The Impact Of Rastafari On The Culture Through The Voices...

Chaneil Hall Professor Edmondson Independent Study: The Impact of Rastafari May 13, 2015 Reggae as a Means of Social Transformation Through The Voices of the Rastafari Jamaica, the third largest Caribbean island is not only home to tropical weather and picturesque landscapes, but also to social unrest and perhaps some of the most rebellious people. Since its existence, this nation has seen a series of revolutions and riots in efforts to reverse the unjust social, economic, and political conditions. The most influential of these revolutionary efforts contributed to the formation of Jamaica’s very own religious movement, Rastafarianism. With oppression serving as one of the driving forces for the Rastafari Movement, it is understandable why its followers are so adamant about professing their ideologies, beliefs and practices. The central language used to express the grievances of Rastafarians is known globally as the music genre, Reggae. It is not merely coincidental that the country pregnant with such radical motives also gave birth to its own music brand. By examining the music of artists such as Bob Marley, Dennis Brown, Luciano and more, w e can deduce that Reggae music served and continues to serve as the most prominent vehicle for the spread of Rastafarianism. The Rastafari Movement emerged in Jamaica in the 1930s out of desires to defeat the crippling British colonial culture and to establish an identity based on the reclamation of African heritage. The men credited forShow MoreRelatedThe People Believe About Rastafarians2044 Words   |  9 Pagessmokers and Jamaican lingo talkers are in the make beliefs of the Rastafarians. Clearly those exterior references only create a more confusing understanding of Rastafarians. For anyone to call themselves Rasta, one must know everything about their culture. Unlike other religions where all one has to do is accept whatever that religion says without study, one must study the doctrine, the diet, the laws and the strict codes that obey to the Rasta faith. It is seen as a way of life rather than just anotherRead MoreChattel Slavery1359 Words   |  6 Pagesmusic (Africans had the drum - representing the voice of their gods - banned by laws, some of which remain on the statute book in Barbados to thi s day). This highlights the all-important difference between indentureship and slavery: The heart of slavery was not the horrible labour conditions. If that were so, slavery and indentureship might be comparable. The heart of slavery was the stealing of the African s soul - his language (the eyes through which one sees the world), his gods, his family,Read MoreRastafarian79520 Words   |  319 PagesRastafari This page intentionally left blank Rastafari From Outcasts to Culture Bearers Ennis Barrington Edmonds 2003 198 Madison Avenue, New York, New York 10016 Oxford University Press is a department of the University of Oxford It furthers the Universitys objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Bangkok Buenos Aires Cape Town Chennai Dar es Salaam Delhi Hong Kong Istanbul Karachi Kolkata KualaRead MoreThe Great Bob Marley1537 Words   |  7 Pagespeople would say one name, Bob Marley. Robert Nesta Marley, commonly known as Bob Marley, is undoubtedly the most famous reggae artist of all time. Additionally, he is responsible for bringing reggae to the masses, and he did this through his unique style, raspy voice, guitar playing and drumming. Bob Marley is known around the world for not only his music, but also his greater message of peace. Furthermore, Marley became a cultural icon, as he encouraged others to rebel against racism and violenceRead MoreBob Marley’s Spiritual Rhetoric, the Spread of Jamaican Culture and Rastafarianism6348 Words   |  26 PagesRhetoric, the Spread of Jamaican Culture and Rastafarianism By Mark Haner Senior Seminar: Hst 499 Professor John L. Rector Western Oregon University June 16, 2007 Readers Professor John L. Rector Professor Kimberly Jensen Copyright  © Mark Haner, 2007 The spread of Jamaican culture and Rastafarianism can be accredited to many events and technical advances in communication. Bob Marley is one of the main influences the spread of Jamaican culture and Rastafarianism due to the lyricalRead MoreThe Cultural and Human Elements of the Great Bob Marley’s Music1054 Words   |  5 Pagessufferers everywhere. As Bob Marley was quoted in ‘Catch a Fire’ saying â€Å"Facts an’ facts, an’ t’ings an’ t’ings: dem’s all a lotta fockin’ bullshit. Hear me! Dere is no truth, an’ that is de truth of Jah Rastafari.† This is an example of one of the cultural and human elements of religion that had an impact on his music. Macias 2 The struggles of the urbanRead MoreBob Marley And The Wailers1654 Words   |  7 PagesRastas). Rastafari and Jamaican independence was resistant to colonial forces and ideologies, although simultaneously, it embraced certain practices left behind from colonial presence. Rastafarianism pushed back against the British, social inequality, and unemployment. This opposition against the source of oppression led to a sense of local empowerment to combat British colonial inequality. Rastafarian symbols such as dreadlocks had a deeper meaning; dreadlocks were an oppositional culture to WesternRead MoreEssay on The End of Oppression for Jamaican Women5572 Words   |  23 Pages Women have been oppressed in many places and in many different ways over the years, but in Jamaica this continuing trend is finally to be broken. Sexual or gender inequality represents as essential and integral feature of social relations and culture construction in Jamaica, where for the past four hundred years colonial and imperialist exploitation has governed the development of economic, political, and sociocultural patterns and structures.(Harrison: Women in Jamaicas Urban Informal EconomyRead MoreThe True Beauty Of Music1430 Words   |  6 Pageshorrific living conditions they still suffered post-independence. Therefore, they decided to fight for their rights to speak and voice an opinion. In the Anglo-Caribbean region, music played a major part in people’s lives. The Caribbean people turned to Black Nationalism and began practicing their own spiritual beliefs and voicing their opinions to send a message through their songs and music. â€Å"Nations in Latin America were beginning a process of rapid urbanization. Cultural nationalism was widespreadRead MoreBob Marleys Life and Times: A Critical Analysis1526 Words   |  6 Pagesthe world a visitor can hear Marleys reggae music, or see people wearing T-shirts with his image on the front, or otherwise come into contact with Marleys legacy. He is truly a cultural icon, and during his life and even afterward, he has made an impact on society. In this paper his life and times and his influence on society will be reviewed and critiqued. Bob Marleys Biography According to the Encyclopedia of World Biography (EWB) Marley was born February 6, 1945, in Rhoden Hall, Jamaica in

Theme Of Manipulation In To Kill A Mockingbird - 737 Words

Southern Gothic is classic genre, with themes like coming of age and outcasts. In To Kill a Mockingbird, written by Harper Lee, it consists of the large variety of themes, such as the power of manipulation. Since manipulation is a powerful topic, many authors include manipulation in their stories, as victims of manipulation are prejudged. Common characters in this book utilized by society are Boo Radley and Adolphus Raymond. Tom Robinson is a colored man; therefore, he is different around whites. Boo, Adolphus, and Tom are victims of prejudice for not following stereotypical roles in a hypocritical town. Judged by something that is odd to the town, as disappearance, marriage, and color. With that, it becomes obvious that the town is a†¦show more content†¦In Maycomb, a colored folk and a white person having a relationship is something odd. Since, alcohol is responsible for weird behavior; it was a reason why Adolphus Raymond married a colored woman. A rumor relevant why Raym ond married a colored folk; â€Å"They said it was because she found out about his colored woman, he reckoned he could keep her and get married too. He’s been sorta drunk ever since† (Lee 215). This quote, therefore show the town’s manipulation on Raymond because of his marriage. Adolphus is â€Å"drinker†, during the court case, when Jem went outside, because he was crying, Raymond greeted him. Adolphus was a kind soul and offered Jem a drink. When Jem took a sip, he realizes it was cola, and that Adolphus is another victim, exploited by the town. After the rape trail held in Maycomb County, the readers realized that Tom is a person blamed for wrongdoing because of his skin color. Additionally, Maycomb is a racist, Southern town, with the archetype that whites are more superior to blacks. The trail consists of Mayella Ewell, Bob Ewell, and Tom Robison; with the case, that Tom took advantage of Mayella. After the court, Tom was innocent, but his color lead him to his death, with wounds from 17 bullet shots. The quote, â€Å"They-they ‘preciate what you did, Mr. Finch† (Lee 286). The colored community appreciates the effort that Atticus tried to defend Tom Robison. Tom is colored folk, so even though he was innocent; the racial status is different from aShow MoreRelatedMovie Analysis : Kill A Mockingbird1571 Words   |  7 Pages If a book is retold in film format then it seems to follow logically that it now deviates from the original book, yet the same story is still being told and with To Kill a Mockingbird we see that through scene additions (or subtractions), details, and technique the film manages to preserve core points of the story for the audience. Translating the elements of the book that are solely for literature can prove tricky for screenwriters and though some manage to pull it off artistic liberty is a dangerRead MoreUse of Minor Characters in To Kill a Mockingbird1274 Words   |  6 Pagesthe privilege of discovering in Harper Lee’s To Kill a Mockingbird. Specifically, Lee uses minor characters to effectively disprove stereotypes and establishing setting. Not only do they influence the direction of the plot, but also Scout and her development as a character. Lee carefully selects minor characters to send important messages and reinforce themes by using characters as symbols. Fundamenta lly, the minor characters in â€Å"To Kill a Mockingbird† are crucial in making Harper Lee’s novel beautifulRead MoreHamlet by William Shakespeare734 Words   |  3 PagesShakespeare was an amazing poet, actor and playwright. He wrote comedies, histories, and tragedies. His writings are still read today because of his use of language, complex characters, and common themes, such as love and hate. One of his most famous works of tragedy is the play Hamlet. This play is about Hamlet, a young prince who leads a life of privilege. Until tragedy strikes in the form of the death of the king, his father Hamlet. His world view changes from this point on. He becomes suspiciousRead MorePost-colonialism in The Hunger Games1957 Words   |  8 Pagesstoryline is of a game in which children kill each other. The books have reached iconic status in America and is an anomaly in the Young Adult Literature genre in that it has a female protagonist yet is popular with male and female rea ders of all ages. Collins wrote the series in response to her fears of the blurred lines between Reality Shows and televised news events (Blasingame 726). The dystopian world portrayed in the book is rife with Post-colonial themes. There are many opinions about the properRead MoreFahrenheit 451 By Ray Bradbury3708 Words   |  15 Pagesbelievable, since America is perceived as a very advanced country today. Therefore, the location had a significant impact on the plausibility of the novel. Nevertheless, the time period was arguably the most vital factor in supporting the storyline and themes. The plot of Fahrenheit 451 was set in the future, a central aspect in determining how the story would progress. For example, this allowed the inventions to be more realistic, while permitting Bradbury to remain imaginative. This was evident throughRead MoreEssay on Silent Spring - Rachel Carson30092 Words   |  121 PagesRIGHTS RESERVED. The following sections of this BookRags Premium Study Guide is offprint from Gales For Students Series: Presenting Analysis, Context, and Criticism on Commonly Studied Works: Introduction, Author Biography, Plot Summary, Characters, Themes, Style, Historical Context, Critical Overview, Criticism and Critical Essays, Media Adaptations, Topics for Further Study, Compare Contrast, What Do I Read Next?, For Further Study, and Sources.  ©1998-2002;  ©2002 by Gale. Gale is an imprint of The

Financial Crisis Free Essays

string(61) " pleasured to borrow currency to these sub- prime borrowers\." The latest global financial crisis was exploded in 2008. This was the most serious financial crisis since the economic depression which occurred in sass and it severely impacted the global financial market. Lots of corporations collapsed during the 2008 financial recession which was caused by breakage of capital chain. We will write a custom essay sample on Financial Crisis or any similar topic only for you Order Now Although some companies did not bankrupt during that period, they also had suffered huge loss. The 2008 global financial crisis began from America. American financial crisis came from the prosperity of real estate. Before the 2008 global financial crisis, a large umber of financial derivatives were generated and financial bubble became more and more serious. Finally, American sub-prime crisis occurred which leaded to a large number of bank failure. This paper will analyze the reason of American sub- prime crisis and indicate the relevance between Shoal’s article, agency theory and the 2008 global financial crisis. This essay will argue that agency theory contributes to the 2008 global financial recession. 2 Review of the literature 2. Agency theory Agency theory has described a relationship between principals and agents. It also an solve this relationship through a contract that ‘one or more persons (the principal(s)) engage another person (the agent) to perform some service on their behalf which involves delegating some decision making authority to the agent’ denser and Neckline, 1976:308, citied in Lehman and Continue, 2013). 2. 2 Bad theory and humans morality and ethic A fter the collapse of Enron, Shoal (2005) strongly argues that business school does not need to do lots of things. In contrast, they Just need to terminate some old courses which they are teaching for their students. The reason is that the root of the issues in management practices can be found in the theories of management. Additionally, management practices which are condemned are enhanced by these ‘theories and ideas’ (Shoal, 2005: 75). Moreover, business school cannot address the issues of moral and ethic. Clansman, Setback and Heckler (1998: 77, citied in Shoal, 2005) claim that management studies is regarded as ‘a branch of’ the social sciences. Namely, the issues of business studies can be analyzed and resolved in method of social sciences. However, Ghosted (2005: 77) strongly argues that people use ‘scientific’ way o explore regulation so that they have ignored the moral and ethics of humans. Because there are some underlying basic diversities between physical sciences and business studies, some theories of physical sciences are not suitable for business studies. Furthermore, the parts of business studies which are related to physical (2005), even though ‘scientific methods’ (p. 7) exerts some positive influences, the cost is expensive. Therefore, this approach denies the subjective initiative of human. In addition, humans morality and ethic which are neglected by individuals are inevitable in human intentionality. Jensen and Michelin (1976, cited in Shoal, 2005: 75) assert that an idea which ‘mangers cannot be trusted’ was taught to their students in business school. As a result, whe n these students graduate, they hardly trust their leaders and do not realize that they should strictly maintain personal integrity. Additionally, Even though Friedman (1953, citied in Shoal, 2005) acknowledges that the duty of agents is to maximize the profit of shareholders, Shoal discounts this view and argues that compared with finding a new Job by employees, it is easier that shareholder can sell their corporation (Shoal, 2005). Furthermore, shareholder value minimization is the fundamental of the agency theory. However, Shoal (2005: 81) strongly asserts that they are not relevant and points out that these research and analyses are built on incorrect assumption, which meaner they are ‘unrealistic’. Moreover, ‘Chicago Agenda’ extreme emphasis laws and rules and against human intentionality and indicates that ethic and morals which are only relevant with persons can be removed from social science (Shoal, 2005). Nevertheless, Shoal disagrees this view and approves of the stewardship theory, because it can effectively give consideration to he profit of ‘customers, employees, shareholders’ and their ‘communities’ (Davis, Chairman and Donaldson, 1997, citied in Shoal, 2005: 81). 2. 3 Background of financial crisis The 2008 global financial recession has been described a ‘once in a century credit tsunami’ (Earl, 2009: 785). This is a disastrous blow to global financial community. Ballard (et al, 2009, citied in Huh et at, 2012) points out that many economists regarded the global financial crisis as the most serious global finance disaster since sass. Compared with only 11 banks was bankruptcy during 2003 to 2007, at least 160 American banks went broke in 2008 and 2009 (Fide, 2011, citied in Huh et al, 2012). From this statistics, it is not difficult to know how strong influence brought by this financial crisis. There is a close link between the 2008 global financial crisis and sub-prime crisis. Bernard (2007, citied in Hellenize and Chaos, 2012) asserts that ‘sub-prime mortgages are loans made to borrowers who are perceived to have a high credit risk, often because they lack a strong credit history or have other characteristics that are associated with high probabilities of default’. Furthermore, during 1990 to 2000, cause of the IT bubble economy, the American government took some steps to prevent economic downturn, such as reducing interest rate, cutting tax, decreasing the cost of sub-prime etc. Even though there were higher risks that some of sub- prime borrowers cannot repay currency punctually, the sub-prime mortgage had become an extremely phenomenon in that period, because this kind of debits can get more return due to the higher interest rate. In addition, secondary market had Thus mortgagor can easier receive mortgage credit, no matter he or she is the sub- prime borrowers or prime borrowers. As a result, sub-prime mortgage market had developed rapidly. Furthermore, a large portion of American preferred to buy a house in installment plan before the 2008 global financial crisis and some of them were sub-prime borrowers. Basic and Chine (1996, citied in Change and Chine, 2013: 14) claim that people need ‘more than enough’ fortune to certify their social status. This is why lots of American purchased a house in installment plan. Because of the higher interest rate, local banks were pleasured to borrow currency to these sub- prime borrowers. You read "Financial Crisis" in category "Papers" Goodhearted (2007) claims that in order to assess the default risk, here is no experience that the price of house has declined in the whole of America. However, the price of house started to fall from the end of 2006 in lots of areas of America (Goodhearted, 2007). Because the value of mortgage is less than the debts and the growing interest rate, increasingly sub-prime borrowers gave up repaying currency to banks. Consequently, even though lenders had sold these mortgages, it cannot cover the loss. In other words, the income gained by selling houses was not enough to offset the values of the credit and interest. As a result, these banks were suffering serious loss and some of them had to close down. 4 The link between Shoal’ article, agency theory and financial crisis In recent years, agency theory is widely used in lots of corporation and regarded it as the fundamental theory of corporate governance. Agency theory has played an important role in traditional control systems. Moreover, in this theory, shareholders use the method of supervision and reward to control mangers and employees. It is the foundation of agency theory to maximize the value of shareholders. Principals need to supervise agents whether they focus on shareholder’ interest when they are operating a corporation. However, Shoal (2005) strongly points out hat this theory does not improve the company’s performance, because it is analyzed by physical science and then neglect the moral and ethic of human. Because the different perspectives between shareholders and agents, they can make the diverse decisions. Thus some primary issues should be focused on in agency theory. Firstly, because of the diverse goals between principals and agents, how to ‘align’ them has become thorny (Lehman and Continue, 2013: 1). Secondly, how to guarantee agents carry out according to principals’ ideas. Lehman and Continue, 2013). Shareholders are interested in long-term strategies which can sustainable evolve their corporations. In other words, in long-term strategies, shareholders’ value, such as stock price and dividends, can be maximized (Klein, 2009). In contrast, agents focus on short-term strategies so that they reject long-term strategies. In this way, they not only can effect ively avoid unpredictable emergency which usually occur in long-term strategies, but also can get profit in a short time. It is why leaders Just pay attention to currently profit and overlook long-term development. For example, they may use ‘inferior raw material’ to manufacture (Lehman and Continue, 2013: 1). As a result, current margin can increase; however, they have overlooked some more corporation. Obviously, the loss of long-term cannot be estimated. This is similar as the sub-prime mortgage. Lenders prefer to lend currency to sub-prime borrowers, because of the higher interest rate. They can collect more properties in a short time. In addition, if the housing price is higher than the price of mortgages, borrowers will try their best to repay the debt, because they do not want to lose their house. To assume, if a mortgagor cannot timely repay, house, as a mortgage, will belong to the bank. Namely, when the bank sale this house, it can get extra property immediately. In this case, lending currency to borrowers, even though they are sub-prime borrowers, it is hardly to get damage to lenders. However, loaners have only noticed the short-term profit, therefore, they loaned mortgage to sub-prime borrowers instead of prime borrowers; however, they had neglected sustainable development, especially when the price of house dramatically declined. In fact, when the housing price decreased, some borrowers preferred to give up the mortgage to lenders, especially the value of house is lower than the loans (Klein, 2009). In other words, banks only can receive these mortgages instead of the loans. As a result, huge loss derived these banks collapse. Furthermore, mortgage lender also can resell theses mortgage to investment bank. However, some of them had hided some information in order to a higher price (Klein, 2009). In this way, some drawback of mortgage cannot be known by a new buyer. What is worse, these shortcomings may be modified to become some advantages to attract others. This fraud and sharp practice had continuing occurred. Namely, there are increasingly investing companies were involved in this event. Nevertheless, because the housing price decreased, these mortgages had devalued, which caused a serious debt crisis. Shoal (2005) points out that business school should open some ethic courses to teach their students more accountable. Obviously, he has predicted this perspective. Initially, if lenders do not only pay attention to short-time strategies, they did not only pursue the minimization of value in a short time and preferred to lend currency to prime borrowers rather than sub-prime borrowers. Even though the price of house decreased, borrowers are bound to consider their reedit, because they do not want to be classified in sub-prime borrowers. Additionally, they had stable Jobs to ensure the possible of repayment. Namely, banks may not consistently suffer such a huge blow. Furthermore, in order to earn greater profit, some agents had lent more than 20 times cash than the value the company’s security assets. Was (2010) convincingly points out that ‘highly leveraged balance’ existed in some financial institutions. For example, investment banks’ liabilities-to-assets ratio was 0. 96 at the end of 2006 (Was, 2010). In other words, the majority of assert was borrowed. Even though these agents used insurance to transfer risk, blind pursuit of interests had brought some huge hazard. Sometimes, if an agent is indeed regarded as a selfish man, it will damage the benefit of his or her corporation. Even though it may be reasonable that agent should some underlying differences between physical science and business studies. In other words, some theories which are correct in physical science cannot be reasonably used in business studies. Eisenhower (1989, citied in Lehman and Continue, 2013: 1) points out that it is a significant issue that if an agent makes a decision, it will be fisticuff for principals to check whether this decision is beneficial for the company, such as ‘creative accounting’ which is seriously harmful the profit of corporation. Furthermore, managers may not want to spend capital on ‘long-term research and development’, because it can reduce the short-term interest (Lehman and Continue, 2013: 2). Therefore, even though it seems exact that mangers should maximize the value of shareholders, Shoal discounts this view. He (2005:81) convincingly argues that this is the ‘unrealistic assumptions’ and humans moral and ethic have been overlooked in this theory. In fact, shareholders and agents have the diverse goals, which meaner that shareholders are interested in long-term strategy; oppositely, agents prefer to focus on the short-term strategy. Because of the unrealistic assumptions, agency problems which contribute to the 2008 global financial crisis are ignored. 3 Implication in article 3. 1 Stewardship can remit financial crisis In Shoal’s article, he argues that stewardship theory which can be alliterative to replace the agency theory can remit the problem between principals and agents (Shoal, 2005). Stewardship theory does not advocate personal interest, but the elective profit. In this theory, collective profit is higher than the personal benefit. Hernandez (2008) points out that agents’ and shareholders’ benefit can be aligned in stewardship theory. ‘Responsibility’ and ‘psychological ownership’ are combined with the profit of shareholders (Block, 1996; Davis, Chairman, and Donaldson 1997; citied in Spheres et al, 2012:2). In other words, they have become a collective and the interests of collective have closely linked with personal profits. According to Hernandez (2008), employees can feel more responsible and fulfill their obligations in stewardship theory. Because the interest has become consistent, the conflicting goals may not exist. Compared with agency theory which monitoring is necessary between shareholders and agents, shareholders and staff can cooperate in a harmonious environment. Furthermore, stewardship is also beneficial for realizing the interactions between sales personnel and consumers (De Router, De Gong and Wetness 2009; Hernandez, 2008, citied in Spheres et al, 2012). Therefore, it is good for a corporation to pay attention to customers, staff and shareholders simultaneously. Take sub-prime crisis makes an assumption, if the majority of corporation accepted he stewardship theory instead of the agency theory before the 2008 global financial crisis, the credit tsunami might not occur or it was not as heavy as this. Interest among agents’, shareholders’ and customers’ are tightly relevant. In other words, agents and shareholders may not only focus on the short-term profit and ignore long- place. Therefore, they may prefer to lend currency for prime borrowers while limit the amount of loans which is loaned to sub-prime borrowers. In addition, when lenders resell their mortgage, they may not deliberately hide weak information and ay not modify shortcomings in order to resell a higher price. Even though the agency theory has been extensively used in the world, Shoal has realized the drawback of it and try to replace it. The agency theory has contributed to the 2008 global financial crisis to a large degree. Namely, Shoal has forecasted the issue which has widely existed in the majority of companies. Furthermore, the stewardship theory advocated by Shoal can effectively remit the problems between shareholders and agents. It also can decrease the harm brought by financial crisis to some extent. 4 practice relevance 4. The power of government While it can effectively decrease the probability of financial crisis that using the stewardship theory replaces the agency theory, it is not enough. Therefore, the power of government cannot be overlooked. Because it can cause economic bubble that a government continually slash interest rates or dramatically reduce interest rates. However, American government had constantly reduced the interest rate thirteen times from 2001 to 2003. As a result, it caused the boom of American real estate. In addition, the application condition of sub-prime mortgage had decreased. A large umber of people preferred to purchase a house in installment plan, which caused the 2008 global financial crisis. Therefore, except for the stewardship theory, government also should pay attention to the frequency and the range of decreasing rate. Excessively fast decline the interest rate or oversize decrease them may cause economic bubble, which can harm for the domestic financial market. What is worse, it can lead to global economic crisis. Thus improper regulations may indirect lead to financial crisis. In addition, it is important that government should limit the rate of the sub-prime mortgage in any investment bank. Klein (2009) points out that regulation which can defend financial marker should be built by government. In other words, reasonable legislative can effectively prevent financial crisis. Consequently, the effect of government cannot be ignored. It also can effectually protect financial market and prevent huge loss. While the dominant economic system is free marker, governmental macro-control, which is beneficial to the current economic system, is inevitable. 5 Conclusion Agency theory has described the relationship between principals and agents. Even Hough the foundation of the agency theory is to maximize the value of shareholder, Shoal (2005: 81) convincingly points out that it is incorrectly built on an ‘unrealistic crisis. Because sub-prime borrowers have the lower credit and lower repayment ability, when the value of mortgage was less than the loan, they preferred to give up repaying the debt. As a result, sub-prime lenders had to sustain the huge loss. However, agents only focused on the short-term profit. They preferred to loan currency to sub-prime borrowers. Therefore, borrowing currency to sub-prime borrowers had become a common phenomenon in that period. Even though Shoal’s article was published before the international financial crisis, he was still aware of the problems of agency theory in economic system. While agency theory is accepted by the majority of corporations, it still has some serious problems. How to cite Financial Crisis, Papers

Corporate Social Responsibility Multinational Corporations

Question: Discuss about the Corporate Social Responsibility for Multinational Corporations. Answer: Introduction: Earlier the company used to emphasis on the quality and the price of their products to gain competitive advantage in the market. The global market today has changed a lot and the company as well as its stakeholders, not only rely on these things to gain competitive advantage. Today the corporate social responsibility plays an important part or role because it helps in gaining corporate reputation (Baumann-Pauly, Wickert, Spence Scherer, 2013). Therefore, along with the Annual report the company or the organizations have to provide the Corporate Social Responsibility report at the same time. The Swiss company Nestle, too, emphasis more on the Corporate Social Responsibility factor, apart from emphasizing on the quality and the price of the product. Nestle is a company that was founded in the year 1866 and this particular company operates in almost 195 countries. The company has 468 factories, around the world and at the same time, the company has almost 33,000 employees working for this company. Moreover, the particular company has 2000 brands, both globally as well as nationally. The Swiss company not only believes in the Corporate Social Responsibility but at the same time, the people believe in the Corporate Shared Values as well. The three important Corporate Social Responsibility factors that have influenced Nestle are the following: Ethical Among the ethical activities, one of the most important ethical activities is having the Fairtrade certification. Nestle received the Fairtrade certification for one of its product, known as the Kit-Kat (The Nestl Sustainability Review, 2016). The particular product has received the Fairtrade certification in the year 2010 (The Nestl concept of corporate social responsibility as implemented in Latin America, 2016). The Fairtrade Kit-Kat bar is the part of the initiative that has been taken by the Nestle Company and the name of this particular initiative is The Cocoa Plan initiative. Another important initiative that has been taken by the Nestle Company is providing nutritious food, to the consumers of the product (Kruschwitz, 2013). The foods or the products that are being provided to the customers should be health beneficial to the customers. The products that are being provided to the customers are not affordable but at the same time, it is accessible as well. Economical The Corporate Social Responsibility includes the economic factors, where, the support provided to the farmers in the rural areas, for their development is the most important thing. In developing countries like Latin America, Nestle is having almost 72 factories that are providing to the people living in the country. The values and the skills that the people in Nestle have are passed on to the people living and working in the factories of Latin America (The Nestl concept of corporate social responsibility as implemented in Latin America, 2016). The factories not only help the employees to gain the skilled and the values but also help them and their families with a stable income (Crane, Palazzo, Spence Matten, 2014). The company also helps and supports the farmers, so that they become productive and supply good quality raw materials, which include the milk and the coffee to the company. One of the instances of the farmers receiving support from the company can be traced back to 1930, when in Brazil many farmers are saved from bankruptcy, because Nestle came up with their new product Nescafe. Discretionary The discretionary factors at first include the sustainable factors that are being used by the company for the protection of the ecology or the environment. Therefore, for the production of the products the company has reduced the usage of water. The company has reduced 70% of their usage of water in the agricultural field. The company is also efficient enough in safeguarding the raw materials in an efficient way, and at the same time it help in protecting the raw material for the environmental reason as well (Payaud, 2014). The particular company use almost 3% of their expenditure, which is around 45 million pound for the environment protection. The company has taken initiative to provide convenient and safe water supply to the people. Therefore, they have set up or rather they have organized water initiative programs in many different and various communities. The efficient use of the water helps the supply chain of the company in more than one way. Therefore, this particular Swiss C ompany has taken initiative to protect the scarce water that is there. Nestle has also encouraged efficient use of the water for both the manufacturing process and at the same time for the distribution process as well. Aims and Objective Nestle is one of the most important global food manufacturer in the world and it is one of the leading manufacturer in the world. Nestle has the objective of providing the best nutrition and ensures proper health and well-being to the people living in the world. It can be put in this way, that Nestle has the objective of being the leader in nutrition, as well as in Health and Wellness. Therefore, Nestle is such a company that is trusted by all the stakeholders and compare to its macro competitors, Unilever and DANONE, the company enjoys quite a high market sale. The company has the major aim or the goal of fulfilling their 39 commitments, by the year 2020, and if possible even before this particular time. The company has the goal of being there in every household that is there around the world and at the same time, it helps in promoting the quality life of the people living around the world (Chou, 2014). The company also had the goal of providing both tasty as well as the healthy foo ds to their consumers. (Figure 1: Nestle and the Story of the Company Source: Nestle, 2013) Strategy Nestle is aligned to the United Nation Millennium Development Goals, and thus the strategy that has been adopted by the company is the Creating Shared Value Strategy (Miah, Griffiths, McNeill, Poonaji, Martin, Morse Sadhukhan, 2015). The particular strategy provides respect to not only to the people and culture but at the same time to the nature as well. Creating Shared Value or the CSV actually helps in creating commitment that helps in building compliance and sustainability. The particular strategy helps in mitigating the operational risk that the company may faces and at the same time, it helps in protecting the reputation that has been earned by the company. Creating Shared Value therefore helps in ensuring competitiveness as well as the long-term success of the company in the market (Creating Shared Value and meeting our commitments 2012, 2016). The CSV helps in creating a value for both the shareholders and the society. CSV is a theory that has been propounded by Michael E. Porter and Mark Kramer. CSV is unlike the Corporate Social Responsibility or the CSR, it is something more than gaining competitive advantage and it is more about philanthropy as well. The particular strategy helps in aligning with the overall corporate strategy of the organization. The CSV helps in fulfilling the commitment that the company tries to achieve by the year 2020. The CSV also align with the principles of the company that are there (Porter Kramer, 2016). Creating Shared Value has a particular structure and Nestle follows that structure in order to achieve the goal and the objectives that it has set for itself. The framework of the CSV includes the following things at a simplified level: Agriculture and the Sourcing The particular factor helps in reducing the risk related to the contaminants that are there in the raw material sourcing. The particular factor ensures that the companys long-term agricultural requirement is protected and at the same times it ensures quality and at the same time competitive prices for the users (Holzinger, Wartzek, Schiffer, Leichtfuss Nestle, 2016). The research activities that are being carried out by Nestle, helps in meeting the quality and the brand requirement. The direct farm assistance that is being provided by the company helps in meeting the quality and the brand requirement. For instance in Filipinos the consumers of Nestle rely mainly on the coffee products that are being provided by the company. Therefore, in Filipinos, the Company has come up with such an agronomy program that had helped the farmers to yield the product of their farm, both in terms of quality and quantity (Mithil Islam, 2014). The Nestl Experimental and Demonstration Farm, or the NEDF is such an organization had helped Nestle in this particular program. The centre of this organization is located in the Tagum City. Nestle also aims at improving the working conditions of the labor working in the factory. Nestle through this particular stage aims at achieving better environmental management, from the raw material supply chain. Knowledge transfer and at the same time farm assistance again are those things that are the part of this particular framework. For example, Nestle has provided farm assistance to the Ivorian farmers, who are equipped in producing 1.3 million tons of coffee. The Ivorian farms although, faced a problem because of this increase in production of the coffee. Moreover, the coffee plants that were there in the country also became old and sick and thus caused a problem for the farmers. Nestle therefore, had an agreement with the Ivorian government, and under the Cocoa Plan Initiative, the company, provided assistance, so that there is the renewal of the cocoa plants. The example of the knowledge transfer can be found in the assistance provided to the farmers of Filipinos. Knowledge and training is provided to the farmers through three days seminar or through three-week advance course. If the farmers want to improve, their farming skills then there are being provided with the on-site training as well. Manufacturing and Distribution The next or the second factor that is included within this particular framework includes the Manufacturing and the Distribution factor. The particular factor includes providing food safety through the improved operations that are there in the organization. Nestle tries to food security to the people by ensuring the prices of the products are low and by ensuring that the products that are available in the market is accessible to the people. The company tries to meet the standards that are there in the organization by complying with the regulation that are there. The food security is being provided to the people by following the business principles and the code of conduct. Nestle has set safety requirements for each of their products and especially the products that are there for the infants have to follow the stringent regulation. The particular factor also includes the risk management issues that are related to the food safety. Nestle have their own external laboratories where the ta sk is being carried out. In case any risk is being identified the peers of Nestle is being informed about it. Products and Consumers The Creative Shared Values include the products and the customers as the third most important factors. The Company aims at providing nutritional food to their consumers and they emphasize on the health and the wellness of the consumers. The nutritional food, which the company would provide requires local level research. The company carries out local level research, which would help in providing tasty and the healthy foods to the consumers. For example, the company has come up with DFit ice cream that contains fewer calories, because almost 40% of less sugar is there in the ice cream. Advantages The particular CSV strategy that has been adopted by the company is beneficial for the company in more than one way. The CSV strategy that has been adopted by this particular company is not only an important strategy of the company but also this particular strategy has helped the company to gain competitive advantage at the same time. The strategy that has been adopted by Nestle allows them to set up their factories in the developing countries, but that does not mean they have compromised with the profit that is being earned by them. The particular strategy has helped the company to earn profit even by operating through the factories based in the developing countries. In fact, the company has almost 45% of their factory located in the developing countries. The company tries to attract the investor and the same time, the potential investors through the CSV strategy that is there. The CSV strategy that has been taken by the company has helped the company to increase its share prices at the same time. (Figure 2: The Rise in the Stock Price of Nestle from the year 2010 Source: Content, Scully, Content, Smith, Insider, Rosoff, et al. (2015) The particular strategy has helped the company to create direct employment and at the same time, it has increased the food production at the same time. Apart from creating the employment opportunities for the people, the particular strategy has helped the company to sustain in the market for the period of around 150 years (The Nestl Sustainability Review. 2016). The particular strategy had helped Nestle to integrate with all the culture and thus promote the brand to the people of each culture. Therefore, the company had made connection with the people of all the cultures; and had made research in the local level as well, and created foods whose flavor is related to the flavor at the local level. Thus this particular strategy has turned out be advantageous and the beneficial for the company in many ways. Difficulties and the Strategies to Overcome the Difficulties Creating Shared Value is good but there are certain difficulties related to it and among those entire difficulties one that is most important is that there are no Key Performance indicator. The Key Performance Indicator will help in sharing the knowledge with the farmers regularly, or at least periodically. The KPIs or the Key Performance Indicator will help in enhancing not only the quality of the product but at the same time, it helps in enhancing the food security procedures at the same time. The CSV strategy does not have any measurable method and this lack of measuring the productivity gain through strategy requires an improvement because it could give rise to many difficulties as well. The company should target to make an investment in the model farms. The model farms investment will help in the cultivation of the 4Cs that are there in the market. The 4Cs include not only the Customer Want, Cost, Convenience, as well as the Communication at the same time. The 4Cs are the internal requirement of a company and proper care should be taken to fulfill this particular requirement. Education is one of the most important things that have been given importance in the Nestle action plan. According to this particular action plan, the company should provide proper education to the people not only through the printed medium but also at the same time through visual method at the same time (Creating Shared Value and meeting our commitments 2013, 2016). The company also aims at providing education to the customers through different social media also, which include social media like Facebook and YouTube. (Figure 4: The Action Plan of Nestle Source: Content et al., 2015) The internal capabilities of Nestle will help the company to achieve the goal that it has set for itself; but then there are certain internal limitations of this company as well. Therefore, to combat the internal limitations of this company it is important to come up with an effective strategy that will help the company to gain competitive advantage. 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