Current international thought and practices on the role of government auditing

Today, no 1 needs to be convinced that trust on IAs can be vitalaˆÂ ¦ The rise in stature of internal hearers therefore comes at the right clip ; Auditing resources are so scarce and dearly-won, and much is demanded of all hearers. † Ward et Al2.1 IntroductionThe aim of this chapter is to research current international idea and patterns on the capable country by placing and reexamining relevant local and foreign literature. This will put the footing for set uping a theoretical apprehension on the function of authorities auditing, both external and internal auditing, with peculiar accent on issues refering the relationship between them.2.2 AUDITING IN THE PUBLIC SECTORâ€Å" In virtually all legal powers, the populace sector plays a major function in society, and effectual administration in the public sector can promote the efficient usage of resources, strengthen answerability for the stewardship of those resources, better direction and service bringing and thereby lend to bettering people ‘s lives. † ( IFAC, 2001, par.004 ) Government auditing is a basis of good public sector administration ( IIA, 2006a ) . Hearers play a important function by helping authorities entities achieve, amongst other of import aims, answerability and unity by supplying indifferent sentiments on the usage of public resources.[ 1 ] The populace sector represents a principal-agent relationship as shown in Figure 2.2 below, with the functionaries moving as the principal ‘s agents that must give history to their principal of the extent to which the populace ‘s aims have been achieved. An effectual audit activity is deemed of import in order to cut down the hazards inherited in such a relationship. Given that public sector entities are complex and diverse, no individual administration theoretical account can function all of such entities ( IIA, 2006a ) . Thus, based on the demands and fortunes, many constructions rely on a combination of audit activities including both external and internal auditing.2.2.1 External AuditingThe range of external audit in the public sector should travel beyond giving an adept sentiment on the truth and equity of the fiscal statements to integrate appraisals on facets of corporate administration and the usage of resources, normally referred to as ‘value for money ‘ ( Bourn, et. Al, 2002 ) . Furthermore, INTOSAI GOV 9150 asserted that â€Å" compared to the IA, the Supreme Audit Institution ( SAI ) has the extra undertaking of analyzing the effectivity of the IA. † Furthermore, in transporting out their work EAs are non to be hindered during the public presentation of the audit but â€Å" aˆÂ ¦shall have the right of entree at all times to the company ‘s accounting recordsaˆÂ ¦ † ( Companies Act, 1995 ) . In this respect NAO ( 2009 ) specified that the Auditor General ‘s work is â€Å" facilitated by statute law which stipulates that any circumstance inhibiting such entree to information is to be reported to Parliament. † It is utile to separate between the cardinal elements of public sector audits. NAO ( 2009 ) sort its audits under the undermentioned classs:[ 2 ] fiscal and conformity audits ; public presentation audits ; particular audits and probes ; IT audits.2.2.2 Internal AuditingINTOSAI GOV 9140 highlighted that the function of internal auditing has â€Å" evolved from an administrative process with a focal point on conformity † to an indispensable constituent of administration in the populace sector. Indeed internal audit activities are seen as supplying confidence on the effectivity of public sector entities ‘ internal control environment by placing chances for public presentation betterment. Asare ( 2008 ) identified three chief elements, sometimes referred to as the ‘three pillars ‘ to explicate the function of internal auditing in the populace sector. As shown in Figure 2.3 below, these include the â€Å" rating and betterment of hazard direction, control and administration procedures. † This suggests that internal audit has continued to travel off from fiscal and conformity audits to a broader value-adding function, encompassing both consultancy and confidence activities, thereby moving as the executive arm of authorities. A brief description on each of these three pillars is summarised in Table 2.1 below:2.3 THE IMPORTANCE OF AUDITING STANDARDS AND INDEPENDENCE OF BOTH EXTERNAL AND INTERNAL AUDITORSDiplock ( 2005 ) argued that the challenge for the audit profession is to regularly reassess whether criterions are being followed and to show its independency. Over the old ages, INTOSAI members agreed that robust and dependable auditing criterions were required, underscoring that public sector scrutinizing must be underpinned by international criterions as good. As a consequence of alone cooperation between public and private sector scrutinizing at that place has been the development of International Standards of Supreme Audit Institutions ( ISSAIs )[ 3 ]. With regard to the Maltese scenario, the NAO uses the ISSAIs as guidelines of patterns that are followed when carry oning its fiscal and conformity audits. The Office besides uses International Standards on Auditing ( ISA ) of the IFAC when transporting out the audit of fiscal statements of certain public sector entities ( NAO, 2009 ) . The methodological analysis used by the IAID is based on International Standards for the Professional Practice of Internal Auditing that ( include Diagram ) is issued by the IIA ( IAID, 2010d ) . The independency of hearers, both EAs and IAs, is critical in guaranting that â€Å" public organic structures are accountable for their public presentation in footings of both stewardship of public money and the bringing of high quality services † ( Bourn, et. Al, 2002 ) . Indeed Bourn, et. Al ( 2002 ) advocate that such independency ensures that they can ‘speak as they find ‘ and ‘without fright or favor ‘ in an nonsubjective manner. This has become progressively of import following the recent fiscal dirts that have brought with them the loss in credibleness in the auditing profession. Furthermore, INTOSAI GOV 9150 stated that, â€Å" IA ‘s independency is cardinal to SAIs in the issue of utilizing IA ‘s work aˆÂ ¦ to be able to organize and collaborate with an IA. †2.4 RELATIONSHIP BETWEEN EXTERNAL AND INTERNAL AUDITORSâ€Å" If internal audit is judged to be effectual, attempts shall be made aˆÂ ¦ to accomplish the most appropriate division or assignment of undertakings and cooperation between the SAI and Internal Audit. † ( Lima Declaration, ISSAI 1, subdivision 3, par.3 ) Coordination and cooperation between SAIs and IAs is enhanced as both parties can harvest benefits in their uninterrupted thrust to accomplish efficiency and effectivity in public services. For this ground, such a relationship should be seen as an chance to beef up public sector auditing. The IIA and INTOSAI recognise the importance of such a relationship by being ‘natural spouses ‘ . They portion a common linguistic communication such as criterions ; understand several functions, duties and outlooks ( Moser, 2008 ) .2.4.1 Opportunities for Cooperation in PracticeAlthough comparatively small research has examined the countries of coordination and cooperation between I & A ; EAs in the populace sector, the following five facets of cardinal scrutinizing pattern characteristic most conspicuously in the literature: Audit planning ; Internal Controls ; Fraud and Irregularities ; Coverage ; Consultancy. Audited account Planning: INTOSAI GOV 9150 identified five chief phases during an audit procedure where SAIs may utilize the work of IAs amongst which there is the planning phase.[ 4 ]This phase is deemed to be an of import portion of the procedure for pull offing an audit map where the EA should execute a preliminary appraisal of the internal audit map. Such an appraisal will act upon the nature, timing and extent of external audit processs, depending on the SAIs judgement of the relevance of the internal audit. Audit Commission ( 2010 ) sets out the importance for the EA to place what work it will be seeking to put trust upon during the planning phase as this, â€Å" ensures that the proposed work meets the timetable and demands to enable external audit to put trust upon it. † Spencer Pickett ( 2010 ) explained that there are several degrees to which audit planning may be interfaced as shown in Figure 2.4. As can be seen in the below figure, at the extreme, it can ensue in one planning papers being prepared which, harmonizing to Spencer Pickett ( 2010 ) , is more relevant in the populace sector given that EAs tend to presume a function in procuring value for money.Figure 2.4: Interfaced Audit PlanningInternal Controls: Following the passage of the Sarbanes-Oxley Act of 2002, internal control duties for both I & A ; EAs increased. Harmonizing to Engle and Joseph ( 2008 ) , this â€Å" represents an country where enormous value can be achieved through proper coordination. † The primary intent of internal audit is to measure and better the effectivity of the system of internal control.[ 5 ]On the other manus EAs are required to obtain an apprehension of the control environment prior to the readying of the fiscal statements in order to be after the audit and develop an effectual audit attack. In her survey, Colbert ( 1993 ) concluded that the IAs ‘ work can help the EA in understanding the design of the control construction by, for case, supplying system and papers flow charts of the accounting system and finding if the set system has been really put in topographic point. Fraud and Irregularities: This has been identified by HM Treasury and NAO ( 2000 ) as another possible country where information can be exchanged, given that both hearers are interested in the bar and sensing of fraud. Internal audit work in relation to fraud can be relevant to EAs when measuring the hazards of stuff misstatements found in the fiscal statements. Since IAs have greater cognition about the entity ‘s operations than EAs, fraud hazard appraisal warrant important trust on internal audit work. Such a statement is supported by surveies done by KPMG, which indicate that IAs are more likely to detect fraud than EAs ( KPMG, 2009 ) . This is illustrated in Figure 2.5 where 47 % of frauds were discovered by internal audit, legal or conformity forces compared to the 9 % of frauds detected by EAs. Coverage: One of the basic types of cooperation between hearers includes the exchange of audit certification. Audit Commission ( 2010 ) recognises that sharing of audit studies and other audit information will â€Å" heighten understanding and effectiveness † . Moeller ( 2005 ) argued that internal audit studies should be circulated to EAs as they constitute an of import agencies of maintaining the EA informed of the internal audit findings and other activities. In set abouting the work necessary to underpin an sentiment on the audited entity ‘s fiscal statements, the EA may seek to trust on the work of the IA. Audit Commission ( 2010 ) indicated that the IAs can supply the EAs with: An audit program ; Entree to scrutinize studies and associated working paper files ; Detailss of any important alterations to the audit program. Spencer Pickett ( 2010 ) further highlighted that the internal audit activity ‘s concluding communications, direction ‘s responses to such communications, together with any subsequent follow-up reappraisals can help EAs in finding and seting the range and timing of their work. Some EAs, on the other manus, may hold concerns about turning over their work documents to IAs due to their professional duties refering confidentiality and independency as highlighted by Moeller ( 2005 ) . Nonetheless their work can be â€Å" used as input to IAs in be aftering the countries to underscore in future internal audit work † Spencer Pickett ( 2010 ) . Consultancy: HM Treasury and NAO ( 2000 ) indicated that audience is cardinal to construct an effectual cooperation channel. The same position is shared by Spencer Pickett ( 2010 ) who affirmed that regular audience is indispensable in order â€Å" to utilize similar techniques, methods and nomenclature † to transport out the work. The two parties may confer with with each other even when they are non working together in a peculiar country such as confer withing on specific audit findings. Committedness, communicating and assurance were identified as three indispensable constituents that need to be present to guarantee effectual audience, as indicated in Table 2.2 below. INTOSAI GOV 9150 acknowledges that coordination and cooperation can be done either officially, where there will be formal understandings or protocols or in an informal manner based on good will such as in the instance of audiences. Other possible countries of coordination and cooperation between SAIs and IAs were identified by HM Treasury and NAO ( 2000 ) and a brief drumhead is provided below: Conformity with Laws and Regulations Since IAs continuously assess the controls over conformity with Torahs and ordinances that are internal to the Government such as Parliamentary blessing for outgo, SAIs can put trust on their work. This is of import given that most SAIs ‘ mission statement underscore the significance of the consideration of properness[ 6 ]and hence internal audit activity is utile to find whether â€Å" activities and concern have been conducted in conformity with Parliament ‘s outlooks † ( HM Treasury and NAO, 2000 ) . Audited account of spread administrations Although non peculiarly applicable to Malta, this has been recognised as another country of cooperation when the audited entity is dispersed geographically. HM Treasury and NAO ( 2000 ) argued that when the two parties are allowed to work in joint squads or one of them undertakes work on behalf of the other, more economical usage of audit resources is made.Reliance on the Internal Audit ‘s WorkISSAI 200 pointed out that, â€Å" When the SAI uses the work of another hearer ( s ) , it must use equal processs to supply confidence that the other hearer ( s ) has exercised due attention and complied with relevant auditing criterions, and may reexamine the work of the other hearer ( s ) to fulfill itself as to the quality of that work. † ( Section 2, par.2.45 ) Reliance by EAs on internal audit ‘s work is governed by ISSAI 1610 that farther highlighted two chief points that SAIs must see after set uping that the internal audit map is relevant to the audit. These include[ 7 ]: Whether and to what extent, to utilize the specific work of the IAs ; If so, whether such work is equal for the intents of the audit. Such standard requires EAs to reexamine IAs work, which normally involves remaking specific trials every bit good as executing a more general reappraisal. The Sharman[ 8 ]Report ( 2001 ) found that the relationship between cardinal authorities internal hearers and NAO â€Å" has non been every bit near as might hold been expected † , in portion because the focal point of internal audit has tended towards non-financial countries, doing its work of less value to those scrutinizing fiscal statements. Three major standards were identified as a common component in the surveies that examined the relationship between I & A ; EAs. These elements influence the EAs ‘ trust on IAs as shown in Figure 2.6 below.2.4.2 Potential Risks of CooperationA figure of benefits were identified from the coordination and cooperation between SAIs and IAs including amongst others, more efficient and effectual audits based on a clearer apprehension of the several audit functions and demands ( HM Treasury and NAO,2000 ) . However, INTOSAI GOV 9150 highlighted some possible hazards that could have in their relationship and that should be managed consequently in order to accomplish the full scope of benefits. The outstanding points include: Possible struggles of involvement ; Any via media of independency and objectiveness, blockading the ability to transport out an audit with an indifferent sentiment ; Premature revelation of audit findings to an external party, possible taking to a breach of confidentiality ; No consideration of restraints or limitations placed on the other hearer when finding the extent of coordination and cooperation ; Developing wrong decisions when utilizing the work of IAs ; Possible difference of decisions or sentiments which could take to a possible hazard of credibleness of either party. To accomplish a healthy relationship both parties need to be efficient and effectual as otherwise a possible menace might be if inefficient operations are in topographic point, particularly if there is trust on each other ‘s work. With mention to the Maltese scenario, the NAO conducted a survey on the ‘Internal Audit Function within Government Ministries ‘ ( NAO Report, 2000 ) .[ 9 ]This survey dates back to 1999 and no farther survey has been carried out since so. It was observed that, although the map did take to some stray benefits, it fell abruptly of the needed degree of effectivity. This was largely due to: Inadequate cardinal coordination ; Restrictions in the map ‘s independency within Ministries ; Lack of direction support ; Lacks in enlisting and preparation patterns ; Restrictions and deficiency of resources ; Other factors act uponing the effectivity of the map including the relationship between the NAO and IAs.2.5 challenges and barriers to effectual coordinationGolen ( 2008 ) highlighted that â€Å" in any on the job relationship, one has to be wholly aware of the human dealingss constituent that can originate, and the internal and external audit relationship is no exclusion. † In fact the first relevant survey sing the relationship between I & A ; EAs, realised by Mautz ( 1984 ) , as cited by Haron et Al ( 2004 ) , showed that from internal audit ‘s point of position the relationship with external audit was merely ‘ostensibly ‘ a good one. Since a working squad relationship is a cardinal constituent for an effectual and efficient independent audit, communicating jobs have a direct impact on the result of an audit. Indeed the undermentioned communicating barriers were recognised by Golen ( 2008 ) , given that, one time identified and addressed, communicating between I & A ; EAs would better.Distortion or Omission of InformationThis occurs when an component of pride influences the information exchanged negatively, as each party perceives his work as critically of import for the decision of an audit. Both parties may non lend in adequate item with regard to the information required from each other. Golen ( 2008 ) highlighted that such a barrier could be managed by â€Å" supplying an environment that encourages unfastened lines of communicating † in order to run into the aim of the audit.Lack of CredibilityThis is particularly of import from the point of view of the EA because if the latter perceives that the IAs d eficiency credibleness, he will be unwilling to put trust on the IA ‘s work. In fact, Golen ( 2008 ) argued that â€Å" some IAs see their interactions with EAs as non one of their favorite parts of the occupation because of the EAs ‘ limited usage of their work. † Such a state of affairs may ensue in tenseness and struggle. The relationship could be improved if IAs possess the cognition, accomplishments and other competences to show their value, in order for EAs to accept their work as dependable.Inclination non to listenHarmonizing to Golen ( 2008 ) , the first measure to heighten communicating is through effectual hearing as negative attitudes towards each other can be damaging to the relationship. He argued that both parties need to be open-minded by set uping a footing of seeking to derive proper information from each other without developing any premature opinions.Resistance to ChangeAnother common barrier highlighted is the EAs ‘ opposition to alter t o new constructs and processs as these may be seen as a menace. When this happens IAs may develop a feeling of bitterness that could farther decline an â€Å" already delicate relationship † Golen ( 2008 ) . Both I & A ; EAs must be willing to give adequate clip to each other to turn out the benefits that could be gained by leting for alteration.2.6 DecisionIn visible radiation of the above, one can reason that although there are some possible hazards ensuing from cooperation, working together as a squad instead than two independent groups can merely better the efficiency and effectivity of the independent audit and finally taking to a better service to the populace. Yet, such cooperation can merely boom in an environment where there is common assurance, connoting that both I & A ; EAs should follow an active function in seeking chances to organize work, where possible, in the involvements of maximizing the benefit of their work and understating duplicate of attempt.

Employee Safety, Health and Welfare Essay

The Company has policies and programs to address our employees’ broad range of concerns which includes working conditions, skills training, career opportunities, health and safety, and work-life balance. We have training and development programs suited to our employees’ needs. We also organize programs that support the well-being of employees, allow them to participate in PLDT’s CSR activities and obtain their feedback on company concerns. In accordance with the PLDT Personnel Manual, the Company provides medical benefits for our employees, which extends to their qualified dependents, subject to certain terms and conditions, , as well as adequate insurance coverage. The Company has also issued a Manual of Safety Practices to fulfill its commitment of providing and maintaining a safe and healthful work environment that is in accordance with industrial standards and which complies with legislative requirements. Relevant data on Safety The Environmental, Health and Safety (EHS) programs being implemented by the Company resulted to an accumulation of more than 14,400,000 safe man-hours in 2013 without lost time accidents. Relevant data on health and welfare The Company’s medical benefits include the full or partial cost of doctor consultation medical tests, medicine, hospital confinements and post-operative rehabilitation. Part of our preventive medical approach is to subject employees to Annual Physical and Dental Examination (88% compliance rate in 2013). Continuous medical education fora are being conducted monthly to address common health issues such as diabetes, hypertension, and cardio-pulmonary disease (82 conducted in 2013). The Company ensures that work-life balance is achieved by promoting sports and recreation programs with 30 various events (basketball, bowling, family fun day, volleyball, etc.) that covered and engaged 80% of employees in 2013. Likewise, the Company aims to empower its employees by providing them livelihood workshops and seminars (candle making, food processing, etc.) to engage them in productive activities that are potential for family income augmentation.

Analisis Bimbo

Grupo Bimbo: Growth and Social Responsibility The most important thing in a firm is its people, because investors give what they have, but people give what they are. — Lorenzo Servitje, Grupo Bimbo founding partner By 2008, Grupo Bimbo was the leading baking company in the Americas and one of the largest in the world. It had annual sales of over $7. 4 billion, more than 100 brands and more than 97,000 worldwide associates—as Bimbo liked to call its employees. It manufactured more than 5,000 SKUs (stock keeping units) from 83 plants located in Mexico, the United States, Central and South America, Europe and Asia. Bimbo distributed its products to more than 1 million sales outlets in 18 countries. Each of these points of sale was visited by more than 36,000 route salespersons. Its products ranged from sliced bread, buns, cookies, snack cakes, pastries, sweet baked goods, packaged food, tortillas, salted snacks, confectionary goods and goat milk sweet or â€Å"cajeta,† among other products. Bimbo was the largest Latin American-based food company and the second largest bread company in the world. For eight years in a row, Bimbo had been honored with the Socially Responsible Enterprise Award from CEMEFI, the Mexican Center for Philanthropy. Moreover, Grupo Bimbo was ranked in the 9th position of the Reputation Institute for best corporate reputation in the world. 1 The next Mexican ranked firms in the study were Grupo Modelo and Cemex in the 112th and 119th spot, respectively. Grupo Bimbo had set ambitious growth objectives beyond 2010. It wanted to become the world leader in the baking industry and one of the best food companies in the world. In order to achieve those objectives, it had embarked on an aggressive program of acquisitions in overseas markets, starting with the United States across the border, and going all the way to China. Even as we pursue an ambitious growth agenda, we cannot forget our core values and who we are as a company,† stated Don Lorenzo Servitje, the now retired 90 year old founder of the company. As Figure 1 shows, Bimbo captured its core values along the seven attributes of passion, profitability, effectiveness, team work, trust, quality, with the â€Å"person† coming at the ce nter. Under its second CEO, Roberto Servitje (now chairman of the board) and its current CEO, Daniel Servitje, the company had grown spectacularly and gained an international footprint. See Exhibit 1 for its revenue growth. â€Å"Yes, indeed we have grown ur business, not at the cost of our responsibility to society, but because of our investments in it. Going forward, however, we are a far more complex company than the one founded and 1to ensure that our values and strategy are in alignment,† asserted Daniel Servitje. Figure 1 Source: Grupo Bimbo. (In the figure above, the expression â€Å"efforts and illusions† under â€Å"profitability† is best interpreted as â€Å"efforts and aspirations. †) Mexico By 2008 Mexico was the second most populated country in Latin America (behind Brazil) with 105. 7 million inhabitants, 76% of them living in urban areas. In 2007 Mexico’s Gross Domestic Product (GDP) was $893. 4 billion –-the second largest in Latin America behind Brazil’s GDP of $1,286. 7 billion but ahead of Argentina’s $262. 3 billion, Venezuela’s $228. 1 billion and Colombia’s 2 Instituto Nacional de Estadistica, Geografia e Informatica, INEGI, www. inegi. gob, last viewed August 11, 2008. 2 Grupo Bimbo: Growth and Social Responsibility 509-025 $172 billion. Mexico was the 14th largest economy in the World. 3 Mexico’s GDP per head in 2007 was $8,219. However, Mexico was a country of contrasts: the lowest 20% of the population accounted for only 3. % of total income and the Gini coefficient was 0. 508. 4 Forty percent of Mexico’s population was considered poor, and 18% lived in extreme poverty. 5 Due to deficiencies in the public education system, the unskilled and low skilled labor pool was large and around 40% to 60% of the workforce worked in the informal sector. Mexico was ruled for 71 years by one single party, the Partido Revolucionario Insitucional, or PRI. The PRI led Mexico through a stabilizing development from 1958 to 1971 where the country industrialized and GDP grew at annual rates of 6%. From the 1970’s to the end of the 1980’s the PRI policies became very nationalistic and interventionist. This period was characterized by high inflation rates and frequent financial crises, where GDP plummeted, real incomes dropped, with high external debt and soaring interest rates. During this period, Mexico’s economy was heavily dependent on oil exports. In the 1990’s the PRI embraced free market and liberalization policies that included privatization of hundreds of state-owned firms, trade liberalization that culminated in the North American Free Trade Agreement, NAFTA, in 1994, and deregulation of various industries. After NAFTA, Mexico’s economy diversified and changed from being dependent on oil exports to manufactured goods exported mainly to the United States. After the Tequila crisis that started in 1994—where GDP plummeted 6. 2% in real terms and inflation rose above 52%—the PRI was historically defeated in the year 2000, and since then two presidents from the Partido Accion Nacional (PAN) had been in power: President Fox from year 2000 to 2006 and Felipe Calderon—who by 2008 was in his second year of presidency. Despite high hopes for President Fox’s administration, his political effectiveness was severely hindered by a divided congress, and economic reforms that were needed to improve the competitiveness of the country, such as fiscal and energy reforms, were not able to pass through Congress. Felipe Calderon, at his second year of term, faced similar obstacles. He proved to be a better negotiator than President Fox. His administration had been able to pass pension reform and a mild fiscal reform. However, one of the most important reforms needed for boosting Mexico’s competitiveness and growth—energy reform—had not been able to pass. High energy costs—along with high labor costs—were limiting Mexico’s ability to compete with other exporting countries such as China. Strengthening of fiscal and monetary policies since the end of the last century had translated into macroeconomic stability but growth was not catching up with the country’s needs. Average annual growth rates since year 2000 had been 3%, insufficient to alleviate poverty and reduce inequality. 6 Constraints for growth were high-cost labor and energy inputs, a weak non-oil tax base, continued dependence on US markets for exports, weak skill base and a shallow credit market. Calderon was struggling to pass the energy reform but it was hard to boost growth given high input costs and Mexico’s dependence on the slowing US economy. 3 World development indicators database, World Bank, July 2008, www. worldbank. org last viewed August 12, 2008. 4 Source: World development indicators, www. worldbank. org, last viewed 8/13/2008 and Mexico Country Profile, Economist Intelligence Unit. A high Gini coefficient indicates a high level of income inequality, 0 corresponds to perfect equality and 1 to perfect inequality with one person having all the income. Worldwide Gini coefficients range from 0. 49 in Japan to 0. 707 in Namibia (www. wikipidia. org last viewed 8/13/2008). 5 Mexico Country Brief, World Bank, www. worldbank. org, last viewed August 13, 2008. 6 Source: Banco de Mexico, www. banxico. gob, last viewed August 13, 2008. 3 509-025 Grupo Bimbo: Growth and Social Responsibility Grupo Bimbo: History The Servitje family started doing business in the baki ng industry early in the 20th century. When Lorenzo Servitje was 18 years old, his father—who had a well-known bakery called El Molino—died from a stroke. Lorenzo had to leave behind his accounting career in order to attend to his father’s bakery. On taking over, Lorenzo wanted to make the bakery something bigger and more ambitious. He wished to start a bread production and distribution business. On December 2, 1945, Bimbo was founded. It had five founding shareholders, all family members: Lorenzo Servitje and his younger brother Roberto Servitje among them. The logo, the Bimbo bear, was drawn by the wife of one of the founders. Bimbo started with only one brand, 38 workers, and 10 trucks to deliver the bread made in one plant in Mexico City. The first products were white boxed bread and toasted white bread. The production process was completely manual and rudimentary. Bimbo bread was quickly accepted by Mexico’s households because it was packed in transparent cellophane paper—instead of the traditional wax paper—which kept it fresh and also because its quality was easily seen. Another key to Bimbo’s success was its huge publicity campaign in newspapers, radio and the movies. Never before had so much been paid to publicize bread. 7 In the next few years, Bimbo quickly incorporated more products into its product line, such as whole wheat bread, sweet breads, cakes and sweet loafs. Its distribution network, however, only reached Mexico City and cities nearby. To reach other cities, Bimbo expanded its distribution system in a way similar to how newspapers were distributed at the time. By 1956, Bimbo had commissioned its first plant outside Mexico City. Having successfully built the company from scratch, in 1963, Don Lorenzo Servitje took on the role of CEO of Grupo Bimbo and his brother, Roberto Servitje, became CEO of Bimbo breads division. Over the next 15 years, the two brothers rapidly grew Bimbo’s sales to $425 million and 16,125 associates. At the beginning of the 1970’s, Bimbo opened the largest bread factory in Mexico and Latin America and one of the 10 largest factories in the world. In this factory, bread production was completely automatic. The factory produced one-and-half, big boxed bread, per second, which was completely unprecedented in Latin America. In 1979, Lorenzo Servitje handed over Grupo Bimbo’s presidency to his brother Roberto and he assumed the chairmanship of the board. In 1980, Bimbo went public with 15% of its stock in the Mexican stock exchange. The company was then valued at $12. 5 million dollars. The successful IPO gave the company confidence to expand into the United States. Bimbo sent its first trucks with bread to the U. S. to explore the possibility of catering to a burgeoning population of Hispanic consumers just north of its border. Satisfied with the existence of demand for its products, in 1987 Bimbo started to distribute products in Houston and Los Angeles. By the end of the decade, Bimbo had expanded to Central and Latin America as well. In 1997, Daniel Servitje, Lorenzo’s son, at the age of 39 with an MBA from Stanford University, became CEO of the group and continued to lead Bimbo’s internationalization effort through important acquisitions. Roberto Servitje took on the chairman’s position and Lorenzo stepped down from all formal positions. Daniel Servitje continued with the growth strategy of his predecessors, and in the year 2000, Grupo Bimbo expanded to Europe by acquiring two plants –one in Austria and the other in the Czech Republic- and in 2001 it expanded into Brazil. See Exhibits 2 and 3 for the company’s historical financial performance, and regional indicators. By 2007, the company had a sales turnover of Ps 72,294 million (or $6. 65 billion) and a net 7 â€Å"Bimbo: A 60-year History of Believe and Create† Source: www. rupobimbo. com. mx/admin/content/uploaded/Historia% 20Grupo%20Bimbo. pdf. Last viewed: July 8th, 2008. 4 Grupo Bimbo: Growth and Social Responsibility 509-025 profit of Ps 3,914 million (or $360 million). 8 Of its total sales, 67% were in Mexico, 22% in the U. S, and 11% from twelve Latin American countries. While Roberto Servitje at age 80 served as the chairman of t he board, Lorenzo Servitje at age 90 was still active in its social responsibility affairs. Products and Brands Through the years, Bimbo grew in its bread production and also added many new products and brands. With nearly 5,000 items in its portfolio, and the nearly 100 new products being added every year, the company offered something for every taste and every occasion. Many of these additions came through acquisitions of different firms and brands. Its Bimbo bread division was undoubtedly the flagship of the company, accounting for nearly 50% of all its revenues. Of its main brands, Marinela produced all sweet breads, buns and cakes. Its star product was the â€Å"gansito† or â€Å"little duck,† which was a cake filled with marmalade and covered with chocolate. By 1975, one million â€Å"gansitos† were sold daily. Barcel started off by producing candies, but by 1977 it had begun to produce a wide range of salted snacks. Production of candies was transferred to a new firm called Ricolino. By 2007, Bimbo dominated the market in the packaged bread segment in Mexico. In the salty snack category, Barcel was second to its main competitor Sabritas, owned by PepsiCo. Other important brands were Tia Rosa, which produced specialty sweet breads and flour tortillas, Milpa Real, which produced corn tortillas and Lonchibon, which made ready-to-eat food and snacks. Most of Bimbo’s internationalizations efforts were carried out through local acquisitions. Bimbo looked to acquire firms in regions and segments that provided a platform for growth. It also looked for strong brands that were complementary to its existing portfolio of products and brands, and also provided opportunities that could enable Bimbo to scale up and achieve cost savings. Exhibit 4 provides a summary overview of its various brands, the associated product lines, and their country of operation. Sales and Distribution System Bimbo had one of the largest and most complex distribution networks in the country—second only to Coca-Cola. With time, Bimbo’s distribution system had become more sophisticated and larger but qualitatively, it was essentially the same as when Bimbo started 63 years ago—products were delivered fresh directly from Bimbo depots to the retail store, there were no intermediaries in between. Bimbo products were distributed in to three different channels: supermarkets, convenience stores and through what was called the detail channel to mom pop stores (MPs). The importance of the detail channel was diminishing as MPs found it harder every day to compete with expanding supermarket chains and convenience stores that offered other services such as ready-to-eat food. In the last 10 years, the supermarket chains had grown considerably and the traditional MP channel was losing share (see Exhibit 5). Convenience stores especially, were showing strong growth as they expanded into suburban and rural areas. Moreover, large chain retailers such as Wal-Mart and Chedraui were offering banking services to their customers, thus making it harder for MPs to compete. The total grocery retail market in Mexico was estimated at $125 billion in 2007. 9 8 Foreign exchange as of December 28, 2007 was 10. 8662. Source: Diario Oficial de la Federacion. www. dof. gob. mx. Last viewed July 3rd 2008. 9 â€Å"Retailing Mexico: Country Market Insight,† Euromonitor International, May 2008 and â€Å"Top 5 Retailers in Mexico,† Planet Retail, September 2008. 5 509-025 Grupo Bimbo: Growth and Social Responsibility All Bimbo products—from all brands and from all plants—were taken to depots from where they were distributed to all channels. In Mexico, around 40% of Bimbo’s total workforce consisted of route-sales associates. Its flagship brand, Bimbo bread, was distributed in large trucks serving metropolitan cities and towns. The rest of the brands were distributed in smaller trucks by independent sales forces. The distribution system was highly programmed. A handheld computer contained all the information on customers, their average orders, product assortments, and their detail route. That information was synchronized with Bimbo’s server at the end of each day. Mexico has nearly 1 million sales outlets, of which Bimbo reached nearly 750,000. Salesmen arrived at the depot around 6:30a. m. to load their trucks. Thanks to the handheld, they knew which products to load depending on the routes they were assigned that day. Trucks were randomly inspected to cross-check the information in the handheld with the actual physical stock in the truck. Salesmen started their routes around 7:00a. m. At each sales point, salesmen delivered products that they booked and took back products before their â€Å"shelf life† had expired. This practice was necessary to insure that consumers had access to fresh product in the market at all times. All sales information was entered into the handheld for control of daily sales. At the end of their route, salespeople returned to their appropriate depots, where stocks were checked and the recalled products were readied to be sent to an â€Å"expendio† or discount store. Salespeople had sales’ goals that they could attain through increasing sales in each store or increasing the number of clients in their â€Å"route. † Daily wages to salesmen consisted of a base salary plus commission, which was a percentage of their daily sales. Commission, on average, was more than double the base salary. On average, a Bimbo salesperson earned slightly more salary than the one usually offered by food industry for similar positions. The traditional or detail channel was the most important channel for Bimbo because it represented its largest source of sales. Bimbo supervisors were always trying to encourage their team to expand their sales points to include nontraditional outlets such as gas stations, beauty parlors, internet cafes, among others. A large fraction of low-income people, who lived in rural areas or small towns, depended on the traditional MPs to buy their groceries. 0 See Exhibit 6 for a view of three semi-urban outlets. MPs usually sold at higher prices than supermarkets but lower than convenience stores. Most MPs had a very close relationship with their clients who often relied on the credit given by the store owner for their purchases. Most of the time customers cleared their accounts by pay day. Such credit was usually not offered by convenience stores or supermarkets. In spite of its service levels, the traditional channel was slowly disappearing. It was becoming increasingly difficult for the small MPs to compete with convenience stores and supermarkets. Their stores were smaller, the product range more limited, and the layout and management of the stores less professional. MPs had to pay for most of their inventory in cash. They received almost no credit from suppliers—some distributors such as Coca Cola, Sabritas (PepsiCo. ), had only recently started to offer credit to MPs. Moreover, because their purchase volumes were relatively smaller, they received no quantity-discounts such as those offered to convenience stores and supermarkets. As a response to the needs of the MPs but also as a way of maintaining Bimbo’s most important channel, in 2004 Bimbo initiated a bold new program called â€Å"Pesito. † 10 From field visits, the case writers estimated their size to be about 250 to 500 square feet. The owners reported average daily sales of between $200 and $450, of which sodas, juice and water accounted for 50%, food-30%, and tobacco-20%. Larger stores also carried cleaning and some health and beauty products. Some carried beer. Margins varied widely by product, averaging about 20%. 6 Grupo Bimbo: Growth and Social Responsibility 09-025 Pesito During the course of their daily route selling, salesmen offered credit on purchases of Bimbo products. Store owners wanting the credit paid a flat fee of 2 pesos (20 cents) regardless of the size of the order placed. The sales person entered the credit information on to his handheld so the record of each credit could be uploaded into Bimbo’s central system once the sales person ended his daily route. At the next visit to the store—which could be anytime between two days to one week, the store owner had to pay the credit to the sales person. The sales person would then give the store owner a receipt, which was printed from the handheld and the transaction was closed. If the store owner was unable to repay the credit, for a payment of 2 pesos the credit could be rolled over, but no new transactions would be made. Many Bimbo clients recognized that â€Å"Pesito† was a way to increase their income, without having to invest in inventory, helping them to grow their business. Consequently the default rate was very low. Bimbo had different sales forces for different brands, thus there were separate Pesito programs for each brand. For example, a store could have outstanding credit with Bimbo, Marinela, Tia Rosa and Barcel. The store would appear in the Pesito accounts under four different identifiers. There were limits to the amount of credit that a sales person could give per client, in most cases the equivalent of one week’s order; and then there were overall limits per route as well. Through steady efforts by Grupo Bimbo’s route sales people, approximately 350,000 of the small store owners participated in the Pesito program and paid on time, and Bimbo’s goal was to further increase that in the coming years. Microfinance for Store Owners Don Lorenzo Servitje had, among many other of his social concerns, the idea of helping the poor through micro credits. Don Lorenzo was particularly interested in the MPs store owners because, through Bimbo, he had noticed how they lived day by day solely with the income from their store. They had no health or life insurance and Don Lorenzo noticed how many times MPs had to close due to sickness or death in the family. Store owners also had no access to the formal financial system so they had to rely on money lenders, especially to make capital improvements in the store. They seldom had resources to invest in their store to make it more productive or more attractive to customers for example by installing new equipment, refrigerators, meat cutters, or a PC to access the internet. Thus in 1994, Bimbo started an alliance with Fincomun, a microcredit institution with the goal of providing further financial services to its MP clients. The loan process with Fincomun was simple. A Bimbo salesperson could recommend a client to Fincomun. Bimbo salespeople knew their clients quite well, their business model, their cash flow, and their credit reputation. If the client accepted the offered credit, Fincomun agents visited the store and gave them a check that could be cashed at a bank. If the Bimbo sales person assisted in the follow-on collection, they were paid a small fee for the effort. Only a very small proportion of Bimbo’s clients, however, were Fincomun customers (less than 5%). By June 2008, Fincomun also offered Life and Hospitalization insurance and had 400 clients in the pilot stage of the insurance program. History of Bimbo’s Corporate Social Responsibility From its very beginnings, Bimbo prided itself on its commitment to social causes and Mexico’s development. In 1954, not even 10 years after its founding, Bimbo opened a school for workers’ 7 509-025 Grupo Bimbo: Growth and Social Responsibility children. Since then, a percentage of Bimbo’s pre-tax profits were earmarked for social and educational causes. â€Å"I wanted to dedicate myself to something more than just making cakes and bread. I aspired to serve others,† Don Lorenzo was reputed to have said in a newspaper interview. 11 Even in hard times, Bimbo had avoided firing people and reducing the CSR budget. Roberto Servitje used to say, â€Å"Entrepreneurs are meant to create and grow, not to destroy. Over time, Bimbo’s portfolio of CSR programs had grown both in size and in sophistication. At the beginning, the programs were more geared internally, toward Bimbo’s associates. Over time, they expanded externally as well. Bimbo’s CSR programs were divided into a matrix (for a detailed description of programs see Exhibit 7). Daniel Servitje asser ted, â€Å"Our CSR programs are divided into six categories that overlap with each other. We have internal and external programs, and then we have economic, social and environmental programs. When Bimbo was founded, CSR was neither structured nor formal. It was something that we did because we believed in it; because the values of social awareness were embedded in all of us since we were children. † Martha Eugenia Hernandez, head of institutional relations and CSR and who had been at Bimbo since 1981, recalled â€Å"Don Lorenzo used to say, ‘Your left hand should never know what your right hand is giving. ’ And that was the philosophy behind CSR at that time; it was low key. † Roberto Perez Gomez, head of labor relations and a 20-year-old veteran of the company added, â€Å"With Don Lorenzo, Bimbo was a small and privately held firm; contact with associates was very personal. Even though Bimbo has grown rapidly and is now a public company, the social responsibility philosophy is still the same. Contact with associates is still personal. Daniel Servitje visits each plant every year and has annual meetings with associates of different areas. † The company’s CSR budget was determined as a percentage of its profits. This percentage was decided by a CSR committee comprised of five members of the board. The committee also decided which programs to support and to what amount. The profit percentage varied from year to year, and was determined independently for each country. Bimbo’s CSR programs were divided into four areas of commitment: Employees or Associates, Health, Environment, and the Community. Associates Since the beginning, one of our greatest concerns was our relationship with associates. We wanted people to work happily, we wanted them to identify with the company and we wanted them to be respected, having a non instrumental view of people; we wanted relations with personnel to be harmonious and cordial. With the years, the view of a highly productive firm that could also be a profoundly humane company consolidated. Profit sharing with our associates was higher than that required by law and many of our associates purchased shares with their monthly savings. 12 (Don Lorenzo Servitje13) 11 â€Å"Lorenzo Servitje: Sonar y Realizar,† Reforma, Club section, May 16, 2008. 12 Legal profit sharing in Mexico was 10%. Profit sharing in Bimbo was linked to productivity and could go from 11% to 13. 5% of profits depending on the results of the company. Source: Company information. 13 â€Å"Bimbo: A 60-Year History of Believe and Create. † Source: www. grupobimbo. com. mx/admin/content/uploaded/ Historia%20Grupo%20Bimbo. pdf. Last viewed: July 8th, 2008. 8 Grupo Bimbo: Growth and Social Responsibility 509-025 In 2005, Bimbo hired a Canadian company to analyze Bimbo’s competitive advantages. They concluded, â€Å"We have analyzed their technology. They have the best in the world. They are leaders in the markets where they are present and have a great distribution network. However, what strikes us the most is that people are committed far beyond what is normally seen in other companies. People identify with the company. We see all workers, at all levels, seeking to give the best in them. That is what truly makes them special. 14 Bimbo was rated one of Mexico’s best places to work during the last eight years. In September 2008, Grupo Bimbo as a whole had more than 97,000 associates, of which around 60,000 worked in the baking division in Mexico. Around 25% of them were international associates and 13% were women. Right from the beginning, Bimbo’s top management did not merely perceive t heir associates as a labor resource, but rather as people who were partners in Bimbo’s mission to create value. They were treated with care, and provided opportunities to grow and learn and advance their quality of life. Grow and innovate was the motto driving Bimbo’s relationship with its associates. Javier Millan, head of Human Relations, put it simply: â€Å"Our competitive advantage lies within our values, outstanding among which is the person. Viewing a person as an individual is the small difference that makes all the difference. Once they are treated that way people get involved, they become interested in the company’s objectives. † Bimbo’s programs for its associates were divided into two areas of support: economic or development. Within economic benefits, Bimbo had health assistance, support for home improvement, and help with wills and deeds. It strongly encouraged long-term retirement savings among its associates. Roberto Servitje said: â€Å"What you truly gain is what you save and invest. † Under personal development, Bimbo offered its associates various courses that covered much more than just training for the workplace. Many courses addressed personal development opportunities such as, improving communication skills, raising healthy families, and so on. There were also educational offerings that enabled associates to complete a high school program, online and on-site English proficiency courses, and a mandatory course on how businesses work and contribute to the economy (to see a description of Bimbo’s programs for its associates, see Exhibit 8). Roberto Servitje said, â€Å"The firm is what its people are, and the people are what their leaders are. † From among the many benefits provided to associates, the health and education offerings were highly valued. Mexico’s public health system was known to be inefficient. It often took long hours to be seen by a doctor and receive treatment, and many visits to the doctor before one could see a specialist. Moreover, few people had access to preventive medicine. Bimbo tried to bridge the gap by providing free complete medical exams to all associates over 40, once a year preventive medical exams for cardiovascular illnesses at Bimbo facilities and follow-up checkups for those identified as needing further monitoring and care. All Bimbo associates were covered by the Mexican government’s health plan, to which Bimbo made a contribution, as did the associates through payroll deduction. In order to enable its associates circumvent the poor system of public care, Bimbo made available its facilities for the government to operate its clinics. Because of their location most of these operated as exclusive clinics for Bimbo employees. Moreover because these clinics were on Bimbo premises, the company was able to offer better infrastructure than what would normally be available to such clinics. 14 â€Å"In Grupo Bimbo, People Make the Difference,† presentation given by Javier Millan, head of Human Relations, 2007. 9 509-025 Grupo Bimbo: Growth and Social Responsibility Health and Nutrition Within Organization for Economic Cooperation and Development countries (OECD), Mexico had the dubious reputation of being second in obesity rankings after the United States. 15 Recent studies16 showed that obesity in Mexico within the total population had increased during the last 60 years, but that this growth had accelerated at an alarming pace in the last 20 years. Obesity growth rates accelerated 10% to 20% in children, 30% to 40% in adolescents, and 60% to 70% in adults. The increase in obesity was most worrying in children (see Exhibit 9). The same study linked the reasons for the increase in childhood obesity to changes in eating habits, to diets high in calories, refined carbohydrates and sodas, and decrease in consumption of fruits and vegetables. This same study stated that the increase in obesity was also related to a decrease in physical activity. In Mexico, the obesity risk for children 9 to 16 years old increased 16% for each hour that they watched TV or played videogames. On average, Mexican children watched TV or played videogames 4. 1 to 6. 3 hours daily. 7 To counter the varied causes of obesity, in 2007 Bimbo launched a health program called Committed to Your Health. The program had many different components roughly divided into five areas: improving product healthiness, education in health and nutrition, promotion of physical activity, research, and being an exemplary firm in terms of health and nutrition (for details of the programs see Exhibit 10). The company published Nutrinotas, which reached 1 milli on print and online subscribers, and distributed sports and nutrition materials for 21,000 students. As part of its efforts to promote physical activity, the company staged a nationwide soccer tournament for children, Futbolito Bimbo Stars. In 2007, 46,000 children aged 9 to 12 participated in the program and the winning team travelled to Venezuela for the America’s Cup soccer tournament. In 2008, more than 50,000 children attended, winning a trip to Disney World. In its 2007 annual report, the company affirmed its commitment to health: The millions of people who enjoy our products each day count on them for quality, consistency and taste. The success lies in staying attuned to consumer tastes and trends. That means enhancing the nutritional value of our products and introducing new, healthy options. In this regard we follow the guidelines of the World Health Organization on reducing fat, salt and sugar content, and decreasing portion sizes†¦We are also innovating by adding functional ingredients to numerous products, for example, to lower cholesterol or enhance mineral absorption. We have created a range of products with less than 100 calories each; and just as importantly, we are investing in mass-market educational campaigns to encourage active, healthy lifestyles. In order to create the necessary research and development infrastructure, Grupo Bimbo had built four Innovation and Nutrition Institutes (‘Institutos de Investigacion y Nutricion de Grupo Bimbo’), two of them located in Mexico, one in the United States and one in South America. 15 World Health Organization, www. who. org last viewed July 8, 2008. 16 â€Å"Obesidad Infantil,† Instituto Nacional de Salud Publica, Nov. 2006. www. insp. mx/Portal/Centros/ciss/nls/boletines/ PME_14. pdf. Last viewed July 7, 2008. 17 â€Å"Obesidad Infantil,† Instituto Nacional de Salud Publica, Nov. 2006. www. insp. x/Portal/Centros/ciss/nls/boletines/ â€Å"PME_14. pdf. Last viewed July 7, 2008. 10 Grupo Bimbo: Growth and Social Responsibility 509-025 Environment Bimbo’s programs in terms of environment protection were divided into five areas: emission reduction, saving water, saving energy, solid waste management and CSR on environmental matters through an institution dedicated to forest conservation and reforestation called â€Å"Reforestamos Mexico. † In the words of Martha Eugenia Hernandez, â€Å"we want to be a Green Company, both inside and outside. † See Exhibit 11 for the impact of its natural resource conservation effort. In 1998, Mexico suffered extensive fires in its forests; Mexico lost 800,000 hectares of forests. The government invited companies to participate in recovering lost forests. Bimbo responded speedily. Its associates raised money, and each peso donated by them was matched by Bimbo. As a result of the company’s (and its associates’) efforts, 1 million trees were planted and 8 natural areas were targeted for improvement. After that impressive achievement Bimbo’s directors decided to extend their commitment to Mexico’s forests on a more permanent basis. As a result, in 2002 Bimbo created a non-profit organization dedicated to protecting the forests and trees of Mexico and named it â€Å"Reforestamos Mexico. † The administrative costs of Reforestamos Mexico was entirely borne by Bimbo, while the costs of the various projects were shared by Bimbo and other firms such as Wal-Mart, Banco Santander, Hewlett Packard, as well as individual donors. Twenty percent of Bimbo’s saving from energy conservation was used to fund Reforestamos Mexico. All Reforestamos’ employees, including the director, were independent. Its director, Ernesto Herrera, had worked for Bimbo prior to this appointment and was passionately committed to its mission. â€Å"I have worked for the environment for 10 years. For me, Reforestamos Mexico has been a dream-cometrue. I work in something that I passionately care about, and in one of the most committed companies in the world. I envision Reforestamos Mexico expanding into Latin America and working along with some of America’s most important environmental NGOs. † From the 27 people that constituted Reforestamos Mexico’s advisory board, only 3 worked for Bimbo. In addition to its Reforestamos Mexico activities, in August 2008, Grupo Bimbo announced that it had begun the use of degradable polyethylene packaging for its products, which made it the first Mexican company to use a 100% environment-friendly material. Ramon Rivera, Operations Director of Grupo Bimbo, commented, â€Å"the products packaged in degradable wrapping preserve their freshness and all of their characteristics exactly the same as those using traditional wrapping, and therefore consumers can have total confidence that the product will continue to be exactly the same. With the technology known as â€Å"d2w,† the degradation of the plastic began as soon as its useful life was over and the plastic discarded. The plastic was programmed to be consumed by bacteria and fungi in the soil, through an additive that reduced its molecular structure. This process of degradation would take a maximum period of 3-to-5 years, in comparison to the normal process that could take as lo ng as 100 to 400 years. 18 Community Bimbo was acutely aware of its close linkages to the community, and therefore had instituted various programs in support. It worked jointly with the National Development Bank for the small and micro enterprise (Nacional Financiera or NAFIN) to help its suppliers with working capital needs. Bimbo also supported many educational programs for both its suppliers and its store owners. For suppliers, Bimbo provided a course that helped them improve their business skills. The topics included cost reduction, quality improvement, and tracking operations online. For store owners, 18 Grupo Bimbo Incorporates Degradable Packaging 100% Environment Friendly, http://www. grupobimbo. com. mx/ salaprensa/index. php? fuseaction=home. oletinlangID=2bolID=212. 11 509-025 Grupo Bimbo: Growth and Social Responsibility Bimbo developed a course jointly with local universities called â€Å"the store-owner university† or â€Å"la Universidad del tendero. † This course covered basic management tools such as accounting, marketing, customer service, operations planning and control, and some basic computer skills among other things. By June 2008, Bimbo had delivered 38 classes to almost 1,000 store owners. In 2007 and 2008, through Televisa Foundation, an institution that sought the development of children and young people of Mexico, Grupo Bimbo istributed 550,000 copies of a Values Calendar and Teacher’s Support Guide, to almost all Mexican elementary schools. Each year the company invited 1 million children to visit its many plants and learn about the food industry. The company had long been a supporter of the Papalote Museo del Nino (children’s museum), providing the funding support for a school program for children from low-income communities to visit the museum. Over 4,500 children visited the museum every year as part of the program. In addition the company directly supported Crisol, an elementary school for low-income children. In addition, Grupo Bimbo supported the activities of the Mexican Foundation for Rural Development (â€Å"Fundacion Mexicana para el Desarrollo Rural†), an organization with more than 40 years of experience that promoted the development of the agricultural sector, and low-income rural families. The company also supported the Center for Integrated Development of the Countryside, A. C. , (â€Å"Centro para el Desarrollo Integral del Campo, A. C. †), which benefited one of the poorest populations of Mexico in the Nayar zone. In a similar vein, the company supported various development programs for indigenous communities in areas such as health, nutrition, and education, through workshops coordinated by Foundation Mazahua Region (â€Å"Patronato Pro Zona Mazahua†) benefiting more than 20,000 people from the Mazahua area of northwestern Mexico State. All-in-all, Bimbo supported many different projects and organizations (for a list of institutions supported by Bimbo, see Exhibit 12), leading Martha Eugenia Hernandez to conclude, â€Å"We have lots of requests for help and we would love to help everyone. We want to be Santa Claus but we just cannot! It is hard to say no, but it is hard to say yes to everything. † Going Forward There was no question in Daniel Servitje’s mind that the internationalization of Bimbo’s business was important for its growth strategy. In addition to increasing Bimbo’s presence in markets such as the United States or Latin America, he also wanted to penetrate markets where Bimbo was not present or where it was just entering, such as China. An important challenge was to improve international profitability, which was lagging behind Mexico’s operations. But the leadership position it had gained in the domestic market and indeed in many markets of Latin America was something that Daniel Servitje did not want to lose sight of. He recalled the passion and commitment with which his predecessors, his father Lorenzo Servitje, and then his uncle, Roberto Servitje, had led the company. They were able to blend the company’s strategy development and its mission and values. He wondered what he could do for an encore. Bimbo was undoubtedly one of the most respected companies in Mexico. How should he go about continuing the tradition in Mexico and rest of the markets it had entered? 2 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 1 Historical Bimbo Sales 800 700 600 500 400 300 200 100 0 1980 82 84 86 88 1990 92 94 96 98 2000 02 04 06 2008 Historical Bimbo Sales (1980 =100) Source: Company information. Exhibit 2 Consolidated Income Statement (million dollars) 1980 426 225 201 150 51 (4) 1 47 24 24 0. 4 23 12. 3% 9. 1% 1997 2,302 1,123 1,179 966 214 11 (14) 211 90 121 5 126 10. 3% 7. 3% 2000 3,279 1,435 1,844 1,506 338 (8) (13) 317 130 187 5 192 12. 0% 7. 5% 2006 5,851 2,724 3,127 2,588 539 (27) 12 524 194 330 3 333 15. 6% 8. % 2007 6,653 3,138 3,515 2,926 590 (22) (36) 537 177 366 6 360 14. 0% 8. 7% USD MM Net sales Cost of sales Gross profit Operating expenses Operating income Integral financial result Other income or expenses, net Income before income taxes Income tax expense Net income before participation in partner companies Equity in income of associated companies Net income ROE ROA Source: Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5th, 2008. 13 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 3 Financial Information by Region (million dollars) Mexico 1998 NET SALES OPERATING INCOME EBITDA 1,923 266 338 Mexico 2000 NET SALES OPERATING INCOME EBITDA 2,431 356 443 Mexico 2006 NET SALES OPERATING INCOME EBITDA 4,110 510 634 Mexico 2007 NET SALES OPERATING INCOME EBITDA 4,575 542 686 USA 364 11 23 USA 599 (9) 12 USA 1,399 21 52 USA 1,524 19 51 Latam 238 (32) (14) Latam 249 (9) 9 Latam 490 4 25 Latam 699 25 55 Total 2,524 245 348 Total 3,279 338 463 Total 5,851 539 714 Total 6,653 590 796 Source: Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5, 2008. 14 509-025 -15- Exhibit 4 Bimbo’s Products and Brands Division Bimbo Mexico Mexico United States Argentina, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela China Barcel Bimbo Bakeries USA Bimbo Latin America Bimbo Asia Country Mexico Brands Bimbo, Marinela, Tia Rosa, Wonder, Milpa Real, Suandy Lara, Lonchibon, Gaby, El Globo, among others Barcel, Ricolino, Coronado, La Corona, among others Oroweat, Mrs Baird’s, Bimbo, Entenmann’s*, Thomas*, Tia Rosa, Marinela, Francisco, Old Country, Boboli*, Weber’s*, among others Bimbo, Marinela, Plus Vita, Pullman, Ideal, Holsum, Trigoro, PyC, Bontrigo, Cena, Fuchs, among others. Bimbo Source: Grupo Bimbo 2007 Annual Report. www. grupobimbo. com, last viewed Sept. 9, 2008. * Under license. Example of products 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 5 Grocery Retailers Market Share 1999 Wal-Mart Safeway Soriana OXXO Comercial Mexicana Gigante Carrefour Chedraui Costco Casa Ley Comextra 7-Eleven HEB Comercial VH Almacenes Zaragoza Casa Chapa Controladora y administradora de pastelerias Grandes superficies de Mexico Others ( Mostly â€Å"Mom Pops†) Total 0. 8 1. 4 0. 5 0. 2 0. 2 0. 3 0. 2 0. 2 0. 1 0. 9 78. 8 100. 0 6. 6 1. 5 2 1 2 2. 4 0. 9 002 6. 1 3 1. 2 2. 6 3. 2 0. 9 2 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 78. 1 100. 0 2004 10. 2 4. 7 2. 6 3. 4 3 1 1. 9 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 70. 4 100. 0 2005 11. 5 4. 8 2. 9 3. 4 2. 6 1. 5 1. 8 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 69. 4 100. 0 2006 12. 7 5. 2 4 3. 5 2. 4 2. 1 1. 7 0. 8 0. 5 0. 3 0. 3 0. 2 0. 2 0. 1 66. 1 100. 0 2007 14. 6 5. 7 4. 5 3. 6 2. 4 2. 2 1. 8 1 0. 5 0 . 3 0. 3 0. 2 0. 2 0. 1 62. 7 100. 0 Source: Retailing Mexico, Country market insight, Euromonitor International, May 08 and Retail planet. 16 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 6 Views of Semi-Urban MPs Source: Casewriters. 17 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 7 Bimbo’s CSR Programs Source: Company information. 18 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 8 †¢ Bimbo’s Programs for its Associates †¢ Development benefits: ! Development courses for associates o Personal development course: 3 day course on meditation on oneself and life. The topics ranged from ones ideals, work as a means of personal development and community contribution, the company, health and spirituality, role in society, among others. Leadership course for bosses where the motto was: The firm is what its people are and the people are what its boss is. o What is a firm: one day course on the firm? Topics were savings, investment, work, CSR and profits. The firm was explored so that associates would learn the need to have profit and how in a successful firm everyone benefited. o Family integration workshops for associates and their spouses ! Education courses: o Open schooling to associates so that they could finish middle and high school. Online English proficiency courses and on-site English courses o Support for elementary to masters education for associates in Mexico and the United States o Intensive mandatory training course on driving for all sales personnel. o Many production associates wanted to become sales people because wages were higher. Bimbo offered training in sales and driving to production associates so that they could become sales people. o Bimbo offered, in some of its production facilities, summer camps for associates’ children during the summer vacations. ! Savings: Voluntary saving program where 1 to 2% of associates’ wages were kept for a long term etirement savings program. Economic assistance: ! Health: o Bimbo organized a health week where social security came to Bimbo to do preventive medicine tests on associates such as sugar level tests, cholester ol, blood pressure, among other things. o Associates that came out bad in any of the tests were given follow-up checks up throughout the year. o Bimbo had mandatory health checks for associates over 40. o In case of severe health problem, Bimbo helped by putting pressure into the social security system so that the associate got adequate treatment. Bimbo also got private labs to make specialized tests to associates at very low prices. ! Home improvement: o Bimbo organized a home improvement fair through the Mexican institute for home equipment, IMEVI, so that associates could get home improvement credits and better prices on home improvement materials. ! Wills and deeds: o Bimbo got associates special prices with public notaries so that they could regularize their land or home by making deeds as well as wills. Bimbo also helped associates by allowing them to pay for their will or deeds procedures in a monthly basis instead of in a lump sum. Nutritionist and doctor in Bimbo offices to help associates keeping a healthier diet. Company information. Source: 19 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 9 Obesity and Overweight Prevalence in Mexican Children 1999 5. 3% 5. 9% 1999 18. 6% 2006 9. 4% 8. 7% 2006 26. 0% % Change 77. 0% 47. 0% % Change 39. 7% Obesity in children 5 to 11 year olds Boys Girls Overweight and obesity in children 5 to 11 year olds Boys and girls Source: Compiled by casewriters using data from Encuesta Nacional de Salud y Nutricion 2006, Instituto Nacional para la Salud Publica, http://www. nsp. mx/ensanut/resultados_ensanut. pdf, last viewed July 7, 2008. Exhibit 10 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Health programs in Bimbo Social marketing campaign advocating 30 minutes of daily exercise through television commercials, billboards, radio announcements and packaging. Futbolito Bimbo Stars Tournament: Bimbo invited 46,000 children to a soccer tournament where they were given information on the need for physical activity and healthy diet. Mail and e-mail distribution of nutrinotas, an information brochure on health and nutrition, to more than 1 million people annually. Distribution of posters promoting good nutrition in 21,000 public and private schools. Distribution of the book â€Å"Living a Healthy Lifestyle† to all Bimbo’s associates throughout the world and to MPs owners. Elimination of transfats from its products. Reduced portion sizes and created products with only 100 calories Decreased fat, sugar and salt in 8% of all Bimbo’s product portfolio Fortified products with iron that was five times easier to absorb. The Public Health National Institute, in its Nutrition and Health 2006 census showed that children in Southern Mexico had an important iron deficiency. Bimbo developed products that appealed to children and met 20% of their daily iron needs Created a new bread that helped reduce cholesterol Participated in the Alliance of the Heart with Pfizer and Lala where 200,000 people were diagnosed and tested, at no cost, for cardiovascular diseases based on indicators such as cholesterol, glucose and blood pressure levels. Bimbo also made efforts to be an exemplary firm by giving talks to associates on health and nutrition, providing nutritionists for consults, having healthy menus in its cafeterias and recommendations to have physical activity in the workplace. Bimbo gave founding to many health organizations such as The Mexican Foundation for Health (FUNSALUD), The APAC foundation –providing rehabilitation for people with cerebral palsy, the Ronald McDonald Children’s Foundation –supporting programs that directly improve the health and well-being of children around the world, the Juvenile Diabetes Research Fund, the March of Dimes –health education for pregnant women and promotion of folic acid supplements in bread and the Mexican Red Cross. Company information. †¢ †¢ †¢ †¢ Source: 20 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 11 †¢ Impact of Natural Resource Conservation at Bimbo Since 2003, Bimbo decreased its vehicle fleet fuel by 3. 6 million litters and increased their average kilometer per liter by 15% by improved carburetion technology engines and fuel types Since year 2000, Bimbo decreased its energy index per ton produced by 13% and the thermal energy index per ton produced by 34%. Since year 2000 Bimbo had saved 194 million liters of water or 23% of its consumption by water treatment, installing water-treatment systems in plants, collecting water from rain, among other things. By 2008 Bimbo was recycling 85% of their solid wastes through recycling policies. †¢ †¢ †¢ Source: Company information. 21 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 12 Organizations and Institutions Supported by Bimbo, among others †¢ Educational Institutions: o Instituto Tecnologico de Estudios Superiores de Monterrey (ITESEM) o Escuela Bancaria y Comercial (EBC) o Universidad de Monterrey (UDEM) o Universidad Nacional Autonoma de Mexico (UNAM) o Instituto de Fomento e Investigacion Educativa (IFIE) Other foundations or institutions: o Televisa foundation o UNICEF o Junior League Mexico City o Papalote Children Museum: from the Support given to the museum, in 2007 4,500 children from public schools and 30,000 children from marginalized communities visited the museum o Fundacion Pro Empleo Productivo o Impulsa o Fundacion Mexicana para el Desarrollo Rural o Patronato Pro-zona Mazahua o Fundacion Tarahumara o Fundacion CIE o Amigos del Museo de Arte Popular: which benefits more than 8 million Mexican artisans Relief efforts: o After the 2007 floods, Bimbo made a campaign to help associates that were damaged by the flood. Over 33,000 associates donated and donations were matched by Bimbo. o In the United States, Bim bo contributed to food drives for the tornado victims in Texas and Kansas International foundations: o Project leaders of the 21st Century (Colombia) o National Park Foundation (United States) o Toys for tots (United States) o United Way (United States) o Junior Achievement (United States) o Institute of the Americas (United States) o Amigos de las Americas (United States) o Young Women Association (YWCA) †¢ †¢ †¢ Source: Social Responsibility Report 2007, Grupo Bimbo. 22

UK EDUCATION SYSTEM Essay Example | Topics and Well Written Essays - 1000 words

UK EDUCATION SYSTEM - Essay Example In the UK, all the public schools are possessed and sponsored by the central regime and partially by the local governments. There are Local Education Authorities that are mandated to oversee the learning in the state school. This is contrary to the American system. The school systems differ from one state to another. Each state is responsible for funding the public schools and controlling their programs. The federal government has little interference with the way states run their education system. In UK, students are always in uniforms; something that is rarely observed in the US (Shapiro, 2005, p. 4). The UK parents have to vote if their children will wear uniforms to school or not. Most of the state primary schools require their students to put on uniforms contrary to the American public schools. Similarity between the two systems is also observed in some sections. For instance, both have divided their year into three terms. Similarly, both start their year around September and end it between June and July. In the American education system, a child of 6 years I legible to join the elementary school (Rugg, 2010, p. 5). This is similar with the British system where a 6-year-old will join the infants section of the primary education. The basic structure of the two education systems differs but a thorough analysis reveals a little similarity. For instance, the UK has primary education, followed by secondary education and finally college or university for higher learning. This is different when it comes to America. One enters the elementary school, then the junior high school, then senior high school before proceeding to college or university for higher education (Rugg, 2010, p. 12). Another similarity is observed in the pre-school education. In both countries, nursery and kindergarten have not been properly addressed. In the UK, nursery education is provided by private schools, which many parents find expensive to afford. There is not set

Sarajevo Graduate School of Business Case Study Example | Topics and Well Written Essays - 750 words

Sarajevo Graduate School of Business - Case Study Example After its inception, the school gained a good reputation across Eastern Europe whereby it attracted many young managers across Bosnia and had a diverse population of young students from six different nations (Sarajevo graduate business school Web). The country of Bosnia, similar to Herzegovina had been in a regional war for a long time, which devastated the country, as well as its capital city Sarajevo. The country of Yugoslavia was largely a communist nation, which followed and supported the ideologies of the USSR. However, not all parts of Yugoslavia supported these ideologies. This led to the conflict of interest since other people supported the capitalist ideologies while the others were a neutral ground. Yugoslavia was highly unified under the central control of Tito until the year 1992 when countries such as Serbia gained independence from Moscow. This led to a war with an objective of all countries involves gaining the same independence from Yugoslavia. Later on, after 10 year s, Bosnia gained its independence from Yugoslavia and continued to support the capitalist ideologies (Sarajevo graduate business school Web). It was the countries quest for capitalist ideologies, which attracted investors into that country. ... This was done under a four-year contract whereby the USAID was to develop and implement a sustainable MBA program (Sarajevo graduate business school Web). John Stocker joined the Sarajevo Graduate Business School of business in 2005 as a chief party where he also represented FLAG, a project management and investment firm in which he was a principal. Stocker, being a finance PhD holder had vast experience as lecturer where he had taught as a professor in the United States, Bulgaria, and Afghanistan. By the year 2007, the Sarajevo graduate school of business had taught and graduated three groups totaling to 100 students from its two-year MBA program. These graduates were all employed immediately since the school provided both the operational knowledge and the opportunity to come up with a network of professional contacts. However, in the year 2007, things began to change in the objectives of the University Of Delaware. The University of Delaware did not place significant value on the s trategic link of both universities. In addition, the low-income levels in Bosnia prevented University of Delaware from charging U.S.-level tuition fee for the program, which led to the expensive salary for lecturers from the US. This led to the withdrawal of the USAID support from the business school. Consequently, the Sarajevo graduate business school withdrew the provision of its MBA degree program under the schools banner. However, there were two possibilities which john stocker developed to the program. one of the alternative was to develop a new U.S. partner institute to offer a program comparable to the University of Delaware platform while the other was to develop

Are available Supreme Court Decisions equipped to deal with emerging Essay

Are available Supreme Court Decisions equipped to deal with emerging technological advances - Essay Example The surfacing of new technologies used in fighting crime and the constitutional questions they raise warrants a new approach to these technologies in trying to protect individual rights while at the same time fighting crime. For the last few decades, the Court system has been struggling with the issue of technological advances and their constitutionality. Courts have not only been cautious of the role played by technological devices, but general public interest and maintaining the rule of law in every scenario. Technological advances involving the use of gun detectors, use of less lethal weapons, monitoring of email communication have sparked controversy all over the U.S. In addition, warrant requirements for searches/seizures in cyberspace have been delved into by the Supreme Court. Use of Gun Detectors Emergence of new technologies such as metal and gun detectors and the test of their constitutionality has led to a fresh overview of the functions of the handgun in the Fourth Amendm ent jurisprudence. Courts have always dealt with the issue of weapon searches as they have always been wary of departing from the constitutional requirement that searches can only be conducted in the presence of a warrant occasioned by probable cause. The Supreme Court’s decision in Terry v. Ohio showed a laxity to institute the prerequisite for conducting a search when the aim of the search is recovery of a hidden gun. The Supreme Court unwillingly relaxed this requirement with a view to uphold Terry’s rights according to the Fourth Amendment. The Supreme Court acknowledges that weapons searches and examinations of suspects holding illegal guns are paramount to protecting both the public and the police during street interrogations. In addition, the Court approved the â€Å"pat down’ system in determining whether a suspect is in possession of a handgun as it saw this system as a less intrusive way of conducting searches. We note that there are currently unlimit ed weapon searches places at points of entry such as airports and institutions including courthouses and schools. Gun detection in these places is on different contexts, but aims at achieving a universal goal, however, in the course of gun weapons searches, other contraband are discovered, which are later used as evidence against the defendants, even if a gun was not discovered (Johnson, p. 199). The current use of gun detection measures, which are deemed less invasive, such as pat downs are rather ineffective in detection, this warrants the use of metal and gun detectors based on less than probable cause, which has been approved by the Court. The Supreme Court advocates for the use of gun detectors that serve to distinguish those carrying a gun from those who are not while at the same time not providing any additional information on the person being screened. This will ensure law enforcers are able to detect concealed weapons while protecting civil freedom. In street interrogations , the Supreme Court on Terry v. Ohio exemplifies the Fourth Amendment as meaning that seizure or searches, based on probable cause, conducted without issuance of warrants are a violation of a person’s civil liberty and thus the search results are inadmissible in court. While the Court acknowledges that searches based on probable

MOTHER TONGUE BY AMY TAN Essay Example | Topics and Well Written Essays - 1250 words

MOTHER TONGUE BY AMY TAN - Essay Example From the essay, we learn about the initial encounters of Amy as a young girl. Her life was widely dependant of her knowledge in different languages that constituted of English. In the first part of the book, there is a clear explanation about her learning and use of the language. We get a clear picture about her school life from the second part along with the liabilities she experienced as a due to her mother’s inability to speak correct English. English as a second lingo and a school subject to her made her life in school a living hell. Nonetheless, through the same problems and technicalities, she managed to grasp the language with immense vigor. In fact, her success in the latter, depicted by her writing capabilities, was a source of surprise both to her family and to friends. Her career in writing was geared by the unknown ability that she came to realize in herself years later. Her struggles in grasping correct English for communication with her peers synchronized with th e mastery of broken English for easier communication with her mother enabled the sharing and practice of many different cultures, which gave an ample source to writing materials. Amy came to discover how rich she was in mastering different languages. She was capable of communicating with very many different people: from the different types of English, to her mother tongue. This phenomenon came to her attention, when she inquired from her friends on their opinion about her mother’s mannerism of speaking English. The responses made her realize that it was not a mere normality, to grasp and use different languages effectively. From this perspective, it became easier for Amy to adapt to any changes; blending into different languages with a passion. She knew it was her secret; one that she achieved through struggling and could now interact normally with everyone years later; regards to her childhood efforts. With reference to the latter, she was always good in all other subjects o ther than English. She recalls how her professor discovered her degree in brightness and emphasized on concentration to the subjects she could deliver best. This was in the context of having a strong base in education with a promising future. Contrary to her instincts, Amy never wanted to foster on what she could do. She had zeal and a strong notion on trying what was considered impossible. She then reduced her concentration on latter subjects and focused on English, regardless of the pieces of advises from different entities. At one time, she almost gave up on the subject and even blamed her failure on the poor English her mother spoke. She never came to consensus with the fact behind, other children coming from strong English speaking families, while she came from a family characterized by pitiable English. As a child, English was an unexplained aspect of unfairness. Despite the fact that communication between her mum and the outside world was next to impossible, Amy never gave up . Instead, she listened and practiced quietly until she was sure of herself. In her mother’s case, she countered any problems by assisting different people in communicating with her. She even recalls the kind of difficulties she underwent in instances where they encountered influential people with a notion of taking advantage of her mother. Amy might have been an Asian American, but this aspect never countered her standing out in class. Through her efforts, she finally achieved her long-term quest, becoming a writer and a savior to her mother in the process. Apparently, the author uses hidden language to point out aspects of cultural racism without signifying anger or clearly mentioning out

Role of Private Sector Organisations in Education Essay

Role of Private Sector Organisations in Education - Essay Example After realising the historical significance of the private sector education that has been since the last 130 years and by considering the upcoming opportunities of commercialising private education, UK Government has stepped forward and invited individual organisation to sponsor schools and cluster of schools in Education Action Zones (EAZs) for up till now more than 850 companies and organisations including charitable trusts have sponsored these zones. Government is encouraging commercial funding for building new schools contracts from the private sector from which it can acquire benefits by saving immediate capital expenditure, but since the companies are hesitated to renew long-term contracts for public funding, school repairs and renovations, therefore the Government is proposing substantial increase. Right from the ICT to the National Lottery, the Government has induced many companies to develop software programs and online content for all types of curriculum and online interactive materials. Local Education Authorities (LEAs) while emphasising on the ways of improving efficiency are well aware that they have to maintain a high attainment target or else they would suffer from negative publicity and reduction in fess. Why Private Schooling The reason for promoting the private education organisations in UK could be defined in two broader contexts: The first is that the maintained education system remained inefficient to fulfil the needs that go in interests of the producers-educational administrators and teachers-while the interests of the consumers-pupils, parents, employers and governments-were being neglected (Aldrich, 2004, p. 4). Privatisation on one hand introduced competition and market forces and reckoned as the best means of ensuring value for money, on other hand privatisation realised that the meeting the diverse needs and expectations of different religious and cultural groups can be met through maintaining a particular rising of standards. It also made the private sector acknowledged that since the state cannot fund educational and private provisions from taxation, therefore the requirements of students in some form or another is inevitable. The second position for encouraging the need for private sector is that since an education system that is public and not private is directed by professionals that prefer to highlight and place the true interests of pupils and students first. Such a situation provokes problems like under-funding which identify smaller classes and limited facilities as the main problem being faced by state schools. Since private firms understand the difference to what it means to supply educational services in terms of profit making and providing better environment for the children, the Government has now proposed a substantial increase for the private sector to play their best part in Education. When we talk about educational development in UK, we are visualising the following: 1) Improvement and enhancing of the current trends of teaching and assessment practices, curriculum design, and learning support including the

Analysis of an Ethical Conflict in Practice Research Paper

Analysis of an Ethical Conflict in Practice - Research Paper Example I personally believe that based on the various ethical principles, that assisted suicide must not be legalized. Measures to resist its passage into law are being proposed in this paper, along with active measures to advocate for patient’s lives – not their death. Physician-assisted suicide is one of the most controversial issues in health care today. It is an issue which straddles both the legal and ethical planes of health care practice; it is also an issue which is not likely to be fully resolved even with the application of legal provisions and accepted ethical principles. This paper shall discuss the ethical issues in assisted suicide. It shall identify its stakeholders, along with their claims and interests. This paper shall also describe this student’s final ethical position on the resolution of the conflict. A specific moral action shall also be presented in this paper in the hope of coming up with a clear and comprehensive understanding of this subject matter. Physician-assisted suicide is defined as the â€Å"voluntary termination of one’s own life by the administration of a lethal substance with the direct or indirect assistance of a physician† (Medicine.net, 2004). It is the practice of giving a fully competent patient medication in order to end his or her life. The state of Oregon is the only state in the US which has legalized this practice. It has allowed terminally ill residents to receive and obtain prescriptions from their physicians and later to take these medications to end their lives. Assisted suicide is a practice which is differentiated from euthanasia in the sense that, in euthanasia, the physician is the one who administers the medication in order to end the patient’s life. There may or may not be knowledge or consent on the patient’s part. In assisted suicide, the will and request to commit suicide comes from the patients, and the physician’s role is to assists in the process (Medicine. net,

Effects of Mass Media Essay Example for Free

Effects of Mass Media Essay The benefits that the society gets from mass media have undeniably led to the heavy reliance of people to media for information and entertainment. While the society perceives the media information as either real or important, the media shapes the values and culture of people into an entirely new concept that always end up to the conclusion that the world has been changing because of advancement in terms of technology. From selling goods to giving salient issues, the people can rely on the power of mass media. The heavy reliance of society to media may had been evident in the lifestyle of the mainstream; however, the information that the society keeps nowadays constantly change, molding the psychological and sociological aspects of the next generation. Mass media plays a very important role in the society. The people have been relying on the capability of media to inform, entertain, and provide all the necessary information that the individuals need. The people cannot deny the benefits that they gain from media for different purposes. In fact, its influences in the society have been evident not only through the development of the world in terms of technology but also through the culture and perceptions that the people have nowadays. Media exposures show that media consumption has measurable effects on the perceptions of the society. The people use media information and their actions, judgments, and attitudes are unconsciously being affected by the media messages. The society has been showing too many evidences of media effects; however, the people seem to recognize the benefits of media sources more rather than the negative impacts that it brings to the public. Each media concept has a target audience and the effects vary depending on the level of involvement of the audience and the status of a certain cluster in the society. Apparently, the modern media has been targeting the cluster of the society which can easily be reached and influenced—the young generation. Due to continuous release of media concepts and endless influx of technology, does media still portray images that would help for the betterment of the young adults? What are the negative effects of media concepts to the young generation? Media Images in 20th Century As the world conforms to modernity, the media images have been constantly changing giving the people new ideas and information in fashion trends, technology, and current events. The media sources keep on providing information and the people stay connected with the media information not only to be updated with the changes but because of the availability of resources that would connect the people and the media regardless of their location. Today, media is far different from the media that people have known in the past century. The television shows are more advanced and the films and advertisements show evidences of development in terms of media tools and concepts. Consequently, the society get use to seeing new concepts everyday and the post modern world leave the people with no choice but to conform in order to survive. Even though the society has been criticizing the media for the offensive images that media portrays, the mainstream still relies on the information that media could provide for them. Media sources boomed not only for entertainment but also for commercial purposes in twentieth century. From business to entertainment, the media has been the source of information of any cluster of the society. Today, the young generation can be seen on media sources endorsing consumer goods or promoting services to the society. While some teens appear to be wholesome, some are being criticized for negative underlying messages to the mainstream. Some media sources portray the fun of being a teenager in this modern society and some messages convey a message that the young adults are the hope of the future generation. On the contrary, there are films and television shows that portray aggression and violence. The advertisements portray images of thin and skinny young women who endorse products to the market. The modern youth are being perceived as materialistic, socially aggressive, and partying individuals because of the images that the mainstream sees on media sources. Positive Impacts of Mass Media on Teens The society has been blaming the mass media for making the young adults change their perceptions toward certain matter and behave exactly opposite of how people expect them to be. The society recalls the images that they have seen on media sources which are often considered as negative due to the effects that these portrayals brought to them. Apparently, the effects of mass media have been in the heart of debate in the society because most people perceive media in negative aspect while some still consider the benefits that the society gets from it. Due to negative images on media, the society often fails to recognize the positive effects that media can give to the public. Although some parents perceive television as helpful in developing the mind of their children, the society on the other hand, points out this perception as effect of media brainwashing. The heavy reliance of people on media has been the effect of the society’s acceptance to all the messages that are being conveyed on all media sources.