksters,† the artist verbally shrugged, saying critics â€Å"were just looking to bop me on the head. † (Nelson/Oliver)) So who is Helga Testorf? She is a Prussian-born immigrant who was a caregiver to one of Wyeth’s neighbors, Karl Kuerner, near his home in rural Chadd’s Ford, Pennsylvania.She was 32 years old when Wyeth first met her in the early 1970s, and something about the blond beauty stirred the artist in a very profound way. They were merely acquaintances for a while until finally Wyeth asked her to pose. Helga had never posed before but was willing. (Museworthy) In 1986, when the â€Å"Helga Pictures† were revealed, Mrs. Testorf was a middle-aged mother of four, living with her husband John on a secluded property called Zum Edelweiss on the other side of Chadds Ford from Wyeth's home. (Museworthy)Helga, like her employer Karl Kuerner, was of German descent. Helga immigrated to the United States and Chadds Ford, Pennsylvania in 1961, eventually became a mother and homemaker before becoming Karl’s caregiver. Due to her association with Mr. Wyeth, she eventually developed an keen interest in poetry and art. Before Andrew Wyeth’s death, Helga was one of the ailing artist’s primary caregivers. Why Andrew Wyeth became infatuated with this Pennsylvania Fraulein is unclear, other than he obviously found her a fascinating subject.Some hypothesized that it was her reddish blonde hair that set the tone for this series of renderings by the enigmatic artist, that drew Wyeth to concentrate so much time and effort on the interpretation of this woman‘s visage and the ego within. Her chiseled features, her supple form, her pensive stare and ultimately, Helga’s innate devotion to the process could have given the great artist the insatiable purpose to slavishly devote so much of his creative energies to one subject.Some folks; however, luridly speculated that Helga’s alluring visage engendered a passionate affair between she and the doting artist. For those who considered an affair was afoot, Andrew Wyeth‘s wife Betsy did not disappoint. (Day) Betsy, his wife of many decades and who was also his business manager, is said to have let rumor run unabated until she sold the entire series to Leonard E. B. Andrews in 1986. It has been estimated, that the series sold well in excess of over six million dollars.She then denied that the scathing rumor was true, and was convincing to the point of believability. Today the rumor is not the subject, but rather Andrew Wyeth's profound artistry within the Helga series. (Day) Andrew Wyeth and Helga Testorf remained close friends until his death. Their relationship, and the art created as a result, has endured over many, many years. The Helga series is artist/muse embodied to perfection. And every artist should be so lucky to find his Helga. Museworthy) Works Cited: Allen, Scott. â€Å"Andrew Wyeth/The Helga Pictures. † Cure the Blind. 6 July 2009. Web. 10 Nov. 2012. Nelson, Valerie and Oliver, Myrna. â€Å"Hugely popular painter Andrew Wyeth dies at 91. † Los Angeles Times. 17 January 2009. Web. 10 Nov. 2012. â€Å"Andrew and Helga. † Museworthy. 31 August 2008. Web. 10 Nov. 2012 Day, Wyatt Sanderman. â€Å"Andrew Wyeth’s Helga: a Compulsive Fetish or his Best Work. † Beaufort County Now. 29 September, 2009. Web. 10 Nov. 2012.

Answers to Cases Essay Example | Topics and Well Written Essays - 750 words

Answers to Cases - Essay Example The toxic plume caused massive kill of birds and fish. Moreover, it contaminated the drinking water of almost 2.5 million people. Acid mine drainage is another negative consequence of gold extraction. This can affect the environment for a long term period if the governments and communities do not take any kind of initiative. Stakeholder Theory Approach This case study is focused on negative impact of gold mining on the environment. A business firm can address to several opinion of different stakeholders linked with a particular issue through a stakeholder approach. There are two stakeholder categories namely market and non-market stakeholders. This part of the report will discuss about the contribution of these two types of stakeholders. Market Shareholders In this particular case; shareholders, employees and customers can be considered as the market stakeholders. Employees and the customers are considered as the key stakeholders of an organization. The workers of gold mining company know that using huge earth moving machines and dangerous explosive materials can crate risk to their health. This environmental conflict can force the employees to raise their voice against the gold mining process. On the other hand, shareholders always try to buy the share of these companies as gold is considered as one of the expensive metals. Customers also try to consume gold as the demand of this metal will continuously increase in future. Non-Market Shareholders Government, communities and several non-governmental organizations are considered as the non market stakeholders. It is important for the government to develop several environmental policies and laws for the gold mining organizations to reduce the level of environment pollution. Huge explosive materials and Cyanide heap-leaching is causing death of mankind and animals (Lottermoser, 2010, p.27). Ultimately, the ecological balance and safety of community is getting affected due to these gold mining activities. Community is another important stakeholder. Several villages and communities near the gold mines are getting affected. The villagers do not understand danger of the several collected hazardous liquid metals. More than 1000 individuals became ill due to the deadly effect of these metals. The nongovernmental organizations are also considered as the non market stakeholders. The gold mining organizations are trying to utilize several deadly mining materials to extract more number of gold metals. Several business support group are helping these organizations to secure the profit margin and financial stability. These activities are ultimately affecting the environment and health of several human beings and non-human animals. However, government is trying to initiate several awareness campaigns in order to the environmental conflict with the help of several NGOs. Stakeholder Map Several gold mining organizations are using Cyanide heap-leaching and heavy earth mover to maximize their gold mining. Cy anide is a deadly poison. The waste water and materials are generally spilled into the river. It causes death of several birds and fish. On the other hand, process of metal extraction seriously pollutes the air. It can cause several human diseases. The following stakeholder map will help to determine the position of all the stakeholders, such as employees,

History of pubilc procurement Term Paper Example | Topics and Well Written Essays - 750 words

History of pubilc procurement - Term Paper Example It is also considered as the main element in the way public funds are utilized, hence enhancing public trust in procurement (Beth & OECD 19). Public procurement has been in existence since 1778 and has led to the implementation of public procurement law, which regulates the purchasing made by public sectors that contract goods, services and work. Public procurement is regulated in most countries to avoid corruption, fraud, and waste; indeed, public tenders are issued by a public authority when the value of procurement exceeds the required threshold. Today, public procurement is becoming more complex, forcing the public procurement officials to deal with the changing issues based on fairness, transparency, integrity, and equity, which are the principles of public procurement (Beth & OECD 18). The History of Public Procurement According to Thai (13), the first purchasing action was conducted in 1778, with the approval of the continental congress on the appointment of purchasing commiss ionaires. By the end of that year, the purchasing officers had been placed on a salary, with an aim of avoiding fraud. The congress thereafter passed a Purchasing Act, which permitted war and treasury departments to make purchases in the name of the United States. The first procurement was made in 1794 for the new United States navy; however, this procurement was accompanied by negative experiences, which led to the implementation of purveyor of Public Supplies Act, a procurement legislation that was the basis for military procurement. Misconducts and fraud cases led to the implementation of Public Contract Act of 1808, which warned members of the congress from using government contracts for personal interest (Thai 13). In the United States, public procurement organizations vary with the size of the government units; however, it has a complicated procurement structure. The federal procurement operates within a democratic framework, which is under the legislative, judiciary, and exec utive branches. Nevertheless, the courts are not involved in setting procurement policies and rules; however, they try the legal cases that involve contract disputes. The congress passes the laws that establish procurement policies and procedures; it also allocates specified funds for the procurement purposes within the time required (Thai 19). Public procurement also encounters several challenges. This function has a great impact on the country’s economy; hence, efficient handling of public procurement has proved to be a challenge. Ensuring that the principles of public procurement are followed to the later is also a challenging task. This includes ensuring that fair competition for the bidders is granted, promoting transparency, and ensuring that the allocated loans are used for the specified purposes only. Thirdly, public procurement is associated with fraud, waste, and corruption, hence a major challenge for a country. In addition, public procurement practitioners face th e challenge of complying with their home government regulations without violating the international trade agreements like the World Trade Organization (WTO). Today, the government has enacted several laws pertaining to public procurement, among them being the Public Act whose aim is to enact laws relating to public contracts. An example is the federal acquisition regulation and agency, which provides uniform procedures for federal agency acquisitions. The Truth in Negotiation Act of 1962 establishes rules that

DQ1JPart1 and DQ2 Bridget Essay Example | Topics and Well Written Essays - 250 words

DQ1JPart1 and DQ2 Bridget - Essay Example Documentation is very important because it provides a way to keep a written or computerized record of the work performed by the workers. â€Å"Documentation justifies employment actions, from recruitment and selection to resignation, retirement or termination† (Mayhew, 2012). The manager is responsible for the performance of his subordinates. A system that allows the employees to rate themselves is a great idea. Such a system can inspire motivated employees to achieve a higher level of performance. A potential problem of self-evaluation is employees exaggerating their level of performance (Bacal, 2012). Constructive criticism is an important element of any appraisal system. Employees have to be willing to listen to the opinions of others and accept that they may have deficiencies that must be improved. The use of training and development can enhance the skills and capabilities of the employees. Human resource professionals and managers must document their work. An example of a documentation process is the time cards that employees use when they punch into work. These cards must be saved in case there area any payroll issues associated with the payment to an employee. An industry in which proper documentation is imperative towards the ability of the professionals to provide a proper service is the medical industry (Nyu,

Making monstor Essay Example | Topics and Well Written Essays - 250 words

Making monstor - Essay Example This book addresses current issues, personal observation, and photographs that make readers be interested on the subjects of psychopathology, true crime, and serial killers. This book looks at the issues and controversies that are seen in the study of morality. The book then looks at the psychological processes that are involved such as motives and mechanisms underlying moral hypocrisy and immoral behavior. Other chapters in this book look at the aspects of good and evil, including the implication of moral thinking in cases of large scale violence and genocide. In this book, Adam Morton argues that any account of evil helps in understanding why evil usually arises in everyday life, why evil arises, and how people can be seen as evil. The book utilizes diverse examples like Buffy the Vampire Slayer, Augustine, and other psychological studies that deal with profiles of serial killers and that look at deviant behaviors. Adam argues that evil comes when the internal mental barriers against it breaks down. This is a story of a dyslexic boy who discovers that he is a son of a Greek God who is the target of mythical Greek monsters. He finds himself in the middle of a prophesy, that he will be able to change the balance of power forever. This book starts with looking at the unforgettable 9/11 attack in the United States and in the second edition looks at why people act in a monstrous way by looking at the proximate and the ultimate levels of analysis. Bargh, John. "The Cognitive Monster: The case against tthe controllability of automatic stereotype effects." Dual-process theories in social psychology (1999): Pg. 361-382. Internet Source. http://www.yale.edu/acmelab/articles/Bargh_1999_Cog_Monster.pdf Schmideberg, Melitta. "Psychological Factors Underlying Criminal Behavior." Journal of Criminal Law and Criminology (n.d.): Pg. 458-476. Internet source.

Pricing Decisions Essay Example | Topics and Well Written Essays - 1000 words

Pricing Decisions - Essay Example Article 5 aims to find out the methods of setting prices which are dominating Slovenian business practice. Introduction The articles deal with the pricing practices and strategies in various businesses. As stated in article 1, the businesses and consumers have perfect knowledge of the marketplace but actually they lack the perfect knowledge. This makes the establishment of a pricing policy necessary. Article 2 is based on examining pricing for new product price decisions. It is basically the study of the three pricing practices with respect to competition, costs, and customer value. Article 3 states that products have been divided into four categories such as specialty, preference, convenience, and shopping. The research in this article is basically on the pricing strategy for the various product categories. The relevant strategy was selected as per the literature of the paper that is penetration and skimming strategy. Article 4 deals with the pricing of a short license for software service. Earlier, firms in this industry used to do the pricing based on the usage of resources. As computer hardware became fast and cheap the business model remained no more significant. With the recent spread of complex enterprise software, the cost of software maintenance and deployment has increased again. Therefore, the pricing scheme had been termed as subscription pricing. Article 5 states that pricing is not the most important but is just one of the elements of marketing mix. Inspite, managers complain quite often about the problems and pressures arising due to pricing of competitors, it is stated in the article that pricing is rarely a problem. It states that pricing should be such that the perceived value of the product or service should supersede the perceived price. Importance of the study Article 1 focuses on determining whether small firms use the same established economic principles that economists rely on while explaining the behavior of large firms with regards to pricing strategies and objectives. The study basically is conducted in order to determine whether the economic principles are appropriate for small businesses or not. Article 2 is significant because it deals with the aspects of new product pricing practices. The research paper assesses the ways pricing can be done for a new product. It is important from the perspective of a manager as its becoming difficult for managers to analyze the correct price for the value they are providing to their consumers. Article 3 deals with the aspects of pricing of various product categories which could help attain the corporate objectives of the firm. It is important because pricing should be done on the use of the product. The product category such as convenience products cannot be priced higher as because of the presence of many low cost producer firms in the industry. The research is ideal for serving as a starting point for a developing a framework of corporate objectives, pricing strategies, an d product categories. Article 4 is important because it is related to software pricing. The pricing strategy the researchers are focusing on is basically usage-based pricing wherein the firms will be able to acquire low usage consumers as they do not have to pay more than they use. Article 5 is important as the research is on pricing based on cost or customer. Literature Review Paper 1 In the year 2011, Dunn et.al conducted a study on â€Å"

Rhetorically (Crazy Stupid Love) Essay Example | Topics and Well Written Essays - 1250 words

Rhetorically (Crazy Stupid Love) - Essay Example One would notice in the movie how infidelity affects one’s way of life and leads characters into discovering its drastic effects and the host of alternatives people do to cope with the situation. In this regard, the objective of the essay is to present a rhetorical analysis of the movie by expounding on the message of the movie and its effectiveness in establishing audience appeal through logos, pathos and ethos. The conflict in the movie stemmed from Emily’s acknowledgement of cheating on Cal, devastating his perfect perception of his life and facing him in an ambivalent situation. While Cal and Emily had a romantic dinner she asked Cal for a divorce; stunning him and leading him into a situation where ethos is applied. He tried to convince Emily to think of their family and their love. On the other hand, Emily was actually also applying the ethical appeal to present to Cal that her infidelity justifies the divorce and therefore, despite her uncertainty for her true fe elings for the man she slept with, she was convinced that there was no other option but to part ways. In her argumentation, Emily actually used logos by rationalizing and justifying that by committing an unfaithful act through sleeping with a man, other than her husband, the most logical and rational recourse is to file the divorce. The audience’s emotions could actually side on Cal or Emily, depending on the personal perspectives, value system and cultural orientation. For people from the eastern culture who still do not accept divorce as acceptable in their society, the argument of Emily is unacceptable and therefore do not appeal to their emotions (pathos). On the other hand, for people from the western culture, who have learned to accept divorce as a way of life, like the office mates of Cal who even made fun of him when he cried his heart out, the contention that divorce is the only option available after an unfair relationship, is indeed the most appealing recommendatio n (pathos). Another situation worth examining is why, despite Jacob Palmer’s advice to Cal to get over Emily, to move on and start living his life, still is convinced that Emily is the only person for him. It was actually an understandable action at the onset that Cal would listen to Jacob by succumbing to his suggestions of changing his lifestyle by making him look younger, donning new and attractive clothes, and start dating other women to seek fulfilling relationships that would help him forget about Emily. Through the use of logos, Jacob, was actually successful in convincing Cal that if Emily could find somebody to replace him; then by all means, he should likewise find ways and means to forget and replace her. The audience could actually empathize with Cal at this point and through Jacob’s innuendos, he was also effective in manifesting the presence of using pathos to appeal to the emotions of the viewers and share in the journey of transformation for Cal’ s new life. Further, the move was likewise effective as Jacob was able to manifest ethos, or an ethical appeal as he convinced even Emily that she actually made a mistake of suggesting the divorce. By showing personality and traits that exemplify expertise in treating women and being highly competent in dealing with relationships, Jacob assumed a

Bond pricing and fund managemet Essay Example | Topics and Well Written Essays - 1500 words

Bond pricing and fund managemet - Essay Example the amount of returns that an investor can earn from an investment, as well as the future changes as a result of economic risk associated with that particular investment can be established. For this reason, the above curve facilitates a significant comparison in bonds values. The term structure of interest rates is also the yield curve and is a central element in modern financial and monetary economics. It is the variation of the bonds’ yield with identical risk profiles with these bonds’ terms2. The yield curve shows the relationship between bonds yield to maturity and the effective maturity. Bonds with longer maturities are considered to have higher yields. However, there are also opinions that the yield curve may be flat showing that the yield curve remains the same irrespective of the bonds’ maturity. Also, in some cases, bonds with short-term maturities have their yield curves inverted implying that they are higher than those of long-term bonds3. Notes that the bonds’ yield curve is influenced by several factors among them the fiscal policies, inflation, economic conditions, tax policies, foreign exchange rates, expected forward rates, bonds’ credit rating and foreign capital inflows as well as outflows. The term structure of interest rates bears three identifiable features. They include higher volatility of yields on short-term bonds than long-term bonds; change in yields of various bonds move in the same directions; and the long-term bonds have higher yields. Several theories have been advanced to explain these characteristics. They are broadly classified as the market segmentation theory and expectations theories, which are the preferred habitat theory, the liquidity premium, and the pure expectation theory. Given that bonds have some set durations, sellers and buyers frequently have preferred maturities. The bond buyers prefer maturities that coincide with when they need money or with their liabilities while the bond sellers want maturities

Feminism is for Everybody Essay Example for Free

Feminism is for Everybody Essay Feminism is a social, cultural, moral and political advocacy encompassed on gender issues such as inequality. In this regard there are several writings that concerns the principles of feminism. The contents of literary works about feminism vary, some writers intend to advocate for the very cause of feminism blindingly, some authors, conversely, intend to provide information about feminism in a non-political or non-equalitarian manner. One such notable content can be found in Bell Hooks publication, Feminism is for Everybody. Hooks book gives the reader a whole different perspective on the radical feminist theory. The primary intention of her book is to bring the feminist point-of-view to non-believers, apathetics and unfamiliar. Hooks also counters the popular notion regarding feminism as she feels that these notions should be given proper attention and correction. In this manner, the common misconception on the ideas of feminism will be clear to society. In the book, Feminism is for everybody, the author rejects the usual beliefs connected to feminism and considers such belief as nothing more than a myth. Hooks puts the arguments and advocacies of feminism in a summarized manner in order to provide a simpler context to readers as well as well as a new concept of what feminism should be. Hooks new concept of feminism suggests a fight against stiff sexism in a benevolent society, thereby ultimately advocating for an inclusive movement. In Feminism is for Everybody, Hooks traces the roots of the feminist movement and gives detail on what it has achieved so far. an advocacy minus the associations of anti-sexism (Hooks, 2000). The historical background of feminism is given in order to put emphasis on the misconstrusion that happened along the way and to give way to the new concept of the movement. Hooks raises the question is feminist a philosophical belief or a political cause, given that the author tackles the arguments of the radical feminists. The debate whether feminism is a philosophical belief or a political cause can also be caused by one of the books chapters tackling gender oppression. The basis may be seen on the idea typecasting male as the enemy, the categorization of man as the oppressor and woman is the oppressed is the primary reason behind feminisms second wave, however, Hooks also does not take away the fact that females are also responsible for such opression given that it took time for the supposed oppresed to spearhead for change (Hooks, 2007). Hooks furthers this by giving the past mistakes of feminism and the misleading beliefs that feminists associated themselves with. This is on the account that most feminists focus on the problem and not on the solution. In a personal account, I am taken to a different world as far as feminism is concerned, primarily because Bell Hooks gives a different appraoch in discussing the cause of feminism. It is also notable that the author diminished the complexities of the feminist thought but still detailed enough to get me educated. The book caused me to reconsider my prior beliefs regarding the arguments presented by feminists. The non-traditional manner of Hooks presentation eliminated my angst towards feminists and made me realize that it is time for change, Hooks compelled me to believe that it is time to dispose of the misleading conventional feminist beliefs of the past and focus on the current issues, moreover, Hooks made me believe that feminism is indeed for everybody. References Hooks, B. (2000). Feminism is for Everybody. Cambridge: South End Press.

Victorian Decade of Crisis: An Overview

Victorian Decade of Crisis: An Overview Why have the 1880s been viewed by historians as a decade of crisis for London? Great city of the midnight sun, Whose day begins when day is done.[1] The late Victorian era was a time of many developments, and much progress. After a number of short trade depressions in the early years of Queen Victoria’s reign, the situation stabilised and then increased from the mid-1840s. This was largely due to the massive spread of railways at the time. This period of increasing industry was complemented by the so-called ‘Golden Age’ of High Farming; when agriculture enjoyed similar successes, despite the repeal of the corn laws in 1846. This Golden Age was followed, however, by a period of prolonged depression which spanned over twenty years from the early 1870s until the mid 1890s. It was only in 1914, with the outbreak of the Great War, that the relative decline of Britain as an industrial power became apparent. Why were the 1880s such years of crisis, and what was the extent of this crisis? Although the decade falls in what is usually described as the Great Depression, export and production figures for the period suggest the industrial situation was not as bad as some believe. The steel industry continued to expand, as did the coal and cotton textiles industries. The amount of cotton cloth exported was 3573 million yards between 1870-79, while between 1880-89, this figure increased 4675 million yards.[2] As Burnett states, â€Å"by the decade of the 1880s, it was clear that the growth both of the cotton and woollen industries had fallen off sharply†¦Ã¢â‚¬ [3] There were, however, other aspects of the period which warranted the description more. Prices were falling, for example, which meant the value of exports was reduced, thereby reducing profits. Unemployment in the decade averaged 5.4% compared to 4.6% in the twenty years before 1874. In 1886, the figure rose for that year to 10%.[4] The cause of the depression has been attributed to the reduction in railway building which started. In each five year period between 1845 and 1870, an average of 2000 miles of new track were laid, while between 1885 and 1900, this figure fell to 750 miles.[5] This affected one of the major growth industries of the earlier period; the steel industry, as demand fell. It was also during this period that the competition from other countries began to be noticed. This came most acutely from Germany and the USA. German coal production rose from 34 million tons in 1870 to 59 million tons in 1880, while US coal production rose to 64.9 million tons in the same period. While British production was still ahead at 149 million tons, competition was growing. The case was similar in pig-iron and steel production.[6] In the US, machines such as the typewriter and the sewing machine were being developed. Having been the first nation to industrialise, much of the machinery and equipment used in British industry was becoming outdated and surpassed by technology which the newly industrialising nations were utilising. It was in this period, and during the 1880s in particular, that the extent of this relative decline began to be noticed, and this was a major contributory factor to the decade being seen more generally as one of crisis. As Harris points out, â€Å"one of the striking facts that emerges from the Census of 1871 is that, a hundred years after the onset of the Industrial Revolution, the topography of Britain was still in many ways that of a predominantly rural country.†[7] Britain, as well as falling behind in technological developments, was being pushed out of her traditional markets by these newly industrialising nations. The US could increasingly meet her own needs, while the European markets were being flooded with cheaper, often better quality goods from other countries. Belgium, for example, developed cheaper, better quality methods of glass production, while the Germans were able to introduce Siemens furnaces for steel production. While these other nations increasingly introduced tariff systems to protect their domestic markets, this was anathema to the British laissez faire approach. Consequently, the British markets remained unprotected and were flooded with imported goods. Another industrial problem in Britain during the period was the failure of British management systems. These, too, were becoming outdated and surpassed by competitors’ newly-developed systems. Often based around the family firm, management positions were often filled by familial connection rather than ability. Coupled with this was the lack of investment in new machinery and industrial apparatus which in turn contributed to the lack of competitiveness in British industry generally. There was a general lack of initiative and failure to get involved in the newly developing industries such as the petro-chemical and electrical engineering industries, which would soon come to dominate industry. During the 1880s, imports of wheat and flour into the United Kingdom increased to 70,282 thousand cwt from just 50,406 thousand cwt the previous decade.[8] These imports often came from the US, where the vast prairies were developed by trans-continental railway. The imports were helped by the development of large merchant steamships. The cost of imports fell dramatically, making it much more viable to import larger quantities of foodstuffs. The average annual wheat price fell from 47.67 shillings per quarter between 1875-9 to just 31.58 shillings per quarter in 1885-9.[9] An important development in the 1880s was the introduction of the refrigeration ship, which enabled meat products to be imported from countries such as Australia, New Zealand and Argentina.[10] Despite this gloomy economic and industrial situation which was afflicting the country generally, London itself was not amongst the worst hit area. The flux of imports affected the agricultural sector, not many of whom were to be found in the metropolis; particularly those who relied on wheat and cereal growing. Again, the refusal of the government to introduce a tariff system to protect the domestic market did nothing to help the situation. A benefit of the depression, particularly for those not dependent on agriculture, was that it meant food was cheaper. This in turn meant that those who were employed actually enjoyed a higher standard of living. In 1888, the Conservative government set up the London County Council. This was a response to the political activism of the great reformers of the decade, but it marked a positive step in the battle against poverty and want. It involved direct election of 118 councillors, which allowed public opinion to have a say. Although struggles for power even within this new body continued, it moved the battle to political ground. This development was complemented in the 1880s by the growth and development of more organised trades unions in London. This attempt to organise labour often involved the transport workers, and therefore focused on London. While this was undoubtedly a positive development, giving many workers, for the first time, an authoritative voice bout their conditions, it can be said that this led to increased struggle and clashing between workers and employers, which contributed to the idea of the city being in crisis. The most spectacular manifestation of this was the riots in Trafalgar Square in 1886 and 1887, which although they involved the unemployed rather than unionised workers, highlighted the animosity felt towards the privileged and propertied people of London. This culminated in ‘Bloody Sunday’ on 13 November 1887. Mackail described the events. â€Å"No one who ever saw it will ever forget the strange and indeed terrible sight of that grey winter day, the vast sombre-coloured crowd, the brief but fiery struggle at the corner of the Strand, and the river of steel and scarlet that moved slowly through the dusky swaying masses when two squadrons of the Life Guards were summoned up from Whitehall.†[11] Another positive development for London during the period, which counters the impression of London as a city in crisis during this period, was the effect on the great city of the railways and steamships. Having already assisted the growth and development of the empire, by the 1880s, they had considerably magnified the importance of London itself. As well as being a great international seaport, the increasing rail network focused on London also. In 1880, the total value of London’s trade was greater than that of its nearest rival, Liverpool.[12] London also became a symbol of free trade, as it was the centre of the great importing warehouses. This, of course, was not as positive as it may have seemed, given the negative effects on the rest of the country of the massive growth in imports during the period. The flip-side of these developments in transport was the social cost. People often had to be turned out of their homes in order to build the new terminals. Industrial conditio ns amongst the workers were less than adequate also. This was most marked in 1889, the year of the great dock strike at the London docks, as the workers struggled to achieve the ‘dockers’ tanner’. This event can be seen to encapsulate much of the perception about the decade as a whole; one of struggle and conflict between workers and their managers. Urbanisation was a major factor during the period. Much of this was concentrated in London and Middlesex (as well as Lancashire, Durham, Staffordshire, Warwickshire, west-central and parts of south Wales). Increasing ground rents in the period were beginning to drive many of the middle and upper classes to the city limits. The term ‘Greater London’ was used for the first time in the 1881 Census; an area that was growing the most rapidly.[13] During the 1870s, rural population experienced an absolute decline for the first time since records began while urban population increased by 75% in some cases. In response to this there was a building boom in London during the 1880s. By the middle of the next decade, in London and Middlesex, nearly half of the population had been born elsewhere.[14] While this massive urban growth was positive for the city in many ways, it also meant more crowding, insufficient housing, increasing rents and costs and the dangers of disease that acco mpany such conditions. Harris discusses the fall in fertility during the 1880s. Commentators at the time put it down to the strain of urban living and the modern education system â€Å"eroding human procreative powers†.[15] This fall in the birth rate concerned many contemporaries at the time, and it has been debated at length by historians ever since. It is interesting that it coincided with the Great Depression, and another, later drop coincided with a fall in real wages in 1900. This general atmosphere of depression, economic an social, was perhaps at its most acute during the 1880s, and although it actually spanned over twenty years, it is this decade in particular that is remembered as a decade of crisis. During the 1880s, Charles Booth began his great survey of the London poor entitled London Life and Labour. this would become an important work in drawing attention to the want of the working class in the capital. It marked a realisation, or appreciation, of what was becoming a serious problem of poverty and low living. In one passage, he describes the typical working woman (who was often only partly-employed) as â€Å"generally elderly, infirm, penniless and a widow †¦ she is nervous and timid, and takes work at whatever price it may be offered to her.†[16] A major reason why the decade is seen as one of crisis, then, is that it was one of the earliest times that the poverty and dire situation of the working classes in London was forced to the attention of the wider public. Poverty was the â€Å"biggest single fact of contemporary existence.†[17] Poverty, poor sanitation and over-crowding were nothing new to the 1880s, but with Booth’s work, and the later wo rk of Rowntree, the situation was increasingly recognised. Booth’s work was followed quickly by other similar studies such as Andrew Mearn’s The Bitter Cry of Outcast London (1883) and General Booth’s In Darkest England and the Way Out (1890). In 1887, Henry Hyndman published a pamphlet entitled A Commune for Socialism which was a plea for municipal socialism. This was a cry that was increasingly being taken up, as the importance of local government as a means of social reform was being recognised. Joseph Chamberlain was one of the members of the government of the day to realise this importance, and indeed introduce it into the national debate. He spoke about this in 1885. â€Å"Local government is near the people. Local government will bring you into contact with the masses. By its means you will be able to increase their comforts, to secure their health, to multiply the luxuries which they may enjoy †¦ to lessen the inequalities of our social system, and the raise the standard of all classes in the community.†[18] It was, then, increasingly brought into the national debate, and this bears large responsibility for the impression of the 1880s being a decade of crisis. This was, however, a positive step, as it l ed to increased activism and political developments favouring the working classes. In Victorian Cities, Briggs describes London as ‘the World City’. This captures how London was seen, both domestically and abroad, throughout much of the Victorian era. By the closing decades of the nineteenth century, then, why was the greatest city in the world experiencing a crisis? During the 1880s, the Quarterly Review described the â€Å"complete separation of the residences of the different classes of the community.†[19] This was referring to the contrast between the East End and the West End of London, and the effective segregation of the population of London into rich areas and poor areas. It has been said that the residents of each respective part of London knew and cared little about the other area. In another work important in stimulating the better-off into action called Tales of Mean Streets Arthur Morrison asked â€Å"who knows the East End?† The description that followed in answer reflected the common perception of the situation in the East End: â€Å"an evil plexus of slums that hide human creeping things; where filthy men and women live on penn’orths of gin, where collars and clean shirts are decencies unknown, where every citizen wears a black eye, and none combs his hair.†[20] The situation in London, then, was not homogenous throughout the great city. There were pockets of serious depravity, while other areas enjoyed great wealth and luxury. It was this juxtaposition of the East End with the bright lights of the West End that highlighted the dire situation in the East End, and did more than anything to contribute to the impression of London as a city in crisis during the 1880s. The stark difference was that although poverty was present in parts of the West End, for example around Belgrave Square, it was largely hidden from view, while in the East End it was clearly visible for those who cared to see it. During the 1880s, however, as London was increasingly being seen as a world city, as the capital of the greatest empire in the world, it was the ostentatious and dazzling aspect of the city’s situation which was emphasised. Here, then, is an interesting paradox. Although the 1880s saw some of the early social commentators and reformers recognise and draw attention to the ills of the poorer classes in London (as well as other industrial cities of England), to many London remained one of the greatest cities in the world. In 1883, for example, an Australian writer described London in New York’s Century Magazine. â€Å"We may talk of our Western empire and our admirable ports, of our growth and our growing wealth; but here is, and will remain for generations, the centre of the commercial and political world, the focus of intellectual activity and the mint of thought.†[21] The 1880s were a decade of great struggle in London. There was much poverty and want, with disease rife, and sanitation poor. The dire situation did not affect the whole of the city, however, and it was the wealth and opulence of the West End which highlighted how bad the situation elsewhere had become. It was also a decade of increasing social comment and investigation. The middle classes were, for the first time, taking an interest in their less fortunate neighbours. The decade was not the first in which London was in crisis; it was simply one of the earliest that the situation was recognised. BIBLIOGRAPHY Baycroft, T., Nationalism in Europe 1789 1945 (Cambridge, 1998) Briggs, A., Victorian Cities (London, 1968) Burnett, J., Useful Toil (London and New York, 1994) English, R., Kenny, M. (Eds), Rethinking British Decline (New York, 2000) Feldman, D., Englishmen and Jews (New Haven and London, 1994) Fraser, H., ‘Municipal Socialism and Social Policy’, in Morris, R.J., and Rodger, R. (Eds), The Victorian City (London and New York 1993) Harris, J., Private Lives, Public Spirit: Britain 1870 1914 (Oxford, 1993) Lowe, N., Mastering Modern British History (London, 1998) Mathias, P., The First Industrial Nation (London, 1969) Morris, R.J., Rodger, R. (Eds), The Victorian City (London and New York, 1993) Pugh, M., State and Society (2nd edition) (London, 1999) Taylor, A.J.P., The Struggle for Mastery in Europe (Oxford, 1971) Footnotes [1] Richard le Gallienne (1895), quoted in Briggs, A., Victorian Cities (London, 1968), p311 [2] Mathias, P., The First Industrial Nation (London, 1969), p468 [3] Burnett, J., Useful Toil (London and New York, 1994), p15 [4] Lowe, N., Mastering Modern British History (London, 1998), p216 [5] Ibid, p216 [6] Taylor, A.J.P., The Struggle for Mastery in Europe (Oxford, 1971), ppxxix xxx [7] Harris, J., Private Lives, Public Spirit: Britain 1870 1914 (Oxford, 1993), p41 [8] Mathias, pp472-5 [9] Ibid [10] Lowe, p221 [11] Quoted in Briggs, p329 [12] Briggs, p318 [13] Ibid, p312 [14] Harris, pp41 44 [15] Ibid, p47 [16] Quoted in Burnett, p35 [17] Briggs, p313 [18] Quoted in Fraser, H., ‘Municipal Socialism and Social Policy’, in Morris, R.J., and Rodger, R. (Eds), The Victorian City (London and New York 1993), p263 [19] Quoted in Briggs, p314 [20] Quoted ibid, p315 [21] Hogan, J.F., Century Magazine (1883), quoted in Briggs, p317