Month: December 2016

Corporate Governance

Article Type: Guest editorial From: Cross Cultural Management, Volume 16, Issue 3About the Guest Editors
Chad O. Albrecht
Assistant Professor of Management at the Huntsman School of Business at Utah State University. Chad graduated with his PhD from ESADE Business School in Barcelona, Spain. Chad??™s research focuses on international fraud and corruption from a humanistic perspective. He has published in many journals and authored several books on fraud and corruption.
Conan C. Albrechtisan
Associate Professor of Information Systems at the Marriott School of Management at Brigham Young University.Conan researches computer-aided fraud detection and groupware. He is the author of the Pical oopen-source fraud detection software, the foundation of the Detectlet-oriented detection methodology. He has published in Communications of the ACM, Decision Support Systems, IEEE Transactions on Systems, Man, and Cybernetics, and other publications.IntroductionIt is a pleasure to introduce the reader to this special issue of Cross Cultural Management: An International Journal, on international ethics, fraud, and corruption. In recent years, scandals involving Bernard Madoff (USA), Sir Allen Stanford (USA), Enron (USA), WorldCom (USA), HealthSouth (USA), Parmalat (Italy), Harris Scarfe and HIH (Australia), SK Global (Korea), YGX (China), Livedoor Co. (Japan), Royal Ahold (The Netherlands), Vivendi (France) and most recently Satyam (India) (Albrecht et al., 2008b) have created a loss of confidence in the integrity of businesses throughout the world (Carson, 2003). These scandals have even caused the accounting profession in many countries to re-evaluate and re-establish basic accounting procedures (Apostolon and Crumbley, 2005).
In addition to these various scandals, many organizations in countries throughout the world are forced to deal with bribery, corruption, and dishonesty on a daily basis. The importance of understanding the cultural roots and perceptions of unethical behavior, fraud, and corruption is paramount in today??™s business world. As a result, the purpose of this special issue is to bring attention to many of the ethical issues that individuals, organizations, and even society must face as they engage in international business and explore new ways of understanding the cultural implications of the constructs of fraud and corruption.
In the last decade, the dot-com crash and the recent financial downturn have put significant pressure on companies and individuals to engage in fraudulent activities to display a false sense of profitability to investors, stockholders, and the public (Albrecht et al., 2008a). For example, the Bernard Madoff investment scam caused estimated losses of $65 billion for investors (Bray, 2009) and shocked many individuals because Mr Madoff held positions of authority and leadership. At its core, this fraud was a classic Ponzi scheme, yet it was one of the largest (if not the largest) investor fraud ever committed by a single individual. This fraud lasted for many years, and it involved thousands of investors.
The Satyam fraud in India provides another example of significant recent fraud. It has often been called the ???Enron of India??? (Christy, 2009) because of its large scope and worldwide consequence. Satyam was one of the world??™s leading technology and software consulting companies, with offices in nearly 75 countries and 40,000 employees (even this number was inflated by 30 percent). A large number of the Fortune 500 firms used Satyam for various software implementation projects. In early 2009 it was revealed that Satyam had overstated revenues by 76 percent and income by 97 percent (Times of India, 2009). Nearly all of the reported income of this very successful, worldwide consulting firm ??“ despite being audited by a reputable accounting firm ??“ was fraudulent. The fraud case caused significant waves in the industry as clients like the World Bank blacklisted the company (Ribeiro, 2009).
The recent financial downturn started in subprime lending markets ??“ a small part of the US banking industry (Stewart, 2008). Yet it quickly spread throughout world markets, eventually affecting stock exchanges throughout the world and the entire banking sectors in America, Europe, Asia, and elsewhere. It has caused untold losses in retirement accounts and caused government officials and business leaders to scramble both together and separately to stem the downturn tide. These events are prime examples of how quickly local problems in one sector can transform into international, cross-industry challenges. Indeed, fraud and corruption in one part of the world quickly affect businesses and governments in other areas. The research in this Special Issue may provide insights as oversight bodies and legislators evaluate actions taken thus far and consider future regulation.Ethics, fraud, and corruptionThe definitions of ethics, fraud, and corruption differ in studies and are often dependent upon the culture in which they are used. Where important to the research, each of the papers in this special issue defines these terms for the reader.
Classical fraud theory has long explained the reasons that an individual engages in unethical behavior (Sutherland, 1949). This theory states that individuals commit fraud and corruption as a result of the combination of three things: pressure, opportunity, and rationalization (Cressey, 1953). Pressures include any type of influence that compels an individual to engage in unethical behavior. Pressures may include a financial need, such as the need to support an extravagant lifestyle, or any other type of pressure (Albrecht et al., 2008c). In order for fraud and corruption to occur, the perpetrator must believe that he or she can commit the fraud and not get caught or, if he or she does get caught, nothing serious will happen. Opportunities don??™t have to be real ??“ they must only be perceived as real by the perpetrator (Hogan et al., 2008). Finally, individuals who engage in unethical acts such as fraud and corruption need a way to rationalize their actions as acceptable (Ramos, 2003). Often, cross-cultural issues show significant differences in the types of pressures and rationalizations individuals use.
The importance of classical fraud theory in explaining corruption and other forms of unethical acts has gained popularity in recent years. In 2002, for example, the American Institute of Certified Public Accountants introduced this framework into SAS 99, Considerations of Fraud in a Financial Statement Audit, to help better train and prepare auditors to detect corruption when conducting financial statement audits.Overview of the special issueThe papers included in this special issue come from a variety of sources. Some of the papers were presented at the 2008 European Academy of Management Conference in Ljubljana, Slovenia; some of the manuscripts went through the regular review process at Cross Cultural Management: An International Journal; and some were solicited from leading scholars in the field of international ethics, fraud, and corruption.
The first two papers of this special issue focus on cross-cultural perspectives; they examine the differences in manager and employee attitudes toward fraud and corruption and how different cultures establish norms that are based on different conceptions of human nature. The third paper examines the use of rationalization strategies to justify corruption in organizations. The next two papers assess the likelihood of financial statement manipulations and bribery in different countries of the world and suggest how cultural characteristics impact corruption. The final paper of this special issue provides a detailed examination from a Chinese perspective to better understand fraud and corruption, highlighting the differences in Western and Eastern attitudes towards corruption and fraud.ReferencesAlbrecht, C., Albrecht, C.C., Dolan, S. and Malagueno, R. (2008a), ???Financial statement fraud: learn from the mistakes of the US or follow in the footsteps of its errors???, Corporate Finance Review, Vol. 12 No. 4
Albrecht, W., Albrecht, C.O. and Albrecht, C.C. (2008b), ???Current trends in fraud and its detection???, Information Security Journal: A Global Perspective, Vol. 17 No. 1, pp. 2??“12
Albrecht, W.S., Albrecht, C., Albrecht, C. and Zimbleman, M. (2008c), Fraud Examination, 3rd ed. , Thomson SouthWestern, Mason, OH
Apostolon, N. and Crumbley, D.L. (2005), ???Fraud surveys: lessons for forensic accounting???, Journal of Forensic Accounting, Vol. 4, pp. 103??“18
Bray, C. (2009), ???Madoff pleads guilty to massive fraud???, The Wall Street Journal, March 12
Carson, T.L. (2003), ???Self-interest and business ethics: some lessons of the recent corporate scandals???, Journal of Business Ethics, Vol. 43, pp. 389??“94Christy, J. (2009), ???India??™s Enron???, Forbes, January 27, available at:;fraud.html
Cressey, D. (1953), Other People??™s Money: A Study in the Social Psychology of Embezzlement, The Free Press, Glencoe, IL
Hogan, C.E., Rezaee, Z., Riley, R.A. Jr and Velury, U.K. (2008), ???Financial statement fraud: insights from the academic literature???, Auditing: A Journal of Practice & Theory, Vol. 27 No. 2
Ramos, M. (2003), ???Auditors??™ responsibility for fraud detection???, Journal of Accountancy, Vol. 195 No. 1, p. 28
Ribeiro, J. (2009), ???Satyam chief quits, admits faking financial results???, IDG News Service, January 7, available at:
Stewart, H. (2008), ???IMF says US crisis is largest financial shock since Great Depression???, The Guardian, April 9, available at:
Sutherland, E. (1949), White Collar Crime, Dryden Press, New York, NY
(The) Times of India (2009), ???Satyam fudged FDs, has 40,000 employees: public prosecutor???, The Times of India, January 22
Chad O. Albrecht, Conan C. Albrecht
Guest Editors

How to Check and Replace the Alternator on Your Vehicle

How to Check and Replace the Alternator on your Vehicle
Everyone over the age of sixteen usually knows how to drive, but many do not know how to perform basic repairs on their cars. Your car alternator holds an electric charge and charges your car battery. If the alternator is not working properly, your battery will eventually lose its charge and will stop working. Have you ever been driving down the road at night, and then all of a sudden your lights go off Well that is a tell tell sign that your alternator needs to be replaced, so I??™m going to tell you in depth how to check and replace the alternator in your vehicle.
Firstly, you will need to turn the ignition on and open the car hood. While the car Is running, remove the negative battery cable from the battery. If the car stalls and dies, your alternator is bad. This is because the alternator is not generating enough electricity to keep the car running. If the car keeps running properly after disconnecting the cable, the problem could be with another part of your vehicle should i write my essay in present tense.
Next, you must leave the negative battery cable disconnected, and disconnect the positive cable at this time. This is an especially important step, as all the electricity for the entire vehicle goes through the alternator. Now, on the face of the motor you will see a tensioner. It looks similar to a normal pulley, but the difference is that the tensioner itself is bolted to the motor. You will see a bolt in the center of the tensioner, and will need a ratchet and socket of the same size to use. Turn the bolt on the tensioner like you are going to tighten it with the ratchet. The tensioner is going to swivel to the left and release the tension on the belt as to remove it.
Now that you have removed the belt from the alternator, you will need to remove the power wires. On top of the alternator, you will see two wires bolted there. These are the power wires. You will remove the nut that holds these wires to the alternator with a wrench. There are usually two bolts holding an alternator to its mounts. One bolt maintains tension on the belts, and the other holds the alternator in place. You will first loosen the top bolt, but not remove it, as this will need to stay in place to hold the alternator in place. You will next loosen and remove the second bolt, located more towards the bottom of the alternator. Now you are ready to fully remove the first loosened bolt, and fully remove the alternator from the engine.
You are now ready to replace your alternator. The good news is that determining which part of the system is doing its part and which part is a little tired or about to quit altogether is easier than ever. Many auto parts stores now have portable diagnostic equipment that can be wheeled out to sniff out in minutes whats going on with the electrical system. Since your alternator has gone out permanently, replacing it is a relatively easy job. You will follow the above steps in reverse to install the new alternator in place of the old.

How to Cook a Favorite Recipe

Unit 4 Individual Project
Legal and Ethical Environment of Business
BUSN150-1004B-138Question (1) Before the UCC and the UCITA what was one of the first, and most significant, of the U.S. government??™s attempts to promote uniformity in commercial laws from state to state The commerce clause found on article 1 section 8 of the U.S. constitution.
Question (2) Based on the information above what do you see as the major differences between Article 2 of the Uniform Commercial Code and UCITA The UCC is involved with the selling of products and the UCITA is involved with licensing products. The UCC has a clearer and consistent rule of governing transactions and the UCITA is lacking in the clear and consistent rules of governing transactions in this part of our growing economy.
Question (3) What is the legal distinction between selling a product and licensing it There is not much difference unless you sell the rights to a product. By selling the rights to a product you are transferring it to another party without much limitation. Licensing a product is almost like selling the rights to it except you retain certain rights (usually spelled out in a contract). Selling a product transfers full rights of use to the consumer for whatever purpose intended.
Question (4) Many of the provisions of the UCITA were first proposed as a modification to article 2 of the UCC. Why do you think the drafters decided to propose it as a separate and distinct uniform act The amount of expansion in the economy of these types of transactions made this act complicated and controversial. The UCITA has many provisions that need to be met, therefore, making it more productive as an act all its own. ???RESOURCES???
CREDO REFERENCE: Merriam Webster??™s Dictionary of Law (1996)
AIU Library
Course Material: Unit 4; International Operations and Legal Issues
Course Material: Unit 4; International Business Ethics Issues

How to Choose the Best Credit Card in India

How to choose the best credit card in IndiaWith increasing purchasing power and people keen on shopping every now and then, credit card India has become a rage across India. There are lot of banks that offer credit card services like* ABN Amro
* American Express
* ICICI Bank
* Axis Bank
* Bank of Baroda
* Canara Bank
* Citibank
* Visa
* MasterCard
* Deutsche Bank
* Amex
* Barclays Bank
* Diners Club
* Standard Chartered
* Kotak MahindraThe credit cards can be conveniently carried and handled with ease instead of carrying money. Another major advantage is using credit card online for purchasing goods that are available on various websites and not available outside. For reaping maximum benefits we should choose the best credit card available. Before getting in to the analysis of best credit card one should check his or her own financial position and the capacity to pay the bills on the due date. To choose the best credit card, one has to be very cautious and should be analytical too. Credit cards across India from various Credit card banks are provided at different offers and conditions. A person buying credit card should compare various Credit card offers of different credit card banks.Another important thing is the credit limit to borrow on a credit card. Each credit card service provides different credit limit to borrow, these are as per the companies policies. A person should be prudent to take a limit which is according to his or her financial position. The person should also be aware of the APR, the grace period policy and the kind of fees that are collected by the company. He or she should also know the reward system of the company.One very important issue is that none should fall into the trap of any credit card company that offer huge discounts on the credit cards in terms of interest rates and other rewards. This is because there may be some hidden charges attached with these cards and altogether, it can certainly prove to be a very expensive deal that you may regret later.Once all the checks are done then the credit card application has to be filled and submitted with the respective credit card company and the kind of credit card required for use. Different kinds of credit cards are listed out below:- < Business card < Standard Credit card < Premium credit card < Charge credit cards < Limited Purpose Credit Card < Secured Credit Cards < Prepaid Credit CardsFrom the above specified list which ever suits the bill should be applied for and used as prudently to have a peaceful life. These are the steps that result in choosing the best credit card in India.

How to Create Websites

How to Make / Create a Website: The Beginners A-Z GuideThe essential step by step guide on how to set up a websiteHow to Start / Create Your Own Website: The Beginners A-Z GuideThis tutorial shows you how to make or create a website. It is intended for the beginner and layperson, taking you step by step through the whole process from the very beginning. It makes very few assumptions about what you know (other than the fact that you know how to surf the Internet, since youre already reading this article on the Internet). Since some steps are more involved, it also links to selected relevant articles on that you will need to click through to read for more information.The Essential Step-by-Step Guide to Making Your Own Website Get Your Domain Name The first thing you need to do before anything else is to get yourself a domain name write my essay introduction. A domain name is the name you want to give to your website. For example, the domain name of the website youre reading is “”. To get a domain name, you have to pay an annual fee to a registrar for the right to use that name. Getting a name does not get you a website or anything like that. Its just a name. Its sort of like registering a business name in the brick-and-mortar world; having that business name does not mean that you also have the shop premises to go with the name.
o Detailed information on getting a good domain name can be found in the article Tips on Choosing a Good Domain Name.
o After you read that, you will need to know the steps to registering a domain name and the things you need to look out for when registering. You can find a detailed guide in the article How to Register Your Own Domain Name.
o It may also be wise to take a look at some of the Important Precautions to Take When Buying a Domain Name, just so that you dont commit the same mistakes that some newcomers make when buying a domain name. Choose a Web Host and Sign Up for an Account A web host is basically a company that has many computers connected to the Internet. When you place your web pages on their computers, everyone in the world will be able to connect to it and view them. You will need to sign up for an account with a web host so that your website has a home. If getting a domain name is analogous to getting a business name in the brick-and-mortar world, getting a web hosting account is analogous to renting office premises for your business.
o There are many issues involved in finding a good web host. Read up on the various things you need to look for in searching for a good web host in the article How to Choose a Web Host.
o After you have an idea of what to look for, you can search for one from the Budget Web Hosting page. You can also find out which web host Im currently using from the Which Web Host Do You Recommend page.
After you sign up for a web hosting account, you will need to point your domain to that account on your web host. Information on how to do this can be found in the guide How to Point a Domain Name to Your Website (Or What to Do After Buying Your Domain Name). Designing your Web Pages Once you have settled your domain name and web host, the next step is to design the web site itself. In this article, I will assume that you will be doing this yourself. If you are hiring a web designer to do it for you, you can probably skip this step, since that person will handle this step.
o Although there are many considerations in web design, as a beginner, your first step is to actually get something out onto the web. The fine-tuning can come after youve figured out how to get a basic web page onto your site. One way is to use a WYSIWYG (“What You See Is What You Get”) web editor to do it. Such editors allow you to design your site visually, without having to muck around with the technical details. They work just like a normal wordprocessor.
There are many commercial and free web editors around. For those who dont mind spending money on a good commercial web editor, one of the most highly-regarded WYSIWYG web editors is Dreamweaver. [pic]If you are planning to use this editor, has an online tutorial on How to Create a Website with Dreamweaver CS4 (Dreamweaver Tutorial). The tutorial takes you through all the steps of creating a fully-functional website with multiple pages and a feedback form, and provides you with the theoretical and practical foundation that will help you create and maintain your site.
If you prefer to use free software, you can find a complete tutorial on using KompoZer, a free WYSIWYG web editor, in the article How to Design and Publish Your Website with KompoZer. Like my Dreamweaver tutorial, this one also guides you through the process of creating a website that has a home page, an about page, a site map, a links page and a feedback form. It also shows you some of the main features of the KompoZer software so that you can go on improving and updating your website on your own.
There are many other web design software around. If you prefer not to use either of the above, you can find some others listed on thefreecountry.coms Free HTML Editors and WYSIWYG Web Editors page.
o After you have followed my tutorial, and are on the way to designing your website, you might want to read the article Appearance, Usability and Search Engine Visibility in Web Design as well. The article takes a brief look at some of the real world issues that every web designer must deal with.
o An integral part of web design is search engine readiness. Search engine promotion does not start after the web site is made. It starts at the web design stage. The article 6 Tips on How to Create a Search Engine Friendly Website is a must-read. My article on How to Improve Your Search Engine Ranking on Google is also important for the simple reason that Google is the most popular search engine around, at least at the time this article was written.
o There are many other issues regarding the design of web pages. The above will get you started. However, if you have the time after you get something out onto the web, you may want to read my other articles on Web Design and Website Promotion and Search Engine Ranking. Testing Your Website Although I list this step separately, this should be done throughout your web design cycle. I list it separately to give it a little more prominence, since too few new webmasters actually perform this step adequately.
You will need to test your web pages as you design them in the major browsers: Internet Explorer 8, Internet Explorer 7, Internet Explorer 6, the latest versions of Firefox, Opera, Safari and Chrome. Since all these browsers are free anyway, it should not be any hardship to get them and install them. The trick however, is testing with more than one version of Internet Explorer since the later version will overwrite the earlier. For that, please see the article How to Check Your Website with Multiple Browsers on a Single Machine (Cross-Browser Compatibility Checking). Although there are two possible ways given in the article, I suggest that you use the emulator/virtual machine method to do this. (Its probably easier.) Read the article to find out more.
One way to improve your chances that your website will work in future versions of the web browsers is to make sure your web pages code validate as correct (that is, the underlying code has no errors). You can read more about this in HTML and CSS Validation: Should You Validate Your Web Page There are numerous free web page validators listed on the Free HTML Validators, Broken Link Checkers, Browser Compatibility Checkers page. Collecting Credit Card Information, Making Money If you are selling products or services, you will need some way to collect credit card information. You should read up on How to Accept Credit Cards on Your Website. I also have a step by step guide on How to Add an Order Form or a “Buy Now” button using PayPal to a Website for those using PayPal.
If you need advertisers for your website, you might want to read How to Make Money From Your Website and the follow-up article How to Increase Your Website Revenue from Affiliate Programs. A list of advertisers and affiliate programs can be found on Affiliate Programs: Free Sponsors and Advertisers. Those companies are on the constant lookout for new web publishers to display their advertisements. Getting Your Site Noticed When your site is ready, you will need to submit your site to the search engines, particularly Google. You can find the Google submission page by clicking on the “About Google” link on Google, and then locating the “Submit your content to Google” link on the page that appears. However, submitting your site to Google alone is, quite frankly, a pointless endeavour. If there are no other links to your site on the web, Google will be appear most reluctant to index your site and show results that include your pages. If there are many other links to your site, you dont even have to bother to submit it to Google ??” it will find your site by itself.
This is where promoting your website is important. This involves many things, including the usual way people did things before the Internet: advertisements in the newspapers, word-of-mouth, etc. You might want to consider advertising on places like Yahoo! (which puts your ads on Yahoo!, AltaVista and CNN),[pic] or Google. As discussed in my article More Tips on Google Search Engine Results Placement, ads can be a quick way to get onto the first page of a search engines results page.
There are also Less Obvious Ways of Promoting Your Website, which you might want to consider.
Bottom of FormRelated Pages ??? How to Put a Site Search Engine On Your Website
??? How to Upload a File to Your Website Using the FileZilla FTP Client
??? What is Favicon.ico Personalise Your Sites Bookmark
??? Free FTP Clients, Secure FTP (SFTP) Programs
??? Free Web Statistics and Web Log Analyzers
??? Free SSH (Secure Shell) and Telnet Clients
??? Free Web Statistics Services
??? How to Increase Your Sales and Customer SatisfactionNew Pages ??? How to Customize Your Websites Navigation Menu Bar with Dreamweaver CS5
??? Dreamweaver CS5 Tutorial: How to Design a Website with Dreamweaver CS5
??? What is MySQL What is a Database What is SQL
??? How to Point Multiple Domain Names to One Website: And How to Avoid Search Engine Problems When Doing So
??? Should You Choose a Linux or a Windows Web Hosting Package Is There Such a Thing as a Mac Web Host
??? How to Point a Domain Name to Your Website (Or What to Do After Buying Your Domain Name)
??? How to Upload and Link to a PDF File (or PDF Ebook) in KompoZer and Nvu
??? How to Make Your Images and Text into Clickable Links with Dreamweaver CS5
??? How to Change the Background of Your Website in Dreamweaver CS5
??? How to Change Fonts, Text Size and Colours in Dreamweaver CS5Popular Pages ??? How to Make / Create Your Own Website: The Beginners A-Z Guide
??? Tips on Choosing a Good Domain Name
??? How to Create a Search Engine Friendly Website
??? How to Create a Website with Dreamweaver CS4 (Dreamweaver Tutorial)
??? How to Design and Publish Your Website with KompoZer (free WYSIWYG web editor)
??? Free Customized Feedback Form Wizard (PHP / Perl Script)

Corporate Governance

Running head: TRANSPARENCY IN CORPORATE GOVERNANCETransparency in Corporate Governance
Tanya Garcia
University of PhoenixCorporate Transparency Recent corporate scandals brought about a number of regulatory changes. Transparency in corporate governance is a result of these scandals, requiring increased disclosure in financial reporting (Hernalin & Weisback, 2007). The situation with corporations such as Enron and Worldcom reveals the need for full disclosure reporting in publicly traded companies. Sarbanes-Oxley (SOX) is a regulation that mandates increased disclosures and offers ???penalties to executives for misreporting??? (Hernalin & Weisback, 2007, p. 2). This increases awareness of the need to improve corporate governance in the public??™s mind. This paper addresses McBride Financial Services and the opportunities the organization has to increase transparency in corporate governance, therefore improving the perception of investors, employees, and the public.Concept of Transparency #1 In Hugh McBride??™s memo to Paul, he describes how closely Beltway will be watching the organization, especially the financial reporting aspect. At this point, McBride Financial Services still owes the SEC quarterly and annual reports. Rather than asking the brokers for input or support, Hugh requests Paul to handle the accounting himself (Supplement: McBride Correspondence, 2010, p. 2). This does not provide for transparency, but rather keeps financial data in a silo. In addition, Hugh??™s lack of awareness of SOX requirements puts the organization at risk, not to mention the perception he is creating for his employees, investors, and the public.
According to Hernalin and Weisback (2007), they make an assumption about the chief executive officer??™s (CEO) ability on his current performance or past performance. Beltway has no guarantee of how Hugh McBride will perform as CEO; however, the organization??™s past performance is an indicator of how the company will perform in the future. As a leader of the organization, Hugh has a responsibility to all owners to demonstrate honesty and integrity in all his activities. Honesty and integrity promote prosperity for companies and help comply with laws such as SOX (Marshall, 2005). Hugh??™s current and past performance demonstrates his inability to act with integrity. In a memo to Betty and Beth, Hugh states that he does ???not plan on allowing the money men to dictate how I??™ll run this company??? (Supplement: McBride Correspondence, 2010, p. 2). Furthermore, Hugh is choosing his own board of directors, requiring only the members to provide a ???flowery??? biography to sell the investors on approval. Again, this violates SOX requirements of boards of directors.
Hugh??™s self-interest is evident in his mission to run the business as he sees fit. By exhibiting forthright and timely information with investors, Hugh will make his organization more transparent, specifically with quarterly and annual reports. This enables investors to understand the financial performance of the company.
Concept of Transparency #2 In another memo to Betty, Hugh relays his thoughts on incentive compensation and decision to hold off on providing stock options to the board members. In this case, Hugh??™s self-interests of not wanting to dilute his shares will eventually cause his business to fail. In an article by Gerety, Hoi, and Robin (2001), it states that ???the market reaction depends on whether the CEO is involved in director selection??? (p. 1). In addition, ???stock markets react negatively to plans proposed by firms without nomination committees??? (Gerety, Hoi & Robin, 2001, p. 1). In a publicly traded corporation, the CEO is responsible for sound corporate governance, including ensuring proper incentive plans are put in place for directors. The incentive plans provide a motivational tool for senior managers and include ???stocks, stock options, and other equity-based compensation as an integral part of managerial compensation contract??? (Gerety, Hoi & Robin, 2001, p. 1).
In recent years, incentive pay is becoming a way of life for corporate directors and uses ???equity-based compensation to align the interests of shareholders and directors??? (Gerety, Hoi & Robin, 2001, p. 1). Hugh McBride must acknowledge and implement this concept to ensure shareholders and directors get the most out of the success of the business. Moreover, this type of compensation will facilitate increased performance from those with a direct link. This should ultimately result in a positive stock market reaction with the assistance of a sound corporate governance structure.
As part of a compensation plan, specific metrics must be set to help establish a level of achievement. The level of performance should encompass stretch goals, which helps create shareholder value. According to Barnes (2010), the plan should include:
??? Incentives that appropriately balance risk and reward
??? Compatible with effective controls and risk management
??? Be supported by strong corporate governance, including active and effective oversight by the board of directors
At this point, it will be difficult to establish appropriate metrics because of the lack of financial reporting. To comply with corporate governance, McBride Financial Services should have an audit committee to ensure proper financial reporting. Once Hugh understands the financials and apparent risks, he can establish an incentive plan that will motivate his senior managers to exceed expectations on his or her performance. Moreover, this will provide clear transparency to the organization, investors, government regulators, and the public.
Concept of Transparency #3 The third example of self-interests of Hugh McBride is the information he communicates to his board of directors relative to his or her roles. Hugh makes it clear that the board does not have any bona fide responsibilities and that all the real work will be left to him as the Chairperson. Hugh communicates to the board that his or her reward is to include ???Board Director??? on his or her resume??™. As a sole proprietor, Hugh McBride??™s role as CEO ???sets the direction and oversees the operations??? (McNamara, 2010, p. 1). In an organization that has a board of directors, this usually means the CEO ???is primarily responsible to carry out the strategic plans and policies as established by the board of directors??? (McNamara, 2010, p. 1).
Because Hugh has set the expectation as Chairperson that he will handle the real work, this creates a conflict of interest because the CEO??™s reporting relationship is to the board of directors. Conaghan and Popat (2010) believe that one of the issues with corporate governance is the risk associated with combining CEO and Chairperson titles in the same person. The reason for this risk is that the board??™s primary responsibility is ???to oversee and provide a ???check??? against a misguided management team??? (Conaghan & Popat, 2010, p. 1). Hugh McBride clearly represents a misguided management team, as he is the heart of the issue. Further, Conaghan and Popat (2010) indicate that ???over the past five years, most large U.S. public companies have either split the roles of the CEO and Chairman, or, to the extent the CEO also carried the Chairman title, appointed one of the independent (non-management) directors to the role of Lead Director??? (p. 1). New disclosure rules put in place by the Security Exchange Committee requires public companies to disclose why they believe the dual roles by one individual is appropriate and the role of lead director in leading the company (Conaghan & Popat, 2010).
To comply with best practices of corporate governance and demonstrate transparency in the organization, Hugh McBride needs a lead director if he is to retain the Chairperson title. A lead director role includes responsibilities such as (Conaghan & Popat, 2010):
??? Focus on governance relative to meeting calendars, committee membership, board recruitment, dealing with underperforming directors, strategy and the ???big picture???
??? Act as focal point for the independent directors and the consensus builder for the entire board
??? Carefully review the agendas for board meetings as a means of control
??? Clearly delineate the division of responsibilities with the CEO and Chairperson and communicate the division to the board and management.Conclusion
Corporate leaders understand the importance of a healthy corporate culture and the implications to good corporate governance. In a healthy culture, employees are empowered to question unethical situations before the impact becomes detrimental. Hugh McBride has not built a healthy culture at McBride Financial Services because the employees do not question his tactics or methods. Hugh relies more on self-interest than the good of the organization. Failure to begin acknowledging transparency in his organization will potentially lead to serious fines or even events of a scandalous nature. In situations such as Enron and Worldcom, the information is not distorted but rather concealed. McBride Financial Services is well on their way to a scandal if Hugh McBride continues to conceal information and operates from the respect of self-interests.References
Barnes, T. A. (2010). Interagency guidance on sound incentive compensation policies. Retrieved
November 19, 2010 from
Conaghan, T. P. and Popat, M. V. (2010). How to be a good lead director. Retrieved November 19,
2010 from
Gerety, M. Hoi, C. and Robin, A. (2001). Do shareholders benefit from the adoption of incentive
Pay for directors Retrieved November 19, 2010 from
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Hermalin, B. E. and Weisbach, M. S. (2007). Transparency in corporate governance. Retrieved
November 19, 2010 from
Marshall, M. (2005). Corporate governance must stress transparency. Retrieved November 19, 2010 from, C. (2010). Basic overview of role of chief executive. Retrieved November 19, 2010 from of Phoenix (2006). Supplement: McBride Organizational Charts. Retrieved October 15, 2010 from

Corporate Governance

This form of governance was not democratic. The powers were shared among the elite few who were wealthy. The society was ruled by men and women of great wealth and might. Poor men and women were slaves of the rich, and they were at their mercy. The society was that of suspicion. The poor owed great debts since they had no money to pay the rich they continued to accumulate debts and eventually became their slaves. The rich ruled the courts and all public offices where they. The poor were tried by courts from the??? noble families and sworn upon sacrifices ???the prosecutor part was assumed by a Myron. They were found guilty of sacrilege, and thgeir bodies cast out of their graves and their race banished for good, because of this, a purification of the city was done this brought bad blood between them.
They poor worked in the farms of the rich for rent. The constitution was organized in such a way that the magistrates were??? elected according to wealth and birth.??? Who before revision ruled until death but upon, to revision served for ten years. Great injustices were done that prompted the majority poor to rise against the upper class. Two camps were formed who seemed to breathe fire to each other. Then a leader was chosen upon agreement of both parties. His name being solon a man described to have middle class statues .Archon was also appointed to the same task. This evidenced by his ancient poems .He was not slow to his judgment and in many occasions, he blamed the rich for the conflict.
He indeed lived to the task and liberated the people by passing laws that indemnified their debts, those done in secrets and public. The rich found fault in him because of this character and accused him of fraud. He drew up his constitution and divided the population into four classes. Giving positions of power to each class in portion. .Upon this divisions it was clear it was going to be a man show he made laws that even threatened to strip the people of their citizenship . it is also clear that he by himself regulated all elections He also made laws to abolishing security on loans . He was by far a savior of the country but the started harassing him expecting him to balance the wealth and the rich expecting to restore the former statues.

Corporate Governance

What is corporate governance
Describe the control and direction of corporations. (a set of processes, policies, laws and institutions affecting the way of a corporation is directed, administered or controlled). Includes the relationships among the stakeholders involved and the goals for the corporation is governed. It is about how shareholders and agencies external to a corporation control influence those responsible for directing and managing the affairs of the corporation.What has been concerned primarily with management and stewardship issues
??? Corporate strategy: every organization has its objective; particular strategy helps to achieve its objective.
??? Succession planning: it is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available.
??? Integrity of internal control structure: the idea behind internal control is org can reach its objective.
??? Remuneration policy.Essential corporate governance principlesPrinciple 1: Lay solid foundation for management and oversight
Recognize and publish the respective and responsibilities of board and managementPrinciple 2: Structure the board to add value
Have a board of an effective composition, size and commitment to adequately discharge its responsibilities and duties.Principle 3: Promote ethical and responsible decision making
Actively promote ethical and responsible decision marking.Principle 4: Safeguard integrity in financial Reporting
Independently verify and safeguard the integrity of the company??™s financial reporting.Principle 5: Make timely and balanced disclosure
Promote timely and balanced disclosure all material matters concerning the companyPrinciple 6: Respect the rights of shareholdersPrinciple 7: Recognize and manage risks
Establish a sound system of risk oversight and management and internal control.Principle 8: Encourage enhanced performance
Fairly view and actively encourage enhanced board and management effectiveness.Principle 9: Remunerate fairly and responsiblyPrinciple 10: Recognise the legitimate interests of stakeholders
Organizations should recognize that they have legal and other obligations to all legitimate stakeholders.
??? Rights and equitable treatment of shareholders: Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by effectively communicating information that is understandable and accessible and encouraging shareholders to participate in general meetings.
??? Role and responsibilities of the board: The board needs a range of skills and understanding to be able to deal with various business issues and have the ability to review and challenge management performance. It needs to be of sufficient size and have an appropriate level of commitment to fulfill its responsibilities and duties. There are issues about the appropriate mix of executive and non-executive directors.
??? Integrity and ethical behaviour: Ethical and responsible decision making is not only important for public relations, but it is also a necessary element in risk management and avoiding lawsuits. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making. It is important to understand, though, that reliance by a company on the integrity and ethics of individuals is bound to eventual failure.
??? Disclosure and transparency: Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide shareholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the companys financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.Mad Hatter??™s TEA PARTY – ArticleThe article talks about the recent major corporate collapses in the Australian Corporate History (OneTel, Harris Scarfe and HIH Insurance). The author has mentioned referred to the character of Dormouse (The Regulators), Alice (The Auditors and Accountants), The Marsh Hares and Hatters (CEOs and Directors). The corporations have been criticized to falsify their book in order to show exaggerated profits whereas they actually suffered a loss. Unfair Remuneration of the directors and the CEOs have been discussed following the corporate greed among all the characters mentioned above to cause the collapses. The author has named the corporate greed as the new religion of materialism in which the only thing important for the CEOs, Directors, the auditors and accountants is material (economic) value and nothing else. The corporate collapses had an adverse affect on the shareholders who lost trust in the stock markets (Capital markets). Under the religion of materialism the ethical standards lost their importance in the society.The corporate governance issues have been discussed which caused the major corporate collapses of HIH, OneTel and Harris Scarfe. These corporations breached the Corporations Law and thus fell into administration and subsequently liquidation.ONETEL
??? Placed into administration
??? Went into Liquidation MAY 2001-AUG 2002
??? Estimated Debts of $600 Million
??? Joint Directors Received $7 Million each the year before when OneTel reported a loss of $291 Million
??? At one time company only had $500000 in their account and $33 Million Bills Due
??? Creative accounting of capitalizing expensesHARRIS SCARFE
??? Was in operation from around 150 years
??? Under Administration in April 2001
??? Irregularities dating back 6 Years
??? Overstatement of Profits funded by increased debt (showed to both the banks and creditors)
??? CFO altered company??™s accounts to inflate profits which created a false picture of harris scarfe being in good health to the stakeholders
??? Accounts were being changed by the CFO in order to attain the profit results required by managing director or chairman of the company.
??? ANZ Bank (Creditor) sued E&Y and PricewaterhouseCoopers for not detecting the fraudulent financial reporting and irregular entries in the management accountsHIH INSURANCE
??? Placed into provisional liquidation with losses of $800 Million
??? Excessive discounting was one of the failure factors
??? Hostile takeover of FAI Insurance for $300 Million (Overpriced) without proper due diligence investigations
??? Major losses in UK and USA sectors of the company
??? Undesirable Corporate Governance Practices and failure to disclose properly about the financial health of HIH
??? Appropriateness of the manner in which powers were exercised
??? BREACH OF CORPORATIONS ACT (Case against three officials for improper use of company funds and breach of duty
??? Brought about major changed in the Australian Corporate Regulatory Environment
ROLE OF AUDITORSIn case of OneTel it was revealed that bonuses of $14 Million were paid to the founders of the company and these bonuses were recorded as deferred expenses and were treated as setup costs for OneTel??™s operations across Europe and Australia through questionable accounting practices. Auditors were also found to be supportive of the questionable accounting practices used to falsify the company accounts.In case of Harris Scarfe it was found that the accountants were running two set of books and which was not being detected by the auditors (Fraudulent Financial Reporting). Alongside there were also independence issues with the audit committee of Harris Scarfe. Two of three officers on the audit committee were internal directors and only one was external and they only met twice a year. Auditors were sued for negligence in detecting fraud.In case of HIH also there were problems with Audit committee of the Board (auditor independence). Chairman and another member of the committee were both former senior executives of Arthur Anderson (Auditors). Also two other members of the audit committee had business relationships with the company and the finance director was former Arthur Anderson partner. Miscalculation of insurance claim reserves was also a factor of demise of HIH although the US regulators already warned the company in this regards for US operations. Board was never informed about the recommendations by actuaries (Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms) to increase the reserve.Therefore it is clear from the investigations that the auditors and accountants in ONETEL, HARRIS SCARFE and HIH were also involved with the directors and managers of the company for the greed of materialism and were involved in the fraud which led to the collapse of these organizations. They were suppose to act as ethical gatekeepers of the company??™s information provided to the public whereas they also joined the mad hatter??™s tea party to falsify the company accounts and acted with negligence. THERE WAS EXTENSIVE PRACTICE OF CREATIVE ACCOUNTING.Read Good CORPORATE GOVERNANCE And Bad CORPORATE GOVERNANCE From Article
Read Black Letter Law versus Principles from Article
Surbanes Oaxley Act
Clerp 9Expectation gap
??? The gap results from differences between the views of auditors and other stakeholders regarding:
??“ The roles and responsibilities of auditors
??“ The performance of auditorsCauses ??“ Expectation gap
The nature of auditing
Application of hindsight
Self-interest of complainants
Self-interest of auditors
Changes in social expectations
Misunderstanding / ignorance of rolesThe Code of Ethics for Professional
Accountants includes both general statements of ideal conduct and detailed rules to ensure those principles are applied??? Code of ethics are formal, systematic statement of rules and principles developed by the community to promote its well-being and punish undermining behaviour.??? Five fundamental principles contained in the codes of ethics:
1. Integrity
2. Objectivity
3. Professional competence and due care
4. Confidentiality
5. Professional behaviour

How to Deal with Stress of Doubt

How to Deal with the Stress of DoubtDealing with doubt is an inevitable part of daily life. Because we can??™t see the
future, we can never be certain about what exactly is going to happen day to day.
Study has found that people fluctuate in their ability to deal with doubt. Some people are okay with having a lot of doubt in their lives, and other people cannot stand even a small amount of doubt.
People that are eager, particularly those adults who worry too much, are more likely to be very doubtful in the choices they make in their lives every day. They will often try to plan and prepare for everything as a way of showing that they are sure of the things they do in their lives.What??™s wrong with letting doubt cause you to be stressful
We could say that it is normal or even common, for most people to have a difficult time with doubt. When you face doubt all the time you start to get uneasy with yourself and start to stress over the problems you go through because you??™re not sure what would happen in your lives. For example, when we throw a party, we invite people we know, we want to be sure about who is going to be at our party. We are not going to go out and invite strangers and have doubt about how our party will come out. We need to know that being in doubt can cause stress that can affect us in many ways and could cause us some problems, and some may be affecting our health. Doubt can imprint changes in our behavior that would cause us to be tired, and could cause anxiety in our lives as well. This will eventually cause us to worry so much that we would let the importance of life slip through our fingers, and we will begin to feel overwhelmed. In some cases we could let ourselves slip into a depression without knowing that we have a problem.
What do people who are dealing with the stress of doubt do
If you can??™t stand having stress of doubt in your life, you are probably doing things that are relaxing to your mind, or you try not to face the point that you have to make decisions to responsibilities that you have in your life. Some of the actions that people take when they are dealing with the stress of doubt may include; seeking excessive reassurance from others: this might be asking friends or family members for their opinion on a decision that you have to make. Double checking on friends or by calling loved ones repeatedly to make sure that they are okay. Sometimes the letters or the emails we get, we find ourselves reading emails several times to check that they are perfect and that there are no spelling mistakes. We also sometimes rather not delegate tasks to others around d us, because we cannot be sure that it will be done correctly; or on time unless we do it ourselves.
What are the steps I could take to deal with my stress of doubt
1) Start by writing down all of the things that I do to try to feel more certain, or to get around doubt and stop stressing. It is often the right decision to record some of the feedback I get from the just dealing with the doubts I have in my life.
2) I try to deal with the doubt without causing myself to stress over it.
Life will come at you from all angles. We have to be ready to make decisions and deal with the consequences of our choices. We cannot always stress over believing that some decision we have made will cause us to suffer in some point in our lives. We must learn to cope and just try at the task again. This is how I face the task that take a strain on my life.
3) I have decided to write down the plan I would like to take.
4) I want to build confidence from the positive turns my choice of decisions took.
5) I want to build motivation from expectation of feeling comfortable with my choices.
When you feel comfortable with the small steps that you have taken to reduce stress of doubt, it could be beneficial to gradually work your way into making more decisions about your daily life. We should expect that life is not easy, but we just take it a day at a time. We should look for opportunities to handle more complex tasks in our lives. I believe as I start to do more and decide on the ways to go in my life, I would begin to feel more comfortable in my choices and life would get a little easier. I would then reduce my stress, because I would not want to second guess myself so much.
I would take some food for thought that sometimes things will not go the way I planned them to. I want to understand that this does not mean that I am a failure, but there will be sometimes in my life that I would have to face the downfall of the decisions that I have made. I have also been told that what does not kill me will only make me stronger. I have struggled with doubt in my life for a long time. I believe this is my time for a break through. I would take it a day at a time, and try to live my life to the fullest. I am always open to advice of others, and there is still much to learn about life.

How to Deal with Conflict

How to deal with conflict
Stage One: The Background
In the workplace (and almost any setting), you are likely to find two forms of conflict. The first is conflict about decisions, ideas, directions and actions. We will call this “substantive conflict” since it deals with disagreements about the substance of issues. The second form, “personalized conflict” is often called a personality conflict. In this form, the two parties simply “dont like each other much”. Substantive conflict can occur on just about any issue, but its moving force is that the two parties simply disagree about an issue. This can be a good thing or a bad thing. Handled correctly parties in conflict can create, for themselves and those around them, the ability to resolve an issue with something creative, something better than either partys original position. While substantive conflict, if handled correctly, can be very productive, personalized conflict is almost never a good thing. There are several reasons. First personalized conflict is fuelled primarily by emotion (usually anger, frustration) and perceptions about someone elses personality, character or motives. When conflict is personalized and extreme each party acts as if the other is suspect as a person. Second, because personalized conflict is about emotion and not issues, problem solving almost never works, because neither party is really interested in solving a problem…in fact, in extreme cases, the parties go out of their ways to create new ones, imagined or real. Third, personalized conflicts almost always get worse over time, if they cannot be converted to substantive conflict. That is because each person expects problems, looks for them, finds them, and gets angrier.
Stage Two: The Prelude
I have had to work fairly extensively with a colleague who is just impossible. She is arrogant, stubborn, sometimes abusive, and acts like she is right about almost everything.?  At first I tried to ignore it, but it just gotten worse. Its so bad, I feel like every night when I go home, all I think about is how miserable this person is. It is also affecting people around us, since we all spend so much time talking about this person.
Stage Three: The Flashpoint
There are several situations in my workplace that make my blood boiled. One instance is in the shop has only one oven, and every staff (baker and shop assistant) use the same oven. When the open the oven or ask my colleague ???Can I use the oven??? She would rather shout at me than say it in a nicer way. It make me so annoyed. She would call me names and say unpleasant words. Another instance is when I did something wrong or did some mistake. She would make me felt like I am so stupid. Thus, it affected my self-esteem. At one point, I had enough. I went to her face and told her everything that I felt bad about her. She was surprised and did not know what to say and she did not came back to work for three days.
Stage Four: Strategy Selection
These situations tend to occur over time. Small annoying behaviours left unattended move to bigger more annoying behaviours. Here are some ideas:
At a time when both you and the other person are calm, ask if you can talk to them (do it privately-this is between the two of you). Approach the situation in a non-accusatory manner. When possible find things to agree on, and offer something. If the conversation is going well, you might want to make a request.
Since you are clearly frustrated, it is likely that you are doing things that convey your frustration to the other person. You shouldnt have to take abuse and smile, but neither should you be attacking or reacting in kind. It is important that you deal with things firmly, but nicely, and without dramatics. No eye-rolling, no heavy sighing, no guerilla activities. If the other person is rude or nasty to you, you can respond with quiet dignity and set limits regarding the specific behaviours, but if you react angrily, you will almost always make the situation worse.
Immediately stop making the situation one for public discussion or discussion with other staff members. This is disruptive to the organization, but worse, it will make it more difficult to fix the situation. When you gossip about someone else, you tend to focus on the worst parts, and paint that person in a negative way. That affects your thinking and actually shortens your patience, particularly when you get covert support from others. Do you want to win or do you want to fix the problem.
The time to have dealt with this situation was early on, with a combination of politeness, firmness, and limit setting. In some situations, the conflict has become so polarized that you may need help in dealing with it, both practically, and personally, to change your way of looking at it. One possibility is to talk to your manager and explain the situation as objectively as possible.
Stage Five: Final Outcome
Request help or suggestions, and focus on fixing the problem, and taking some responsibility for it. The outcome may be that the manager may bring you both together to talk about the situation and work out a plan, or even that you and the other person might get involved in mediation, or some other form of intervention.
Your responsibilities include:
??? approaching the other person in a polite, problem-solving way to work things out.
??? avoiding actions (like gossip) that make the situation worse.
??? a willingness to recognize that you have probably contributed to the problem.
??? listening to the other person rather than trying to convince or bully them.
??? seeking help from others in a dignified, open and constructive way.
Your rights include:
??? setting behavioral limits and consequences when nasty, abusive behaviour is directed at you.
??? the expectation that the other person will work in an open problem solving and courteous way.
??? an expectation that management will help, but may not be able to solve the problem without your cooperation and that of the other person.