A Case Study At The HSBC

A Case Study At The HSBC Chapter 1 Literature Review 1.1 Overview of Corporate Social Responsibility The notion that business has duties to society is firmly well-established, despite the fact that in the past there has been a revolution in the way people view the relationship between business and society. Numerous researchers suggest that companies which indulge in corporate social responsibility obtain consumers positive product and brand evaluations, brand choice, brand recommendations, good attitude to firm, good image of the firm, purchase intention and even enjoy a premium price. Spurred at least in part by such evidences, more companies than ever before are backing CSR initiatives such as corporate philanthropy, cause-related marketing, minority support programs, and socially responsible employment and manufacturing practices with real financial muscle. Not surprisingly, this trend is also reflected in the pervasive belief among business leaders that CSR is an economic imperative in todays national as well as global marketplace. However despite the increasing importance of CSR, there is little research available about CSRs impact on consumers. According to Yoon (2003), it is not clear when and how CSR activities influence consumer evaluations. Recent researchers have suggested that a CSR activity might backfire on the company if the consumers have become suspicious and infer that the companys true motive for the CSR activity is only to improve its image to sell more products without trying to act for the sake of consumers 1.1.1 Defining Corporate Social Responsibility According to Kotler (1991), Corporate social responsibility is about doing business in a way that maintains or improves both the customers and societys well being; Fombrun and Gordberg (2000)s point of view is that, corporate social Responsibility is something that no sane chairman should be without. On the other hand, Petkus and Woodruff (1992) believe CSR includes both avoiding harm and doing good. Corporate social responsibility is viewed as a companys commitment to minimize or eliminate any harmful effects and maximizing its long run beneficial impact on society. Corporate social responsibility activities include numerous factors; namely meeting customer expectations, demonstrating commitment to environmental responsibility, improved environmental performance, staying ahead of the legislation, and increased employee motivation. Mohr, Webb, and Harris (2001, 47) define CSR as a companys commitment to minimizing or eliminating any harmful effects and maximizing its long-run beneficial impact on society. Though, Angelidis and Ibrahim (1993) define corporate social responsibility as corporate social actions whose purpose is to satisfy social needs, Lerner and Fryxell (1988) suggest that CSR describes the extent to which organizational outcomes are consistent with societal values and expectations. While some view CSR as an obligation, others, namely: Enderle Tavis (1998) define corporate social responsibility as the policy and practice of a corporations social involvement over and beyond its legal obligations for the benefit of the society at large. 1.1.2 Dimensions of Social Responsibility The dimension of social responsibility was propounded by Carroll (1979). It was proposed that organisations have to have 4 pillars that must be fulfilled to be good corporate citizens. They are: Economic Dimension. Economic responsibility is to be profitable for principals, by delivering a good quality product, at a fair price, is due to customers. Legal Dimension. Legal duties entail complying with the law and playing by the rules of the game. Ethical Dimension. Ethical duties overcome the limitations of legal duties. They entail being moral, doing what is right, just, and fair; respecting peoples moral rights; and avoiding harm or social injury as well as preventing harm caused by others (Smith and Quelch, 1993). Philanthropic Dimension. Interest in doing good for society, regardless of its impact on the bottom line is what is called philanthropic CSR that is giving back time and money in the forms of voluntary service, voluntary association and voluntary. 1.2 Evolution of the CSR concept. Even relatively contemporary, a theory of CSR can be divided into four eras based on several conceptual shifts (Lee, 2008). The first dominant theme emerged during 1950s and 1960s concentrating on ethics and social obligation of business. A pivotal study by Bowen (1953) contended that CSR is an obligation of businessmen to act in line with the objectives and values of society. CSR was posited as a complementary and corrective measure for some social failures in the laissez-faire economy. Friedman on the other hand was concerned with the insufficient skills of corporate managers to solve social problems and potential cost from uncertain outcomes that would reduce the maximization of shareholder wealth a true responsibility of business. Such an intellectual stalemate contributed to the shift from the emphasis on macro-social effects of CSR to an organizational-level analysis of CSRs effect on financial performance. CSR in the second period was central around enlightened self-interest in the 1970s. A conceptual breakthrough by Wallich and McGowan (1970) represented reconciliation between the social and economic interests of corporations. The authors argued that CSR supported the long-term interest of shareholders by strengthening the wellbeing of the society, which provided a crucial support structure and customer base for business operations. Most studies in this era focused on the content and implementation process of CSR to avoid conflict with business interests (Ackerman, 1973; Fitch, 1976; Murray, 1976). A major caveat in this conceptual reconciliation was the lack of a specific mechanism to identify a causal link between social responsibility and financial performance (Weick, 1976). In the 1980s, the tie between the economic and social goals of business became tighter in the corporate social performance model. The dominant theme represented the thirdgeneration of CSR. The multi-dimensional model of corporate social performance was proposed in a pivotal study by Carroll (1979). This model suggested the integration of economic and social objectives in a total CSR framework, featuring economic, legal, ethical and discretionary aspects. The model was modified by Wartick and Cochran (1985) to include principles, processes and policies. Wood (1991) further formulated a more pragmatic model incorporating related theories, such as organizational institutionalism and stakeholder management theory. The limitation of the CSP model was the lack of objective and behavioral measurement to be able to compare the social performance of different companies (Wood and Jones, 1995). An aim to generate business return from CSR is most prominent in the latest development of CSR through strategic management. In this perspective, the stakeholder model has become central to the new CSR paradigm (Jones, 1995). Based on the stakeholder theory (Freeman, 1984), Clarkson (1995) ameliorated the measurement problem in CSR through stakeholder identification, separation of stakeholder and social issues, followed by appropriate level of analysis. CSR becomes strategic when integrated into a companys core business competencies by serving as a filter through which strategic decisions are evaluated for their impact on the firms various stakeholders (Werther and Chandler, 2006). Strategic CSR then matches internal core competencies with the external opportunities to complement corporate mission and vision related to social responsibility (Du et al., 2007; Werther and Chandler, 2006). 1.3 CSR and Stakeholders According to Smith (2003), stakeholder theory is based on the principle that companies need to consider the effects of their actions on all constituencies (e.g. shareholders, customers, employees, suppliers, the environment, and the community), even if profitability is reduced. On the contrary, shareholder theory argues that the only responsibility of a company is to (legally) make profits for its shareholders. Mitchell (2001) argues that the shareholder approach increasingly dominates American companies. Furthermore, it is often interpreted as having one basic goal-maximizing stock prices. This, in turn, leads to a short-term perspective because growing proportions of Stockholders buy and sell stocks based on short-term information. Mitchell goes on to argue that companies are obligated to make profits, but there is nothing in the legal system that requires maximization of stock prices or that restricts the time frame to the short term. Nonetheless, a manager who does not produce sufficient earnings for shareholders risks his/her job and puts the company at risk of a takeover (Martin 2002). Martin (2002) further argues that when responsibilities to the community are seen as being likely to come at the shareholders expense, managers usually side with shareholders. He suggests that most socially responsible corporate behaviors are done specifically to enhance shareholder value. These are generally activities undertaken to comply with laws, regulations, or norms. They entail simply meeting the baseline of societys expectations; companies that do not meet basic expectations are likely to lose financially. On the other hand, there are many socially responsible actions taken by companies because managers believe they are the right things to do. Because these actions are outside the norms and may lead to financial losses, they are considered risky. 1.4 Social responsibility, Business Ethics and Corporate Governance. 1.4.1 Social Responsibility and Business Ethics Today, ethics has become more and more important with global business expansion. This is so, because of a raise in ethical and social responsibility concerns. There exists, however, according to Czinkota and Ronkainen (1998), a wide divergence in the level of importance attached to these two issues in different countries. Ethics as defined by Hoffman and Moore (1990) define ethics as what is good and right for people. An individuals perception about whether ethics and social responsibility contribute to organizational effectiveness is likely to be a critical antecedent of whether he/she even perceives an ethical problem in a given situation  [1]  . This is a practical view based on an argument that managers must first recognize that ethics and social responsibility to be imperative to organizational effectiveness before their behaviors will become more ethical and reflect greater social responsibility. Intuitively, ethics and social responsibility should have a positive impact on the success of an organization, because consumers make ethical judgments that are likely to influence their purchases. Consumers recognize organisations that are responsive to ethical and social factors. Consequently, business should care about ethics because adopting the right behaviour helps acquire and preserve good reputation overtime; because ultimately, it pays to do so. 1.4.2 Social Responsibility and Corporate Governance The definition of Corporate Governance differs depending on ones view of the world. Shleifer and Vishny (1997) define Corporate Governance as the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment. Taking a broad perspective on the issues, Gillan and Starks (1998) define Corporate Governance as the system of laws, rules, and factors that control operations at a company. Irrespective of the particular definition used, researchers often view Corporate Governance mechanisms as falling into one of two groups: those internal to firms and those external to firms. Of course, firms are more than just boards, managers, shareholders, and debt holders. Over the years, Corporate Governance has evolved from the traditional profit-centered model to the social responsibility model. These two models illustrate the fundamental conflict that prevails today in Corporate Governance the Profit-Centered Model and the Social Responsibility Model are mutually exclusive. Each focuses on an opposite half of the corporations domain, even though the economic and social aspects of business are closely interrelated. In short, governance is viewed as a zero sum game. Because the economic role of the firm is fundamental to its survival, profit often drives out social considerations. Because knowledge increases when shared, collaborative partnerships between management and stakeholders can be economically productive. Like all partnerships, stakeholder collaboration is a two-way, working relationship that combines the capabilities of partners for their mutual benefit. According to Halal (2000), the wealth-creating role of business arises directly out of integrating stakeholders into a productive whole a corporate community (Figure 1). The corporate community model views the firm as a socioeconomic system in which wealth is created through stakeholder collaboration. This is not done to be socially responsible, but because it is a competitive advantage. Drew et al. (2006) identified five integrated elements that underpin a firms ability to manage risks, engage in effective Corporate Governance, and implement new regulatory changes: Culture, Leadership, Alignment, Systems, and Structure. Each of these elements relate to the others. For example, organizational culture is shaped by leadership practices. Systems support organizational structure and shape its culture. Alignment ensures each element is harmonized with the others so that, for example, explicit cultural norms are reinforced by leadership, and systems reinforce the culture. No one element s tands alone. After engaging in an examination process, board members can map organizational challenges against these elements, identify areas in need of improvement, and plan change management programs. Superior risk management programs and stronger firm governance capabilities result. The elements of CG addressed in Figure 2 could be considered as the core (i.e. management) of Figure 1 (i.e. corporate community model). Combining the models therefore represents the influence of Corporate Governance on CSR or corporate community. Figure 1 The basic cause of todays continuing conflict between profitability and responsibility is that managers do not seem to understand that these two interests can be united. Stakeholder collaboration is now the key to creating economic wealth. In the new perspective, stakeholder collaboration does more than gain resources and political support; it allows joint problem solving to increase the firms store of valuable knowledge. Future research needs to focus on the stakeholder assessment process and its translation into CSR objectives and policies. Therefore, adopting a process-based management systems approach as the foundation for a CSR management system will provide top management with a holistic view of the business that takes into consideration a single system approach to governance. This approach will provide management with internal control, clearly identify responsibility and will embed CSR in their organisation. This approach overcomes much of the criticism surrounding many current CSR systems approaches. Figure 2 The leadership style is also found to play an important role in socially responsible organizations. In this respect, transformational leader seems to be more effective, comparing with manager and transactional leader. Thus corporate governance as a critical element for driving excellence in CSR can be a source of competitive advantage for firms in its own right. 1.5 Consumer Behavior or Socially Responsible Consumer Behavior It has been observed that several personality trait variables affect how a consumer reacts to a companys corporate social responsibility activities. One trait that has been identified is called socially responsible or socially conscious consumer behavior. The socially conscious consumer is a consumer who takes into account the public consequences of his or her private consumption or who attempts to use his or her purchasing power, to bring about social change. According to Webster (1975, 188), the socially conscious consumer is a consumer who takes into account the public consequences of his or her private consumption or one who attempts to use his or her purchasing power to bring about social change. Mohr, Webb, and Harris (2001, 47) define this behavior as a person basing his or her acquisition, usage, and disposition of products on a desire to minimize or eliminate any harmful effects and maximize the long-run beneficial impact on society. Over the years, socially responsible consumer behavior has been seen as a lasting personality trait that engrosses the consumers self-concept. Persons, who are high on this trait, would not hesitate to modify their consumption behaviors in a variety of circumstances in order to struggle toward the ideal of improving society. Much research has been conducted on this trait. Measurement scales have not only been developed but related demographics and attitudes have also been explored. Roberts (1995) used the method of cluster analysis to segregate a group of socially responsible consumers. He estimated them to constitute 32% of the American population. According to him, when one compares this group to most Americans, the latter is more broadminded and environmentally concerned and has higher levels of perceived consumer effectiveness (perceived ability of individual consumers to influence environmental problems). 1.6 The Impact of CSR Activities on Consumer Behavior Consumers need to be aware of the level of CSR of a company so that this factor can have an impact on their purchase. The reason why, building awareness constitutes one of the major purposes behind cause related marketing which is a subset of CSR. Also, consumers are more likely to respond to a companys social responsibility record when they identify with the company  [2]  . Identification is enhanced when consumer perceptions of the companys character are similar to their perceptions of their own character. It is further argued that consumers judge a companys character based more on its CSR than on its business expertise. When consumers personally support the social issues that the company targets (called support for the CSR domain), they are likely to see greater congruence between themselves and the company. In two experiments, CSR was manipulated and its effects on the evaluation of the company were measured. They found that consumer support for the CSR domain significantly moderated the positive effect of CSR on evaluation. Ross, Stutts, and Patterson (199091), who used a non-probability sample, found that 53 percent of the sample, could recall a cause related advertisement for a product, and Webb and Mohr (1998) found that 79 percent of a sample could describe a specific cause-related marketing campaign after the concept was explained to them. Since CSR is a wide and multifaceted concept, knowledge about the social responsibility activities carried out by companies is relatively low. As a result, it is hard for consumers to acquire and store such information. Lack of awareness, therefore becomes the major inhibitor of customer awareness to CSR. Since 1993, according to reported surveys, firms supporting causes are enjoying a more positive image compared to other firms. Furthermore, the Cone Communications Press Release stated that two thirds or more of the sample said that they are likely to switch brands or retailers to those participating in cause related marketing. Demand from socially responsible consumers may increase in line with increasing promotion of a firms socially responsible activities; research by Sen and Bhattacharya (2001) suggests that consumers sensitive to the particular cause supported by a corporation (such as environmentalism) are more likely to react positively towards that corporation. On the other hand, in interviews with a convenience sample of 225 people, Ross, Stutts, and Patterson (1990-91) found that 49 percent stated that a firms support of a cause had been a primary reason for them to purchase a product, and 54 percent said that they are likely to. Also, most consumers do not understand the ethical dimensions of the products that they purchase (Auger et al, 2003, p. 299) but experimental studies have shown that once consumers acknowledge a firms socially responsible initiatives their evaluation of that firm (and its products) increases (Brown and Dacin, 1997). Furthermore, it has been established that certain demographics are increasingly likely to make consumption choices based on social grounds (McWilliams and Siegel, 2001, p 121). A national telephone study by Smith and Alcorn (1991) found that 46% of respondents were likely to switch brands to a company that donates to non-profit organizations and 30% sometimes buy products based on the charitable causes that the manufacturer supports. Porter and Kramer (2002) believe that strategic philanthropy1 at its most sophisticated can be responsible for enhancing the reputation of a company by linking the admirable qualities of the supported cause to its corporate identity. Moreover, it is believed that concentrating charitable donations and funding on a popular cause through a deliberate selection process may have a greater impact than generalized CSR (Porter and Kramer, 2002). Research by McWilliams and Siegel (2001) has found that not all consumers place a high value on the socially responsible actions of a firm; the price of competing goods can affect the demand for goods provided by socially responsible corporations. Studies conducted at Marymount University (1999) reported that 75 percent of consumers would avoid shopping at a store if it was known that their goods were produced under poor social conditions. Furthermore, it was found that the same consumers would be willing to pay $1 more for a $20 item given that the item was produced under good conditions. These studies show that consumers are willing to pay more for goods produced in a socially responsible manner. Indeed, the University of Maryland (2000) found that approximately 75 percent of consumers would pay an additional $5 at least on a $20 item if it was known that the item was not manufactured in a sweatshop. However, It has been suggested that income has a significant impact on demand for products from firms with a good reputation for CSR; low-income shoppers are seen to be more price sensitive than affluent shoppers. This means that affluent consumers are more willing (and able) to pay a higher price for said products (McWilliams and Siegel, 2001). A survey conducted by Creyer and Ross (1997) measured the attitudes of the parents of elementary school children towards ethical and unethical business behaviour. It was found that respondents expected companies to conduct business in an ethical manner and importantly, respondents stated that they would pay higher prices for products from an ethical company. 2.1 An Overview of Corporate Social Responsibility in the Banking Sector The Mauritian banking industry comprises of 18 banks, of which 5 are local banks, 8 are foreign owned subsidiaries, 1 is a joint venture and 4 are branches of foreign banks.  [3]  The banks are certified by the Bank of Mauritius to carry out banking business locally and internationally. Banks provide several traditional banking facilities and card-based payment services such as credit and debit cards, internet banking and phone banking facilities. Other services such as fund management, custodial services, trusteeship, structured lending, structured trade finance; international portfolio management, private client activities, investment banking, treasury and specialised finance are also offered by banks. The banking sector is now increasingly integrating CSR as a management strategy. External social activities are carried out to benefit the wider social community. The banking sector tops the list with a percentage of 1.2 per cent of profits before tax. For example, the Mauritius Commercial Bank (MCB), the leading bank in Mauritius, has promised 1 per cent of its profits before tax ( £460,000) for social projects this year and Barclays Bank (Mauritius) has dedicated Rs 400,000 for the fight against AIDS. While the State Bank of Mauritius launched scholarships to help the brilliant but needy students of the Gandhian Basic School, the Barclays Bank has adopted the fight against diabetes as its flagship cause. Thus it can be seen that corporate social responsibility is very much present in the banking institutions of Mauritius. There is a belief that the growing of businesses and development of stakeholders must go together. Consequently, more and more companies are participating actively in corporate social responsibility. 2.2 A Profile of HSBC Bank Mauritius Limited HSBC Bank (Mauritius) Limited is part of an international banking and financial services organisation with a network of some 9,500 offices in 86 jurisdictions. (MBA Profile of Banks, 2010) The history of the HSBC Group in Mauritius can be mapped out from 1859, when the Chartered Mercantile Bank of India, London and China (the predecessor of the Mercantile Bank Ltd) established a branch in Port-Louis. It started with community investment back then with the financing of one well-known project that was the construction of the Port Louis to Curepipe railway network, in 1864. In 1865, a decision was made to close the branch. The bank was represented by the Blyth Brothers and Co Ltd for the next half century. In 1892, the Chartered Mercantile Bank was renamed as The Mercantile Bank of India Limited and in 1916, it came back to Mauritius through the acquisition of not only the then Bank of Mauritius, which was previously a commercial bank but also its historic building in Place dArmes. Mercantile Bank conducted business from its main office at Place dArmes continuously. In 1959, the Hongkong and Shanghai Banking Corporation Limited purchased the Mercantile Bank and in 1983, the name of the Groups operations in Mauritius was changed from the Mercantile Bank Ltd to The Hongkong and Shanghai Banking Corporation Limited. In 1999, the international brand name HSBC was launched. Finally in 2002, HSBC started on a campaign to distinguish its brand from those of its opponents by describing the unique characteristics that make out HSBC, abridged by the words The worlds local bank. 2.2.1 Mission To be the worlds leading financial services company. We want to be the first choice for our customers and for our employees. If HSBC can be the best place to bank and the best place to work, we will have built a sustainable business that will deliver for the long term for customers, colleagues, shareholders and society at large. 2.3 Corporate Social Responsibility at HSBC Bank Mauritius Limited At the HSBC, there is a culture to manage business in a responsible and sensitive manner. There is a belief to have a duty towards customers, investors and employees to promote an ethical, responsible and sustainable corporate philosophy. The social initiatives undertaken by the HSBC are channeled into different levels, that is: Investing in communities Working together Protecting the environment Sustainable finance 2.3.1 INVESTING IN COMMUNITIES The HSBC aims to make a positive impact in all communities it operates. The community investment at the HSBC is mainly focused on two pillars which are education and environment. The educational support focuses on disadvantaged children such as orphaned children of the SOS Childrens Villages, on environmental and business literacy and environmental education and understanding. The HSBC Eco-Schools Climate Initiative was initiated in affiliation with the Foundation for Environmental Education. The intention of the programme is to encourage action on climate change by improving schools environmental good organization. 2.3.2 WORKING TOGETHER Employees At the HSBC, employees are believed to be their greatest asset. There is a perception to look harder so as to understand things more deeply. Staffs are driven by the belief that they can form a better future. Their priority is to exceed customer expectation. There is neither labeling nor discrimination and customers are rewarded for their commitment. Promoting Development The HSBC aims at promoting development of its employees not only through e-learning courses easily available both at home and at work but also through exchanges and overseas assignments. Committed to employees well-being HSBC employees have access to its gym to promote healthy living. Also available is an internal library with a collection of books on well being, yoga, healthy living and stress relief. The aim of the organization of the Health Week is to create awareness on the prevention of non-communicable diseases and to contribute by donating blood. Customers Customers are treated fairly and with respect. Despite being strict, the lending criteria take into consideration the customers ability to repay the loan. There is adherence to the MBA Code of Banking Practice. To maintain awareness about customer views, customer surveys are carried out. Suppliers Suppliers are required to abide by HSBCs policies and respect rights of employees. In case, after developing a plan to put a worry at rest, suppliers fail to improve, the HSBC stops working with them. 2.3.3 PROTECTING THE ENVIRONMENT The HSBC is very committed to the environment. In 2005, it became the worlds first carbon neutral bank. It is trying to optimize operations through environmental management systems. Water Saving Campaign In 2008, the HSBC teamed up with the Central Water Authority to launch a water saving campaign. It aimed to sensitizing the population about the scarcity of water and finding easy ways of saving water. Activities were organized; internally, through the theme of Be Part of the Solution where staff got the opportunity to visit the Meteorological Station of Vacoas and externally, through billboards, daily radio advertisements and tips in local newspapers and distribution of 12000 educational leaflets. Sustainability of Office Infrastructure and Internet Banking All in one device are being used to save energy. Consequently, there is a cutback in amount of equipment, consumption of electricity, toner cartridges and paper and maintenance cost. Through the use of internet banking, the HSBC is trying to provide its customers with their banking needs while at the same time trying to reduce printing outcomes. 2.3.4 SUSTAINABLE FINANCE Through sustainable finance, the HSBC is trying to incorporate the environmental criterion in its lending policies. Consequently, the organization will be able to assist its clients in building environmentally sustainable busin

Extended families are making a comeback in many countries around the world Essay

Family is one of the most valuable and irreplaceable things that one is blessed with in a lifetime. A family is the foundation to everyone’s life. The outcome of your life is dependent on your family. Morals and values are obtained from your family circle. There are many types of family that exists in today’s society, each important to the upbringing of children. The most common type of families found in Maldives are extended family and nuclear family. Nuclear family is a family unit consisting of a mother and father and their children. Extended family is a family group that consists of grandparents, parents, children, siblings and their immediate family, uncles and aunts living together in the same house. According to Population and Housing Census, 2006 (2007), roughly 80 percent of Maldivian households consists of a single nuclear family composed of a married couple and their children rather than an extended family. Nevertheless, Male’ city, the capital of Maldives is flourishing with more extended families living in the households. In fact, this development is due to people migrating to Male’ for better health facilities, quality education, job opportunities and many more luxurious facilities. However, extended families living together in Male’ has many benefits and drawbacks. Many people who have extended families find that due to several generations living under the same roof, there are plenty of role models for the children of the household to look up to and learn from, with many elder family members being able to pass down certain traditions to the younger members. In today’s world where people talk about equal opportunity as well as high living costs, where both parents have to work in order to provide all the necessities for the children, grandparents take care of the younger children. They see to that the child has nutritious food and keep an eye on them thus preventing them from getting into bad habits. Also they talk to the children or share stories from their past which develops a strong bond between them. Being in a bigger family with more people to talk to help a child develop quicker. For example, with more voices in the house, toddlers may start talking quicker, also this helps children their language development. According to What influences child development? (2012), the family that invests time, energy and love in raising a child will see the most positive growth. On the other hand, different experiences and beliefs each generation grew up create barriers between generations. Grandparents have difficulty enjoying grandchildren’s fashion, works situations, future plans or use of new technology. Grandchildren have difficulty in understanding their grandparents because they feel that their privacy is being invaded, and their grandparents intervene in their life by setting limits. Hence it develops conflict among the old generation and the young generations. Furthermore, living in Male’ very expensive. According to the Vulnerability and Poverty Assessment 2004, renting households across all income groups paid around 45 percent of their income on rent. Thus sharing the rent and expenses among all the members resulted in many family members living in small households congested with a lot of family members. Even though expenses of rent, utility bills and foods is shouldered by all members, misunderstanding and conflict arises on how members contribute to foot the bills and how they get to maximize the use of things which are bought to the household. For example, a computer system bought by one sibling may be used more by a child of another sibling and may not be available for use when in need. These kinds misuse of facilities available create sibling rivalry. These kinds of conflicts leads to fallout among members which take longer to forgive and arguments can reignite very easily. On the other hand in an extended family you can find a stronger feeling of security being surrounded by family and knowing that there will be someone to support you when in need. Like everyone being able to support one another through a crisis such as one of the family members losing their job. In these cases, all extended family work together to support each other until a new job can be found. Extended families also give the feeling of belonging because we see people who have a link to us through origin, making them feel something bigger than just themselves. According to Population and Housing Census 2006 (2007), the capital Male’ with an area of about 2 sq. km. accommodates 35 percent of the country’s population of 298,968. In short this means that Male’ which has always been the center of all development in the country results in overcrowded housing units. Vulnerability and Poverty Assessment 2004 explains that between 1997 and 2004, the proportion of people living in houses with 40 square feet or fewer of housing areas per person has increased from 17 to 22 percent and the percentage of houses with a compound has decreased from 57 to 39 percent hence making the capital city much more crowded. As a result members living in a household have less personal privacy and weak family relationships. Most of the time during weekends people want to be on their own, but in an extended family these types of freedom are not possible. It is certainly disturbing that somebody is playing cards or PS-3 or watching television while others are working at home or studying for exam or just relaxing. If kids are fighting and elders have a misunderstanding then in these families people will not have a peaceful environment. Parents find it difficult to spend quality time with their children on an individual basis and also find it impossible to have private time away from them. Lack of privacy is linked to depression and other negative psychological outcomes like physical health. First household crowding can produce stress that leads to illness. Second, through shared physical proximity, household congestion contributes to the spread of communicable disease. A significant body of research, conducted primarily in affluent countries, has documented the unfavorable effects of housing conditions on a range of illnesses, including various contagious diseases. On the other hand, where most of the family are working to earn a better income, household chores becomes easier as it is shared among all members. Humans are social, in terms of nature and thus they cannot live alone. Therefore, people’s character and ethics are grown and strengthened through family. It is proven that an extended family is a better economic unit because it consumes lesser resources and provides more role models for behavior of values. In conclusion living in extended family is tough because you lose a significant amount of freedom and is forced to sacrifice a lot for your family. But realize the value of having family to help and support when in need. Taking the country as a whole extended families will out win advantages over disadvantages. But regard to the capital city, Male’, disadvantages outweighs advantages of extended family.

Geo Mapping and Small Industries Essay

1. Identify the key software applications used by The Tea Collection. The Tea Collection used information technologies very successfully to create their business and to make it one of the fastest growing private companies in the US. They do not only use software to design their clothes, they also use applications to sell their products. The executives use geographic data- mapping software to target new selling areas, where are not that many stores for children’s clothing but good demographic circumstances. The Tea Collection has also created a tool bag-in-tool for their retailers to make it easier for them to order new products over the internet. 2. How does the geo-mapping software help the company grow? Explain how sales reps use the results of the geo-mapping system. Tea Collection uses software to be able to sell their clothing line across the country. The executive of Tea Collection uses the software â€Å"geo-mapping† to find territories in the United States where there is not a lot of children’s clothing sold and they can expect to build up their company there because the area is not oversaturated with children’s clothing. It is a geographic data-mapping software, which he uses to find the best place to build up a new Tea Collection store. With the software he can find out the ZIP code of the area without many children’s clothe stores and see the area from closer to make out the landscape where they think a Tea Collection store would fit in best. A yellow dot in a green area shows the highest prospect and sales reps use this system to sell their line there.The geo-mapping software is insofar relevant to the material learned in the 3rd lecture, because it is an information system. In the Tea Collection it especially plays a role for ensuring their survival and to promote competitive advantage. The customer service is as well improved. Tea Collection invests one percent of the income into information systems to develop new services they can use in their company. 3. What is the main technology challenge identified in the video? How would you suggest this challenge should be addressed? The main technology challenge identified in this video is the integration of the different computer systems, according to Rawdon, one of the founders of this business †the biggest challenge is the technology’s integration† The Tea Collection uses â€Å"multiple computer systems which don`t integrate automatically† (Rawdon) and therefore the task of integrating those systems are accomplished by people. Firstly, I would suggest to address this challenge by investing money in in-house training of the people working on integrating these systems. So that everyone in the company has the same knowledge consequently it will be easier to work together Moreover, on communication specialized employees whose task is the communication between the people working with those computer systems could enhance the working atmosphere as well as lower the time needed. Finally, Rawdon also states that the Tea Collection couldn’t survive without technologies. In spite of this the company only invests one percent of sales in IT. It could be suggested to invest more money in technologies and also in research to figure out a better integration of the computer systems. This would result in less dependency on people and therefore in less time and less mistakes. 4. Do you believe this company can continue to grow rapidly with the existing software and hardware they have demonstrated in this video? Why or why not? According to the information provided and considering the development of information technologies, the smaller companies like The Tea Collection could expand and grow rapidly. Their business would not be realizable and successful without technology, because business owners know that time is money – and no business can afford to be days behind the competition. We do believe that with the software and the hardware demonstrated, the company will continue the steady growth shown in the past 10 years and spending only 1% of the sales on IT, seems to be the best investment in their flourishing business.

The Work Of Factory Workers - 946 Words

Factory Workers Jacob Miranda – Human Resource Management CSU Gobal – US History Factory workers As this nation has become independent and started to grow. There were new beginning of of an era that not everyone was going to work on a farm or a plantation but soon a production that people would be working in a warehouse with machines producing goods. (First Slide) The first factory in the United States was begun after George Washington became President. In 1790, SAMUEL SLATER, a cotton spinner s apprentice who left England the year before with the secrets of textile machinery, built a factory from memory to produce spindles of yarn. Once this was built many people followed in the footsteps and 1000’s of factories opened up in time. This was a time in history that technology became a leading industry in America. Machines were built to produce goods in the factories as many factory workers worked in dangerous settings and many got hurt from these machines. Each factory floor was packed with up to 250 machines, with little space between them. Women, Slaves, a nd Children were forced to work at a young age and this was the growth of the industrial revolution. I know for a fact that this is a time that None of us would want to work in these conditions as they were not safe for anyone to work in and we have come a long way in for factory workers to be happy with where they work, work in a safe environment and paid a better wage then the begging time of factory workers. ItShow MoreRelatedGlobalization, Efficiency and Loneliness1414 Words   |  6 Pagesin America and made in China because Chinese factories can produce the iPhones faster and cheaper than American factories. In other words, globalization corporation is looking for efficiency in time and money. However, , this kind of efficiency is built on the workers bad working condition, workers low salary and lack of basic workers protection and right. In contrast to, providing efficiency not only make life physically difficult for factory workers, but also create difficult in mentally wayRead MoreThe Negative Effects Of The Industrial Revolution948 Words   |  4 Pagescaused people to work in factories instead of on their farms. They began to work for the same amount of time every day and used machinery instead of making things by hand. This allowed goods to be mass produced cheaply and efficiently. In short the Industrial Revolution was a dramatic change in all aspects of work. As competitio n increased for companies factories and other employers desire for money also grew so to the population and demand for industrialization. This new kind of work became a negativeRead MoreIndustrial Revolution : A Working Class Citizen1295 Words   |  6 Pagesof factories opened where goods were manufactured. These goods were created at a much faster pace than ever before, and required big machines and lots of physical labor. The labor came from the citizens in England who were former farmers who urbanized and moved to the cities. These people made up the working class in England and they provided the labor in the factories. For the most part the factories were very crowded, hot and dangerous for the workers. But was this life in the factory betterRead MoreA Brief Note On The Garment Industry And Bangladesh1681 Words   |  7 Pagesis one of these developing countries that are trying to become an influence in the global economy by allowing multinational corporations to build a nd have garment factories in their countries while profiting by the work these companies create. Unfortunately, the workers in these factories face unfair treatment by their employers and work under unsafe conditions that can eventually cause them to die. 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According to China Labor Watch (2015) if the workers of the Apple factories for some reason have an accident or get hurt doing their work the owner of the factories will not be responsible for that person,Read MoreBangladeshi Garment Worker Fight Back977 Words   |  4 Pages After thoroughly reviewing the article â€Å"Bangladeshi Garment Worker Fight Back†, the writer James North spends a large scope in the article reporting the existing working conditions of factory workers as well as the incident of the collapse of Rana Plaza factory that killed a lot of innocent workers (James 2013). Also, he pointed out the inadequacies and shortcomings of labour safety laws in Bangladesh. James visited the factory in person to figure out more in-depth facts. For instance: carryingRead MoreFactory Working Conditions Of Bangladesh877 Words   |  4 Pages Factory Working Conditions In Bangladesh Does it take a catastrophic event for the factories in Bangladesh to become know for the harsh working conditions? Most Americans don’t understand, nor do Americans see how the factories and sweatshop workers are affected by the unsafe environments, the illegal use of children, and the minimal pay with no compensation. Americans take for granted the pay received, and the type of working conditions that are set in order to for the business to operate.Read MoreStatistics Of The Chinese Government1693 Words   |  7 PagesStatistics of the Chinese government (NBS, 2015) shows that the monthly wages of its migrating workers is  ¥2864 RMB, approximately  £3500 a year. At the same time, the wage levels of the Chinese migrating workers have continued to rise in recent years (see Appendix 2). Comparing these figures with Chinese per capita annual income of  £1300 (WB, 2014), female factory workers seem to enjoy relatively good wages. However, these figures miss to calculate th e shadow price on wage gap between them and theirRead MoreThe Sweatshop Industry and Child Labour in NICs Essay1426 Words   |  6 Pagescompanies code of vendor conduct clearly states that no workers are employed under the legal minimum age and sweatshops dont exist in their factories. A sweatshop is a factory where employees are subject to extreme exploitation; they work in dreadful conditions with health and safety hazards, for little pay and long hours. Child labour is, as the word suggests, when children under the legal minimum age are employed to work When we hear brand names such as Nike and GapRead MoreThe Industrial Revolution Was An Innovative Period For Entrepreneurs And Inventors1301 Words   |  6 Pagesintroduced. However, many of those of the factory workers suffered from the social and economic conditions that resulted from the revolution in the 19th and 20th centuries. Some social conditions were that working women increasingly took up the workforce in textile factories as a way to earn money, but they also faced abuse from men and the harsh working conditions. Furthermore, manufacturers wanted to increase their profits by ensuring that the maximum amount of work could be done in a day, thus they increased