Understanding Performance Management free essay sample

The mandate to operate at an optimal performance level and meet financial and organizational expectations are transforming the way organizations do business. This evolution is driving higher standards of competence in day-to-day operations and adding new pressure to increase stakeholder value. In today’s rapid-paced business climate, the agility with which a company manages performance can determine market position and company profitability. Defining Performance Management Performance management is the integrated process of defining, assessing, and reinforcing employee work behaviors and outcomes (Cummings and Worley 2005). Performance management focuses on understanding, optimizing, and aligning action and decisions and ensuring the collaboration and empowerment of all individuals across the business network. It includes practices and methods for goal setting, performance appraisal, coaching, employee development and reward systems. More than ever, organizations need broader measures of employee performance to ensure that (1) deficiencies are address in a timely manner through employee development programs that meet the needs of the organisation and its market, (2) employee behaviours are being directed toward performance of specific objectives that are consistent with the work unit and the organization strategy, and (3) employees are provided with proper and timely feed back to assist with their career development. We will write a custom essay sample on Understanding Performance Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page These practices jointly influence the performance of individuals and work group, and enables them to work across strategic, tactical, and operational levels to align actions to ensure optimal performance. In order for effective performance management to take place, the process must utilize information from three time periods to do so. It makes use of data from the past in order to gather information form past performance. This information is then utilized in the present for the establishment of work plans, goals and the setting of development opportunities. These objectives therefore allow for high levels of performance in the future. The Purpose of the Performance Management System The main purpose of performance management is to make sure that employee goals, employee behaviours used to achieve these goals and feedback information about employee performance are all linked to the corporate strategy. However there is no one way to manage performance. What ever system is adopted needs to be congruent with the culture and principles that pervade the organization. Most systems of performance management has three purposes- Strategic, Administrative, and Developmental. The strategic purpose- Defining Performance One of the ways in which strategies are implemented is by management defining the desired results, behaviours and employee characteristics necessary for carrying out strategy. They can then develop measurement and feedback mechanisms which will show hoe effectively results are being achieved and what to do to produce results. The organization can achieve this strategic purpose if it is flexible and amendable to changes in the goals and strategies which can occur, and also to recognise that if such changes occur, then there needs to be change in results, behaviours and characteristics of the employees, which must of necessity change to correspond with such organizational changes. The Administrative Purpose-Measuring Performance Performance appraisal information is one of the main instruments used by organizations for making administrative decisions, for example, salary administration, in terms of pay raises; promotions, retention or termination, recognition of individual performance and identification of poor performance. The Developmental Purpose- Feedback and coaching This aspect of performance management seeks to develop further, employees who are good at their jobs. In instances where employees are not performing up to standard, performance management also seeks to improve their performance through coaching. The feedback from the performance evaluation process indicates or identifies the areas of strengths and weakness in the employee performance. It is therefore critical to businesses that they recognise and fulfill the purpose of an effective performance management system as this is central to gaining a competitive advantage through the management of human resources. They also need to develop the measures by which performance can be evaluated. The discussion now turns to the development of the performance management system. It describes the major strategic decisions that must be put in place if the task force is to effectively design a performance management system. In order for a successful performance management to be established, the process must utilize five strategic decisions. 1. How the system will be used be used? 2. Who does the evaluation? 3. What areas are to be evaluated? 4. How should the evaluation be done? 5. What are the ways in which the evaluation can be done? How will the system be used Planned employee development should be one of the basic concepts of any organization’s performance management system. This is an attempt to state a broad policy which removes any option about people development by stipulating that developing people is a pillar of whatever system of management the organization espouses. This people development should be planned, not given mere lip service or expected to happen by itself. Adoption of this policy would guard against the simplistic way in which some supervisors consider themselves to be results oriented as opposed to people oriented, thus absolving themselves from people development. The major thrust of employee development will be to emphasize that the development of people as the best means available to achieve results for the organization. Three new thoughts are intended in this policy rec ¬ommendation. First, because development is different for everyone, there should be individual development plans. While there may always be areas of growth or development common to many at the same time, these ought not to be the sum total of the people develop ¬ing process taking place. It is often an easy excuse for supervisors point to plant–wide or company–wide â€Å"people† programs as a way of absolving themselves of their people developing responsibility. The second operable word in this policy state ¬ment is review. The supervisor is required to follow up on the people development plans. They are not to be spoken of enthusiastically for a brief period and then forgotten. If documented on company forms, they ought not to be forwarded to some staff office as though float ¬ing off into never–never land. They require monitoring so that progress can be checked periodically. Third, individual plans should be reviewed at least annually. This is an attempt to offer some time frame for periodic review, so as not to make the task too time–consuming. Furthermore, a lot can happen in twelve months, so that this time span is not too soon for considering new situations that might warrant chang ¬ing or updating the plan. Many practicing managers indicate a twelve month time frame as a practical one, especially when the development plan is discussed in the context of the annual performance evaluation. Each of my subordinates should work out a specific plan of personal development. Two thoughts are contained in this policy statement. First, each subordinate is to have a development plan. Again, we speak of the universality of develop ¬ment. This isn’t only for the weak, or only for those identified as shinning stars, or only for any select lucky or unlucky few. Everyone has developmental needs in order to help achieve the mission of the organization. Second, there is the question of who works out this plan for development. Some may immediately think of some subordinates who do not appear capable of working out their own personal development, hence this may prompt a negative vote (or â€Å"false† mark) on this state ¬ment. Clearly there will be some individuals less qualified than others to work out such a plan. But the intent is not to expect people to do it alone – quite the contrary. The real point of this statement is to fix on the subordinate a sharing of the development responsibility for which the supervisor is accountable. It becomes then a shared responsibility between the supervisor and the subordinate. I should require individual development plans from each of my subordinates Again many mangers can point to individuals who might state, or have stated, they are not interested in development. We’ve all encountered people like that. They readily assert that they have no interest in getting promoted; they know their job, they do it well, they simply want to work 9 to 5 and leave the jockeying for positions to someone else. This is precisely why the uni ¬versality of the need for development needs reinforcing. It ought not to be an option. The organization cannot afford to let people maintain that attitude. It is not what we want to people to think of promotion or becoming managers or anything they truly do not want to become, but in order to continue to perform well in the present areas of responsibility, people must keep pace with develop ¬ments in their field. Because no job stays the same, no jobholder can stay the same. â€Å"Future shock† is a concept with which we are all familiar. So much happens in the work developments around us that no job remains the same very long. Hence, if a worker is doing the job the same way he or she did a year ago, that person is less effective, if not completely wrong. Periodic on–the–job coaching is a major part of an individual’s development. The hope here is that the supervisor will feel at home with the statement and its implications. Periodic instruction or assistance on the job is an everyday occurrence. No one will deny the need for giving instruction or assistance on the job to those who need it, and some need it more that others. If we can begin to see this part of the warp and weft of individual development, then the universal change envisioned in these statements will not be so threatening to some. Who evaluates Performance appraisal of the employee should be done by immediate supervisor. The supervisor is the one who is usually in the best position to observe and evaluate his or her subordinates’ performance and he or she is responsible for that person’s performance. References I/O psych text Another approach that can be used is peer appraisals. According to kane and Lawler(1978), three techniques are usually used : (1) Peer nomination- each person nomoinates a specified number of group members as being highest in particular dimension of performance. (2) Peer rating- each group member rates the others on a set of performance dimensions using several kinds of rating scales. 3) Peer ranking- each member ranks all others from the best to worst on one or more performance dimensions. The Appraisal of an employee by his or her peers can be effective in predicting future management success. One problem however is log rolling; that is all the peers simply get together to rate each other highly. Also many group members donot like to evaluate one another, so part of the method hinges on impressing participants with its values. There is also the rating committee which is usually composed of the employees’ immediate supervisors and three or four other supervisors. This type of rating is useful and advantageous because while there may be discrepancies in the rating \s made by individual supervisors, the composite ratings tend to be more reliable, fair and valid. Another advantage is that several raters can cancel out problems like bias and the halo effect on the part of the individual rater. Employee evaluation can also be done by employees assessing their own behaviour. This is known as the self assessment technique. The basic problem with this is that employees usually rate themselves higher than they are rated by their supervisors or their peers. Meyer(1980) reorted a study in which engineers rated their own performance against their views of the performance of other engineers in the company. On average, each engineer thought he or she was performing better than 75% of the rest of the engineers in the study. Statically, it is quite a trick to have a 100% of the workforce be in the top 25%b of job performers. This underscores the biggest problem with self- assessment: positive leniency. Most people have higher opinions of their own performance than others do. There is also the other form of appraisal which is appraisal by subordinates, otherwise known as upward feedback. In this situation, subordinates are anonymously asked to evaluate their supervisor’s performance. When this type of appraisal is conducted throughout the firm it really helps the top managers to diagnose management styles, identify potential people problems and take corrective action with individual managers as required. Appraisal may also be conducted through performance feedback from all the persons with whom the employee has to interact; this interaction is referred to as 360-degrwee feedback. The appraisal can take place between coworkers, subordinates, and internal and external customers. The Performance Appraisal Interview and the Coaching Process The appraisal interview is one in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths. For many supervisors the formal performance appraisal interview is one of the most dreaded activities of the role. Of course, supervisors often have no problem evaluating the outstanding performer. The problem is with everyone else. They are put in the position of providing information to a subordinate that often runs contrary to the subordinates own self-evaluation or self-image. This can lead to a number of outcomes that many managers would prefer avoiding. In conducting appraisal interviews effectively there are four major things that supervisors must do in preparation for interview: 1. Spend a lot of time preparing; go over the subordinates performance, your own interactions, the history of the employee; if the employee reports to a number of supervisors, make sure you have input from all relevant sources 2. They must assemble data, study the person’s job description, compare the employee’s performance standards that would be evaluated against, and review the files of the employee’s previous appraisals. 3. Supervisors should also prepare employees, that is , give them at least a week notice to review their work, read over job description, analyze problems and gather their questions and comments so that the interview can be a two-way conversation. 4. A mutually agreeable time should be choosen ofr the interview. Enough time time should also be scheduled for the intertview. Having prepared for the interview there are four important things that supervisors need to cognizant of: ? Supervisors should attempt to be direct and specific all times. They should speak in terms of objective work data such as absences, tardiness, qulit records, inspection reports, productivity records and cost reduction. This is done so that employee is aware of all the areas that he or she is being appraised on. ?The supervisor should also encourage the appraisee to talk. Stop and listen to what the person is saying. The supervisor should ask opened questions such as â€Å" what do you think we can do to improve the situation ? ? Do not get personal. Supervisors should try to compare employees’ performance to given standards and not to othe performance of other people. This can help to avoid confrontation or misunderstanding between the appraiser and appraisee. This also ensures that the person know what they are doing wrong and what they are doing right. The supervisor s hould ensure the persons understands , and get agreement before he or she leaves on how things will be improved and by a give n date . An action plan shoud also be developed showing steps and expected results. For: Clive Williams Problem: Parts inventory too high Objective: Reduce plant parts inventory by 10% in June Action Steps When/TimeExpected Results †¢Determine average monthly parts inventory 02/06†¢Establish base from which to measure progress †¢Review ordering quantities and parts usage 15/06†¢Identify overstock items †¢Ship excess parts to regional warehouse 20/06†¢Clear stock space in plant †¢Set new ordering quantities for all plants 25/06†¢Avoid future overstock †¢Check records to measure where we are now 01/07†¢To see how close we are to objectives Providing Feedback on Performance Feedback is most effective when it is †¢http://www. google. tt/preferences? q=tell+and+sell+interview+hl=enlr=safe=activesa=Ftimely-as close to the critical behavior as possible †¢descriptive and specific †¢objective †¢aimed at solving problems and action Conducting a Performance Appriasal Interview †¢set aside enough time †¢begin open ended †¢do not allow the appraisal form to dictate the interview process †¢try to balance inquiry (asking questions) and advocacy (pushing your ideas) †¢agree on the next steps for action Coaching: Some General Guidelines be as specific as possible take advantage of critical incidents-for example after a major project, sit down and reflect with your subordinate about lessons learned identify specific developmental agendas identify resources available to subordinates adapt your coaching style to the individual Link to compensation Many people may argue that a performance appraisal is little more than a tool for managers to use in wringing as much work as possible from individuals without adequately rewarding them. This perception is difficult to deny if you have ever been the victim of such exploitation. Indeed, it must be recognized that a dishonest and secretive performance appraisal system will only exacerbate poor employee relations. However, if employees believe that the system can assist them in furthering their own careers and economic prospects, performance appraisals can actually boost employee morale. Performance appraisals are particularly useful in facilitating equitable decisions about salary if the agency uses a merit pay system as the basis for salary progression. A merit pay system requires a method for translating judgments about work quality into appropriate salary actions. Pay increases of varying sizes must be rationally explained if a merit pay system is not to seem arbitrary. If an organization has an automatic pay system, with scheduled salary increases, performance appraisals will help identify (and justify the termination of) unsatisfactory employees who demoralize others, since they receive the same salary increases as good workers. Recent research (Bannister Balkin, 1990) has reported that appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other. Methods for performance appraisal In order to effectively appraise employees the appropriate many writers have pointed to different methods which can be used in conducting a performance appraisal .

A trip through panama. A travel description.

A trip through panama. A travel description. Day 1:We arrived at Omar Torrijos airport via American Airlines early in the afternoon. We purchased our required tourist cards (3 balboas, as US dollars are called in Panama) at the airport, then caught a taxi for the 18 mile ride to our downtown hotel. The ride in the battered, un-airconditioned car was rather expensive (30 balboas), but the driver spoke English and was very friendly. We arrived at the hotel and checked in. While my dad was checking in I bought a guidebook in the hotel lobby and read up on the history of Panama City. The original city was founded in 1519 by Pedro Arias Davila, known as Pedrarias the Cruel, because of his eradication of all but three of the local Indian tribes during his tenure in Panama. Davila used the city as a place to store Incan gold before it was shipped to Spain.Omar Torrijos Mausoleum in Amador, Panama City, in...The original city was sacked and burned in 1671 by a group of buccaneers led by Henry Morgan. The city was rebuilt within a year, this time on a peninsula 18 miles away and surrounded by a strong wall. This old Spanish city is now the in the middle downtown Panama City.Panama City is an international melting pot and its eating choices range from American fast food to excellent internationall cuisine. Eager to begin our sightseeing, we grabbed lunch at a nearby McDonald's after checking in then caught a bus. The buses in Panama are a tourist attraction in themselves. They are brightly painted, hung with fringe, and have constantly blaring Salsa and Caracas music playing. They are cheap (50 cents a ride). but are very crowded. After asking several drivers "Donde va este autobus?" we finally found one going to the Plaza Independencia. This plaza is the...

The Subject of Economics Personal Statement Example | Topics and Well Written Essays - 500 words

The Subject of Economics - Personal Statement Example Apart from the theoretical knowledge that intrigued me during my school days, my aunt is also responsible for my liking for the subject. She is a businesswoman, working as an executive director in Li and Fung Trading Ltd, one of the largest trading logistics company in the world. Often my aunt and I used to discuss the business environment of Hong Kong as well as that of other nations where the company has its operation. These discussions molded my thought process and helped me to understand the manner in which economic condition of the domestic country affects the products and services that are offered by companies operating in its market. Such findings further increased my love for the subject and I finally realized that one should gather practical experience for understanding the operation of economics in the day to day life. I was lucky enough to get the opportunity to work in Li and Fung Trading Ltd during the summer of 2005. I was sent to Shanghai to work in one of the branches and to learn how a marketing company operates. There, I was assigned a variety of job responsibilities, like conducting paper works, customer dealing, accepting orders from customers and then forwarding them to the respective vendors. All these activities were sufficient for me to understand the manner in which a company operates. I also visited the factory of the vendors for quality inspection of the products that are supplied to the company. In brief, I had actively participated in the supply chain management of the company.

Management Essay Example | Topics and Well Written Essays - 250 words - 24

Management - Essay Example ayo Clinic’s organizational culture and health care value chain are strengths that can be considered as long-term competitive advantages because they are rare, hard to imitate for competitors, and can be sustained. Its organizational culture is rare because of its strategic human resource management hiring and development policies and practices that ensure that the organization hires the right people who fit the values and strategic directions of the company (Niesen). Furthermore, Mayo Clinic has a well-coordinated, science-and-technology-centered, patient-oriented, user-relevant health care value chain that it has refined for more than 100 years that cannot be easily imitated by competitors. In addition, Mayo Clinic has a positioning strategy that merges cost and differentiation leadership. It is focused on reducing costs, but it also differentiates itself by being quality leader through research and development. Moreover, the basic meaning of the article is that it shows how difficult it is to become the best in a health care industry where costs are increasingly going up, but Mayo Clinic is succeeding because it has long-term competitive advantages, due to its dedicated, competent employees who have made a system that is not only cost-efficient, but also quality-centered. Mayo Clinic asserts that its success is a product of its systems and human resources. This is how its R&D works: â€Å"Our basic science and physician researchers are completely integrated into the Clinic and they work very closely with the physicians to understand the key questions that are out there, so that their work has real meaning† (Niesen). Its research is based on actual clinical problems. Moreover, Mayo Clinic underlines the value of its human resources to its success. For example, to drive efficiency, it hires and maintains competent engineers to focus on it: One of our secrets is weve had a very strong tradition of engineering at Mayo Clinic. We have 100s of engineers

606 week 1 Assignment Example | Topics and Well Written Essays - 250 words

606 week 1 - Assignment Example For example, if someone is involved in criminal operations and security agents feel that getting into his system without his permission maybe the way to get evidence against him then that will be ethical. Also, if a company suspects something wrong is going on with its network then it maybe ethical to investigate the network connected to its network ( Bejtlich, 2003) . Ethical hacking is a good practice as it helps companies to enhance security of their computer system. Without proper audit of the computer system no real computer security exist. However, the certificate must be issued with a lot of caution and the authorized hackers should testify up on oaths. A Defensive Network Architecture is an information planning for the network security system which is well maintained and controlled and very closely monitored to identify weaknesses in the system (McClure et al., 1999). This architecture must be up to date to resist current forms of attack. Defensive network architect is important mostly for large organization since it helps to monitor their networks. Network monitoring also assist in evaluating environmental changes (McClure et al., 1999). For example, when there is an increase or decrease in traffic and assets which are currently maintained and secured. Our organization have an architecture in place which they use to control and monitor their security system. Since it is an organization which deals with confidential documents, this helps to secure their data. In conclusion, defensible network has become so important that on 14th March, 2014, Scott Air Force Base III marked a major progression when they signed a department of Defenses Joint Information Environment (Shelly, 2014). Shell, Petruske (2014) Cyberspace milestone reached for Air Force Network. Retrieved on 8th April, 2014

Ethics in the Oil and Gas Industry

Ethics in the Oil and Gas Industry INTRODUCTION This report looks at the importance of ethics in the oil and gas business and its potential impact on business risk and company share value. Ethics refers to the concept of what is right and wrong, and ethical behavior is generally considered behavior that is proper. Business ethics is a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and organisations. They are the moral values that guide the way corporations or other businesses make decisions. ETHICS AND BUSINESS RISK There are many instances throughout corporate history of how companies have disregarded ethics or morals in the quest for wealth. This can increase business risk due to breaking the law, damaging their image and the effects of lawsuits and damages. Breaking the Law Bribery and corruption are widespread in the developing nations. Companies say that the only way to get things done is to pay the bribes. Although few companies publicly defend bribing officials in third world countries, many privately condone bribery on several grounds. First, there are strictly financial considerations. Bribes can prevent delays that might otherwise have serious financial implications. In a capitalistic environment, we need an even playing field, and if other businesses engage in bribery, then either we do or face being at a competitive disadvantage. Second, there are practical considerations owing to what appears to be the universal nature of bribery in third world countries. Often foreign government officials are so corrupt that it is virtually impossible to do business without playing by the unspoken rules. Thus, theres nothing morally wrong with participating in bribery. On November 4, 2010 the United States Department of Justice announced a series of settlements whereby seven firms were to pay criminal fines and civil disgorgement penalties amounting to a total of $236.5m, in a settlement in relation to the Foreign Corrupt Practices Act. Five of the firms were Royal Dutch Shell, Transocean Inc, Global SantaFe Corp, Pride International and Noble corporation (Thomson Reuters , 2010). This type of transgression if repeated has the potential to place the companies involved at serious risk. It is this acceptance of thats the way the system works that perpetuates and fuels the bribery culture. If all companies adopted a strong ethical position and refused to pay the bribes the corrupt system would fail. Some companies have taken steps to distance themselves from corruption. BP was the first oil company to support the Publish what you pay campaign, a campaign for greater transparency in oil companies dealings with foreign governments. StatoilHydro was the first major oil company to start disclosing ALL revenues and payments in the countries in which it operates. It has set out a clearly defined ethics code of conduct and is promoting this in the different countries it operates in (Statoil, 2008). Damage to Company Image In the 1990s Shell was involved in a highly damaging controversy in Nigeria. The Ogoni people of the Niger delta, a minority tribe, had seen their land decimated by years of drilling. Ken Saro-Wiwa helped form the Movement for the Survival of the Ogoni People, and began protesting. The army ordered a brutal crackdown and series of killings, beatings, and arrests took place. Saro-Wiwa was eventually framed for murder and executed. This event was met with widespread condemnation and the bad publicity surrounding it was extremely difficult for Shell. It is difficult to say if Shell were complicit in these events but they certainly could and should have stopped it or at the very least spoken out against it. Shell eventually distanced themselves from Nigeria in an attempt to regain credibility. Total has been in Burma since 1992 and is a supporter of the military regime. The country has an appalling human rights record. Aung San Suu Kyi, Burmas pro-democracy leader, has said that Total has become the main supporter of the Burmese military regime. She told the French weekly Le Nouvel Observateur that TOTAL knew what it was doing when it invested massively in Burma while others withdrew from the market for ethical reasons. She added, the company must accept the consequences. The country will not always be governed by dictators. (Burma Campaign UK , 2007) However unlike Shell this does not worry nor deter Total Unfortunately, the worlds oil and gas reserves are not necessarily located in democracies says Totals website. Lawsuits and Damages On April 20th 2010 the BP operated Macondo well blew out. The Transocean owned Deepwater Horizon drilling rig was destroyed with the loss of 11 lives. The well continued to leak oil into the Gulf of Mexico until it was finally killed on the 17th September 2010. Initial reports show that cost cutting, poor decision making and lack of honesty were important factors in the disaster. Both companies have suffered damage to their company image, reputation and financial well being. BP initially faced all the blame as this was politically convenient to the point that it suddenly became British Petroleum again after a gap of 20 years which clearly showed that the Obama administration was about as ethically sound as either Transocean or BP. BP safety record in the US is poor but much of this is down to the poor condition of assets it inherited during its mergers with Amoco and Arco. Due to its failure to live up to its ethical promises BP is viewed with mistrust bordering on outright hatred in the US whilst elsewhere ethical investors are shying away from it. Tony Hayward, the former group chief executive of BP, stated: Our reputation, and therefore our future as a business, depends on each of us, everywhere, every day, taking personal responsibility for the conduct of BPs business. Sadly even the chief executive failed to live up to his own statement. ETHICS AND SHARE VALUE The effects of this disaster on BP have been significant with BP as a corporate entity particular at risk. The effect of the Macondo disaster on BPs share price was initially catastrophic. As can been seen in Figure 1, the share price collapsed from 650p/share to 300p/share in a little over 2 months. Figure . BP Share Price April 2010 Feb 2011 chart_builder (Livecharts, 2011) BP has had to pay out an initial  £20 billion in clean-up costs and with civil lawsuits pending, the final pay-out is expected to severely impact on the strength of its business. After announcing that it had successfully capped the Macondo well however BP shares rose 8% (Gray, 2010). This proves that investors with equally as little regard to ethics are buying in at the bottom of the market in the hope of making a profit. There have been other cases where poor ethical behaviour has led to significant declines in share price. In January 2004 Royal Dutch Shell announced that it was downgrading nearly 4 billion barrels of proven reserves to the probable category. As a result Shells share price fell by 7%. An internal report by US law firm Davis, Polk and Wardwell, (Moore, 2004) detailed a damaging series of e-mails showing that top managers at the company had known about the inflated reserves for years and had been arguing about whether and how to lie to investors. Conclusion Which means of ethical behaviour a company adopts has been open to much debate. There are some business leaders who think as Milton Friedman did that their duty is, to make as much money as possible while conforming to the basic rules of the society. Others such as Statoil wish to conduct their business to the highest ethical standards possible. Companies have set up Corporate Social Responsibility policies. These policies clearly state the companies ethical and social stand point. The main problem with this is when individuals fail to live up to the statements Unethical business practices will continue to be seen in the oil and gas sector as some companies continue to think that the lack of ethics will have no impact. In many ways they are correct. Shell and Total do not seem to be struggling despite poor ethical records. From a sales point of view ethics, or the lack of them, have little impact. Due to the very nature of the product the ethical stance of the end user will be weaker. When we buy petrol we dont know where it came from or who suffered as a consequence and so companies are protected. The world is reliant on oil and will therefore look the other way as long as it keeps flowing. If these practices continue it may lead to government intervention and regulations that are more financially costly for companies to adhere to. Even more important than governmental intervention, is trust. Companies lacking trust by employees, business partners, and customers will suffer financially in the long-term. Trust, based on ethical reputations, may become even more important in the future (Richardson, 2002/2003). We live in an age where the general public are more attuned to, and aware of, ethical concerns and will base their investment strategies on these principles. In the computer age information is more easily accessed and campaigns against companies can be organised worldwide in days. Companies basing their corporate strategies on strong ethical principles may not show so much short term gain however their long term security will be assured.

The Cuban Change :: English Literature Essays

The Cuban Change One day during winter recess my family and I traveled to Cuba. During my stay I would roam and explore Havana’s streets with my cousin Adrian, who unfortunately lives there. As we walked through the improperly constructed streets, I would notice that we were the only ones properly insulated with thick jackets. The news reported temperatures as low as 55 degrees, which is extremely cold compared to the usual Cuban days. Outside the sun was hiding behind the gray clouds, making the streets unusually mysterious. In also, I saw kids walking around wearing nothing but ripped cotton shorts and mud-covered tank tops. It gave off a very depressing feeling. I asked my cousin various questions to calm my confusion because I had never seen such poverty in my short nine years. He would reply to most of my questions with the simple phrase, "That’s life!". Not even Miami’s poor class could compare to the poverty I saw in Cuba. I shifted all my questions to answers and began to imagine several solutions for the economical problems in Cuba. As I walked down the narrow shady street, the only responses, I could come up with seemed either political or aimed toward the stars. The thoughts about influencing the Cuban government into a new and improved system or organizing a fund raiser in order to provide all the Cubans with money didn’t seem possible and got old. Being the realistic person I am, I quit aiming toward the stars and decided to land on the moon. Exiting my mental spaceship, I realized that instead of changing everyone's life in that small island, I would start by helping out one person. After finding my night's purpose, another question arose; who's life, should I change!? . I turned my cheek to the left and viewed three small kids with blank faces sitting on a bench made out of sturdy tree branches and dark bulky stones. Shifting my vision to my right I noticed a fragile old woman. She had glazes of suffering and depression engraved in her eyes while covering her food deprived body with a thin linen dress. At that moment I instantly felt that she was the one. I had figured out one of the reasons that God placed me on this planet that is full of wonders and beauty. I had to help her, but how?