Sime Darby - 1389 Words

Page 1 of 6 Fundamental Analysis for SIME DARBY BHD Company Name: Stock Code (Bursa): Bloomberg: Industry: Sub-Sector: Company Description: Date of Analysis: Financial Year: SIME DARBY BHD Board: Main Board SIME FBMKLCI: TRUE SIME:MK Reuters: SIME.KL TRADING SERVICES OIL PALM/RUBBER AND OTH CROP PRODUCTION PLANTATION; PROP; MOTORS; INDUSTRIAL; ENERGY UTILITIES. 19-Sep-12 2011 30/6/2011 Price: 9.79 Stock Grade: Emerging Investment Grade Profitability Profitability 10 ROI 8 ROI Liquidity 6 Efficiency 4 Risks 2 0 Potential Growth Buy Hold Returns Potential Growth 65 75 90 50 105 105 Buy Hold Returns 25 Liquidity 51.80759 40.02273 62.4099 36.10128 85.8969 57.48956 18.75 7.97 5.34 6.93 7.22 8.18 5.48 7.5 Risks†¦show more content†¦Current DY% or Rolling 4Q DY% 6% 5. Stock price breaks out of consolidation/dip on an uptrend. 6. Comparison of P/B ratio (for Financial stocks only) 7. Company owner, EPF, Khazanah and PNB heavily buying Sell Criteria I Remarks Criteria 1. Current EY% or Rolling 4Q EY% 6% for more than 2 years 2. Current DY% or Rolling 4Q DY% 6% for more than 2 years 3. Quarterly EPS drop for 5 consecutive months 4. Fundamental of business turns unattractive or bad 5. Found a better opportunity to replace this stock 6. The stock drops near to my average cost or hit my stop loss 7. Long term trend changed from bullish to bearish 8. Company owner, EPF, Khazanah and PNB heavily selling. 9. Did I make a mistake? 10. Has the stock risen too far from its intrinsic value? VI Remarks Discounted Cash Flows Valuation Shares Out. M. O. S. 13 Default Value Custom Value 6009.46 11 Sustainable Growth % (for Average risk Average Discount % Terminal % 2011 FCF Excess Cash Intangibles Intangibles% Decay Rate Extra Decay Growth (for DCF Calc.) premium Risk free Assets add to DCF (Yr4E-Yr7E) (Yr8E-Yr10E) reference) rate 20% 5% 8% 5.50% 3.68% 9.2% 2% 2068.66 4593.30 86.00 0% 8% 15% 4% 11.50% 15% 20% Projection of Future Free Cash Flow 2012 Yearly Growth Future Value Discounted Perpetuity Value Present Value 2,151.41 2013 2,237.46 2014 2,326.96 18,023.58 28,024.79 3-Y Shares Outstanding Fair Value Desired M.O.S. Buy Under Current Price Actual M.O.S. 4.66Show MoreRelatedCorporate Social Responsibility of Sime Darby838 Words   |  4 Pages|Yayasan Sime Darby | | | | | | |Yayasan Sime Darby is a foundation that was set up in July 2008. It is linked to, yet partially independent from, Sime Darby Berhad. | |Although the foundation receives funds from the Sime Darby Group,Read MoreEnglish Is Important for Our Daily Life945 Words   |  4 Pagesthey have a degree. It is because they do not have a soft skill. Eventhough we got the best result in examination but we cannot speak in English, it is hard for us to find a job. Example is, if we want to work with a giant company such as Petronas, Sime Darby, Schlumberger and etc we need to face many process. One of the process is interview. Interview is one of the important process for us to face if we want to work with a giant company. Many giant company have a francais at the other country. So,Read More SWOT Analysis of Sime Darby Company in Indonesia, Malaysia1975 Words   |  8 Pagesconverted into oil palm. These pioneers were Alexander Guthrie, Daniel and Smith Harrison, Joseph Crosfield, William Sime and Henry d’Esterre and Herbert Mitford Darby – founders of three companies that makes Sime Darby Berhad today. The below t able shows the three entities and their trades. (Sime Darby Online, 2014) These three entities merged in November 2007 to form the Sime Darby (SD) that it is today. SD is a Malaysia-based multinational conglomerate comprising of five core businesses: plantationsRead MoreCompany Overview of Domestic Direct Competitors of Sime Darby (Genting Berhad)1616 Words   |  7 PagesCOMPANY OVERVIEW OF DOMESTIC DIRECT COMPETITORS OF SIME DARBY (GENTING BERHAD) Genting Berhad (Genting), a holding company for the Genting Group, operates resorts, casino and plantations. It also develops properties, manufactures paper and generates electricity. The company primarily operates in Malaysia. It is headquartered in Kuala Lumpur, Malaysia and employs 36,000people. The company recorded revenues of MYR6,943.8 million (approximately $1,968.3 million) during the fiscal year ended DecemberRead MoreCorporate Governance : The Top Level Managements3102 Words   |  13 Pagesharmed their company. Many top level staffs were fired, accused and even tried in court, with a majority of them facing prison sentences even till now. Recent Corporate Scandals in Malaysian PLCs Sime Darby Fiasco The Sime Darby fiasco indicated a distinct failure in Malaysia’s corporate governance. The Sime darby’s CEO Datuk Seri Ahmad Zubir Murshid with other employees were responsible of indicating a cost overrun (a loss) of nearly 2.1 billion ringgits in the financial year of 2010. This was mainlyRead MoreDoc Martens Case Study2298 Words   |  10 Pages(http://www.drmartens.com/, Dr.Martens History) This piece or article itself have clearly articulated the dynamism in the Dr. Martens brand to suit the needs of the ever-changing customer in order to stay relevant for life. Sasikumar Rajapan MMDP Sime Darby ‘08 MMDP Assignment Doc Martens Case Study Question 1 Marketing the shoes directly to the Chinese consumers would definitely hurt the DM brand immensely. As stated in the background study the DM brand is exclusive and holds a heritage which isRead MoreOffshore Construction in Malaysia1775 Words   |  8 Pagesaccelerate their search for new oil and gas fields and in doing so, more offshore drilling structure are required to churn out petroleum. In Malaysia, we have 7 major fabrication yards capable of undertaking offshore fabrication namely MMHE, Kencana HL, Sime Darby Engineering, Boustead Heavy Industries, OilFab, Ramunia Fabricators and Brooke Dockyard. This is added by the fact that more fabrication jobs totaling to RM4 Billion, would be offered by the end of 2009, thus spurning the growth of any 7 of theRead MoreThe For Conflict Resolution On The Land Use Conflict Between Concessions Companies And Community Members Of The Nimba County1102 Words   |  5 Pagesreview and concept s about theoretical framework for customary land use and conflict, where we revise major subjects such as, Customary Land use Tenure in Liberia, Land Use Conflicts between Communities and Concessions companies in Liberia and Case of Sime Darby Concession in Liberia. The third chapter presents the methodology that focuses on land use conflict by concessions companies and its impacts on the community stakeholders and the Nimba community as a whole and examines its statistical propertiesRead MoreNeed For Conflict Resolution On The Land Use Conflict Between Concessions Companies And Community Members Of The Nimba County1379 Words   |  6 Pagesreview and concepts about theoretical framework for customary land use and conflict, where we revise major subjects such as, Customary Land use Tenure in Liberia, Land Use Conflicts between Communities and Concessions companies in Liberia and Case of Sime Darby Concession in Liberia. The third chapter presents the methodology that focuses on land use conflict by concessions companies and its impacts on the community stakeholders and the Nimba community as a whole and examines its statistical properties

Abortion in the Premodern World

While modern technology is quite new in historical terms, the practice of abortion and menstrual regulation is ancient. Traditional methods have been handed down for hundreds of generations and herbal and other methods have roots in the distant past. It should be noted that many ancient and medieval methods and preparations are extremely risky and many are not at all effective, so experimentation is quite unwise. We know abortion was practiced in biblical times from the passage in Numbers where alleged infidelity is tested by giving an abortifacient potion to an accused pregnant woman. The bitter water used to bring on the curse may have been quinine or several of other herbal and natural concoctions that are considered emmenagogues, or drugs that bring on menstruation. Such herbs and other concoctions are in reality often implantation inhibitors or abortifacients. According to the biblical tale, if the woman had not been unfaithful, the drug would not work and the pregnancy was assumed to be the husband’s child. If she miscarried, she was considered guilty of adultery and no questionable parentage ensued. Abortion was recorded in 1550 B.C.E. in Egypt, recorded in what is called the Ebers Papyrus and in ancient China about 500 B.C.E. as well. In China, folklore dates the use of mercury to induce abortions to about 5,000 years ago. Of course, mercury is extremely toxic. Hippocrates also offered abortion to his patients despite being opposed to pessaries and potions which he considered too dangerous. He is recorded as having instructed a prostitute to induce abortion by jumping up and down. This is certainly safer than some other methods, but rather ineffective. It is also believed that he used dilation and curettage to induce abortions as well. Abortion opponents often use the Hippocratic Oath of physicians as an argument against abortion per se, but the opposition had only to do with patient safety. Herbal methods were likely more common and many of the traditional herbs and mixtures are in use even today. Pennyroyal dates at least to the 1200s when manuscripts show herbalists preparing it, but the oil is extremely dangerous and modern herbalists avoid it. Deaths from its use were recorded in the US in the 1990s. A medieval herbal reference called De Viribus Herbarum referred to herbs to induce abortions even earlier in the 11th century. Pennyroyal was among the herbs mentioned but so were catnip, rue. Sage, savory, cypress, and hellebore. Some of the drugs are listed as emmenagogues rather than explicitly as abortifacients, but since the most common cause of a late menstrual period is pregnancy, there is little doubt why they were prescribed and used. Hildegard of Bingen mentions the use of tansy to bring on menstruation. Some herbs have been mentioned for centuries. One is a plant called the worm fern whose root is used to cause an abortion. It is telling that it was also known as prostitute’s root historically. Also used in the same area of Europe were thyme, parsley, lavender, and savin juniper. Even concoctions of camel saliva and deer hair were used. The right of women to seek abortions was not restricted in many places until fairly recently, with most restrictions being related to the time of quickening or fetal movement. Even Plato proclaimed the right of women to seek early terminations of pregnancies in Theaetetus, but specifically he spoke of the right of midwives to offer the procedure. In early times, most pregnancies were not managed by doctors so it was logical that abortion be provided by midwives and herbalists. Other measures to induce abortions have included iron sulfates and chlorides, hyssop, dittany, opium, madder in beer, watercress seeds and even crushed ants. Probably the herbs most commonly mentioned were tansy and pennyroyal. We know that tansy was used from at least the Middle Ages. One of the most brutal methods was practiced in the Orient in ancient times by violently kneading or beating the abdomen to cause abortion, a procedure with great peril to the woman who used it. Even in the 20th century, women were still trying Hippocrates’ jumping up and down method, likely with as little success as their ancient sisters. Wise women have found and used herbs and other preparations to manage their fertility for generations. Some concoctions were contraceptive in nature and others were abortifacients or designated emmenagogues. The latter are now believed to have worked to prevent implantation, a sort of ancient morning after pill. What we know for sure is that in the past as well as now women have found ways to manage unwanted pregnancies. It should be noted that many ancient and medieval methods and preparations are extremely risky and many are not at all effective, so experimentation is quite unwise. There are modern practitioners who do know the folk remedies that are both effective and safe and should be relied upon before even considering such methods. Modern women also have more familiar medical procedures to choose instead of ancient remedies. Sources Konstaninos Kapparis, Assistant Professor of Classics, University of Florida. Abortion in the Ancient World (Duckworth Classical Essays). Duckworth Publishers (May 2003).John M. Riddle (Chair of the History Department and Alumni Distinguished Professor, North Carolina State University. Contraception and Abortion from the Ancient World to the Renaissance. Harvard University Press (April 1994).

Theodore Roosevelt And Woodrow Wilson - 861 Words

Theodore Roosevelt and Woodrow Wilson are two extraordinary leaders who symbolized the dreams and aspirations of the American people during a tumultuous time in U.S. history. Both men were well versed in foreign policy and held great leadership qualities with firm views for the future of our country. Roosevelt took office in 1901 following the assassination of President William McKinley, becoming the youngest president to date. He had a motto of speak softly but carry a big stick. President Roosevelt quickly offered America the square deal, taking power away from the industrialists and controlling big business from the White House. These actions earned him the title of TrustBuster. Roosevelt used American power for American interests and was quoted as saying, I am an American first and last. Although it can be argued that Roosevelt was too impulsive in his actions, it s difficult to ignore his tremendous leadership qualities. The average citizen felt Roosevelt was authoritative and t ough as much as he was positive, warm and funny. His authoritative qualities shown brightly in his quote, to Hell with the constitution, America needs heat, threatening a government takeover after a large number of coal miners went on strike. Roosevelt was an imperialist and a realist who believed everything he did was in the name of justice. He was an industrious man with a strong sense of pride. Lastly, Roosevelt was known for being militaristic, believing war was proof of manhood.Show MoreRelatedWoodrow Wilson And Theodore Roosevelt Essay1463 Words   |  6 Pagesearly 1900s. The two frontrunners to answer the puzzling questions were the 26th president, Theodore Roosevelt, and the 28th president Woodrow Wilson. They both wanted the betterment of America both domestically and at the world stage. However, the assertive nature of Theodore Roosevelt made him an exemplar of American ideals and democracy for the rest of the world. Woodrow Wilson and Theodore Roosevelt were vastly different by nature, one a macho, military-man, explorer, and the other, an academicRead MoreWoodrow Wilson and Theodore Roosevelt Essay440 Words   |  2 PagesWoodrow Wilson and Theodore Roosevelt Woodrow Wilson and Theodore Roosevelt were two of America’s great presidents. This is why I feel that both men were equally important in what they did and said they would do. Both in their own ways have added a little of what makes this country what it is today. Both had their own beliefs of how reform, empowerment of the people and foreign policy should be accomplished. As president, the main goal was to do what they felt best for the American peopleRead More Comparing Woodrow Wilson and Theodore Roosevelt Essay1555 Words   |  7 PagesComparing Woodrow Wilson and Theodore Roosevelt During the 20th century many different presidents went in and out of the doors of the White House serving the country the best they could. However, two of these men hold a place in American history as perhaps the greatest leaders that had ever served our country. Theodore Roosevelt and Woodrow Wilson are two extraordinary men that symbolize the hope and aspirations of the American people during such a tumultuous time in United States historyRead Morecompare and contrast of Theodore Roosevelt and Woodrow Wilson808 Words   |  4 PagesPresidency of Woodrow Wilson and Theodore Roosevelt By HIS 204 American History since 1865 Instructor: Kathleen Scarpena November 25, 2013 Theodore Roosevelt and Woodrow Wilson are two of America’s most celebrated presidents during the 20th century. Theodore Roosevelt who was a Republican had a military background and created the American conservation movement. Theodore Roosevelt was also once shot by an would be assassin and still managed to give his speech. Roosevelt was famous by hisRead MoreTheodore Roosevelt And Woodrow Wilson : The Progressive Era1651 Words   |  7 Pages During the Progressive Era from 1890-1920, America saw three new presidents: Theodore Roosevelt, William Howard Taft, and Woodrow Wilson. This period of time is known as the Progressive Era due to the political and social changes made to move away from a laissez-faire government to a more active government by the administrations of these presidents. Prior to this period, Americans had to suffer through poor working conditions, low wages, social and class inequality and become victims to largeRead MoreTheodore Roosevelt vs Woodrow Wils on Essay880 Words   |  4 PagesCompare and contrast the foreign policies of Theodore Roosevelt and Woodrow Wilson. Which do you think was a more effective president? Why? In foreign affairs, the white mans burden helped to justify Roosevelts New Imperialism in foreign policy. Uncivilized nations would gain eventual independence once they had conformed to the American model of government and democracy. Roosevelts corollary to the Monroe Doctrine set up the U.S. as policeman in the western hemisphere. Under TR, theRead MoreHerbert Croly, Eugene V. Debs, Theodore Roosevelt And Woodrow Wilson865 Words   |  4 Pageswe are accustomed to today are things that once brought controversy and were fought over rigorously, both for and against. And while it can be difficult to truly get inside the minds of those such as Herbert Croly, Eugene V. Debs, Theodore Roosevelt and Woodrow Wilson due to the difference in the language, it is intriguing to read their opinions. All make convincing arguments, but their perspective is what makes each of them unique. Herbert Croly was a very intellectual man, as all involved inRead MoreThe American Of American Identity Essay1520 Words   |  7 Pagestwo front-runners to answer the puzzling questions were the 26th president, Theodore Roosevelt, and the 28th president Woodrow Wilson. They both wanted the betterment of America, both domestically and at the world stage. However, unlike Woodrow Wilson, the assertive nature of Theodore Roosevelt made him an exemplar of American ideals and democracy for American and rest of the world. Woodrow Wilson and Theodore Roosevelt were vastly different by nature, one a macho, military-man, explorer, and theRead MoreCompare And Contrast Theodore Roosevelt And The Progressive Era755 Words   |  4 PagesDuring the Progressive Era, two presidents, Theodore Roosevelt and Woodrow Wilson, were very essential and celebrated during their time. Roosevelt became president in 1901 and was probably one of the most influential Republicans ever to have power over the American people (â€Å"Theodore Roosevelt.†). Being a democrat, Woodrow Wilson ran his campaign in a very different way than President Roosevelt. He became president in 1913 and was easily one of the best presidents the United States ever had, leadingRead MoreRoosevelt vs. Wilson Essay514 Words   |  3 PagesRoosevelt vs. Wilson Two great men, two great presidents, led our nations to excellency and great success. Theodore Roosevelt and Woodrow Wilson were hard working, intelligent men who were very familiar, but were also different in many aspects. Through their dedication to our country and their passion of politics they have made our country better. There were many similarities between Theodore Roosevelt and Woodrow Wilson. The special relationship with their fathers was a quality that

Accounting Standards Regulation Financial †Myassignmenthelp.Com

Question: Discuss About The Accounting Standards Regulation Financial? Answer: Introducation The AASB 136 on impairment of assets seeks that the asset of any organization shall not be recorded in the financial statement at the value which is more than the carrying value. As per Para 10 of the standard, the assets whether it is tangible or intangible and the goodwill must be tested for impairment at least once in a year. Further, Para 12 of the standard states the external as well as internal source of information that can indicate the fact that whether the asset shall be tested for impairment or not (Aasb.gov.au 2017). Requirement of evidence with regard to testing of impairment If the internal sources of information are taken into consideration for determining the test of impairment, asset will be taken into consideration as the major indicator for AASB 136. Looking into the financial performance of Myer Holdings Ltd, it is recognized that the operating revenues of the company is in decreasing trend. The Operations revenue of the company was highest during 2009 and amounted to $ 32,65,000,000 and after that it started declining and reached $ 27,26,005,000 during 2012. Further, looking at the balance sheet of the company, it is identified that the non-current intangible assets of the company was highest during 2009 and amounted to $ 909,000,000. However, during 2010 there was significant decrease in the value of intangible and it reached to $ 571,486,000 and the trend was decreasing. Moreover, the net profit margin of the company of the company was also in decreasing trend (Investor.myer.com.au 2017). On the contrary, if the external information sources are considered, it is identified that Myer is planning to restructure their store in Frankston to compete with Amazon. It was found that Myer was heading towards significant changes with regard to economic and technological environment from Amazons entry. As Amazon sells their entire product through online, enabling the customers to shop from any corner of the world, the physical stores of Myer were losing considerable part of their customers. These all facts pushed Myer to change their strategies and look of their stores as well as the uniform of the store staffs (Investor.myer.com.au 2017). Determination of process for asset impairment Once the evidence is established with regard to the impairment the asset is tested for impairment. The asset is impaired when the carrying value of the asset is more than its recoverable amount. The recoverable amount is the higher among the value in use and fair value of the asset reduced by disposal cost. The impairment loss is identified as the expense under the profit and loss account (Christensen et al. 2015). Further, if the asset is a revalued asset, the amount of impairment loss is recorded as against the earlier identified revaluation gain of the asset. Further, if indication is there that a particular asset may get impaired, the recoverable amount or the cash generating unit (CGU) of the asset is determined. On the other hand, if it is not possible to forecast the recoverable amount of individual asset, the recoverable amount for the CGU under which the asset is included shall be determined. Recoverable value for individual asset is not possible if The value in use of the asset cannot be forecasted to close of the FVLCS Assets do not create any cash inflow that widely is independent from other assets. If Myer Holdings Ltd is considered, the goodwill generated from business acquisition cannot be recognized with separate CGU. Therefore, the goodwill will be allocated for the entire business (Miller and Power 2013). The company uses the cash flow forecasting for 5 years and for more than 5 years terminal growth rate is used. For the impairment calculation following assumption are taken into consideration Rate of terminal growth to be assumed as 2.5% Rate of operating gross margin to be assumed as 39.5% The pre-tax rate of discount to be assumed as 14.4% The management of Myer Holdings Ltd compare the carrying value of the asset or the carrying value of the CGU with the budgeted one. If it is found that there is any indication of impairment, the recoverable amount and value in use for the particular asset is measured immediately (Linnenluecke et al. 2015). Further, Myer examines each of their stores separately for the purpose of impairment test. Further, the fair value for the asset will be calculated as the amount that can be achieved through the sale of the asset in the arms length price among the willing and knowledgeable parties and from that the disposal cost of the asset shall be reduced. The value of the asset shall be taken from the balance sheet and after that the estimated sale value shall be calculated. Required information for determination of impairment Para 30, under the AASB 136, states that the value in use of asset is crucial for determining the assets liquidity status. For estimation, the recoverable amount of any asset is higher among fair value less disposable cost and value in use. Further, the impairment loss for the past period shall be adjusted in the subsequent period, if there is any alteration with regard to the asset. Further, the requirement of information is required as follows Information shall be obtained for the rate of average growth for the cash flow Various economic data are required for making the assumptions Information related to the market under which the company is operating is required Information is required for the justification of the budget (Oulasvirta 2014) Information is required for determining the industry growth rate Further, the company uses the discounted cash flow approach for forecasting the cash flow for 5 years and for more than 5 years terminal growth rate is used. The value in use is the present value of future cash flows projected to be gained from the CGU or the asset. Finally, the recoverable amount is the higher value among the fair value and value in use. Managements flexibility in impairment determination ASIC does not require that the management shall be experts with regard to the accounting knowledge. However, they can always seek assistance from the knowledgeable person. The management shall look into the matter deeply where the forecasting does not match with the actual figures. Further, the information shall be reviewed and presented clearly so that it can be used by the users (Wang 2014). The main concern with the identification of correlation among the opportunistic motivations and asset impairment is the management for their own benefit may not recognize the impairment and show the assets in the financial statement at higher values. It is also a matter of concern to analyze that to what extent the impairment of asset is consistent with the releveant requirement of the regulation. Therefore, the main focus is whether the financial statement is prepared in compliance with the AASB 136 or not and whether the company is recognizing the impairment of assets as per AASB 136 (Bond, Govendir and Wells 2017). The managements flexibility is the managements ability with regard to making the assumptions and estimations. As per Para 30 of AASB 136 the calculation of value in use requires the calculation of future cash flows. Further, Para 24 of AASB 136 states the way through which the recoverable amount of the intangible assets are measured by the management. While the future cash flows are measured, the management is flexible enough for establishing the proper assumptions (Gackstatter and Mller 2016). Further, the projected cash flows for the future is calculated based on the assessment made by the management taking into consideration the expected economic condition for the future. Therefore, it can be said that the management is flexible enough for the determination of impairment test. Reference Aasb.gov.au. 2017. Australian Accounting Standards Board (AASB) - Home. [online] Available at: https://www.aasb.gov.au/ [Accessed 26 Aug. 2017]. Bond, D., Govendir, B. and Wells, P. (2017). An evaluation of asset impairment decisions by Australian firms and whether this was impacted by AASB 136. Australia: Accounting Discipline Group, University of Technology Sydney. Christensen, H.B., Lee, E., Walker, M. and Zeng, C., 2015. Incentives or standards: What determines accounting quality changes around IFRS adoption?.European Accounting Review,24(1), pp.31-61. Gackstatter, T. and Mller, K., 2016. Triggering Events in Asset Impairment Accounting-a Case Study in the Automotive Industry. Investor.myer.com.au. 2017. Myer Investor Relations. [online] Available at: https://investor.myer.com.au/Investor-Centre/ [Accessed 26 Aug. 2017]. Linnenluecke, M.K., Birt, J., Lyon, J. and Sidhu, B.K., 2015. Planetary boundaries: implications for asset impairment. Accounting Finance,55(4), pp.911-929. Miller, P. and Power, M., 2013. Accounting, organizing, and economizing: Connecting accounting research and organization theory.Academy of Management Annals,7(1), pp.557-605. Oulasvirta, L., 2014. The reluctance of a developed country to choose International Public Sector Accounting Standards of the IFAC. A critical case study.Critical Perspectives on Accounting,25(3), pp.272-285. Wang, C., 2014. Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer.Journal of Accounting Research,52(4), pp.955-992.

Influence of Business Ethics Education

Question: Discuss about the Influence of Business Ethics Education. Answer: Introduction: An organization while running the entire process of business in the market should follow the ethical footsteps properly. A proper guiding principle followed by both the employers and employees help the organization for maintaining effective employee relation, good communication and strong business decision at the workplace. This particular study has provided an in-depth understanding on how the organizations have to face innumerable difficulties for maintaining their entire process of business after facing any ethical issue related to work at the workplace. The business experts have to struggle immensely for maintaining organizational image and reputation after facing any kind of ethical issues at the workplace. 7-eleven is one of the most recognizable international chains occupying a predominant place in Global market. After started their journey in the Australia market in 1977 with one store, the organization has expanded their wings widely having 630 stores all over Australia. The business experts have utilized most of the prestigious countries of Australia for expanding their business. Queensland, New South Wales, Victoria, the Australian Capital Territory, and Western Australia are possessed with the stores of 7-eleven with more than 190 million transactions every year. Recently the organization has faced innumerable challenges in order to run their business process successfully due to some major workplace ethical issues. As a result, the business experts failed to maintain their organizational image and reputation (7eleven.com.au, 2017). These particular ethical issues had drawn the customers attention as well. As a result, it affected the revenue growth of 7-eleven. This particular study has focused to highlight the identified ethical issues and its impact on employees as well as on organizat ional reputation. Discussion: This particular part has focused to highlight some of the major ethical issues identified at the workplace of 7-eleven. In the news article published in The Australian in the year 2015, it has been alleged that the franchisee stores of 7-eleven in Australia are not paying justified wages to the labor. The prominent honor rate is truly justified for the labors who are investing their flawless effort for rendering the success of business. Australia is possessed with the trademarks of multi-ethnic populace. At the same time, this particular country is out-an-out developed in terms of economy, technology and socio-cultural perspective. In such a developed country, 7-eleven is alleged highly for not paying the employee wages properly. As a result, the existing workers have lost the interest for providing good services to the customers (afr.com, 2015). At the same time, it has also been alleged that 7-eleven has misused the strengths of under graduate students who are have migrated for higher education from different nation. In order to maintain their educational expenses, those students had to be dependent on private firms for rendering money. The business experts of 7-eleven had targeted those students for involving within business process. On the other hand, those students were deprived of getting proper remuneration from the organization. After facing this serious issue, the management has decided to implement a business strategy at the workplace. The organization started to provide better remuneration to the existing workers. In return, they had started to impose over-burden to the employees such as overtime duty, minimize the break, the continuous flow of work without allowing normal interaction. These kinds of issues have become a major concern for both the employees and the media persons that ultimately comes out in front o f the public being a disastrous headline. After identifying the ethical dilemmas several news media has decided to raise this issue so that 7-eleven can take effective measures. Albert and Merunka (2013) stated in an occasion that this particular organization was suffering from leadership issues as well. As per the allegation of the workers, the business leaders of 7-eleven did not provide appropriate guideline to the employees for achieving business target. On the other hand, the leaders intended to impose decision on the employees with the help of which workers were bound to follow the instruction of leaders, be it logical or irrelevant. The organizational employees got limited scope to provide their personal opinion regarding the business goal. As a result, the employee relation at the workplace had been affected highly. In this kind of situation, the overall business growth of 7-eleven was highly affected. On the other hand, Alberts, Nakayama and Martin (2015) opposed the point of view of previous scholar. The author has stated that at the very of their journey 7-eleven was running their entire process of business successfully. The business managers used to follow democratic form of leadership style at the workplace. With the help of democratic leadership style, the managers gave immense opportunity to the employees for sharing their own opinion regarding the goal. As a result, employees got enough opportunities for exposing their own opinion. After expanding their business in Australian market in the year 1977 the organization has faced these kinds of issues. Under graduate students should not be involved with firm. Ardichvili et al. (2012) opined that the business experts should never involve any under graduate student within their process of businesses in minimum labor cost. This particular strategy is against the business ethics. On the other hand, the employees are getting deprived of receiving justified remuneration at the workplace. 7-eleven is currently facing immense challenges regarding their ethical issue due to which the organization has become a matter of discussion to most of news channels. In spite of being a multinational organization existing in several countries, the business experts have faced ethical issues that hamper highly in customer satisfaction rate (Audi, 2012). In order to render the success of business organization employees have to play a major role. After facing this kind of ethical issues, 7-eleven had faced innumerable employee turnover in the couple of years. As a result, the revenue growth of this organization has faced a drastic consequence. 7-eleven is the globally recognized organization that operates a large number of franchises and licenses. After facing these kinds of ethical issues in the Australian market, the business managers can implement some ethical theories and practices within the business organization for taking an effective managerial decision regarding achieving the business goal. Deontology theory has been considered as one of the most recognizable ethical theories followed by a large number of business organizations at the workplace. As per the concept of Ross, duty can never be self-centric. An individual should make a multi-centered approach while working together at the workplace (Avey, Wernsing and Palanski, 2012). The principle of this particular theory is fulfilling duties towards self or other person. In order to run a business organization successfully the employers have to maintain an effective employee relation in order to encourage the workers towards business goal. As opined by Barry (2016), the primary responsibility of business managers are to maintain a strong communication with every individual employee in order to know their challenges that they are facing at the workplace. Managers before taking a business decision can follow participative leadership style at the workplace. With the help of this particular leadership style, the employees would get opportunity for sharing their own opinion for rendering the success of business. On one hand, the business managers would get the opportunity to take collective decision for taking business strategy (Beadle, 2013). On the other hand, employees would like to show their interest for providing their best endeavor for reaching the business target. 7-eleven can follow deontology theory based on which the business authority tends to show their attention towards the employees. The authority should follow business ethics based on which the human resource managers should avoid recruiting under graduate s tudents and exploit their labor as well as mind. As per this particular theory and concept, the business employers can make an effective interpersonal communication at least once in a weak in order to know their issues facing at the workplace (Chun et al., 2013). It is the responsibility of the business manager to resolve the employee issues. Therefore, face-to-face communication is one of the most effective ways to expose the organizational issues. This particular theory has also pointed out that employees should maintain unity within the team. One senior employee should stretch the hand towards the juniors in order to resolve their organizational issues. People from different cultures and backgrounds are intimately associated within the business organization. Therefore, the authority should treat every individual member with equal respect and dignity. Collis and Hussey (2013) opined that a business organization is the amalgamation of people from different religions and cultural backgrounds. In most of the cases, it has been observed that senior employees tend to dominate the juniors while dealing with the same project. The under graduate students of 7-eleven have faced the similar issues. While involving within a new project the business managers of this organization tend to involve both fresher and the experienced employees (Cooper, 2012). It has been noticed that most of the senior employees intend to dominate the juniors by imposing their own decision, by pressurizing them towards additional works. In addition, they do not wish to co-operate with their junior for accomplishing a new project properly. Automatically, it became a burden for the fresher to provide good service to the customers. In order to overcome this kind of situation, the business experts of 7-eleven can use Care Ethics theory at the workplace. This particular theory implies that every individual should stand beside other at the workplace to those people who vulnerable and need support. The primary principle of this particular theory is action which is caring towards those who are vulnerable or need support. As per the recruitment process of 7-eleven, the human resource managers have recruited a large number of people belonging to indigenous group. At the same time, people from different cultural backgrounds are also entertained within this organization due to their diversity management system (Crane Matten, 2016). Senior employees inhumanly dominate these kinds of indigenous group of people while working at the workplace. As a result, it becomes crucial for those employees to survive at the workplace. In order to overcome this kind of situation, care ethics theory can be implemented at the workplace. Florea, Cheung and Herndon (2013) opined that the business managers can make an effective training and development session to the senior employees in order to make them understand about the value of maintaining organizational unity at the workplace. Training and development session would be helpful for evaluating the mind of employees. While involving within the business process, the new comers generally face immense difficulties at the workplace. If they do not get a co-operation from their seniors, the fresher lose their interest for performing well at the workplace. Floyd et al. (2013) has differed the concept of Ethical Care theory. As per the point of view of this scholar, it has been observed that senior employees should never show their sympathetic attitude towards the new comer at workplace. In order to survive within a business organization, the employees may have to face immense challenges at the workplace. The individual should have the capability to overcome the barrier b eing strategic and systematic with the proper guidance of senior employees. Support to the vulnerable should not signify mental consolation. Any kind of sympathy or polite approach may hamper the level of confidence of juniors (Goetsch and Davis, 2014). This particular concept has been highly accepted by a large number of contemporary scholars prevailing a predominant place at this century. In this particular part, a critical evaluation has been conducted on the relationship among ethics, leadership and decision-making. As opined by Hibbert and Cunliffe (2015), ethics can be defined as the value or belief based on which a particular organization intends to run their business in market. For an example, maintaining effective customer relation is one of the most concerned ethical beliefs that 7-eleven intend to follow at their workplace. At the same time, it is undeniable that maintaining customer relation is highly dependent on the employee performance. If the employees tend to provide their best effort towards the service process, the customers would be satisfied (Jennings, 2014). Therefore, providing quality service to the customers is not the only ethical consideration of the business managers. In order to maintain organizational ethics the business organization has to provide necessary facilities, benefits and facilities to the employees. The organization like 7-eleve n can follow some of the relevant acts and regulations such as data protection act, health and safety act, right to information act, anti-discrimination action, gender equity act and so on. Based on that relevant acts and regulations, the business managers can treat every single employee with equal respect and dignity. On the other hand, employees after receiving a positive treatment on behalf of organization like to deliver their good services towards customers for satisfying their needs and demands. Lindgreen et al. (2012) stated that leadership is the quality of guiding every single employee towards the business goal. The performance of an individual employee is highly dependent on the leaders. Leaders while directing a team tend to follow several kinds of leadership style at the workplace. Lindgreen et al. (2012) opined that democratic form of leadership style is highly important for encouraging the employees towards work. This particular form of leadership style provides many opportunities to the employees to express their own point of view. Leaders do not like to impose their own decision on the workers. 7-eleven had faced a major issue at the workplace as the business leaders intended to use autocratic form of leadership style at the workplace (May, Luth Schwoerer, 2014). This particular form of leadership style enables every individual employee to follow the instruction of leaders blindly. Employees do not get enough space to provide their own opinion for rendering the su ccess of business. As a result, a distance had been created in between the employers and employees. Michaelson et al. (2014) opined that before taking a decision on business strategy and policy the business, leaders did not make any collective decision by involving the employees opinion. As a result, the existing workers lost their interest for providing the effective service process. On the other hand, business decision is the something that depends on the business managers as well as employees. Patino, Pitta and Quinones (2012) opined that before taking a business decision managers tend to involve employees for making a collective decision. Collective decision is very much important for rendering the success of business. The overarching three concepts ethics, leadership and business decision are therefore interlinked with each other. Before taking any kind of business decision, leaders have to maintain ethics. For an example, in order to motivate the employees for overtime work, the organization should provide necessary facilities and benefits to the employees based on which they would like to show their interest for doing overtime work. At the same time, in order to lead the employees at the workplace, the business leaders should maintain effective communication with every individual worker for knowing their issues. Smith, Gonin and Besharov (2013) opined that employee should get a healthy workplace from the leaders so that they can provide their best effort for rendering the success of business. Therefore, the business decision is highly important on the values and beliefs of business managers and their leadership qualities. While raising the headline in The Australian regarding 7-eleven employee ethical issue at workplace, it has been observed that the business leaders were not maintaining organizational ethics at the time of making decision. Human resource managers wished to select most of the undergraduate employees who are not competent enough for providing complete labor and endeavor. In addition, the business experts of this particular organization were under paying those employees based on which they failed to maintain their livelihood properly. Therefore, while taking this kind of decision, the business managers were intending to avoid business ethics and values deliberately (Stanwick and Stanwick, 2013). Consequently, the employees intended to show their intense dissatisfaction for providing their best effort for the business organization. Goetsch and Davis (2014) opined that in order to be a good leader, the individual has to follow business ethics and principle. On the other hand, in order to take a proper business decision, the business leaders have to make a rapport with employees based on which the organization would be able to make collective decision for reaching the target market. Therefore, the consecutive terms ethics, leadership and business decision are inseparably related to each other. In order to take a good business decision, the importance of ethics and leaders are undeniable. Conclusion: The study has provided an in-depth understanding on how organizations should maintain ethical issues at the workplace. The contribution of every individual employee in a business organization is undeniable. 7-eleven is not exceptional to that. The managerial and leadership policy of 7-eleven Australia has become a serious issue based on which the employees have decided to lift their finger. A large number of foreign under graduate students are alleged to be exploited and humiliated at the workplace of 7eleven. They have not been paid their justified remuneration. As a result, the organization itself has become a hammer in the front page of The Australian. However, after facing the serious issue many eminent scholars have delivered different opinions. As per the point of view of several scholars, 7-eleven should change their leadership style in order to avoid these kinds of ethical issues. Business leaders should never treat with the junior under graduate employees harshly. In addition, before taking a business decision, the leaders should maintain organizational ethics and values. The business managers should implemented diversity management at the workplace with the help of which both the male and female employees would be treated with equal respect and dignity. Before implementing any business strategy and policy, the managers can use participative leadership style at the workplace of 7elevn. 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