1. RADIOLOCATION THREATHED THE PRIVACY
For a number of years, parents in public school at district of Columbia complain about bus that often came late or uncoming. The Federal court with the reference to a independent transportation organizer and used satellite security system, called S3, to search bus movement in that district. S3 providing the searching service with satellite to client like district of Columbia, Fairfax area, federal goverment body or state, police force department, and private corporation.
This service equipping every vehicle or a marked man with a tracer equipment that used technology global positioning system (GPS). GPS is a navigation system that operated by State’s Defense Departement in USA with used satellite that gradually give information of position, as well as time and date. Receiver GPS in the earth, can installing at vehicle, handphone or other equipment, and using information from satellite signal to approximating its existence. So many handphone now was equipped with GPS.
Public school system at District of Columbia needs cost $6 million to its GPS searching system. This system complementing bus by GPs locator and physical defect of children that up to the bus like identity card that must rubbed when they in and out by bus. Parents can get secrets code making possible they can using the internet to search their child. Controlling center of S3 using GPS information from searching equipment and controlling the bus location from video screen. S3 saving searching data every day to a long time, and clients can access previous searching data if they wants.
S3 providing the detailled information to public school at district of Columbia: route every bus in one day, when bus stop, when bus doors opened and closed, its speed, and whether bus machine flaming or unflaming. S3 system to have a database about information bus passenger student name, address, phisics defect, alergy, contact information, and when when school are starting and ending.
David Gilmore, transportation organizer that referenced by courts of public school at District of Columbia was seeing repaired from bus driver performance. The report about bus driver that should not took to the bank or using the long time to have lunch to be decrease.
The parents feel happy too. “I am happy because of that system make you can control that bus, because of ypu bnever know what haapens in the bus ,” said Deneen Prior, that the three their child using public school bus at District of Columbia. However, she still worry that location searching data used for bad things. ”I do not want someone that should not controlling them do that.” said Deneen.
Another that feel same things. Radiolocation have adventages, but in this things making open potential invasion to the privacy. So many unlike their phisics movement searched tightly. Information location maybe can help directly two-wheel trailler until threadbare car, but this thing can used to find where a driver went while time for lunch.
2. ANGELA NOBLE-GRANGE SHARES STORY OF HOW ETHICAL CHALLENGES CAN DESTROY A BUSINESS
Too much passion and unbridled passion can lead you astray as well, which leads me to my second component, ethics. What's ethics? It's pretty simple, right? I mean they teach whole courses on it. Its right from wrong, knowing what's right from wrong and acting on that knowledge, that's the hard part, acting on that knowledge. And the story I have about some entrepreneurs that I worked with in this area was a little bit sadder of a story. This was two women. They were a partnership when they came in to talk to me, excellent product, outstanding product, I was so excited. I thought a product instead of a service and it wasn't really retail, so I was like Wow, this is real business; I'm really excited about this. We have to actually go to production, we got to make this thing, it was a children's product, great idea. The one woman had the concept and the idea, but she couldn't bring it to fruition. So, she needed this other partner who was more of an artist, who could actually make this thing come to life. So, the two of them got together, they created a prototype, they found a factory, they found a way to produce it, they found an angel investor to finance it; you know things that we worry about, right? So they had money, they had a great idea, product ready to go. What happens? Well, one of the partners decides she was going to try to do some things on her own and not necessarily contribute revenues back to the common pot. Lot of misunderstandings, lot of miscommunications, and what basically happened was trust was broken between the partnerships. When the trust was broken between the partnerships, it was irreparable damage. It spun out of control, there was attempts for mediation, there were attempts to try to put this thing back together, spun out of control, angel investor lost some money, their relationships were damaged sadly, they were very close in the beginning -damaged-- and the business didn't come out. Great, product, great product. So ethics, kind of questionable ethics maybe, miscommunication ethics, shook it up and destroyed something that you think everything was there, all the ingredients were there. The product was there, the money was there, production was ready to go, it was tested, kids liked it, was pretty sure it was going to succeed, but something else took it down.
3. INTERNET IS ENEMY OR FRIENDS TO CHILD
Internet apply so many things to the people in several level of age, including children. The student usually using internet for School task, to download the music, playing game, and to sosialization with other. Some child maybe using email to instant message to stilol closed with friends that was changed the address or family members that stay in far location. Eventhough internet can too making child isolated sosially and expossed at unhealthy activity and experience.
According to psychiatrist child and teenager, Dr. David Bassler, a few child to be too isolated with over-used internet. Several shying child or obesity can to be soccer star player in the online match. When children lived up so many time to online, they can not do their homework or never focus with their task in school because of online activity was finish off so amny their energy. They can not follow sports and other activity and they can not give sa many time with friends and family members in the real world.
Dr. Robert Krout, a professor at Carnegie-Mellon University that did behavior research online until more than one decades, Found that more and more long time someone using internet, so more little bit they socialization and comminication with their family members. High of using internet among teenagers proseed from more decreasing social support. So many hours they spend to chatting with stranger cannot to be a best relationship.
4. BOEING TO AXE THOUSANDS OF JOBS
Boeing is to cut 10,000 jobs this year in response to the economic crisis, the company has said. Profits at Boeing were hit by a 58-day strike by machinist workers. The firm is one of the largest aerospace manufacturers in the world. In the last three months of 2008, it made a loss of £39m ($56m), partly because of a strike by its machinist union. Its 27,000 machinists - 16% of Boeing's workforce - walked out on September 6 and did not return for 58 days.
Boeing's planes include the 777, the company was also hit by a costly redesign of its 747 freighter aircraft. Boeing was also out-performed by its European rival Airbus in 2008. The plane manufacturer is the latest to be hit by the global economic slowdown, and follows job-loss announcements from engineering giant GKN and home shopping firm Shop Direct.
In his latest speech on the financial crisis, US President Barack Obama said the slump could be overcome if everyone "chips in so we can climb our way out of the crisis... executives and factory floor workers".
5. HOUSE PRICES SUFFER JANUARY SLIDE
House prices fell by 1.3% in January, according to figures from Nationwide. Property market is struggling through the credit crunch. The average price of a typical house is £150,501, down 16.6% on the same time last year, according to the building society. It is the 15th consecutive month that prices have dropped, with January seeing £2,500 in value shaved off the average home.
But the three-month on three-month rate of change, which is seen as a smoother indicator of short-term trends in prices, improved for the fourth month in a row. The price drop seen during the three months to the end of January was 4%, compared with a fall of 4.2% during the previous three-month period.
Whether the repossessions are the result of over-borrowing, negative equity or sudden unemployment, behind it all is the chilling forecast of 75,000 repossessions for 2009/10, from the Council of Mortgage Lenders.
Sky Business Editor Michael Wilson
Martin Gahbauer, Nationwide's senior economist, said it was too early to say whether this was the beginning of turnaround in the market. "The increasing level of enquiries suggests that activity levels have a reasonable chance of recovering from their recent lows once an end to the recession is in sight and/or the recent Government interventions lead to an improvement in the availability of credit," he said.
The housing market is being hit by a combination of the mortgage shortage, rising unemployment and an expectation among potential buyers that prices still have further to fall.
6. OIL GIANT'S ANNUAL PROFITS SOAR
Royal Dutch Shell, Europe's largest oil company, has reported annual profits of £22.2Bn. A spike in the price of crude oil during the summer, to almost $150 a barrel, helped push Shell's yearly earnings up 16% compared to 2007. However, quarter-on-quarter, as the economic downturn began to affect the price of commodities, with crude oil slumping from its record high to below $40 a barrel, Shell saw its profits slide almost 30%.
Chief executive Jeroen van der Veer described the fourth quarter performance as satisfactory given the impact on demand caused by the weaker economy. He added: "Industry conditions remain challenging, and we are continuing the focus on capital and cost discipline in Shell." Shell said it was committed to maintaining investment at near to last year's level of more than £20bn in order to safeguard future profitability.
Alan Sinclair, oil and gas analyst at Seymour Pierce stockbrokers, said planned investment for 2009 of around £20bn was higher than forecast - but with costs set to come down, he said Shell was unlikely to be stretched by this target. Oil and gas production from the Anglo-Dutch firm over the fourth quarter was the equivalent of 3.4 million barrels a day, virtually unchanged from the same quarter in 2007. Full-year production was slightly down on the previous year.
7. UK TO BE WORST HIT BY SLOWDOWN
The International Monetary Fund is forecasting that the UK economy will shrink the most of all developed nations this year. The IMF says international economic cooperation will be critical. The IMF believes that Britain's output will contract by another 2.8% over the next 12 months, with a stuttering growth of 0.2% projected for 2010.
This is in contrast to predictions from the Treasury. Chancellor Alistair Darling, in the pre-budget report, said the UK economy would shrink between 0.75% and 1.25% this year. Globally this year, the IMF believes growth will fall to 0.5% - the lowest rate since the Second World War. And worldwide losses for banks are likely to reach $2.2 trillion.
In its World Economic Outlook the IMF says: "Despite wide ranging policy actions, financial strains remain acute, pulling down the real economy. and A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged."
There is a world downturn but our economy is sinking further and faster than the rest.
Conservative leader David Cameron MP
The IMF outlines that more will need to be done by governments across the world in addition to monetary and fiscal policies already implemented by many nations. The global financial body says more international co-operation in implementing these policies will be critical to ensure a global economic recovery.
Unlike the minimal recovery expected in the UK, the global economy in 2010 is expected to grow by at least 3%, helped by, "efforts to ease credit strains as well as expansionary fiscal and monetary policies".
IMF Predictions
:: UK economy to shrink by 2.8% in 2009
:: US economy to shrink by 1.6%, Germany 2.5%, France 1.9%, and Japan 2.6%
:: UK economy to grow by 0.2% in 2010
:: Global growth will fall to 0.5% in 2009, lowest rate since World War II
:: Global growth in 2010 will be 3%
Responding to the IMF report, financial secretary to the Treasury Stephen Timms said: "The IMF is predicting that world trade will fall by nearly 3% this year - the first time for a generation. "As an open economy, it is not possible for the UK to insulate itself from this contraction. The Government's priority is to support families and businesses through these challenging times."
Shadow business secretary Ken Clarke told Sky News: "I hope the IMF report will introduce an air of reality into this. I'm not sure we've got the Prime Minister face-to- face with reality yet. "During the good times, Gordon Brown ran the public finances in a very reckless fashion so we start with a huge burden of debt. That debt is rapidly getting worse and we can't afford to do the things that some other countries will do.
"So I think we are going to have a deeper recession than any other advanced western country. If we're not careful, we're going to have a slower and more difficult recovery as the Government has to finance and start repaying all this debt."
Warning After Bleak IMF Forecast
The IMF is being "optimistic" in its bleak prediction that the UK economy will shrink faster than any other developed nation, says a former IMF chief economist.
Britain's economic downturn continues
Simon Johnson says the International Monetary Fund report is "belated recognition" that Britain has got "overvalued property, and a lot of exposure to the financial sector in terms of jobs and GDP". He added that "some of the policy responses in the UK have not been ideal". The IMF believes that Britain's output will shrink by another 2.8% over the next 12 months. This is more than twice as bad as it previously thought and well above the 2% average for advanced countries.
Warning from Simon Johnson
The IMF predicts the US will suffer a 1.6% contraction in its economy in 2009, Germany 2.5% and Japan 2.6% and revised the UK prediction from 1.3% to 2.8%.
Mr. Johnson told Sky's Jeff Randall: "The headline number is this decline for advanced economies of 2% in 2009, that's the average annual number. And If you look at the fourth quarter over fourth quarter number which gives you a bigger sense of the dynamic, that's only a decline of 0.5% which is pretty small. And then you bounce back to +1.6% on the same basis in 2010."
A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged.
The IMF makes its predictions for world economies.
Mr. Johnson also that the UK "might be a getting a slighter rougher deal from the IMF than France". He thought that its forecast for France - of a 1.9% contraction - is "incredibly positive".
8. HOME SHOPPING FIRM AXES 1,000
One of Britain's biggest home shopping companies, Shop Direct, is cutting 1,000 jobs from call centers in Merseyside. Shop Direct said a shift to online shopping was behind the cuts. The company, formerly known as Littlewoods Home Shopping, said it will close a call centre in Crosby, Merseyside, with the loss of around 1,000 jobs.
Around 150 further redundancies will be made at the company's headquarters in Speke, Liverpool, and other sites close by. Redundancies will also be sought at Shop Direct's financial services division in Aintree, Liverpool, a call centre in Preston and at the warehousing division in Manchester.
The firm said the growth of online shopping had led to a reduction in telephone orders. Around 250 of the under-threat jobs may be saved if workers agree to relocation. Shop Direct Group includes the former catalogue shopping giants of Littlewoods, Great Universal and Kays as well as Additions Direct, Marshall Ward and Choice.
Mark Newton Jones, chief executive of Shop Direct Group, said: "Our business is changing because the way our customers choose to shop with us is changing. We anticipate that 70% of our sales will be online by 2010/11 and, therefore, the future of our business is online-led."
Shop Direct employs 10,500 people and, with sales of £1.6bn, claims to be the UK's largest online and home shopping retailer. The company said its online business accounts for 56% of total sales, up from 18% three years ago
9. BANK CHIEFS KEEP US RATE ON HOLD
The Federal Reserve has left the main US interest rate unchanged at close to zero. The Federal Reserve could start buying government debt. The Fed said it was prepared to buy long-term US government debt if that would help improve conditions in financial markets. It said the US economy has got weaker and signaled it will keep the rate around this current figure for quite "some time" to cushion the fallout.
Its policy committee decided - with just one member against - to keep the targeted range for the rate at a record low of between zero and 0.25%. Economists predict the Fed will leave rates at that range through the rest of this year. The rate is the interest that banks charge each other on overnight loans.
Fed Chairman Ben Bernanke
The US central bank, which is America's equivalent of the Bank of England, vowed to "employ all available tools" to spark an economic rebound. It took the unprecedented step of slashing its key rate to near zero at its previous meeting in December.
Sky News' political editor Adam Boulton, reporting from Washington, said: "The real point is that no one knows what policy instruments are going to do the trick if indeed they can do the trick.
"That's why before President Barack Obama's even got his stimulus package through Congress, there's intense argument here as to whether tax cuts or government spending or stimulus to business are the correct way to go ahead because so far nothing's got better."
A statement said the Fed "will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability."
The Fed, which has embarked on a major initiative to buy up mortgage securities, said it was "ready to expand the quantity of such purchases" and "is prepared to purchase longer-term Treasury securities" if it will help revive credit.
10. SIX HELD OVER MASSIVE CITY FRAUD
Six people suspected of involvement in a massive £370m fraud on the London stock market have been arrested in Spain. They suspects are being held in Spain. The suspects were detained in Madrid, Barcelona and the town of Elche in the south east, a statement by Spanish police said.
Five of the suspects were Spanish while the fifth was Argentinian. They were aged between 56 and 76. It is believed the group created a bogus company, Langbar International, listed it on the London stock market and used false documents and rumors to inflate the share price.
The investigation revealed that the listing of the firm on the stock market, as well as the public share listing, was achieved through fraud and various false announcements to generate interest in the shares of the company.
Spanish police statement.
They then sold the shares the suspects owned in the firm. "Through complex commercial and stock market operations, as well as falsifications, the arrested managed to make the value of the shares of a firm on the stock market increase, without deposits to back it up, and profited from the subsequent sale of the shares," a Spanish police statement said.
Police did not name the firm, which was listed on the Alternative Investment Market (AIM) of the London Stock Exchange in October 2003. The arrests follow the opening of an investigation into the firm by Britain's Serious Fraud Office in 2005. When the company was listed on the stock market it said it had assets worth £203m, police said. It went on to claim it had a guarantee in the form of an International Certificate of Deposit from a Brazilian bank. That was done "with the aim of generating an increase in the share price of the company," police said.
"The investigation revealed that the listing of the firm on the stock market, as well as the public share listing, was achieved through fraud and various false announcements were made, in specialized media in London, to generate interest in the shares of the company.
"Those announcements were allegedly planned by the main suspects who then sold the shares that they owned or existed in their name."
Sabtu, 31 Januari 2009
The Concept of Islamic Business Ethics
Islam is a source of value and ethics in everything human life aspect wholly, including discourse of business. Business and trading including in human activity are very important, and human is creature that needs Friends and group. Business and trading acquired because never somebody can life perfectly, capable to providing everything necessity and demand in their life himself without engaging others. Becase of that human mutually needs, teamwork and can help each other. Islam motivated their umat efforts search rezeki in order to their life to be good and happiness. Allah SWT creates the sky, earth, sea and everything to human interest and benefit. Human must be search permitted rezeki. Firman Allah in surah An-Naba: 10-11:
“And we create night as cloth. And we create a day to lilving.”
In that verse, Allah teaches equilibrium between search for rezeki to their life and leisure. Night for take rest and converging the energy and day to working effusing the energy, business trading to search for rezeki.
In several hadists Rasulullah SAW had given motivated to his umat to search for rezeki by efforts and trading. Rasulullah SAW is a sample of success entrepreneur have international reputation. When still child he was accompany his Uncle Abu Thalib trading to Syam, moreover he set a going business owned by Siti Khadijah to Syam and come back with the big profit. This is ability evidence, believe and his mandate as entrepreneur. Rasulullah SAW utterance:
“Mandated entrepreneur and fair together with syuhada in judgement day late” (HR. Ibnu Majah and al-Hakim)
“Nothing the best food for eat by someone that he/she produced by their hands”. (HR. Bukhari)
Closed friends of Rasul so many to be entrepreneur and a success businessman. That order thing are Abu Bakar, Umar bin Khattab, Ustman bin Affan, Abdurrahman bin Auf, etc.
Business activity is the integral part of economic discourse. Islamic economic system starts from awareness about ethics, whereas other economic system, like capitalism and socialism, tend to ignore the ethics so value aspect is not seem in both building of that economic system. Islam have comprehensive concept about business ethics. Started from based principle, point of damaging in trading, production factors, labor, organization capital, wealth distribution, wages problem, goods and services, qualification in business, until to sosio economic ethics related with possesion and social relationship. *) Rasululah Saw, so many give guidance about business ethics, which order thing, is:
1. Essential principle in business is honesty. In Islamic doctrine, honesty is a fundamental requirement in business activity. Rasulullah very intence suggests honesty in business activity, his utterance: “Unjusticeviably a Muslim sell one the bad goods, except he/she explain about that bad” (H.R. Al-Quzwani). Rasulullah always fair in business. He forbid entrepreneurs placed the bad goods at lower side and new goods at upper side.
2. Awareness about significance social business activity. Businessman according to Islam, not only interest biggest profit, as teached by father of capitalized economic, Adam Smith, but orientation to ta’awun attitude (help each others) as implication in social business activity.
3. Do not prejure. In one hadist narrative by Bukhari, Prophet utterance, “Do prejure, goods maybe sold out, but the result is not blessing”. In hadist narrative by Abu Zar, Rasulullah saw threaten by poignantly punishment to prejurer in business, and Allah do not care with him later in judgement day (H.R. Muslim).
4. Friendly. A Businessman must be friendly in doing their business. Prophet Muhammad Saw utterance, “Allah blassing a friendlyman and tolerant in business” (H.R. Bukhari and Tarmizi).
5. Do not paid fulsome complementsin high price, in order to others atracted to buy with that price. Utterance by Prophet Muhammad, “Do not you do business najsya (particular buyers, teamwork by other seller to increase the price, not by plan to buyers, but in order to atract others for buying).
6. Does not disfiguring others business, in order to buyer buy to him. Prophet Muhammad Saw utterance, “Do not someone among you sell that means to disfigure that selled by others” (H.R. Muttafaq ‘alaih).
7. Do not ihtikar. Ihtikar is (accumulating and saving goods in a particular time, with purpose in order to the price someday to be up and big profit acquired).
8. The truth measrement container. Firman Allah: “Woe to dishonester, that are people that received measure from others, they want fulfilled, and if they measure to others, they decreasing” ( QS. 83: 112).
9. Business cannot disturb relogious activity to Allah. Firman Allah, “businessman that cannot ignore by business because of remeber Allah, and build prayers and paid the tithe. They scare to some that day, heart and vision to be shake”.
10. Paid wage before worker sweat was dry. Prophet Muhammad Saw utterance, “Give wage to employee, before their sweat was dry”.
11. Do not monopoli. Each of one badside system economic capitalized is ligitimation monopoli and oligopoli.
12. Do not business in exist dangerous condition (mudharat) that can make loss and damaging individual and social life. For example, cannot sell permited goods, like grape to produsen alcoholic liquors, because can estimated will be produce to be alcoholic liquors.
13. Business commodity sold is holy goods and permitted. Prophet Muhammad Saw utterance, “In truth Allah abjure of alcoholic business, carcass, pigs and “statutes” (H.R. Jabir).
14. Business doing of one free will, without under pressure. Firman Allah, “men of faith, do not be eaten assets each order by the bad way, except by accepted business way with like each other among you” (QS. 4: 29).
15. Soon paid credit that to be their liability. Rasulullah praised a Muslim that has serious attention in payment their liability. Utterance by Prophet Saw, “the best from you, that the people soon in paymeny their liability” (H.R. Hakim).
16. Given extra time if debitor unable to pay. Utterance Prophet Saw, “Someone that diferal the people that difficult to pay their liability or making free them, Allah will be give him port where Allah port in that day nothing port except Allah port” (H.R. Muslim).
17. Businessman that clean from bersih excessive interest unsure. Firman Allah, “Men of fatith, leave that remains of riba if you faith (QS. Al-Baqarah: 278) businessman and excessive interest consumer valueable by Allah as possessed people (QS. Al-Baqarah: 275).
So those are the part of business ethics in Islamic perspective combined from Islam source, either sourcing from al-Qur’an or Sunnah. Because of that based value, Prophet built system economic Islam yang tercerahkan. Principles business ideally reality cannot do by Prophet and his closed friends. This Reality to be evidence to many people, that economic arrangement justicable, trully happens, althuogh in national scope, Madinah country. Value, spirit and precept that bring by Prophet, usefull to build new arrangement economic, that ending realized in economic world arrangement that justicable. Syed Nawab Haidar Naqvi, in book “Ethics and Economic Science: an Islamic Synthesis”, described fourth axiom economic ethics, that are:
1. Tauhid
Tauhid is teology discourse based everything of human activity, including business activity. Tauhid make aware human as ilahiyah creature, shape of Allah creature. so, human business activity cannot ignore by Allah control, and in order to do Allah titah. (QS. 62:10)
2. Equilibrium
Equilibrium means that business behavior must be equal and fair. Equilibrium that means do not over in search economic profit (QS.7:31).
3. Free will
Free will means that human as individual and collectivity, have full free will to do business activity. In economic, human free implementated Islam norms. Because economic problem, including to mu’amalah aspect, not ibadah, so accepted to them general norm, “All can except that forbidden”.
4. Responsibility
Responsibility means that human as businessman, has moral reponsibility to Allah upon their business behavior. Assets as business commodity in Islam, in mandatory of Allah that must be responsible in faced of Allah.
Eventhough Islam motivated their umat to be entrepreneur, and moreover is fardhu kifayah, not means can do that fully free will of human, like out of control. Courtesy and business ethics in Islam must be respected and submissived. Islamic Umat in their progress search for wealth and do they efforts let there to be Islam as based and blessing of Allah as ending purpose and primerily. Search for profit in doing trading is each of one purpose, but do not be lossing primerily purpose. In Islamic viewpoint business is channel to pray Allah and it is fardlu kifayah, because of that business and trading cannot let from Syari’ah Islamiyah role.
In Al-Quran viewpoint, individual responsibility very important in one business transaction. Every individu responsible to all transaction they are doing. Nothing somebody that have a particular previlage or immunity to collecting consequences to what they are doing. In Al-Quran, That thing is prevent tools to occurence actions that unresponsible, because every people will be requested their responsibility either in the world or in the hereafter.
In order to Muslim able to be spirit devoting tomaking lose themselves interest, so he/she must be remember the guidances as follow:
1. Considering needs and others interest;
2. Give help that not commission and tithing to the neederst;
3. Give supports and teamwork for good things.
*) Drs.Agustianto, MA, “Islamic business ethics.”
“And we create night as cloth. And we create a day to lilving.”
In that verse, Allah teaches equilibrium between search for rezeki to their life and leisure. Night for take rest and converging the energy and day to working effusing the energy, business trading to search for rezeki.
In several hadists Rasulullah SAW had given motivated to his umat to search for rezeki by efforts and trading. Rasulullah SAW is a sample of success entrepreneur have international reputation. When still child he was accompany his Uncle Abu Thalib trading to Syam, moreover he set a going business owned by Siti Khadijah to Syam and come back with the big profit. This is ability evidence, believe and his mandate as entrepreneur. Rasulullah SAW utterance:
“Mandated entrepreneur and fair together with syuhada in judgement day late” (HR. Ibnu Majah and al-Hakim)
“Nothing the best food for eat by someone that he/she produced by their hands”. (HR. Bukhari)
Closed friends of Rasul so many to be entrepreneur and a success businessman. That order thing are Abu Bakar, Umar bin Khattab, Ustman bin Affan, Abdurrahman bin Auf, etc.
Business activity is the integral part of economic discourse. Islamic economic system starts from awareness about ethics, whereas other economic system, like capitalism and socialism, tend to ignore the ethics so value aspect is not seem in both building of that economic system. Islam have comprehensive concept about business ethics. Started from based principle, point of damaging in trading, production factors, labor, organization capital, wealth distribution, wages problem, goods and services, qualification in business, until to sosio economic ethics related with possesion and social relationship. *) Rasululah Saw, so many give guidance about business ethics, which order thing, is:
1. Essential principle in business is honesty. In Islamic doctrine, honesty is a fundamental requirement in business activity. Rasulullah very intence suggests honesty in business activity, his utterance: “Unjusticeviably a Muslim sell one the bad goods, except he/she explain about that bad” (H.R. Al-Quzwani). Rasulullah always fair in business. He forbid entrepreneurs placed the bad goods at lower side and new goods at upper side.
2. Awareness about significance social business activity. Businessman according to Islam, not only interest biggest profit, as teached by father of capitalized economic, Adam Smith, but orientation to ta’awun attitude (help each others) as implication in social business activity.
3. Do not prejure. In one hadist narrative by Bukhari, Prophet utterance, “Do prejure, goods maybe sold out, but the result is not blessing”. In hadist narrative by Abu Zar, Rasulullah saw threaten by poignantly punishment to prejurer in business, and Allah do not care with him later in judgement day (H.R. Muslim).
4. Friendly. A Businessman must be friendly in doing their business. Prophet Muhammad Saw utterance, “Allah blassing a friendlyman and tolerant in business” (H.R. Bukhari and Tarmizi).
5. Do not paid fulsome complementsin high price, in order to others atracted to buy with that price. Utterance by Prophet Muhammad, “Do not you do business najsya (particular buyers, teamwork by other seller to increase the price, not by plan to buyers, but in order to atract others for buying).
6. Does not disfiguring others business, in order to buyer buy to him. Prophet Muhammad Saw utterance, “Do not someone among you sell that means to disfigure that selled by others” (H.R. Muttafaq ‘alaih).
7. Do not ihtikar. Ihtikar is (accumulating and saving goods in a particular time, with purpose in order to the price someday to be up and big profit acquired).
8. The truth measrement container. Firman Allah: “Woe to dishonester, that are people that received measure from others, they want fulfilled, and if they measure to others, they decreasing” ( QS. 83: 112).
9. Business cannot disturb relogious activity to Allah. Firman Allah, “businessman that cannot ignore by business because of remeber Allah, and build prayers and paid the tithe. They scare to some that day, heart and vision to be shake”.
10. Paid wage before worker sweat was dry. Prophet Muhammad Saw utterance, “Give wage to employee, before their sweat was dry”.
11. Do not monopoli. Each of one badside system economic capitalized is ligitimation monopoli and oligopoli.
12. Do not business in exist dangerous condition (mudharat) that can make loss and damaging individual and social life. For example, cannot sell permited goods, like grape to produsen alcoholic liquors, because can estimated will be produce to be alcoholic liquors.
13. Business commodity sold is holy goods and permitted. Prophet Muhammad Saw utterance, “In truth Allah abjure of alcoholic business, carcass, pigs and “statutes” (H.R. Jabir).
14. Business doing of one free will, without under pressure. Firman Allah, “men of faith, do not be eaten assets each order by the bad way, except by accepted business way with like each other among you” (QS. 4: 29).
15. Soon paid credit that to be their liability. Rasulullah praised a Muslim that has serious attention in payment their liability. Utterance by Prophet Saw, “the best from you, that the people soon in paymeny their liability” (H.R. Hakim).
16. Given extra time if debitor unable to pay. Utterance Prophet Saw, “Someone that diferal the people that difficult to pay their liability or making free them, Allah will be give him port where Allah port in that day nothing port except Allah port” (H.R. Muslim).
17. Businessman that clean from bersih excessive interest unsure. Firman Allah, “Men of fatith, leave that remains of riba if you faith (QS. Al-Baqarah: 278) businessman and excessive interest consumer valueable by Allah as possessed people (QS. Al-Baqarah: 275).
So those are the part of business ethics in Islamic perspective combined from Islam source, either sourcing from al-Qur’an or Sunnah. Because of that based value, Prophet built system economic Islam yang tercerahkan. Principles business ideally reality cannot do by Prophet and his closed friends. This Reality to be evidence to many people, that economic arrangement justicable, trully happens, althuogh in national scope, Madinah country. Value, spirit and precept that bring by Prophet, usefull to build new arrangement economic, that ending realized in economic world arrangement that justicable. Syed Nawab Haidar Naqvi, in book “Ethics and Economic Science: an Islamic Synthesis”, described fourth axiom economic ethics, that are:
1. Tauhid
Tauhid is teology discourse based everything of human activity, including business activity. Tauhid make aware human as ilahiyah creature, shape of Allah creature. so, human business activity cannot ignore by Allah control, and in order to do Allah titah. (QS. 62:10)
2. Equilibrium
Equilibrium means that business behavior must be equal and fair. Equilibrium that means do not over in search economic profit (QS.7:31).
3. Free will
Free will means that human as individual and collectivity, have full free will to do business activity. In economic, human free implementated Islam norms. Because economic problem, including to mu’amalah aspect, not ibadah, so accepted to them general norm, “All can except that forbidden”.
4. Responsibility
Responsibility means that human as businessman, has moral reponsibility to Allah upon their business behavior. Assets as business commodity in Islam, in mandatory of Allah that must be responsible in faced of Allah.
Eventhough Islam motivated their umat to be entrepreneur, and moreover is fardhu kifayah, not means can do that fully free will of human, like out of control. Courtesy and business ethics in Islam must be respected and submissived. Islamic Umat in their progress search for wealth and do they efforts let there to be Islam as based and blessing of Allah as ending purpose and primerily. Search for profit in doing trading is each of one purpose, but do not be lossing primerily purpose. In Islamic viewpoint business is channel to pray Allah and it is fardlu kifayah, because of that business and trading cannot let from Syari’ah Islamiyah role.
In Al-Quran viewpoint, individual responsibility very important in one business transaction. Every individu responsible to all transaction they are doing. Nothing somebody that have a particular previlage or immunity to collecting consequences to what they are doing. In Al-Quran, That thing is prevent tools to occurence actions that unresponsible, because every people will be requested their responsibility either in the world or in the hereafter.
In order to Muslim able to be spirit devoting tomaking lose themselves interest, so he/she must be remember the guidances as follow:
1. Considering needs and others interest;
2. Give help that not commission and tithing to the neederst;
3. Give supports and teamwork for good things.
*) Drs.Agustianto, MA, “Islamic business ethics.”
Kamis, 29 Januari 2009
Job Dicriminating in Ethics
In one reception entitled “mend it, don’t end it”, Bill Clinton, former of president, said:
“Out of everything, our country is Believed chain: “we regard as this beliefs as real thing that all human created are same; that we all be blessed by god right that can’t be confiscated by other; between that rights is the right to get life, freedom, and seaching for happiness.” All history can we see as efforts to making real actualization in society life.
Alternative action purpose is given one way to our country to solve gender and race discrimination in order to all people get same chance to developing, implementing, to achieve and give contribution. Alternative action is efforts to develop a systematic approach to open mindset at sector education, employment, dan developing business opportunity to potential individu and intuitively to be member groups that a long time has discrimination.
Any people that honest and believe that alternative action always directed to group preference compared individu goodness; alternative action always directed to discrimination in the end condescend people that get adventages from him and discriminated another.
Pete Wilson, governor of California, give the response to the president in a reception to support the rule that mean to stop alternative action programs, this called as preference treatment.
Thomas Jeferson firstly to overview the USA purpose more than two hundred yaers ago when said:”Similarity right to all people and nothing special.” Efforts to achieve that purpose had been successful for USA since 1776.
But now the base principle of similarity right middle America damaged by a system preferential treatment that determine the job, public contract, and position in university not based on goodness and performance, but at group members who determined according to race, ethnic, or gender. That not true. That not fair. And according to the definition, that are discrimination.
Our liability to society is not to ignore injustice and pretended asa if that nothing. We have payable at leadership and personality to change what wrong and their solution. The question is not, how we justified preference based on race or gender? But, how we determine the compass of our moral and back to the justice way and similarity right in law.
The controversion appears on the subject of affliction yang had been around minority, treatment not fair to women, and the losses concequency had been around whites man because of preference to women and minority.
CHARACTERISTIC OF JOB DISCRIMINATION
The base mean from discrimination terminology is”differentiation one objek from another objek,” one action morally is netral and can not reproofable. But, in modern meaning, this terminology morally non-netral: because usually refer to action differentiation someone from other people not based on they superiority, but based on prejudice or atitude that morally is bad. Discrimination in employment engaging three base element: first, decision that making an employee losses or more because not based on their ability, for example in implementation a perticular job, seniority, or qualifications that morally reputed by other are valid. Second, decision fully taken based on prejudice racial or sexual, wrong stereotype or other attitudes that morally not true to a perticular group member.where that employee come. Third, decision has negative influence or harmful to interested employee, may be incurring they job gone, chance get promotion, or good salary.
Form of Discrimination: Aspect Deliberateness and Aspect Institutional
One framework that quite useful to analysis vary form of discrimination can made with differentiated degree of where action discriminative did secara seliberately and separate with degree of where that action occurs intuitively and institutionalized. First, action discriminative may be part of separate behavior from someone that deliberately and aware do discrimination because any privacy prejudice. Second, action may be part of routine behavior from the institutionalized group, that deliberately and aware do discrimination based on privacy prejudice of their members. Third, discriminative action may be part of separate behavior from someone who intuitively and unaware do discrimination to other people because she/he accepted and implemented practices and traditional stereotype from their society. Fourth, discriminative action may be part of systematic routine from organization/company or group intuitively included the formal procedures that made discrimination to women and minority.
At recent century, occurs one changing that emphizing very important to see melihat discrimination just as problem that deliberately and individual toward emphizing that see discrimination as something systematic, and should not deliberately, from company behavior. Section VII from Civil Rights Act (1964) said: is practice employment that break the law if enterpreneur (1) failed or reject employing, or fired someone, or do discrimination to anyone in decide the compensation, requirement, condition, or rights employment with based on race, colour of skin, religion, gender, or the individu come from; (2) limitation, decomposed, or made employee group or workj seeker in anyway to decreasing or tend to decreasing the someone chance or other thing that can influence to their status as employee based on race, colour of skin, gender, or their come from.
To beginning 1970, the termination discrimination used generally to show the differentiation between delegations of minority group in cross-fungtional staf of company, either deliberately differentiation or intuitively.
Guidance book of labor Department [USA] declared at 1970 to enterpreneurs said: Affirmative action program that accepted must enclose analysis upon sector where contractor reputed lack of hired minority group and women, and more, purpose and planning in this thing to be actualization from goodwill of contractor must be directed to repair that weakness simultaniuosly increasing recruit minority group and women in all level and segment of labor who weakness any...”weakness” this definition as kurangnya total labor from minority group and women in a particular job classification compared by estimated from total available labor.
To analysis purpose, we must decompose the ethics problems that appear from policies that mean to prevent someone in order to not implemented discrimination deliberately to other people, with problems that appear from affirmative policy that have purpose to get delegation proportional minority group in business institutions.
DEGREE OF DISCRIMINATION
Whether an institution did discrimination to a perticular group can saw by statistics indicator about how distribution that group member in pertinent institution. first discrimination Indicator appear if contained proportion unbalanced upon a particular group member that hold interested position in an institution without considered preference or their ability. Any three comparison that can proven that distribution : (a) Comparison upon average adventages that give institution to discriminated group with average adventages that given to other group; (b) Comparison upon discriminated group proportion contained in the level of lower job with other group proportion in the same level; and (c) comparison proportion from group member that hold better position with proportion other group in same position.
DISCRIMINATION: UTILITY, RIGHT, AND JUSTICE
Argument that oppose the generally discrimination divisible to be three groups:
Utilitarian Argument
Utilitarian argument that oppose racial and sexual discrimination based on idea that society productivity will be optimum if job given by competence. Different jobs, to this argument, need ability and personality characteristic that different if we want in order to all productively. Moreover, different people too have ability and different personality. So, to ensure in order to job can implemented productively, everything must given to ability of individu and their personality that vary competent to this job.
But, this utilitarian argument expected at two objections. First, if this argument true, so job must be given with based qualification related by job, just if that thing will be increasing society welfare. If society welfare will be better if we given a particular job by based on criteria of needs, so utilitarian argument must fulfill that needs, not job qualification, exactly to give that job.
Second, utilitarian argument must answer too calim their opposition that said society justicely will be get adventages from any a particular sexual discrimination forms. For example, that society will be efficient if women socialized to get personality characteristics that need to managed household (not aggresive, cooperative, full atention, submissive, etc), and man socialized to get personality characteristics that need to get income (aggresive, competitive, clear, stand alone, etc).
Right Argument
Non-utilitarian arguments that oppose racial dan sexual discrimination each of one said that discrimination is wrong because that thing break based moral human right. Kant theory, for example, said that human must be treated as purpose and no just as the way to treated as freedom people and parallel with all other people, and that all individu had oweing correlative moral to treat each of people as freedom individu and on an equal. Discrimination actions break this principle in two ways. First, discrimination based on belief that a particular group reputed lower compared another group. Second, discrimination placed group discriminated in social position and lower economic.
Justice Argument
Second non-utilitarian argument group saw discrimination as fault upon justice principles. For example, John Rawls said that between justice principles that explain”original position”, that more important is right similarity principle to get chance: social dan economic injustice should be adjusted in such a manner so can distribute to available job to all people in condition that high similarity to get chance. Discrimination break this principle with the way closing chance for minority to to occupy a partucular positions in one institution so automatic mean they not get same chance with other people. And the close the chance to compete to get a particular job is not fair, that Rawls said.
Discrimination in job is wrong because break the based justice principle with the way differented people based on a perticular characteristic that not relevant with task must be implemented. The one main problem that faced by this argument is definition exactly what else reputed as relevant aspect to treat people differently and explain why race dan gender aspect reputed not relevant, but other aspects like intelegence or dedication may be reputed relevant.
Practice Discrimination
Between actions that reputed discriminative as follow:
Recruitment, in recruit new employee tend to recruit employee from race or sexual group same with contained in company. Screening, job qualification reputed discriminative if not relevant with job will be implemented. Psychotest or intelegence used to screening applicant will be discriminative process if to disqualification candidates from minority group that can not understand about language, concept, and social situation in this test, but fully qualification to implemented available job. Work interview will be discriminative if interviewer to disqualificated employee candidate with based on stereotype sexual or racial social.
Promotion. Process promotion, work advanced, and transfer said discriminative if company decomposed the evaluation work whites man with employee women and employee from minority group. Policy of promotion called discriminative if the leader give appreisal based on stereotype of racial or sexual.
Job condition. Payment of salary called discriminative if given in not same total for people that do the job is similar.
Fired. Employee fired based on comparison race and gender clearly are discrimination.
Sexual Harassment
At 1978, Equal Employment Opportunity Commision publishes chain of “guidance” to definitioned pelecehan sexual harrassment and determining what according to them as action is break the law. That guidance said:
Undesirable sexual persuasion, demand to walk out relationship, and verbal cantact or other physic that sexual-character are sexual harassment or if (1) attitude submissive to that action explicitly or implicitly multiplied by situation or work requirement of someone, (2) submassive characteristic or ignored to that action used as based to make decision affected to related with individu, or created work environment coloured by cares, hostility attitude, or disdain.
Out of Race and Gender: Other Group
Age Discrimination in Employment Act at 1967 forbids the discrimination to older employee based on Age. Same to Surferers of physical defect now protected by Americans with Disabilities Act at 1990, which forbid the discrimination to them and the company, must accommodate employees and consumer that suffered physical defect. Eventhough older employees and suffered physical defect in any case have law protection to discrimination, but this protection never or often gave to sexual preference employees because of unusual. Nothing of federal law that prohibits discrimination based on sexual oriented, and just few of state have legislation to prohibit gay and transexual discrimination. And so many company applied prohibit policy of recruitment obesity labor.
AFFIRMATIVE ACTION
All discussed policy is channel to”blinded” workers decision to race dan gender aspects. All of that policy is negative: all of them have purpose to prevented farther discrimination. Thereby, that policies ignore the fact because of discrimination ago, women and minority now do not have ability compared by whites man; because of that reason, and then women and minority now not much to representative in prestisius and atracted position.
To stop the effect of discrimination ago, many company implemented affirmative program that mean to achieve distribution representatively in company that give preference to women and minority group. The point of affirmative action program is an detailled survey of all big job classification in company. The Purpose of surveying that to determine the total of women and minority employee in a particular work classification is lower compared that estimated by degree of this group labor available in areas of their recruited. Furthermore comparing the persentase women and minority employee in job classification that available in that area. If analisis utilization show that women and minority labor useless in a particular classification job, so the company need decide the purposes and schedule to repair that things. Affirmative action program used to solve the problems that appear from discrimination ago in employee recruitment process is valid. High court decision at may 19,1986, said that eventhough fired based on race is break the law, but employee recruitment based on race is the valid way according law to repair disadventages from discrimination ago. This affirmative action program generally had criticised of the reason that, the self program have discriminative characterized, either racial or sexual and this prohibit the justice because ignored the principles of right and chance similarity.
Affirmative Action as the Compensation
Arguments that supported affirmative action, as each of one compensation form, based on concept of compensative justice. The compensative justice implied that someone must give compensation to losses people deliberately. Affirmative action program intepreted as each of one indemnitication form ganti rugi yang diberikan kaum kulit putih to kaum women dan group minority because telah merugikan mereka dengan secara not fair mendiscriminationkan mereka dimasa lalu.
Kelemahan argument yang support action affirmative yang based on principle compensation adalah principle ini mensyaratkan compensation just dari individu-individu yang deliberately merugikan people lain, dan memberikan compensation just pada individu–individu yang dirugikan.
Affirmative Action as Instrument to achieve Social Purpose
The second series argument submited to support affirmative action program based on idea that program morally is the valid instrument to achieve purposes and morally valid too. For example utilitarian claimed that affirmative action program justiciable that support or able to increasing society welfare. They said that discrimination ago was created the correlation between race and proverty. Because minority systematicly not have access to prestisius and high salary job, this group to be poor.
This opposition argument said that affirmative action program not fair because distributed adventages with based on unrelevant criteria like race, so utilitarian can answer that needs, not race, is criteria to distribute adventages from affirmative action program. Race is cheapest indicator upon needs because discrimination ago was created the high correlation between races and needs.
The primary barriers that faced by utility of social justification upon affirmative action program, first related problems whether social cost from affirmative cost (like the feeling of frustration had been around by whites workers) biggest than required adventages. Second, oppositioners utilitarian social justification upon affirmative action program asked the assumption that race is exactly needs indicator. Eventhough utilitarian arguments that supported affirmative action program are convinced, but clearly and persuasively argument to support this program can share in two sides. First, they said that expected purpose by affirmative action program is smoothly justice. Second, they said that affirmative action program morally is the valid way to achieve purpose.
The Purpose of affirmative action program expected can achieve by several way. Because job distributed not fairly, because of undistributed by used ability criteria, contribution efforts, or relevant needs. Each of one affirmative action purpose is to distribute adventages and society expense that consist with distributive justice principles, and be able to stop a particular race or gender domination upon important job group. The second purpose adalah to netralized bias (either witing or not) tu secure the same right to get chance to women and minority. The third purpose is to netralized the weakness of competitive that now held by women and minority when they competed by whites man, in order to they can get beginning position awal that same to compete by whites man.
The Purpose of affirmative action program is to create society that more justice where chance of someone unlimited by their race or gender. This purpose morally is valid as far as efforts to get same chance morally still reputed valid. The way where affirmative action program efforts to achieve society purpose justicely is with give preference to qualified women and minority, compared by qualified whites man.
Any three reason asked to show this way unvalid, that is: first, often called that affirmative action program is”discrimination” to whites man. Second, those treatments preferencely break the justice principle because used unrelevant characteristics to make workers decision. Third, a number of critic said that affirmative action program really just made disadventages to women and minority because that program implied that kaum women and minority more inferior compared by whites man so they need particular help in order able to compete each other.
“Out of everything, our country is Believed chain: “we regard as this beliefs as real thing that all human created are same; that we all be blessed by god right that can’t be confiscated by other; between that rights is the right to get life, freedom, and seaching for happiness.” All history can we see as efforts to making real actualization in society life.
Alternative action purpose is given one way to our country to solve gender and race discrimination in order to all people get same chance to developing, implementing, to achieve and give contribution. Alternative action is efforts to develop a systematic approach to open mindset at sector education, employment, dan developing business opportunity to potential individu and intuitively to be member groups that a long time has discrimination.
Any people that honest and believe that alternative action always directed to group preference compared individu goodness; alternative action always directed to discrimination in the end condescend people that get adventages from him and discriminated another.
Pete Wilson, governor of California, give the response to the president in a reception to support the rule that mean to stop alternative action programs, this called as preference treatment.
Thomas Jeferson firstly to overview the USA purpose more than two hundred yaers ago when said:”Similarity right to all people and nothing special.” Efforts to achieve that purpose had been successful for USA since 1776.
But now the base principle of similarity right middle America damaged by a system preferential treatment that determine the job, public contract, and position in university not based on goodness and performance, but at group members who determined according to race, ethnic, or gender. That not true. That not fair. And according to the definition, that are discrimination.
Our liability to society is not to ignore injustice and pretended asa if that nothing. We have payable at leadership and personality to change what wrong and their solution. The question is not, how we justified preference based on race or gender? But, how we determine the compass of our moral and back to the justice way and similarity right in law.
The controversion appears on the subject of affliction yang had been around minority, treatment not fair to women, and the losses concequency had been around whites man because of preference to women and minority.
CHARACTERISTIC OF JOB DISCRIMINATION
The base mean from discrimination terminology is”differentiation one objek from another objek,” one action morally is netral and can not reproofable. But, in modern meaning, this terminology morally non-netral: because usually refer to action differentiation someone from other people not based on they superiority, but based on prejudice or atitude that morally is bad. Discrimination in employment engaging three base element: first, decision that making an employee losses or more because not based on their ability, for example in implementation a perticular job, seniority, or qualifications that morally reputed by other are valid. Second, decision fully taken based on prejudice racial or sexual, wrong stereotype or other attitudes that morally not true to a perticular group member.where that employee come. Third, decision has negative influence or harmful to interested employee, may be incurring they job gone, chance get promotion, or good salary.
Form of Discrimination: Aspect Deliberateness and Aspect Institutional
One framework that quite useful to analysis vary form of discrimination can made with differentiated degree of where action discriminative did secara seliberately and separate with degree of where that action occurs intuitively and institutionalized. First, action discriminative may be part of separate behavior from someone that deliberately and aware do discrimination because any privacy prejudice. Second, action may be part of routine behavior from the institutionalized group, that deliberately and aware do discrimination based on privacy prejudice of their members. Third, discriminative action may be part of separate behavior from someone who intuitively and unaware do discrimination to other people because she/he accepted and implemented practices and traditional stereotype from their society. Fourth, discriminative action may be part of systematic routine from organization/company or group intuitively included the formal procedures that made discrimination to women and minority.
At recent century, occurs one changing that emphizing very important to see melihat discrimination just as problem that deliberately and individual toward emphizing that see discrimination as something systematic, and should not deliberately, from company behavior. Section VII from Civil Rights Act (1964) said: is practice employment that break the law if enterpreneur (1) failed or reject employing, or fired someone, or do discrimination to anyone in decide the compensation, requirement, condition, or rights employment with based on race, colour of skin, religion, gender, or the individu come from; (2) limitation, decomposed, or made employee group or workj seeker in anyway to decreasing or tend to decreasing the someone chance or other thing that can influence to their status as employee based on race, colour of skin, gender, or their come from.
To beginning 1970, the termination discrimination used generally to show the differentiation between delegations of minority group in cross-fungtional staf of company, either deliberately differentiation or intuitively.
Guidance book of labor Department [USA] declared at 1970 to enterpreneurs said: Affirmative action program that accepted must enclose analysis upon sector where contractor reputed lack of hired minority group and women, and more, purpose and planning in this thing to be actualization from goodwill of contractor must be directed to repair that weakness simultaniuosly increasing recruit minority group and women in all level and segment of labor who weakness any...”weakness” this definition as kurangnya total labor from minority group and women in a particular job classification compared by estimated from total available labor.
To analysis purpose, we must decompose the ethics problems that appear from policies that mean to prevent someone in order to not implemented discrimination deliberately to other people, with problems that appear from affirmative policy that have purpose to get delegation proportional minority group in business institutions.
DEGREE OF DISCRIMINATION
Whether an institution did discrimination to a perticular group can saw by statistics indicator about how distribution that group member in pertinent institution. first discrimination Indicator appear if contained proportion unbalanced upon a particular group member that hold interested position in an institution without considered preference or their ability. Any three comparison that can proven that distribution : (a) Comparison upon average adventages that give institution to discriminated group with average adventages that given to other group; (b) Comparison upon discriminated group proportion contained in the level of lower job with other group proportion in the same level; and (c) comparison proportion from group member that hold better position with proportion other group in same position.
DISCRIMINATION: UTILITY, RIGHT, AND JUSTICE
Argument that oppose the generally discrimination divisible to be three groups:
Utilitarian Argument
Utilitarian argument that oppose racial and sexual discrimination based on idea that society productivity will be optimum if job given by competence. Different jobs, to this argument, need ability and personality characteristic that different if we want in order to all productively. Moreover, different people too have ability and different personality. So, to ensure in order to job can implemented productively, everything must given to ability of individu and their personality that vary competent to this job.
But, this utilitarian argument expected at two objections. First, if this argument true, so job must be given with based qualification related by job, just if that thing will be increasing society welfare. If society welfare will be better if we given a particular job by based on criteria of needs, so utilitarian argument must fulfill that needs, not job qualification, exactly to give that job.
Second, utilitarian argument must answer too calim their opposition that said society justicely will be get adventages from any a particular sexual discrimination forms. For example, that society will be efficient if women socialized to get personality characteristics that need to managed household (not aggresive, cooperative, full atention, submissive, etc), and man socialized to get personality characteristics that need to get income (aggresive, competitive, clear, stand alone, etc).
Right Argument
Non-utilitarian arguments that oppose racial dan sexual discrimination each of one said that discrimination is wrong because that thing break based moral human right. Kant theory, for example, said that human must be treated as purpose and no just as the way to treated as freedom people and parallel with all other people, and that all individu had oweing correlative moral to treat each of people as freedom individu and on an equal. Discrimination actions break this principle in two ways. First, discrimination based on belief that a particular group reputed lower compared another group. Second, discrimination placed group discriminated in social position and lower economic.
Justice Argument
Second non-utilitarian argument group saw discrimination as fault upon justice principles. For example, John Rawls said that between justice principles that explain”original position”, that more important is right similarity principle to get chance: social dan economic injustice should be adjusted in such a manner so can distribute to available job to all people in condition that high similarity to get chance. Discrimination break this principle with the way closing chance for minority to to occupy a partucular positions in one institution so automatic mean they not get same chance with other people. And the close the chance to compete to get a particular job is not fair, that Rawls said.
Discrimination in job is wrong because break the based justice principle with the way differented people based on a perticular characteristic that not relevant with task must be implemented. The one main problem that faced by this argument is definition exactly what else reputed as relevant aspect to treat people differently and explain why race dan gender aspect reputed not relevant, but other aspects like intelegence or dedication may be reputed relevant.
Practice Discrimination
Between actions that reputed discriminative as follow:
Recruitment, in recruit new employee tend to recruit employee from race or sexual group same with contained in company. Screening, job qualification reputed discriminative if not relevant with job will be implemented. Psychotest or intelegence used to screening applicant will be discriminative process if to disqualification candidates from minority group that can not understand about language, concept, and social situation in this test, but fully qualification to implemented available job. Work interview will be discriminative if interviewer to disqualificated employee candidate with based on stereotype sexual or racial social.
Promotion. Process promotion, work advanced, and transfer said discriminative if company decomposed the evaluation work whites man with employee women and employee from minority group. Policy of promotion called discriminative if the leader give appreisal based on stereotype of racial or sexual.
Job condition. Payment of salary called discriminative if given in not same total for people that do the job is similar.
Fired. Employee fired based on comparison race and gender clearly are discrimination.
Sexual Harassment
At 1978, Equal Employment Opportunity Commision publishes chain of “guidance” to definitioned pelecehan sexual harrassment and determining what according to them as action is break the law. That guidance said:
Undesirable sexual persuasion, demand to walk out relationship, and verbal cantact or other physic that sexual-character are sexual harassment or if (1) attitude submissive to that action explicitly or implicitly multiplied by situation or work requirement of someone, (2) submassive characteristic or ignored to that action used as based to make decision affected to related with individu, or created work environment coloured by cares, hostility attitude, or disdain.
Out of Race and Gender: Other Group
Age Discrimination in Employment Act at 1967 forbids the discrimination to older employee based on Age. Same to Surferers of physical defect now protected by Americans with Disabilities Act at 1990, which forbid the discrimination to them and the company, must accommodate employees and consumer that suffered physical defect. Eventhough older employees and suffered physical defect in any case have law protection to discrimination, but this protection never or often gave to sexual preference employees because of unusual. Nothing of federal law that prohibits discrimination based on sexual oriented, and just few of state have legislation to prohibit gay and transexual discrimination. And so many company applied prohibit policy of recruitment obesity labor.
AFFIRMATIVE ACTION
All discussed policy is channel to”blinded” workers decision to race dan gender aspects. All of that policy is negative: all of them have purpose to prevented farther discrimination. Thereby, that policies ignore the fact because of discrimination ago, women and minority now do not have ability compared by whites man; because of that reason, and then women and minority now not much to representative in prestisius and atracted position.
To stop the effect of discrimination ago, many company implemented affirmative program that mean to achieve distribution representatively in company that give preference to women and minority group. The point of affirmative action program is an detailled survey of all big job classification in company. The Purpose of surveying that to determine the total of women and minority employee in a particular work classification is lower compared that estimated by degree of this group labor available in areas of their recruited. Furthermore comparing the persentase women and minority employee in job classification that available in that area. If analisis utilization show that women and minority labor useless in a particular classification job, so the company need decide the purposes and schedule to repair that things. Affirmative action program used to solve the problems that appear from discrimination ago in employee recruitment process is valid. High court decision at may 19,1986, said that eventhough fired based on race is break the law, but employee recruitment based on race is the valid way according law to repair disadventages from discrimination ago. This affirmative action program generally had criticised of the reason that, the self program have discriminative characterized, either racial or sexual and this prohibit the justice because ignored the principles of right and chance similarity.
Affirmative Action as the Compensation
Arguments that supported affirmative action, as each of one compensation form, based on concept of compensative justice. The compensative justice implied that someone must give compensation to losses people deliberately. Affirmative action program intepreted as each of one indemnitication form ganti rugi yang diberikan kaum kulit putih to kaum women dan group minority because telah merugikan mereka dengan secara not fair mendiscriminationkan mereka dimasa lalu.
Kelemahan argument yang support action affirmative yang based on principle compensation adalah principle ini mensyaratkan compensation just dari individu-individu yang deliberately merugikan people lain, dan memberikan compensation just pada individu–individu yang dirugikan.
Affirmative Action as Instrument to achieve Social Purpose
The second series argument submited to support affirmative action program based on idea that program morally is the valid instrument to achieve purposes and morally valid too. For example utilitarian claimed that affirmative action program justiciable that support or able to increasing society welfare. They said that discrimination ago was created the correlation between race and proverty. Because minority systematicly not have access to prestisius and high salary job, this group to be poor.
This opposition argument said that affirmative action program not fair because distributed adventages with based on unrelevant criteria like race, so utilitarian can answer that needs, not race, is criteria to distribute adventages from affirmative action program. Race is cheapest indicator upon needs because discrimination ago was created the high correlation between races and needs.
The primary barriers that faced by utility of social justification upon affirmative action program, first related problems whether social cost from affirmative cost (like the feeling of frustration had been around by whites workers) biggest than required adventages. Second, oppositioners utilitarian social justification upon affirmative action program asked the assumption that race is exactly needs indicator. Eventhough utilitarian arguments that supported affirmative action program are convinced, but clearly and persuasively argument to support this program can share in two sides. First, they said that expected purpose by affirmative action program is smoothly justice. Second, they said that affirmative action program morally is the valid way to achieve purpose.
The Purpose of affirmative action program expected can achieve by several way. Because job distributed not fairly, because of undistributed by used ability criteria, contribution efforts, or relevant needs. Each of one affirmative action purpose is to distribute adventages and society expense that consist with distributive justice principles, and be able to stop a particular race or gender domination upon important job group. The second purpose adalah to netralized bias (either witing or not) tu secure the same right to get chance to women and minority. The third purpose is to netralized the weakness of competitive that now held by women and minority when they competed by whites man, in order to they can get beginning position awal that same to compete by whites man.
The Purpose of affirmative action program is to create society that more justice where chance of someone unlimited by their race or gender. This purpose morally is valid as far as efforts to get same chance morally still reputed valid. The way where affirmative action program efforts to achieve society purpose justicely is with give preference to qualified women and minority, compared by qualified whites man.
Any three reason asked to show this way unvalid, that is: first, often called that affirmative action program is”discrimination” to whites man. Second, those treatments preferencely break the justice principle because used unrelevant characteristics to make workers decision. Third, a number of critic said that affirmative action program really just made disadventages to women and minority because that program implied that kaum women and minority more inferior compared by whites man so they need particular help in order able to compete each other.
Selasa, 20 Januari 2009
HONESTY CANTEEN
Now honesty seems to be scarcity of moral. May even exist said in your business don’t trying to fair if you don’t want bankrupt. The Program of Fair Canteen is each of one way to applied Education for anti-corruption. The study of honesty that must be start from school and idea about “Honesty Canteen” is very attracted. That proven until more faster this idea about “Honesty Canteen” adopted anywhere and assumed as a solution to educate Indonesian people that famous in business corruption. This Program to be part of lesson about education of Anti-corruption that adopted from school curriculum. The Program of fair canteen that popular by Komisi Pemberantasan Korupsi (KPK) Republic of Indonesia is the pioneering work to rising generation of nation to treat the fair way. The motion in education of anti-corruption began followed in another place, in government and private institution, in fact in university in order to student and their lecturer always high adoration of ethics and academic honesty. Until now was build more than thousand fair canteen in whole Indonesia each of ones in the Nanggroe Aceh Darussalam at SMA Negeri 2 Banda Aceh. Students now starting education about honesty, so in the future to be honorable society that not efforts carry away or snatch the other property. Indonesia was have a lot of corruptor. So this idea reputed as the exactly way to educate students so in the future is not growth to be corruptor. Therefore, students must educate to fair-disposed and the important thing is given the believe that they are the rising generation of nation.
This Canteen not similarly like generally canteen that using casher or stand security to transaction either purchase and sale or payment, fair canteen that opened did have shopkeeper. The phenomenon that attract because this canteen left with unsecured called self-service. The Transaction did only through the money box that available there. Every student pay appropriate with the goods purchased and take the withdrawal appropriate with the amounts. In fact if it cans payable, they just writing in the available note. The result is very effective, because now degree of transaction honesty in the fair canteen was began filled by school side. The customer that enters to the canteen just put the money at the available box in there. The money safe in that box appropriate with price that appears at merchandise inventory.
About Reporting should be conveyed by school side either profit or loss to attorney general, so expected the both can to follow-up with giving workshop about the value of honesty. Education for honesty must be train at now. Honesty canteen is the first step studying early on toward the better future, developed shying culture, starts at now fair-disposed, for to avoid corruption at t now. The Fair culture must plant at now. The fairness must plant in our heart. So in the future, the rising generation can built the new civilization with honesty. In fact, firstly may be needed probation officer. If any people not fair, they called by officer and bring them to the education guidance teacher or give punishment that can change their behavior.
To Plant fair-disposed for children must teach at now in order to be their habit. But, because of that any assumption that the fair canteen program is very difficult to be aimed, so many appear fraud. In other hand, that thing needed more appreciation because began appear the serious steps from schools to start the anti-corruption motion with make this fair canteen. The best study is when the knowledge acquired and directly applied, so the education of anti-corruption did directly in te honesty canteen, actually this way is very simple, but capable to plant the fair-disposed to the students. Then can too increase the belief to the Allah SWT. Because that canteen always protected by Allah SWT, actually eventough doesn’t have human protection still by Allah SWT control.
This method not yet effective if don’t have together commitment from all side in the school to be success. All side must be aware early about how important this program and the students need planted scare-disposed about the consequence from their wrong treat. This must be commitment of all side. This canteen neither unrequired the barriers. In order to keep exist, the honesty canteen needed commitments and supports from all side include routine socialization. Like in the school, any involvement leaders, teachers, and class of guardian, cooperation officers as well as canteen officer are much needed. To plant the value of honesty that education-disposed certain in that process of honesty canteen would be much have challenges and barriers, like acknowledgement of fair canteen officer, They cant monitor cash turnover in the box that was available because of the system of honesty canteen without monitor officer. Regarding of that problem, had indication that the target planting the value of honesty around of student not achieved. To solve needed gradually evaluation toward the efforts of this program. This Evaluation would search the data from officer that how many student doesn’t fair when shopping, then give the concrete of loss data suffered by canteen officer. After that looked for the good solution together about the problem based on the data. Endthen make a new program as a follow-up.
The accepted result from fair canteen program have variation, any give thanks to god because of after open until now, everything walk appropriate with the planning. In fact, based on the report from officer never had unfavorable variety. It means the sign that honesty canteen had good response by student. In practically, student will be buying in the school canteen with self-service. The canteen isn’t protection, so they given believe to pay and take their need themselves.
And any event when launching twenty days ago then bankrupt. Because of, beginning capital that available from committee and expected can prevent corruption at now is not come back. Beginning capital amount Rp1.500.000, now left Rp. 90.000. The consequence, Honesty canteen must closed temporary for uncertainty limit time.
Another factor that makes manager cant doing-well is about human power. The officer must extra work to calculate before and after the canteen opened, all of merchandise inventory. This work needs extra power and time. Without mentioning, the acquired money must be calculated carefully. Because of the students paid aren’t discriminating between paper currency and coin. All mixed to be one with different nominal. The avoid way from the loss is make similar price like, everything Rp 500, everything Rp 1.000, or everything 2.000, to make easier withdrawal. In the money box usually describe should be pay on price. Student often not put the money because of there not have withdrawal. The primarily reason is lack of awareness buyer. Second, buyers usual get service. When the must self-service to be nervous. The consequences often wrong calculation of money to pay or when take withdrawal.
This Canteen not similarly like generally canteen that using casher or stand security to transaction either purchase and sale or payment, fair canteen that opened did have shopkeeper. The phenomenon that attract because this canteen left with unsecured called self-service. The Transaction did only through the money box that available there. Every student pay appropriate with the goods purchased and take the withdrawal appropriate with the amounts. In fact if it cans payable, they just writing in the available note. The result is very effective, because now degree of transaction honesty in the fair canteen was began filled by school side. The customer that enters to the canteen just put the money at the available box in there. The money safe in that box appropriate with price that appears at merchandise inventory.
About Reporting should be conveyed by school side either profit or loss to attorney general, so expected the both can to follow-up with giving workshop about the value of honesty. Education for honesty must be train at now. Honesty canteen is the first step studying early on toward the better future, developed shying culture, starts at now fair-disposed, for to avoid corruption at t now. The Fair culture must plant at now. The fairness must plant in our heart. So in the future, the rising generation can built the new civilization with honesty. In fact, firstly may be needed probation officer. If any people not fair, they called by officer and bring them to the education guidance teacher or give punishment that can change their behavior.
To Plant fair-disposed for children must teach at now in order to be their habit. But, because of that any assumption that the fair canteen program is very difficult to be aimed, so many appear fraud. In other hand, that thing needed more appreciation because began appear the serious steps from schools to start the anti-corruption motion with make this fair canteen. The best study is when the knowledge acquired and directly applied, so the education of anti-corruption did directly in te honesty canteen, actually this way is very simple, but capable to plant the fair-disposed to the students. Then can too increase the belief to the Allah SWT. Because that canteen always protected by Allah SWT, actually eventough doesn’t have human protection still by Allah SWT control.
This method not yet effective if don’t have together commitment from all side in the school to be success. All side must be aware early about how important this program and the students need planted scare-disposed about the consequence from their wrong treat. This must be commitment of all side. This canteen neither unrequired the barriers. In order to keep exist, the honesty canteen needed commitments and supports from all side include routine socialization. Like in the school, any involvement leaders, teachers, and class of guardian, cooperation officers as well as canteen officer are much needed. To plant the value of honesty that education-disposed certain in that process of honesty canteen would be much have challenges and barriers, like acknowledgement of fair canteen officer, They cant monitor cash turnover in the box that was available because of the system of honesty canteen without monitor officer. Regarding of that problem, had indication that the target planting the value of honesty around of student not achieved. To solve needed gradually evaluation toward the efforts of this program. This Evaluation would search the data from officer that how many student doesn’t fair when shopping, then give the concrete of loss data suffered by canteen officer. After that looked for the good solution together about the problem based on the data. Endthen make a new program as a follow-up.
The accepted result from fair canteen program have variation, any give thanks to god because of after open until now, everything walk appropriate with the planning. In fact, based on the report from officer never had unfavorable variety. It means the sign that honesty canteen had good response by student. In practically, student will be buying in the school canteen with self-service. The canteen isn’t protection, so they given believe to pay and take their need themselves.
And any event when launching twenty days ago then bankrupt. Because of, beginning capital that available from committee and expected can prevent corruption at now is not come back. Beginning capital amount Rp1.500.000, now left Rp. 90.000. The consequence, Honesty canteen must closed temporary for uncertainty limit time.
Another factor that makes manager cant doing-well is about human power. The officer must extra work to calculate before and after the canteen opened, all of merchandise inventory. This work needs extra power and time. Without mentioning, the acquired money must be calculated carefully. Because of the students paid aren’t discriminating between paper currency and coin. All mixed to be one with different nominal. The avoid way from the loss is make similar price like, everything Rp 500, everything Rp 1.000, or everything 2.000, to make easier withdrawal. In the money box usually describe should be pay on price. Student often not put the money because of there not have withdrawal. The primarily reason is lack of awareness buyer. Second, buyers usual get service. When the must self-service to be nervous. The consequences often wrong calculation of money to pay or when take withdrawal.
PAPER FOURTH GROUP
Business Ethics
by
Group 4:
Nurfajrina (0611310046)
Tria marissa (0611310056)
Ryan novrian (0611310083)
ACCOUNTING DEPARTMENT
EKONOMIC FACULTY SYIAH KUALA UNIVERSITY
DARUSSALAM – BANDA ACEH
2008
CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL REPORTING
A. IS THERE A SOCIAL RESPONSIBILITY OF BUSINESS?
The first article in this section by Milton Friedman is perhaps the best known argument for a purely profit-based social responsibility of business. Friedman is not ignoring ethical responsibility in his analysis, he is merely suggesting that decision maker are acting ethically if they follow their firm’s self-interest. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. Of course, in some cases his employers may have a different objective.
In either case, the key point is that, in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation or establish the eleemosynary institution and his primary responsibility is to them. Insofar as his action in accord with his “social responsibility” reduce return to stockholders, he is spending their money. Insofar as his action lower the wages of some employees, he is spending their money. The basic reason why the doctrine of “social responsibility” involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses.
B. WHAT IS THE NATURE OF CORPORATE SOCIAL RESPONSIBILITY?
Is profit for the firm the only guiding principle of socially responsible activities, or should the impact of its decision on others be considered, even where the law allow the decision. Philosopher Ayn Rand contends that our one and only social responsibility is to ourselves, but that this concern does not act as a barrier to helping others: The moral purpose of one’s life is the achievement of happiness. This does not mean that he is indifferent t all men, that human life is of no value to him and that he has no reason to help others in an emergency-but it does mean that he does not subordinate his life to the welfare of others, that he does not sacrifice himself to their needs, that the relief of his suffering is not his primary concern, that any help he gives is an act of generosity not of moral duty.
C. IN THE END, DOES GOOD ETHICS MEAN GOD BUSINESS?
Previous studies has found both supporting and conflicting result. Professor Ullman summarizes the results of previous empirical studies on the relationship between social and financial performance as follow:
• Seven showed a positive relationship between social and financial performance.
• Three showed a negative relationship between social and financial performance.
• One showed a positive relationship between the promotion of women and financial performance and a negative relationship between charitable contribution and financial performance.
D. IF THERE IS A CORPORATE SOCIAL RESPONSIBILITY, HOW DOES A FIRM EVIDENCE ITS SATISFACTION OF THAT RESPONSIBILITY?
Even in focusing on social reporting, there is no one structure of group of topic for a corporate social report. Through some element are mandatory pursuant to other regulations, such as corporate charitable contributions, pension fund adequacy, employee share ownership scheme and employment data, other information is not otherwise required to be disclosed in the United States. Formal effort at standardized corporate responsibility reporting began in early 1990s. In, 1991 seven companies had published sustainability report, at that time, however much of the report focus was on the environment. The reporting trend has since transformed itself, addressing not only environmental issues, but also economic and social performance. Seven organizations have created processes or standardized reporting structures to assist organizations in quantifying their social reporting as well as in creating benchmark data against which they can gauge their activities and decisions.
• Global Reporting Initiative
Established in 1997, the global reporting initiative (GRI) is foundation-funded program that established a generally accepted sustainability-reporting framework to which corporation adhere. The reporting criterion covers all aspects of a company’s performance, economic, environmental and social.
• Global Sullivan Principles
As opposed to the auditable framework of the GRI, the Global Sullivan Principles comprise a set of internal ethical business operating principles. The Global Sullivan Principles have a tripartite structure that include corporation, higher education and civic involvement. However because the Global Sullivan Principles omit the right to freedom of association as a core labor standard, they lack support from the labor organization community.
• Social Accountability 8000
Created in 1997 by the Social Accountability Institute (SAI) , a not-for-profit, nongovernmental organization, an the Council n Economic Priorities (CEP) , Social Accountability 8000 (SA8000) is a standard based on a commitment to establishing a cross-industry standard for workplace condition and independent verification.
E. MAXIMIZING ETHICS AND PROFIT
Patrick Primeaux offers a practical rejoinder to critics of Friedman, arguing for the possibility of a balance between money and ethics that is based on a theory of profit maximization. Everyone knows that men and women in business are interested in one thing: money. And, as everyone also knows, men and women in business will do anything that has to be done to make money.
The problem for business and business ethics is the equation of business with money, specifically bottom-line accounting profits, and pressure to increase those profits quarterly or annually. That motivating objective is itself reflective of an ethical code. It consists of an ethical principle and demands a certain kind of behavior consistent with that principles. The organization is structured, people are hired, jobs are described, managers are held accountable, raw materials are acquired and technology engaged to increase that bottom-line. Everything and everybody within the company is directed by that profit maximizing principle and expected to conform to its demands.
Opportunity costs are usually defined as the forgone goods ans services that could have been produced from a given set of a scarce resources that was used to produce some other goods and services. Opportunity cost decision making leads to profit-maximization insofar as it recognizes the scarcity of all of its resources and uses those resources as efficiently as possible. To evaluate whether a company is profit-maximizing, then one needs to look beyond bottom-line accounting profits to identify what those profit represent. This perspective commends itself for good business and good business ethics because it originates directly within business theory and practice. It also commend itself because it encourages business to move beyond bottom-line accounting profits to consider people and things not only as valuable for production, but also as valuable in themselves –as scarce resources having value and dignity. It also commends itself because we could then equate good business and good business ethics.
F. THE DIVINE RIGHT OF CAPITAL, Is Maximizing Returns to shareholders a legitimate Mandate?
In response to what she sees as the problems of capitalism -bloated CEO pay, sweatshops, speculative excess to stagnant wages, corporate welfare and environmental indifference- Marjorie Kelly explores the question of whether maximizing shareholder wealth is an appropriate mandate for business. This mandate, she contends, arises from the unconscious belief that property owners matter more than others resulting in an economic aristocracy.
To judge by the current arrangement in corporate Amerika, one might suppose capital creates wealth –which is odd, because a pile of capital sitting there creates nothing. Yet capital -provides (stockholders) lay claim to most wealth that public corporations managed on their behalf. Corporation are believed to exist for one purpose alone : to maximize return to shareholders. This principle is reinforced by CEOs, The Wall Streat Journal, business schools, and the courts. It is the law of the land –much as the difine right of kings was once the law of the land. Indeed, “ maximizing returns to shareholders” is universally accepted as a kind of divine, unchallengeable mandate.
G. GLOBAL CORPORATE CITIZENSHIP,The Leadership Challenge for CEOs and Boards
The following is a join statement by a task force of the World Economic Forum CEOs. The task force recommends a framework for action that chief executives, chairmen, board direction and executive management teams can use to develop a strategy for managing their company’s impact on society and its relationships with stakeholders.
FRAMEWORK FOR ACTION
1. Provide Leadership
Set the strategic direction for corporate citizenship in your company and engage in the wider debate on globalization and the role of business in development.
i. Articulate purpose, principles and values internally and externally
Business leaders play a crucial role in serving as role models and champions by communicating and be having in a manner that is consistent with he company’s state principles, values and purpose.
ii. Promote the “business Case” internally
Business leaders are uniquely placed in highlighting to their employees in a persuasive manner the costs of “getting a wrong” in terms of economic, social and environmental performance and the business and societal benefits of “getting it right”
iii. Engage the financial sector
The shareholder-driven and short-term nature of the financial markets is often cited as an obstacle to social and environmental innovation both within companies and in the market more generally.
2. Define What it Means for Your Company
Define the key issues, stakeholders and spheres of influence which are relevant for corporate citizenship in your company and industry.
i. Define the issues
Corporate citizenship is often talked about in the abstract, but it is fundamentally concerned with real and compelling issues. They will vary in nature and importance from industry to industry and location to location.
ii. Agree on Company’s spheres of influence
Companies and business leaders have different spheres of influence, where they have different levels of authority and ability to manage their impacts and to influence the actions of their own employees, stakeholders and others.
iii. Identify key stakeholders
As with issues and spheres of influence, a company’s stakeholders will fall into similar broad categories, with variation depending on industry sector and other circumstances :
Investor, customers and employees are important stakeholders for almost all companies.
Other stakeholders may or may not be important depending on the company and industry sector.
3. Make it Happen
i. Put Corporate Citizenship on Board Agenda
ii. Establish Internal Performance, Communication, Incentive and Measurement Systems
iii. Engage in dialogue and partnership
Managers at all levels of the company are important intermediaries in building opportunities for productive dialogue and partnership.
iv. Encourage Innovation and Creativity
Innovative new technologies, products and services can help to address many environmental and social challenges. By creating incentives and support for social and eco-innovation inside the company and encouraging external partnership with relevant innovators, researchers and customers, business leaders can help to provide a framework for new product development that meets business objectives.
v. Built the Next Generation of Business Leaders
Leadership development is an important element of “making it happen” and today’s business leaders play a vital role in helping t develop tomorrow’s.
4. Be Transparent About it
Build confidence by communicating consistently with different stakeholders about the company’s principles, policies and practices in a transparent manner, within the bounds of commercial confidentiality.
i. Agree what and how to measure
In most companies communication efforts are initially to identify what to measure and how to measure it, in consultation with employees and key business partners, but in some companies also in consultation with external stakeholders.
ii. Develop a graduated program for external reporting
Once the company has decided how best to evaluate its progress against the issues or stakeholders identified as being important, senior management has a role to play in communicating this externally and in ensuring that such communication is regular and consistent
iii. Be realistic
Executive management teams play an important role in setting the pace and managing expectations by agreeing on clear strategies, timetables or roadmaps for implementing the company’s evolving commitments to corporate citizenship.
The Case For Action
For most leaders there is a compelling case for taking action on issues relating to global corporate citizenship :
• First, an individual business case, that in today’s world good corporate citizenship make sound business sense.
• Second, a broder case, that business prospers in societies that are prosperous.
H. REPUTATION QUOTIENT (RQ)
The Reputation Quotient is designed to help identify the relative placement of your company’s reputation among competitors in the market place. The Reputation Quotient developed by Harris Interactive and Professor Charles Fombrun of New York University’s Stern School of Business and Executive Director of the Reputation Institute. The Reputation Quotient to leverage your reputation‘s advantage based on six dimension that are :
1. Emotional Appeal
How much the company is liked, admired and respected.
2. Products and Services
Perception of the quality, innovation, value and reliability of the company’s product and services.
3. Financial Performance
Perception of the company’s competitiveness, profitability, growth, prospects, and risk.
4. Vision and Leadership
How much the company demonstrates a clear vision, strong, and an ability to recognize and capitalize on market opportunity.
5. Workplace Environment
Perceptions of how well the company is managed, what it’s like to work there and the quality of its employees.
6. Social Responsibility
Perceptions of the company as having high standards in its dealing with people, good causes and the environment.
The Reputation Quotient was tempted through two phases during July 1999 and August 1999. In phase 1, Data conducted by online and telephone interviews with 4500 respondents throughout the U.S. Respondents were asked to nominate the companies they believed to have the best and worth reputations. In phase 2, another 10830 respondents provided detailed ratings of the 30 best regarded companies and a control group of 10 other companies. The Reputation Quotient scores for each company based on respondent ratings comprising the six dimension of reputation. In comparing any two scores, a difference of 1.96 would be considered significantly different at the 90% confidence level.
I. MARKETING GOOD CORPORATE CONDUCT
Marketing products may not be particularly harmful so long as individuals are aware of such practices and able to make well-reasoned decisions concerning the effects of such campaign upon their purchasing decisions. But such practices are much more serious when used to promote purported good corporate conduct. So, important that companies which engage in the marketing of good corporate conduct make every effort to ensure that consumers are granted access to relevant information and that outside audits with respect to the good corporate conduct marketed are available. This is likely one of the only ways to ensure that the benefits of moral praise garnered by making moral praiseworthiness of corporate actions more widely known through marketing strategies are in fact justly deserved.
J. TITHING PROGRAM
According to Charles Stoddard, the chairman and CEO of the Grand Rapids, if the company used Tithing program so would be get three advantages he called “triple win” that are : The charity received an unsolicited donation, the stockholders received recognition for designating the donation, and the bank received a tax-deduction.
K. REPORTING INITIATIVE
Potential benefits of reporting in the business community :
1. Reporting and measuring both past and anticipated performance is a critical management tool in today’s high speed to be effective management.
2. Reporting is a key ingredient to building, sustaining, and continually refining stakeholder engagement. Reports can help communicate an organization’s economic, environmental, and social opportunities and challenges in a way far superior to simply responding to stakeholder information requests.
3. Transparency and open dialogue about performance, priorities, and future sustainability plans help to strengthen these partnerships and to build trust.
4. Sustainability reporting is a vehicle for linking typically discrete and insular functions of the corporation in a more strategic manner.
5. Reporting helps management evaluate potentially damaging developments before they develop into unwelcome surprises.
6. Sustainability reporting helps sharpen management’s ability to assess the organization’s contribution to natural, human and social capital. Reporting helps highlight the societal and ecological contributions of the organization and the “sustainability value proposition” of its products and services.
7. Sustainability reporting may reduce volatility and uncertainty in share price for publicly traded enterprises, as well as reducing the cost of capital.
The Global Reporting Initiative comprise of three sections contain the reporting elements and performance indicators for the Global Reporting Initiative Guideline, That are :
1. Vision and Strategy
This section encompasses a statement of the reporting organization’s sustainability vision and strategy, as well as a statement from the CEO. Statement of the organization’s vision and strategy regarding its contribution to sustainable development. Present overall vision of the reporting organization for its future, particularly with regard to managing the challenges associated with economic, environmental and social performance. Statement from CEO sets the tone of the report and establishes credibility with internal and external users.
2. Profile
This section provides an overview of the reporting organization and describes the scope of the report. Thus, it provides readers with a context for outstanding and evaluating information in the rest of the report. This section also includes organizational contact information.
3. Governance Structure and Management Systems
This section provides an overview of the governance structure, overarching policies ands management systems in place to implement the reporting organization’s vision for sustainable development and to manage its performance. The global reporting initiative is sensitive to the need to avoid unnecessary duplication of effort. However, for the sake of ensuring full and complete contextual information for users of sustainability reports, it is important to cover the items listed below in combination with other information on the organization’s economic, environmental and social performance.
by
Group 4:
Nurfajrina (0611310046)
Tria marissa (0611310056)
Ryan novrian (0611310083)
ACCOUNTING DEPARTMENT
EKONOMIC FACULTY SYIAH KUALA UNIVERSITY
DARUSSALAM – BANDA ACEH
2008
CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL REPORTING
A. IS THERE A SOCIAL RESPONSIBILITY OF BUSINESS?
The first article in this section by Milton Friedman is perhaps the best known argument for a purely profit-based social responsibility of business. Friedman is not ignoring ethical responsibility in his analysis, he is merely suggesting that decision maker are acting ethically if they follow their firm’s self-interest. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. Of course, in some cases his employers may have a different objective.
In either case, the key point is that, in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation or establish the eleemosynary institution and his primary responsibility is to them. Insofar as his action in accord with his “social responsibility” reduce return to stockholders, he is spending their money. Insofar as his action lower the wages of some employees, he is spending their money. The basic reason why the doctrine of “social responsibility” involves the acceptance of the socialist view that political mechanisms, not market mechanisms, are the appropriate way to determine the allocation of scarce resources to alternative uses.
B. WHAT IS THE NATURE OF CORPORATE SOCIAL RESPONSIBILITY?
Is profit for the firm the only guiding principle of socially responsible activities, or should the impact of its decision on others be considered, even where the law allow the decision. Philosopher Ayn Rand contends that our one and only social responsibility is to ourselves, but that this concern does not act as a barrier to helping others: The moral purpose of one’s life is the achievement of happiness. This does not mean that he is indifferent t all men, that human life is of no value to him and that he has no reason to help others in an emergency-but it does mean that he does not subordinate his life to the welfare of others, that he does not sacrifice himself to their needs, that the relief of his suffering is not his primary concern, that any help he gives is an act of generosity not of moral duty.
C. IN THE END, DOES GOOD ETHICS MEAN GOD BUSINESS?
Previous studies has found both supporting and conflicting result. Professor Ullman summarizes the results of previous empirical studies on the relationship between social and financial performance as follow:
• Seven showed a positive relationship between social and financial performance.
• Three showed a negative relationship between social and financial performance.
• One showed a positive relationship between the promotion of women and financial performance and a negative relationship between charitable contribution and financial performance.
D. IF THERE IS A CORPORATE SOCIAL RESPONSIBILITY, HOW DOES A FIRM EVIDENCE ITS SATISFACTION OF THAT RESPONSIBILITY?
Even in focusing on social reporting, there is no one structure of group of topic for a corporate social report. Through some element are mandatory pursuant to other regulations, such as corporate charitable contributions, pension fund adequacy, employee share ownership scheme and employment data, other information is not otherwise required to be disclosed in the United States. Formal effort at standardized corporate responsibility reporting began in early 1990s. In, 1991 seven companies had published sustainability report, at that time, however much of the report focus was on the environment. The reporting trend has since transformed itself, addressing not only environmental issues, but also economic and social performance. Seven organizations have created processes or standardized reporting structures to assist organizations in quantifying their social reporting as well as in creating benchmark data against which they can gauge their activities and decisions.
• Global Reporting Initiative
Established in 1997, the global reporting initiative (GRI) is foundation-funded program that established a generally accepted sustainability-reporting framework to which corporation adhere. The reporting criterion covers all aspects of a company’s performance, economic, environmental and social.
• Global Sullivan Principles
As opposed to the auditable framework of the GRI, the Global Sullivan Principles comprise a set of internal ethical business operating principles. The Global Sullivan Principles have a tripartite structure that include corporation, higher education and civic involvement. However because the Global Sullivan Principles omit the right to freedom of association as a core labor standard, they lack support from the labor organization community.
• Social Accountability 8000
Created in 1997 by the Social Accountability Institute (SAI) , a not-for-profit, nongovernmental organization, an the Council n Economic Priorities (CEP) , Social Accountability 8000 (SA8000) is a standard based on a commitment to establishing a cross-industry standard for workplace condition and independent verification.
E. MAXIMIZING ETHICS AND PROFIT
Patrick Primeaux offers a practical rejoinder to critics of Friedman, arguing for the possibility of a balance between money and ethics that is based on a theory of profit maximization. Everyone knows that men and women in business are interested in one thing: money. And, as everyone also knows, men and women in business will do anything that has to be done to make money.
The problem for business and business ethics is the equation of business with money, specifically bottom-line accounting profits, and pressure to increase those profits quarterly or annually. That motivating objective is itself reflective of an ethical code. It consists of an ethical principle and demands a certain kind of behavior consistent with that principles. The organization is structured, people are hired, jobs are described, managers are held accountable, raw materials are acquired and technology engaged to increase that bottom-line. Everything and everybody within the company is directed by that profit maximizing principle and expected to conform to its demands.
Opportunity costs are usually defined as the forgone goods ans services that could have been produced from a given set of a scarce resources that was used to produce some other goods and services. Opportunity cost decision making leads to profit-maximization insofar as it recognizes the scarcity of all of its resources and uses those resources as efficiently as possible. To evaluate whether a company is profit-maximizing, then one needs to look beyond bottom-line accounting profits to identify what those profit represent. This perspective commends itself for good business and good business ethics because it originates directly within business theory and practice. It also commend itself because it encourages business to move beyond bottom-line accounting profits to consider people and things not only as valuable for production, but also as valuable in themselves –as scarce resources having value and dignity. It also commends itself because we could then equate good business and good business ethics.
F. THE DIVINE RIGHT OF CAPITAL, Is Maximizing Returns to shareholders a legitimate Mandate?
In response to what she sees as the problems of capitalism -bloated CEO pay, sweatshops, speculative excess to stagnant wages, corporate welfare and environmental indifference- Marjorie Kelly explores the question of whether maximizing shareholder wealth is an appropriate mandate for business. This mandate, she contends, arises from the unconscious belief that property owners matter more than others resulting in an economic aristocracy.
To judge by the current arrangement in corporate Amerika, one might suppose capital creates wealth –which is odd, because a pile of capital sitting there creates nothing. Yet capital -provides (stockholders) lay claim to most wealth that public corporations managed on their behalf. Corporation are believed to exist for one purpose alone : to maximize return to shareholders. This principle is reinforced by CEOs, The Wall Streat Journal, business schools, and the courts. It is the law of the land –much as the difine right of kings was once the law of the land. Indeed, “ maximizing returns to shareholders” is universally accepted as a kind of divine, unchallengeable mandate.
G. GLOBAL CORPORATE CITIZENSHIP,The Leadership Challenge for CEOs and Boards
The following is a join statement by a task force of the World Economic Forum CEOs. The task force recommends a framework for action that chief executives, chairmen, board direction and executive management teams can use to develop a strategy for managing their company’s impact on society and its relationships with stakeholders.
FRAMEWORK FOR ACTION
1. Provide Leadership
Set the strategic direction for corporate citizenship in your company and engage in the wider debate on globalization and the role of business in development.
i. Articulate purpose, principles and values internally and externally
Business leaders play a crucial role in serving as role models and champions by communicating and be having in a manner that is consistent with he company’s state principles, values and purpose.
ii. Promote the “business Case” internally
Business leaders are uniquely placed in highlighting to their employees in a persuasive manner the costs of “getting a wrong” in terms of economic, social and environmental performance and the business and societal benefits of “getting it right”
iii. Engage the financial sector
The shareholder-driven and short-term nature of the financial markets is often cited as an obstacle to social and environmental innovation both within companies and in the market more generally.
2. Define What it Means for Your Company
Define the key issues, stakeholders and spheres of influence which are relevant for corporate citizenship in your company and industry.
i. Define the issues
Corporate citizenship is often talked about in the abstract, but it is fundamentally concerned with real and compelling issues. They will vary in nature and importance from industry to industry and location to location.
ii. Agree on Company’s spheres of influence
Companies and business leaders have different spheres of influence, where they have different levels of authority and ability to manage their impacts and to influence the actions of their own employees, stakeholders and others.
iii. Identify key stakeholders
As with issues and spheres of influence, a company’s stakeholders will fall into similar broad categories, with variation depending on industry sector and other circumstances :
Investor, customers and employees are important stakeholders for almost all companies.
Other stakeholders may or may not be important depending on the company and industry sector.
3. Make it Happen
i. Put Corporate Citizenship on Board Agenda
ii. Establish Internal Performance, Communication, Incentive and Measurement Systems
iii. Engage in dialogue and partnership
Managers at all levels of the company are important intermediaries in building opportunities for productive dialogue and partnership.
iv. Encourage Innovation and Creativity
Innovative new technologies, products and services can help to address many environmental and social challenges. By creating incentives and support for social and eco-innovation inside the company and encouraging external partnership with relevant innovators, researchers and customers, business leaders can help to provide a framework for new product development that meets business objectives.
v. Built the Next Generation of Business Leaders
Leadership development is an important element of “making it happen” and today’s business leaders play a vital role in helping t develop tomorrow’s.
4. Be Transparent About it
Build confidence by communicating consistently with different stakeholders about the company’s principles, policies and practices in a transparent manner, within the bounds of commercial confidentiality.
i. Agree what and how to measure
In most companies communication efforts are initially to identify what to measure and how to measure it, in consultation with employees and key business partners, but in some companies also in consultation with external stakeholders.
ii. Develop a graduated program for external reporting
Once the company has decided how best to evaluate its progress against the issues or stakeholders identified as being important, senior management has a role to play in communicating this externally and in ensuring that such communication is regular and consistent
iii. Be realistic
Executive management teams play an important role in setting the pace and managing expectations by agreeing on clear strategies, timetables or roadmaps for implementing the company’s evolving commitments to corporate citizenship.
The Case For Action
For most leaders there is a compelling case for taking action on issues relating to global corporate citizenship :
• First, an individual business case, that in today’s world good corporate citizenship make sound business sense.
• Second, a broder case, that business prospers in societies that are prosperous.
H. REPUTATION QUOTIENT (RQ)
The Reputation Quotient is designed to help identify the relative placement of your company’s reputation among competitors in the market place. The Reputation Quotient developed by Harris Interactive and Professor Charles Fombrun of New York University’s Stern School of Business and Executive Director of the Reputation Institute. The Reputation Quotient to leverage your reputation‘s advantage based on six dimension that are :
1. Emotional Appeal
How much the company is liked, admired and respected.
2. Products and Services
Perception of the quality, innovation, value and reliability of the company’s product and services.
3. Financial Performance
Perception of the company’s competitiveness, profitability, growth, prospects, and risk.
4. Vision and Leadership
How much the company demonstrates a clear vision, strong, and an ability to recognize and capitalize on market opportunity.
5. Workplace Environment
Perceptions of how well the company is managed, what it’s like to work there and the quality of its employees.
6. Social Responsibility
Perceptions of the company as having high standards in its dealing with people, good causes and the environment.
The Reputation Quotient was tempted through two phases during July 1999 and August 1999. In phase 1, Data conducted by online and telephone interviews with 4500 respondents throughout the U.S. Respondents were asked to nominate the companies they believed to have the best and worth reputations. In phase 2, another 10830 respondents provided detailed ratings of the 30 best regarded companies and a control group of 10 other companies. The Reputation Quotient scores for each company based on respondent ratings comprising the six dimension of reputation. In comparing any two scores, a difference of 1.96 would be considered significantly different at the 90% confidence level.
I. MARKETING GOOD CORPORATE CONDUCT
Marketing products may not be particularly harmful so long as individuals are aware of such practices and able to make well-reasoned decisions concerning the effects of such campaign upon their purchasing decisions. But such practices are much more serious when used to promote purported good corporate conduct. So, important that companies which engage in the marketing of good corporate conduct make every effort to ensure that consumers are granted access to relevant information and that outside audits with respect to the good corporate conduct marketed are available. This is likely one of the only ways to ensure that the benefits of moral praise garnered by making moral praiseworthiness of corporate actions more widely known through marketing strategies are in fact justly deserved.
J. TITHING PROGRAM
According to Charles Stoddard, the chairman and CEO of the Grand Rapids, if the company used Tithing program so would be get three advantages he called “triple win” that are : The charity received an unsolicited donation, the stockholders received recognition for designating the donation, and the bank received a tax-deduction.
K. REPORTING INITIATIVE
Potential benefits of reporting in the business community :
1. Reporting and measuring both past and anticipated performance is a critical management tool in today’s high speed to be effective management.
2. Reporting is a key ingredient to building, sustaining, and continually refining stakeholder engagement. Reports can help communicate an organization’s economic, environmental, and social opportunities and challenges in a way far superior to simply responding to stakeholder information requests.
3. Transparency and open dialogue about performance, priorities, and future sustainability plans help to strengthen these partnerships and to build trust.
4. Sustainability reporting is a vehicle for linking typically discrete and insular functions of the corporation in a more strategic manner.
5. Reporting helps management evaluate potentially damaging developments before they develop into unwelcome surprises.
6. Sustainability reporting helps sharpen management’s ability to assess the organization’s contribution to natural, human and social capital. Reporting helps highlight the societal and ecological contributions of the organization and the “sustainability value proposition” of its products and services.
7. Sustainability reporting may reduce volatility and uncertainty in share price for publicly traded enterprises, as well as reducing the cost of capital.
The Global Reporting Initiative comprise of three sections contain the reporting elements and performance indicators for the Global Reporting Initiative Guideline, That are :
1. Vision and Strategy
This section encompasses a statement of the reporting organization’s sustainability vision and strategy, as well as a statement from the CEO. Statement of the organization’s vision and strategy regarding its contribution to sustainable development. Present overall vision of the reporting organization for its future, particularly with regard to managing the challenges associated with economic, environmental and social performance. Statement from CEO sets the tone of the report and establishes credibility with internal and external users.
2. Profile
This section provides an overview of the reporting organization and describes the scope of the report. Thus, it provides readers with a context for outstanding and evaluating information in the rest of the report. This section also includes organizational contact information.
3. Governance Structure and Management Systems
This section provides an overview of the governance structure, overarching policies ands management systems in place to implement the reporting organization’s vision for sustainable development and to manage its performance. The global reporting initiative is sensitive to the need to avoid unnecessary duplication of effort. However, for the sake of ensuring full and complete contextual information for users of sustainability reports, it is important to cover the items listed below in combination with other information on the organization’s economic, environmental and social performance.
REVIEW OF CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL REPORTING
This chapter addresses the central questions of (1) whether there exists a social responsibility of business and, if so (2) how firms can meet and evidence their fulfillment of this responsibility. There are some theorists about the responsibility of business who believe that firms owe something back to the society that supports it, and that this debt is greater than the debt of the individual members of society.
A. IS THERE A SOCIAL RESPONSIBILITY OF BUSINESS?
The first article in this section by Milton Friedman is perhaps the best known argument for a purely profit-based social responsibility of business (though Adam Smith was probably among the first to articulate this concept). Friedman is not ignoring ethical responsibility in his analysis; he is merely suggesting that decision makers are acting ethically if they follow their firm’s self-interest. Primeaux expands on Friedman analysis in order to find a corporate social responsibility within a profit-maximizing framework. Consider the qualities of a successful firms-it meet the needs of its market. If the market demands socially responsible behavior, a firm may only be successful by demonstrating this behavior. Professor James Wilson explains that, “While free markets will ruthlessly eliminate inefficient firms, the moral sentiments of man will only gradually and uncertainly penalize immoral ones. But, while the quick destruction of inefficient corporations threatens capitalism, and thus freedom itself.”
In fact, this is not an argument in favor of social responsibility for society’s sake but instead an argument for the sustainability of an organization through meeting the needs of its supporting constituencies. The general public seems to disagree with Fredman’s underlying presumption. A Business Week / Harris poll of over 1000 Americans found that 95% reject the notion that a corporation’s role is limited to profit maximization. Further, there may be other arguments for a socially responsible firm. Employees who are well-treated in their work environment may prove more loyal, and more effective and productive in their work.
To whom does the firm owe this responsibility? To the employees? The community? The Customer? All stakeholders? It may not be possible to satisfy the needs of each and every stakeholder in a situation. Therefore, what is the prioritization of this social responsibility? The answer is found only in your personal prioritization scheme.
B. WHAT IS THE NATURE OF CORPORATE SOCIAL RESPONSIBILITY?
Is profit for the firm the only guiding principle of socially responsible activities, or should the impact of its decision on others be considered, even where the law allow the decision? Perhaps the answer to the quandary of the nature of social responsibility lies somewhere in the middle of all of these arguments. Philosopher Ayn Rand contends that our one and only social responsibility is to us, but that this concern does not act as a barrier to helping others: The moral purpose of one’s life is the achievement of happiness.
“This does not mean that he is indifferent t all men, that human life is of no value to him and that he has no reason to help others in an emergency-but it does mean that he does not subordinate his life to the welfare of others, that he does not sacrifice himself to their needs, that the relief of his suffering is not his primary concern, that any help he gives is an act of generosity not of moral duty”.
C. IN THE END, DOES GOOD ETHICS MEAN GOOD BUSINESS?
Corporate social responsibility–translates into fiscal responsibility is not yet completely settled. A landmark study by Professors Stephen Erfle and Michael frantantuono found that were ranked highest in terms of their records on a variety of social issues had greater financial performance as well. Financial performance was better in terms of operating income growth, sales-to-assets ratio, sales growth, return on equity, earnings-to-assets growth, return on investment, return on assets, and assets growth. Professor Ullman summarizes the results of previous empirical studies on the relationship between social and financial performance as follow:
• Seven showed a positive relationship between social and financial performance.
• Three showed a negative relationship between social and financial performance.
• One showed a positive relationship between the promotion of women and financial performance and a negative relationship between charitable contribution and financial performance.
• One showed a U-shaped relationship, meaning that extreme social performance (good or bad) was negatively related to financial performance.
• Two found not effect.
D. IF THERE IS A CORPORATE SOCIAL RESPONSIBILITY, HOW DOES A FIRM EVIDENCE ITS SATISFACTION OF THAT RESPONSIBILITY?
Even in focusing on social reporting, there is no one structure of group of topic for a corporate social report. Through some element are mandatory pursuant to other regulations, such as corporate charitable contributions, pension fund adequacy, employee share ownership scheme and employment data, other information is not otherwise required to be disclosed. This additional information may conclude energy savings, consumers protection efforts, product safety, health and safety efforts beyond OSHA, employee training, vendor agreements or codes of conduct, mission statements and/or statements of social responsibility. Formal effort at standardized corporate responsibility reporting began in early 1990s. In, 1991 seven companies had published sustainability report, at that time, however much of the report focus was on the environment. The reporting trend has since transformed itself, addressing not only environmental issues, but also economic and social performance. A broad compendium of global initiatives principles and standards designed to stimulate change and to promote good corporate citizenship and encourage innovative solutions and partnership has emerged. Several organizations have created processes or standardized reporting structures to assist organizations in quantifying their social reporting as well as in creating benchmark data against which they can gauge their activities and decisions. The organizations include:
• Global Reporting Initiative
• Global Sullivan Principles
• Social Accountability 8000
• UN Global Compact
• OECD Guidelines for Multinational Enterprises
• ILO Conventions
• AA 1000
• ISO 14000
These voluntary initiatives are considered credible and authentic because of their association with reputable international organizations and agencies. Despite the absence of formal regulatory schemes. Each of the following initiatives shares a common mission to promote an economic environment where smart, sustainable development and good corporate citizenship coexist.
E. THE SOCIAL RESPONSIBILITY OF BUSINESS IS TO INCREASE ITS PROFITS
The discussions of the “social responsibility” are notable for their analytical looseness and lack of rigor. What does it mean to say that “business” has responsibilities ? Only people can have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but “business” as a whole cannot be said to have responsibilities, even in this vague sense. The first step toward clarity in examining the doctrine of the social responsibility of business is to ask precisely what it implies for whom.
F. MAXIMIZING ETHICS AND PROFIT
Patrick Primeaux offers a practical rejoinder to critics of Friedman, arguing for the possibility of a balance between money and ethics that is based on a theory of profit maximization. Everyone knows that men and women in business are interested in one thing: money. And, as everyone also knows, men and women in business will do anything that has to be done to make money.
Milton Fredman claims that the ethical mandate of business is to increase shareholder profit, he is talking about money and he is talking about ethics. Connecting the two, he probably did more than any other theorist to advance business ethics. Now we hear executives of major corporations giving commencement speeches about ethics.
The problem for business and for business ethics is the equation of business with money, specifically bottom-line accounting profits, and pressure to increase those profits quarterly or annually. That motivating objective is itself reflective of an ethical code. It consists of an ethical principle and demands a certain kind of behavior consistent with that principle. The organization is structured, people are hired, jobs are described, managers are held accountable, raw materials are acquired and technology engaged to increase that bottom-line. Everything and everybody within the company is directed by that profit maximizing principle and expected to conform to its demands.
What are opportunity costs? Opportunity costs are usually defined as the forgone goods and services that could have been produced from a given set of scarce resources that was used to produce some other goods and services. Opportunity cost decision making leads to profit-maximization insofar as it recognizes the scarcity of all of its resources and uses those resources as efficiently as possible. To evaluate whether a company is profit-maximizing, then one needs to look beyond bottom-line accounting profits to identify what those profit represent. This perspective commends itself for good business and good business ethics because it originates directly within business theory and practice. It also commend itself because it encourages business to move beyond bottom-line accounting profits to consider people and things not only as valuable for production, but also as valuable in themselves –as scarce resources having value and dignity. It also commends itself because we could then equate good business and good business ethics.
G. THE DIVINE RIGHT OF CAPITAL, Is Maximizing Returns to shareholders a legitimate Mandate?
In response to what she sees as the problems of capitalism -bloated CEO pay, sweatshops, speculative excess to stagnant wages, corporate welfare and environmental indifference- Marjorie Kelly explores the question of whether maximizing shareholder wealth is an appropriate mandate for business. This mandate, she contends, arises from the unconscious belief that property owners matter more than others resulting in an economic aristocracy.
Where does wealth come from? More precisely, where does the wealth of major public corporations come from? Who creates it?
To judge by the current arrangement in corporate America, one might suppose capital creates wealth –which is odd, because a pile of capital sitting there creates nothing. Yet capital -provides (stockholders) lay claim to most wealth that public corporations managed on their behalf. Corporation are believed to exist for one purpose alone : to maximize return to shareholders. The oddity of it all is veiled by the incantation of a single, magical word: ownership.” Because we say stockholders “own” corporation, they are permitted to contributed very little, and take quite a lot.
H. GLOBAL CORPORATE CITIZENSHIP, The Leadership Challenge for CEOs and Boards
The following is a join statement by a task force of the World Economic Forum CEOs. The task force recommends a framework for action that chief executives, chairmen, board direction and executive management teams can use to develop a strategy for managing their company’s impact on society and its relationships with stakeholders. The framework produces a template for a leadership process within the company and is intended to be complementary to the various voluntary corporate citizenship principles and guidelines that have been developed in specific issues areas. Although the statement uses the language of corporate citizenship. The aim of the following efforts was not to focus on specific definitions but instead to emphasize the point that these issues are not add-ons but fundamental to core business operations and to identify some key leadership actions that can be adapted by most business leaders to their own circumstances.
FRAMEWORK FOR ACTION
1. Provide Leadership
Set the strategic direction for corporate citizenship in your company and engage in the wider debate on globalization and the role of business in development.
I. Articulate purpose
II. Promote the “business Case” internally
III. Engage the financial sector
IV. Enter the debate on globalization and the role of business in development
2. Define What it Means for Your Company
Define the key issues, stakeholders and spheres of influence which are relevant for corporate citizenship in your company and industry.
i. Define the issues
ii. Agree on Company’s spheres of influence
iii. Identify key stakeholders
3. Make it Happen
i. Put Corporate Citizenship on Board Agenda
ii. Establish Internal Performance, Communication, Incentive and Measurement Systems
iii. Engage in dialogue and partnership
iv. Encourage Innovation and Creativity
v. Built the Next Generation of Business Leaders
4. Be Transparent About it
Build confidence by communicating consistently with different stakeholders about the company’s principles, policies and practices in a transparent manner, within the bounds of commercial confidentiality.
i. Agree what and how to measure
ii. Develop a graduated program for external reporting
iii. Be realistic
I. REPUTATION QUOTIENT (RQ)
The Reputation Quotient is designed to help identify the relative placement of your company’s reputation among competitors in the market place. The Reputation Quotient developed by Harris Interactive and Professor Charles Fombrun of New York University’s Stern School of Business and Executive Director of the Reputation Institute. The Reputation Quotient to leverage your reputation‘s advantage based on six dimension that are:
1. Emotional Appeal
How much the company is liked, admired and respected.
2. Products and Services
Perception of the quality, innovation, value and reliability of the company’s product and services.
3. Financial Performance
Perception of the company’s competitiveness, profitability, growth, prospects, and risk.
4. Vision and Leadership
How much the company demonstrates a clear vision, strong, and an ability to recognize and capitalize on market opportunity.
5. Workplace Environment
Perceptions of how well the company is managed, what it’s like to work there and the quality of its employees.
6. Social Responsibility
Perceptions of the company as having high standards in its dealing with people, good causes and the environment.
The Reputation Quotient was tempted through two phases during July 1999 and August 1999. In phase 1, Data conducted by online and telephone interviews with 4500 respondents throughout the U.S. Respondents were asked to nominate the companies they believed to have the best and worth reputations. In phase 2, another 10830 respondents provided detailed ratings of the 30 best regarded companies and a control group of 10 other companies. The Reputation Quotient scores for each company based on respondent ratings comprising the six dimension of reputation. In comparing any two scores, a difference of 1.96 would be considered significantly different at the 90% confidence level.
J. MARKETING GOOD CORPORATE CONDUCT
Marketing products may not be particularly harmful so long as individuals are aware of such practices and able to make well-reasoned decisions concerning the effects of such campaign upon their purchasing decisions. But such practices are much more serious when used to promote purported good corporate conduct. So, important that companies which engage in the marketing of good corporate conduct make every effort to ensure that consumers are granted access to relevant information and that outside audits with respect to the good corporate conduct marketed are available. This is likely one of the only ways to ensure that the benefits of moral praise garnered by making moral praiseworthiness of corporate actions more widely known through marketing strategies are in fact justly deserved.
K. TITHING PROGRAM
According to Charles Stoddard, the chairman and CEO of the Grand Rapids, if the company used Tithing program so would be get three advantages he called “triple win” that are : The charity received an unsolicited donation, the stockholders received recognition for designating the donation, and the bank received a tax-deduction.
L. REPORTING INITIATIVE
Potential benefits of reporting in the business community :
1. Reporting and measuring both past and anticipated performance is a critical management tool in today’s high speed to be effective management.
2. Reporting is a key ingredient to building, sustaining, and continually refining stakeholder engagement. Reports can help communicate an organization’s economic, environmental, and social opportunities and challenges in a way far superior to simply responding to stakeholder information requests.
3. Transparency and open dialogue about performance, priorities, and future sustainability plans help to strengthen these partnerships and to build trust.
4. Sustainability reporting is a vehicle for linking typically discrete and insular functions of the corporation in a more strategic manner.
5. Reporting helps management evaluate potentially damaging developments before they develop into unwelcome surprises.
6. Sustainability reporting helps sharpen management’s ability to assess the organization’s contribution to natural, human and social capital. Reporting helps highlight the societal and ecological contributions of the organization and the “sustainability value proposition” of its products and services.
7. Sustainability reporting may reduce volatility and uncertainty in share price for publicly traded enterprises, as well as reducing the cost of capital.
The Global Reporting Initiative comprise of three sections contain the reporting elements and performance indicators for the Global Reporting Initiative Guideline, That are :
1. Vision and Strategy
This section encompasses a statement of the reporting organization’s sustainability vision and strategy, as well as a statement from the CEO. Statement of the organization’s vision and strategy regarding its contribution to sustainable development. Present overall vision of the reporting organization for its future, particularly with regard to managing the challenges associated with economic, environmental and social performance. Statement from CEO sets the tone of the report and establishes credibility with internal and external users.
2. Profile
This section provides an overview of the reporting organization and describes the scope of the report. Thus, it provides readers with a context for outstanding and evaluating information in the rest of the report. This section also includes organizational contact information.
3. Governance Structure and Management Systems
This section provides an overview of the governance structure, overarching policies ands management systems in place to implement the reporting organization’s vision for sustainable development and to manage its performance. The global reporting initiative is sensitive to the need to avoid unnecessary duplication of effort. However, for the sake of ensuring full and complete contextual information for users of sustainability reports, it is important to cover the items listed below in combination with other information on the organization’s economic, environmental and social performance.
A. IS THERE A SOCIAL RESPONSIBILITY OF BUSINESS?
The first article in this section by Milton Friedman is perhaps the best known argument for a purely profit-based social responsibility of business (though Adam Smith was probably among the first to articulate this concept). Friedman is not ignoring ethical responsibility in his analysis; he is merely suggesting that decision makers are acting ethically if they follow their firm’s self-interest. Primeaux expands on Friedman analysis in order to find a corporate social responsibility within a profit-maximizing framework. Consider the qualities of a successful firms-it meet the needs of its market. If the market demands socially responsible behavior, a firm may only be successful by demonstrating this behavior. Professor James Wilson explains that, “While free markets will ruthlessly eliminate inefficient firms, the moral sentiments of man will only gradually and uncertainly penalize immoral ones. But, while the quick destruction of inefficient corporations threatens capitalism, and thus freedom itself.”
In fact, this is not an argument in favor of social responsibility for society’s sake but instead an argument for the sustainability of an organization through meeting the needs of its supporting constituencies. The general public seems to disagree with Fredman’s underlying presumption. A Business Week / Harris poll of over 1000 Americans found that 95% reject the notion that a corporation’s role is limited to profit maximization. Further, there may be other arguments for a socially responsible firm. Employees who are well-treated in their work environment may prove more loyal, and more effective and productive in their work.
To whom does the firm owe this responsibility? To the employees? The community? The Customer? All stakeholders? It may not be possible to satisfy the needs of each and every stakeholder in a situation. Therefore, what is the prioritization of this social responsibility? The answer is found only in your personal prioritization scheme.
B. WHAT IS THE NATURE OF CORPORATE SOCIAL RESPONSIBILITY?
Is profit for the firm the only guiding principle of socially responsible activities, or should the impact of its decision on others be considered, even where the law allow the decision? Perhaps the answer to the quandary of the nature of social responsibility lies somewhere in the middle of all of these arguments. Philosopher Ayn Rand contends that our one and only social responsibility is to us, but that this concern does not act as a barrier to helping others: The moral purpose of one’s life is the achievement of happiness.
“This does not mean that he is indifferent t all men, that human life is of no value to him and that he has no reason to help others in an emergency-but it does mean that he does not subordinate his life to the welfare of others, that he does not sacrifice himself to their needs, that the relief of his suffering is not his primary concern, that any help he gives is an act of generosity not of moral duty”.
C. IN THE END, DOES GOOD ETHICS MEAN GOOD BUSINESS?
Corporate social responsibility–translates into fiscal responsibility is not yet completely settled. A landmark study by Professors Stephen Erfle and Michael frantantuono found that were ranked highest in terms of their records on a variety of social issues had greater financial performance as well. Financial performance was better in terms of operating income growth, sales-to-assets ratio, sales growth, return on equity, earnings-to-assets growth, return on investment, return on assets, and assets growth. Professor Ullman summarizes the results of previous empirical studies on the relationship between social and financial performance as follow:
• Seven showed a positive relationship between social and financial performance.
• Three showed a negative relationship between social and financial performance.
• One showed a positive relationship between the promotion of women and financial performance and a negative relationship between charitable contribution and financial performance.
• One showed a U-shaped relationship, meaning that extreme social performance (good or bad) was negatively related to financial performance.
• Two found not effect.
D. IF THERE IS A CORPORATE SOCIAL RESPONSIBILITY, HOW DOES A FIRM EVIDENCE ITS SATISFACTION OF THAT RESPONSIBILITY?
Even in focusing on social reporting, there is no one structure of group of topic for a corporate social report. Through some element are mandatory pursuant to other regulations, such as corporate charitable contributions, pension fund adequacy, employee share ownership scheme and employment data, other information is not otherwise required to be disclosed. This additional information may conclude energy savings, consumers protection efforts, product safety, health and safety efforts beyond OSHA, employee training, vendor agreements or codes of conduct, mission statements and/or statements of social responsibility. Formal effort at standardized corporate responsibility reporting began in early 1990s. In, 1991 seven companies had published sustainability report, at that time, however much of the report focus was on the environment. The reporting trend has since transformed itself, addressing not only environmental issues, but also economic and social performance. A broad compendium of global initiatives principles and standards designed to stimulate change and to promote good corporate citizenship and encourage innovative solutions and partnership has emerged. Several organizations have created processes or standardized reporting structures to assist organizations in quantifying their social reporting as well as in creating benchmark data against which they can gauge their activities and decisions. The organizations include:
• Global Reporting Initiative
• Global Sullivan Principles
• Social Accountability 8000
• UN Global Compact
• OECD Guidelines for Multinational Enterprises
• ILO Conventions
• AA 1000
• ISO 14000
These voluntary initiatives are considered credible and authentic because of their association with reputable international organizations and agencies. Despite the absence of formal regulatory schemes. Each of the following initiatives shares a common mission to promote an economic environment where smart, sustainable development and good corporate citizenship coexist.
E. THE SOCIAL RESPONSIBILITY OF BUSINESS IS TO INCREASE ITS PROFITS
The discussions of the “social responsibility” are notable for their analytical looseness and lack of rigor. What does it mean to say that “business” has responsibilities ? Only people can have responsibilities. A corporation is an artificial person and in this sense may have artificial responsibilities, but “business” as a whole cannot be said to have responsibilities, even in this vague sense. The first step toward clarity in examining the doctrine of the social responsibility of business is to ask precisely what it implies for whom.
F. MAXIMIZING ETHICS AND PROFIT
Patrick Primeaux offers a practical rejoinder to critics of Friedman, arguing for the possibility of a balance between money and ethics that is based on a theory of profit maximization. Everyone knows that men and women in business are interested in one thing: money. And, as everyone also knows, men and women in business will do anything that has to be done to make money.
Milton Fredman claims that the ethical mandate of business is to increase shareholder profit, he is talking about money and he is talking about ethics. Connecting the two, he probably did more than any other theorist to advance business ethics. Now we hear executives of major corporations giving commencement speeches about ethics.
The problem for business and for business ethics is the equation of business with money, specifically bottom-line accounting profits, and pressure to increase those profits quarterly or annually. That motivating objective is itself reflective of an ethical code. It consists of an ethical principle and demands a certain kind of behavior consistent with that principle. The organization is structured, people are hired, jobs are described, managers are held accountable, raw materials are acquired and technology engaged to increase that bottom-line. Everything and everybody within the company is directed by that profit maximizing principle and expected to conform to its demands.
What are opportunity costs? Opportunity costs are usually defined as the forgone goods and services that could have been produced from a given set of scarce resources that was used to produce some other goods and services. Opportunity cost decision making leads to profit-maximization insofar as it recognizes the scarcity of all of its resources and uses those resources as efficiently as possible. To evaluate whether a company is profit-maximizing, then one needs to look beyond bottom-line accounting profits to identify what those profit represent. This perspective commends itself for good business and good business ethics because it originates directly within business theory and practice. It also commend itself because it encourages business to move beyond bottom-line accounting profits to consider people and things not only as valuable for production, but also as valuable in themselves –as scarce resources having value and dignity. It also commends itself because we could then equate good business and good business ethics.
G. THE DIVINE RIGHT OF CAPITAL, Is Maximizing Returns to shareholders a legitimate Mandate?
In response to what she sees as the problems of capitalism -bloated CEO pay, sweatshops, speculative excess to stagnant wages, corporate welfare and environmental indifference- Marjorie Kelly explores the question of whether maximizing shareholder wealth is an appropriate mandate for business. This mandate, she contends, arises from the unconscious belief that property owners matter more than others resulting in an economic aristocracy.
Where does wealth come from? More precisely, where does the wealth of major public corporations come from? Who creates it?
To judge by the current arrangement in corporate America, one might suppose capital creates wealth –which is odd, because a pile of capital sitting there creates nothing. Yet capital -provides (stockholders) lay claim to most wealth that public corporations managed on their behalf. Corporation are believed to exist for one purpose alone : to maximize return to shareholders. The oddity of it all is veiled by the incantation of a single, magical word: ownership.” Because we say stockholders “own” corporation, they are permitted to contributed very little, and take quite a lot.
H. GLOBAL CORPORATE CITIZENSHIP, The Leadership Challenge for CEOs and Boards
The following is a join statement by a task force of the World Economic Forum CEOs. The task force recommends a framework for action that chief executives, chairmen, board direction and executive management teams can use to develop a strategy for managing their company’s impact on society and its relationships with stakeholders. The framework produces a template for a leadership process within the company and is intended to be complementary to the various voluntary corporate citizenship principles and guidelines that have been developed in specific issues areas. Although the statement uses the language of corporate citizenship. The aim of the following efforts was not to focus on specific definitions but instead to emphasize the point that these issues are not add-ons but fundamental to core business operations and to identify some key leadership actions that can be adapted by most business leaders to their own circumstances.
FRAMEWORK FOR ACTION
1. Provide Leadership
Set the strategic direction for corporate citizenship in your company and engage in the wider debate on globalization and the role of business in development.
I. Articulate purpose
II. Promote the “business Case” internally
III. Engage the financial sector
IV. Enter the debate on globalization and the role of business in development
2. Define What it Means for Your Company
Define the key issues, stakeholders and spheres of influence which are relevant for corporate citizenship in your company and industry.
i. Define the issues
ii. Agree on Company’s spheres of influence
iii. Identify key stakeholders
3. Make it Happen
i. Put Corporate Citizenship on Board Agenda
ii. Establish Internal Performance, Communication, Incentive and Measurement Systems
iii. Engage in dialogue and partnership
iv. Encourage Innovation and Creativity
v. Built the Next Generation of Business Leaders
4. Be Transparent About it
Build confidence by communicating consistently with different stakeholders about the company’s principles, policies and practices in a transparent manner, within the bounds of commercial confidentiality.
i. Agree what and how to measure
ii. Develop a graduated program for external reporting
iii. Be realistic
I. REPUTATION QUOTIENT (RQ)
The Reputation Quotient is designed to help identify the relative placement of your company’s reputation among competitors in the market place. The Reputation Quotient developed by Harris Interactive and Professor Charles Fombrun of New York University’s Stern School of Business and Executive Director of the Reputation Institute. The Reputation Quotient to leverage your reputation‘s advantage based on six dimension that are:
1. Emotional Appeal
How much the company is liked, admired and respected.
2. Products and Services
Perception of the quality, innovation, value and reliability of the company’s product and services.
3. Financial Performance
Perception of the company’s competitiveness, profitability, growth, prospects, and risk.
4. Vision and Leadership
How much the company demonstrates a clear vision, strong, and an ability to recognize and capitalize on market opportunity.
5. Workplace Environment
Perceptions of how well the company is managed, what it’s like to work there and the quality of its employees.
6. Social Responsibility
Perceptions of the company as having high standards in its dealing with people, good causes and the environment.
The Reputation Quotient was tempted through two phases during July 1999 and August 1999. In phase 1, Data conducted by online and telephone interviews with 4500 respondents throughout the U.S. Respondents were asked to nominate the companies they believed to have the best and worth reputations. In phase 2, another 10830 respondents provided detailed ratings of the 30 best regarded companies and a control group of 10 other companies. The Reputation Quotient scores for each company based on respondent ratings comprising the six dimension of reputation. In comparing any two scores, a difference of 1.96 would be considered significantly different at the 90% confidence level.
J. MARKETING GOOD CORPORATE CONDUCT
Marketing products may not be particularly harmful so long as individuals are aware of such practices and able to make well-reasoned decisions concerning the effects of such campaign upon their purchasing decisions. But such practices are much more serious when used to promote purported good corporate conduct. So, important that companies which engage in the marketing of good corporate conduct make every effort to ensure that consumers are granted access to relevant information and that outside audits with respect to the good corporate conduct marketed are available. This is likely one of the only ways to ensure that the benefits of moral praise garnered by making moral praiseworthiness of corporate actions more widely known through marketing strategies are in fact justly deserved.
K. TITHING PROGRAM
According to Charles Stoddard, the chairman and CEO of the Grand Rapids, if the company used Tithing program so would be get three advantages he called “triple win” that are : The charity received an unsolicited donation, the stockholders received recognition for designating the donation, and the bank received a tax-deduction.
L. REPORTING INITIATIVE
Potential benefits of reporting in the business community :
1. Reporting and measuring both past and anticipated performance is a critical management tool in today’s high speed to be effective management.
2. Reporting is a key ingredient to building, sustaining, and continually refining stakeholder engagement. Reports can help communicate an organization’s economic, environmental, and social opportunities and challenges in a way far superior to simply responding to stakeholder information requests.
3. Transparency and open dialogue about performance, priorities, and future sustainability plans help to strengthen these partnerships and to build trust.
4. Sustainability reporting is a vehicle for linking typically discrete and insular functions of the corporation in a more strategic manner.
5. Reporting helps management evaluate potentially damaging developments before they develop into unwelcome surprises.
6. Sustainability reporting helps sharpen management’s ability to assess the organization’s contribution to natural, human and social capital. Reporting helps highlight the societal and ecological contributions of the organization and the “sustainability value proposition” of its products and services.
7. Sustainability reporting may reduce volatility and uncertainty in share price for publicly traded enterprises, as well as reducing the cost of capital.
The Global Reporting Initiative comprise of three sections contain the reporting elements and performance indicators for the Global Reporting Initiative Guideline, That are :
1. Vision and Strategy
This section encompasses a statement of the reporting organization’s sustainability vision and strategy, as well as a statement from the CEO. Statement of the organization’s vision and strategy regarding its contribution to sustainable development. Present overall vision of the reporting organization for its future, particularly with regard to managing the challenges associated with economic, environmental and social performance. Statement from CEO sets the tone of the report and establishes credibility with internal and external users.
2. Profile
This section provides an overview of the reporting organization and describes the scope of the report. Thus, it provides readers with a context for outstanding and evaluating information in the rest of the report. This section also includes organizational contact information.
3. Governance Structure and Management Systems
This section provides an overview of the governance structure, overarching policies ands management systems in place to implement the reporting organization’s vision for sustainable development and to manage its performance. The global reporting initiative is sensitive to the need to avoid unnecessary duplication of effort. However, for the sake of ensuring full and complete contextual information for users of sustainability reports, it is important to cover the items listed below in combination with other information on the organization’s economic, environmental and social performance.
Jumat, 09 Januari 2009
WRONG BEHAVIOR BUT ACCEPTABLE IN HIGHWAY
One upon a time I was went home from campus after finished my study subject Business ethics, so I think how if I observation the traffic behavior. At that time so hot weather and I drove my motorcycle at speed 40 km/H. First, I saw 3 students Senior High School driving the motorcycles motorcade by the way while laughs so loud. I think that bad deed because that can disturb another driver along the way. But that deed can acceptable if they something important and don’t have time stop, convoy, and demonstration.
I saw too their range of motorcycle that several people said as cause of uncomfortable when drive vehicle, any a few drivers didn’t used the helmet. About helmet I remember when I as a guide at International Conference two month ago, Cek Nasir each of one participants and lecturer in Malaysia, he saw driver not used helmet and he said that people not danger drove the motorcycle not used helmet, what that beside the punishments ? Directly after I heard that question I take the conclusion that in Malaysia has tight rules, so seldom offender that not follows the rules.
And I found too driver motorcycle that just used one of a pair of rear view mirror (include me) and even any that not use the rear view mirror. Few driver of motorcycles that used rear view mirror completely. I think that occurs because of the strange jokes that said if we used a pair of rear view mirror completely so span street we say pray because the form of a pair of rear view mirror form similarly with hands when praying. But, I don’t other have same reason with me or not that I didn’t used both of them because I lost the one part of my rear view mirror when I have accident one year ago.
While I drove my motorcycle in second lane immediately a silver car colored overtook from right lane beside my lane. I am surprised, so strange that deed that commonly did by motorcycle. Directly I was think that if the motorcycle overtook the car and crashed, so driver of motorcycle that bore the brunt. But, if the car overtook the motorcycle and crashed, so that accident can make the driver of motorcycle have bore the brunt. Oh my god, so danger that car driver.
At intersection way between one direction to other, I saw any few motorcycles an one car not switch on their mechanical turning signal lamp, whereas that is so important because that can influence other driver to make decision to accelerate or decelerate their vehicle. But, occasionally I am forgotten to switch on that lamp, whether possible all of them forgot to switch on their lamp. The last I found one motorcycle across red lamp in time – sharing intersection. For this fraud have too the strange joke that the offender traffic light are people that have problem with his/her eyes (colour blind). After that all, arrived in my grandmother house.
I saw too their range of motorcycle that several people said as cause of uncomfortable when drive vehicle, any a few drivers didn’t used the helmet. About helmet I remember when I as a guide at International Conference two month ago, Cek Nasir each of one participants and lecturer in Malaysia, he saw driver not used helmet and he said that people not danger drove the motorcycle not used helmet, what that beside the punishments ? Directly after I heard that question I take the conclusion that in Malaysia has tight rules, so seldom offender that not follows the rules.
And I found too driver motorcycle that just used one of a pair of rear view mirror (include me) and even any that not use the rear view mirror. Few driver of motorcycles that used rear view mirror completely. I think that occurs because of the strange jokes that said if we used a pair of rear view mirror completely so span street we say pray because the form of a pair of rear view mirror form similarly with hands when praying. But, I don’t other have same reason with me or not that I didn’t used both of them because I lost the one part of my rear view mirror when I have accident one year ago.
While I drove my motorcycle in second lane immediately a silver car colored overtook from right lane beside my lane. I am surprised, so strange that deed that commonly did by motorcycle. Directly I was think that if the motorcycle overtook the car and crashed, so driver of motorcycle that bore the brunt. But, if the car overtook the motorcycle and crashed, so that accident can make the driver of motorcycle have bore the brunt. Oh my god, so danger that car driver.
At intersection way between one direction to other, I saw any few motorcycles an one car not switch on their mechanical turning signal lamp, whereas that is so important because that can influence other driver to make decision to accelerate or decelerate their vehicle. But, occasionally I am forgotten to switch on that lamp, whether possible all of them forgot to switch on their lamp. The last I found one motorcycle across red lamp in time – sharing intersection. For this fraud have too the strange joke that the offender traffic light are people that have problem with his/her eyes (colour blind). After that all, arrived in my grandmother house.
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