Promoting Diversity at Workplaces

Introduction The success of contemporary business institutions lies on the capacity of the businesses to encourage and promote diversity.Advertising We will write a custom essay sample on Promoting Diversity at Workplaces specifically for you for only $16.05 $11/page Learn More Business institutions that embrace and emphasise on â€Å"†¦diversity in their working cultures can significantly benefit in a variety of ways, including indirectly improving their bottom line† (Agà ³cs Burr 2004, p. 33). Moreover, organizations that encourage diversity benefit from a motivated workforce, improved productivity and reduced absenteeism. Diversity assists organizations to introduce novel ideas, which help them to identify and exploit emerging business opportunities. Managers have the responsibility of promoting and nurturing diversity in an organization. This paper will discuss the role of managers in promoting diversity at workplaces. Besides, the pape r will discuss how one may promote diversity at workplaces. Role of managers Managers have the role of assessing diversity at workplaces. Combs alleges, â€Å"Managers ought to guarantee that they assess and evaluate organizational diversity, as part of their management responsibilities† (2002, p. 8). Managers are responsible for promoting and encouraging diversity at workplaces by coming up with employee satisfaction strategies that are tailored to the mission, vision and goals of the organization, and that of individual employees. Managers need to identify all the challenges that discourage diversity at workplaces and come up with relevant policies to address the challenges. Besides, managers need to re-evaluate their organizations to confirm if the organization attains the intended diversity (Combs 2002).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Apart from assessing diversi ty, managers have the role of developing a workplace plan that encourages diversity. Human resource managers have the responsibility of coming up with a diversity workplace plan that is measurable, attainable and comprehensive (Goodman 2001). Besides, the managers bear the responsibility of monitoring the diverse workforce to identify the required changes. A diverse workforce is susceptible to employee conflicts due to differing cultural practices. Hence, organizational managers ought to monitor the workforce to identify the potential conflicts and come up with measures to counter the conflicts. Organizational managers are responsible for implementing diversity as outline in the workplace plan. Organizations can hardly benefit from diversity without the managers’ commitment and devotion. Managers have the duty to integrate diversity guidelines into each feature of the business’s objective and function. Stances towards diversity start off from the managers and filter do wnward to other employees (Hannagan 2005). Therefore, it is hard for an organization to embrace diversity if managers have negative stance towards it. Managers’ participation and cooperation are critical to the establishment of a culture that embraces and promotes diversity. Employees can only uphold and support diversity if they are aware of its benefits. Consequently, it is the role of the organizational managers to educate the workforce concerning the benefits of diversity.Advertising We will write a custom essay sample on Promoting Diversity at Workplaces specifically for you for only $16.05 $11/page Learn More This guarantees that every employee acknowledges the importance of diversity at workplaces. Besides, managers are responsible for â€Å"leading change, fostering desired behaviours, and ensuring that diversity principles are integrated into the operations of the organization† (Hannagan 2005, p. 27). Implementing diversity Employ ee recruitment process plays a critical role in promoting and encouraging diversity at workplaces. Prior to hiring employees, organizations ought to understand their target customers. This would help them to make sure that their workers resemble the target community (Kirton Greene 2004). For organizations to hire workforce that matches the target population, they have to come up with a recruitment strategy that caters for diversity. Managers may liaise with local institutions like cultural institutions, churches, and colleges. These institutions can help an organization to reach job hunters from diverse backgrounds, thus helping in recruiting a diverse workforce. Additionally, an organization may request for referrals from its existing workforce. At times, employees may be aware of qualified individuals who are in need of jobs (Thompson 2003). Hence, liaising with employees may help an organization to reach these individuals and enrich its diverse workforce. Another approach that o rganizations can employ to establish diversity at workplaces is, â€Å"to develop and implement an equal opportunity employment policy† (Kossek, Markel McHugh 2003, p. 331). This would help an organization to â€Å"come up with a meritorious recruiting practice, which is gender, race, minority, and age neutral† (Kossek, Markel McHugh 2003, p. 333).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Organizational managers may establish a committee to assist in the implementation of the policy and to identify the changes to make in order to promote and encourage diversity. During the recruitment process, organizations ought to structure their job descriptions in ways that attract job hunters from diverse backgrounds. Besides, organizational leaders ought to be culturally receptive when marketing their organizations (Kossek, Markel McHugh 2003). This would help to source employees from varied cultural backgrounds, thus establishing a diverse workforce. Offering diversity training at the workplace would go a long way towards establishing a diverse workforce in an organization. Business institutions have to ensure that all employees appreciate that the institution’s recruitment process aims at hiring the best employees (Lennie 2000). In addition, the recruiting team need to be aware of the merits of hiring a diverse workforce. The recruitment process should be open and tra nsparent. This would avoid chances of some employees being cynical. Cynicism at the workplace may discourage cooperation between employees with diverse cultural background. A quota of the employees may deem others as inferior, thus treating them with contempt. Nevertheless, recruiting all staff in an open and transparent manner would lead to every employee appreciating the role of the other in helping the organization to achieve its goals. Hence, it would promote cooperation among the employees regardless of their cultural background (Lewthwaite 2006). Organizational managers need to give new recruits a reason to stay and devote their energy to the organization. Managers require devoting their energy in keeping new recruits. It is the duty of the organizational managers to ensure that new employees are conversant with organizational culture and new jobs. Managers need to assure the employees that they made the right decision by opting to work with the organization through guaranteei ng them of their future in the organization (Rosenzweig 2004). They can achieve this by educating them about the possible ways of enhancing their skills and advancing. Moreover, organizations can establish mentorship programs to strengthen ties between employees and organizational leaders. This endeavour would help in retaining a diverse workforce. Conclusion Workforce diversity plays a significant role in enhancing organizational success. An organization that has a diverse workforce benefits from a motivated workforce, improved productivity and reduced absenteeism. Organizational managers have the duty to promote diversity at workplaces. They have the role of assessing and implementing a workforce plan that promotes diversity. Organizations need to encourage diversity starting from the recruitment process. They need to come up with recruitment policies that offer equal opportunities to all people regardless of their cultural affiliation. Besides, organizations ought to offer divers ity training to employees and give them a reason to work and stay in the organization. Reference List Agà ³cs, C Burr, C 2004, ‘Employment equity, affirmative action and managing diversity: assessing the differences’, International Journal of Manpower, vol. 17 no. 5, pp.30 – 45. Combs, G 2002, ‘Meeting the leadership challenge of a diverse and pluralistic workplace: Implications of self-efficacy for diversity training’, Journal of Leadership Organizational Studies, vol. 8 no. 4, pp. 1-16. Goodman, D 2001, Promoting Diversity and Social Justice: Educating People from Privileged Groups, Sage Publications, Inc., California. Hannagan, T 2005, Management: Concepts and Practices (4th ed.), Prentice Hall, Essex. Kirton, G Greene, A 2004, Dynamics of Managing Diversity (2nd ed.), Butterworth Heinemann, Oxford. Kossek, E, Markel, K McHugh, P 2003, ‘Increasing diversity as an HRM change strategy’, Journal of Organizational Change Management, vol. 16 no. 3, pp. 328 – 352. Lennie, C 2000, ‘Valuing diversity, part 1: Making the most of cultural differences at the workplace’, Personnel, vol. 65 no. 6, pp. 52-60. Lewthwaite, J 2006, Managing People for the First Time: Gaining Commitment and Improving Performance, Thorogood, London. Rosenzweig, P 2004, ‘Managing the new global workforce: fostering diversity, forging consistency’, European Management Journal, vol. 16 no. 6, pp. 644-652. Thompson, N 2003, Promoting Equality: Challenging discrimination and oppression (2nd ed.), Palgrave Macmillan, London. This essay on Promoting Diversity at Workplaces was written and submitted by user Giselle Marsh to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Country Analysis of Luxembourg essays

Country Analysis of Luxembourg essays The purpose of this essay is to discuss the history, economy and politics of Luxembourg. First I will start by briefly discussing the history of Luxembourg and the recent economic trends and political structure of Luxembourg. Then I will discuss the countrys attitude towards integration and whether it was a good idea for them to join the Euro, and finally conclude with my own views of Luxembourg and Europe. I have been asked to write this essay by my lecturer and this is to be submitted by the 19th April 2002. Background on the economics and politics of Luxembourg Luxembourg has shown an outstanding performance in terms of growth and virtually all other macroeconomic indicators in the last decade. It is the smallest, but by far the richest country in Europe. Unemployment is virtually non-existent at less than 2% and its government, alone in the EC, does not need to borrow to cover expenditures. In the last decade Luxembourgs economic growth factors which generated the constant improvement in the standard of living over a century and a half are quite specific. The origin of the incipient industrial development lies in a single sector, the steel industry. However, the country outpaced all other EC countries with a growth rate of 4.1%. From 1989, the inflationary trends resumed, with petroleum products again contributing to this. The trend in consumer prices hence exceeded 3% until 1993. Although in 1992 and 1993 Luxembourgs performance does not seem to be as satisfactory as that of some of its partners, this is attributable above all to the effects of the adaptation of indirect taxes to the Community standards which started in 1992 with the first adjustment of the VAT rates. The adaptations of the thresholds laid down by the EU in the indirect taxation field having been accomplished, the inflation rate fell again to 2.2% in 1994. At the end of 1994, Luxembourg is in the second position among the EU ...

Archaeology Essay Example | Topics and Well Written Essays - 1750 words

Archaeology - Essay Example Body Evolutionary approaches to archaeology were seen through the theories of Gordon Childe, Julian Steward, and Leslie White. Through the evaluation of the original elements of Classical cultural evolutionism, the Historical school, the Functionalist Approach, and the neo-evolutionary theory were established (Eddy, 1991). With the work of Childe, the idea of revolutions in human economy and how it can be fulfilled through an evolutionary response was also established (Eddy, 1991). Steward’s concern was based on establishing how evolution is set within parallel lines which are based on varying environmental changes. White also discussed that universal evolution can be blamed on the technical usage of energy (Garbarino, 1977). These theories highlighted the importance of the environment as a means of supporting cultural evolution (Giacobbe, n.d). The cultural ecology theory of Steward included the observation of the environment and how such environment impacts on technology. .. . Steward’s theories on multilinear evolution also had a significant impact on evolutionary approaches. Such concept secured various theories in different cultural manifestations. In so many ways, these theories were a rich and dynamic fount of knowledge where the range of global cultural differences were understood based on reasonable strategies and ideas (Willey and Sabloff, 1980). Leslie White believed that cultural evolution was also a valid theory. White discussed that the issues which classical evolutionists have encountered while implementing theories were based on standard measures in cultural change (Garbarino, 1977). He also indicated that such measurement must be based on universal concepts covering all societies and different levels of development. His theory was labelled as neo-evolutionism and his ideas were expanded and reformulated; and it later opened the door to New Archaeology founded on evolutionary theory and thought (Garbarino, 1977). The ideas of White and Steward and New Archaeology were bridged through the work and ideas of Elman Service and Marshall Sahlins. These theorists were among the first to admit how cultural evolution is very much related to biological evolution (Wenke, 1981). They established the idea of universal evolution in relation to the manifestation of human culture. They also pointed out that not all cultures go through the same stages as discussed by White. Sahlins and Service (1960) pointed out that the biological and cultural evolution shifted in different directions at one and the same time and they believed that evolution leads to diversity and the progression of certain adaptations. These two theorists further indicate that diversity causes changes which then lead to new forms and new

Injection Using Moldflow Essay Example | Topics and Well Written Essays - 500 words - 3

Injection Using Moldflow - Essay Example The process resulted in the production of a failed part and the chair factory requested support to solve this problem from a plastics’ manufacturing company. Deep investigation and analysis with the help of Moldflow software were conducted and the conclusion was that the machine used for the production of this chair was incapacitated to produce parts identical to the target grade due to low tonnage capacity (Shoemaker, 2006). Not all plastic have identical physical and rheology properties. As a result, selecting a suitable grade for an application is an essential step in designing molds. Each mold can run only a few ranges of plastic grade within same properties (Shoemaker, 2006). In general, high viscose material like PC need large machine tonnage capacity, unlike low viscose material that requires lesser machine tonnage. The speaker had a clear objective and his findings were presented with lots of confidence as evident in the constant eye contact kept with the audience. In addition, the speaker confidently verified and ensured that the audience understood his results while retaining an audible voice. Furthermore, the speaker also allowed the audience to express their opinion while taking feedback and questions arising from the presentation. As for discussions and knowledge exchange, the presenter used a presentation perspective that encouraged brainstorming amongst participants in the audience. The presentation slides had a background that perfectly contrasted the font causing clear and legible slide contents. In addition, the presenter used a font type and size that was uniform through all slides, while the additional or supporting visuals aids like pictures, graph, and animation slides were characterized by high-quality resolution.  

Role of the Drug Enforcement Agency

Role of the Drug Enforcement Agency Dhaquille Williams The Drug Enforcement Administration Every year thousands of Americans and foreigners are convicted for transporting and selling narcotics around the United States. The Drug Enforcement Administration is the leading agency under the United States Department of Justice whose task is to fight against and enforce drug smuggling and use within the United States. The Drug Enforcement Administration, better known as the DEA, not only is in control of enforcing narcotics and controlled substances, but they also enforce Federal money laundering and bulk currency smuggling. (Federal Register 1.) The DEA is organized from the head of the DEA, known as the Administrator of Drug Enforcement, who is appointed by the president of the United States. A Deputy Administrator, the Chief of Operations, the Chief Inspector and three Assistant Administrators assist the Administrator. The Drug Enforcement Administration’s headquarters is set in Arlington, Virginia. â€Å"The mission of the Drug Enforcement Administration is to enforce the controlled substance laws and regulations of the United States, or any other competent jurisdiction, those organizations and principal members of organizations, involved in the growing, manufacture, or distribution of controlled substances appearing in or destined for illicit traffic in the United States; and to recommend and support non-enforcement programs aimed at reducing the availability of illicit controlled substances on the domestic and international markets. In carrying out its mission as the agency responsible for enforcing the controlled substances laws and regulations of the United States, the DEAs primary responsibilities include: Investigation and preparation for the prosecution of major violators of controlled substance laws operating at interstate and international levels. Investigation and preparation for prosecution of criminals and drug gangs who perpetrate violence in our communities and terrorize citizens through fear and intimidation. Management of a national drug intelligence program in cooperation with federal, state, local, and foreign officials to collect, analyze, and disseminate strategic and operational drug intelligence information. Seizure and forfeiture of assets derived from, traceable to, or intended to be used for illicit drug trafficking. Enforcement of the provisions of the Controlled Substances Act as they pertain to the manufacture, distribution, and dispensing of legally produced controlled substances. Coordination and cooperation with federal, state and local law enforcement officials on mutual drug enforcement efforts and enhancement of such efforts through exploitation of potential interstate and international investigations beyond local or limited federal jurisdictions and resources. Coordination and cooperation with federal, state, and local agencies, and with foreign governments, in programs designed to reduce the availability of illicit abuse-type drugs on the United States market through nonenforcement methods such as crop eradication, crop substitution, and training of foreign officials. Responsibility, under the policy guidance of the Secretary of State and U.S. Ambassadors, for all programs associated with drug law enforcement counterparts in foreign countries. Liaison with the United Nations, Interpol, and other organizations on matters relating to international drug control programs.† (Mission Statement 1.) The Drug Enforcement Administration was created in 1973, by President Richard Nixon. (DEA History 1.) Prior to the 1970’s, approximately only four million Americans had ever tried drugs, but by the early 1970’s, drug use in the United States started to increase, resulting in the Drug Enforcement Administration. The DEA was not an overnight thought put in to action the next morning. The DEA rooted from several different developments dating all the way back to 1915 with The Bureau of International Revenue Department of Treasury. Along with three other developments The Bureau of Narcotics Department of Treasury, and The Bureau of Drug Abuse Control Food and Drug Administration Department of Health, Education and Welfare all became Bureau of Narcotics and Dangerous Drugs Department of Justice in 1963, which was later established as the Drug Enforcement Administration, Department of Justice. In 1973, the DEA started off with 1,470 special agents and a budget of 74.9 million dollars. (DEA history 4.) By 1979, approximately twenty six million Americans were known to be regular drug users. (DEA History 25.) In nine years the number of Americans doing drugs almost tripled. The DEA wanted to take emphasis off of the drugs marijuana and cocaine and focus on the more addictive drug, heroine. Marijuana and Cocaine were looked at as a non-addictive, less serious drug. But, taking the attention off of the drug resulting in a widespread of usage and trafficking. In the mid 1970’s, Miami, Florida became the largest drug capital of the United States and the western hemisphere. Bringing in dangerous and violent drug traffickers from Cuba and Colombia and other Latin American countries. July of 1979, Dadeland Mall was the largest shopping mall in the state of Florida. In the middle of the day to men parked an industrial van and walked into a package liquor store and shot fire. Two men were gunned down, who were soon to be identified as a Colombian cocaine trafficker and his bodyguard. T his tragic incident opened the DEA’s eyes to the war on marijuana and cocaine in South Florida. By 1985, the DEA had moved up to 2,234 special agents and a budget of $362.4 million dollars. As the drug trafficking continued to grow more powerful every year, the need for a higher budget and more special agents grew as well. In 1985, the crack epidemic took over majority of the United States, resulting in much violence. By 1989, it was the largest concern of the DEA. Crack is cocaine based, cooked with baking soda and water. It can be made in any average kitchen. Crack is also much cheaper than cocaine, making it easier and faster to sell. The crack epidemic originated in Miami Florida, home of the cocaine trade, then gradually moved to New York, then Chicago and eventually out to the west coast. In 1986, President Reagan enforced a Drug Free Federal Workplace Program. Allowing federal agencies to set up programs to test its employees against illegal drugs. (DEA History 59). The early nineties, Americans considered the issue on drugs as a huge concern, spreading knowledge and awareness on drug abuse and drug trafficking throughout the nation. President George Bush focused and put in effort to target the supply and demand of the drugs in America. Bush called for the DEA to work with the counterparts overseas to reduce the supply of drugs. (DEA History 77). Crack and cocaine remain the number one challenge for law enforcement. In 1986, the DEA established a prevention program known as the Demand Reduction program to help fight and prevent illicit drug activity through the youth of the nation. Special agents of the DEA provide trendy drug information throughout their local communities to spread word about the most common drugs in the area and what harm each of the drugs possess, targeting the younger generation. This prevention program is targeted to the youth and their caregivers â€Å"The teen brain is still developing. The frontal cortex is the area of the brain that controls judgment, and as a teen, this part of the brain is not fully developed and usually doesn’t fully develop until around the age 25.† (Program overview 1.) â€Å"The longer a child prolongs using drugs, the lower the chances are of having drug addiction or abusing drugs.† (Program overview 1.) There are two different websites designed by the DEA provided to the teen youth and their caregivers. www.justthinktwice.com is a website dedicated to teens with tons of information about various drugs, recent news and media and the consequences of certain drug usage. The other website provided is directed to the parents and caregivers, www.getsmartaboutdrugs.com. This website provides parents and caregivers with valuable information on drugs that someone’s child can be exposed to, helping them identify warning signs of drug abuse and the harmful side effects of most commonly used drugs. Support initiatives to reduce the demand for drugs and give assistance to community coalitions and drug prevention initiatives. (DEA 3) The DEA has over fifteen different programs and operations to help the function of the DEA run as successful as possible. Operations such as Organized Crime and Drug Enforcement Task Force, Southwest Border Initiative and High Intensity Drug Trafficking Areas (HIDTA) all help attack drug trafficking and reduce the drug supply in the states as well as drug supply being transported into the states from other counties. The High Intensity Drug Trafficking Areas program was created by congress to provide assistance to federal, state, local and tribal law enforcement in areas of the United States where drug trafficking is at an high. There are twenty eight current HIDTAs, they are located in 46 states. The purpose of this program is to reduce the traffic of drugs by providing reliable law enforcement intelligence to law enforcement agencies the design of effective enforcement strategies and operations. (HIDTAs 1). â€Å"Mission Statement To reduce drug availability by supporting multi-agency task forces and facilitating intelligence-driven interdiction and investigation aimed at disrupting or dismantling international and domestic drug trafficking organizations and their harmful consequences. (HIDTA 1).† In order for an area to be considered as a HIDTA the area must be a center of illegal drug production, manufacturing, importation or distribution. Drug related activities in the area are having a large harmful impact on the area and surrounding areas. The Southwest border is the largest HIDTA in America. It consists of New Mexico, West Texas, South Texas, Arizona and the California Alliance Border Group. Their mission is to create a system working together to reduce drug availability from the Mexican border and destroying international and domestic drug trafficking and the harm that it may cause. The Drug Enforcement Administration offers many careers and opportunities. These careers are not your average everyday nine to five. These careers are challenging and exciting in more ways than someone is used to. Becoming a special agent for the DEA is the heart of the operation. Special Agents are the most talented and diverse of the DEA. Their goal is to get rid of illegal drug distribution, prosecute traffickers and get rid of any financial infrastructure of these organizations. (Occupation 1). This position takes skills, talent and specialized training, along with multiple responsibilities. Some responsibilities may involve investigating and helping prosecute violators of controlled substance laws abroad and in the United States, working with local, state, federal and foreign officials to assist manage drug intelligence programs, searching, seizing and arresting violators and assets affiliated with illicit drug trafficking. To become a special agent, there is an extensive, in de pth hiring process that may take up to a year or more to finalize. One must have qualification reviews, written assessments and interviews, medical examinations that include a drug test, polygraph examinations and full field backgrounds. Another career available in the DEA are the Diversion Investigator. Diversion Investigators are responsible for putting together investigations on the fastest growing drug issue, phony, Internet pharmacies. Being a Diversion Investigator is the most challenging career choices in the DEA field. In order to be a Diversion Investigator one must be able to investigate and gather data, research and analyze data, identify significant factors, and have great verbal and writing skills. A background in law enforcement or military is highly recommended and must have excellent hearing and sight for this position. (Occupations 2) The Forensic Sciences department of the Drug Enforcement Administration has three different branches. The forensic chemist is for the science wizards. Forensic Chemists goes to combat scientifically against illicit drug manufactures. Unusual compound drugs are constantly being composed and sold in the drug trade, forensic chemists use their intellect to break the compound down and analytically help enforce federal regulations in decreasing the distribution and abuse. The DEA recruits and hires forensic chemists from all levels of experience from highly experienced chemists to recent college graduates. A degree from a four-year accredited college or university with a major in physical science, chemistry, or engineering. (Forensic Chemist 1). The second division of the Forensic Sciences department is the Forensic Specialists. Becoming a Forensic Specialist is an opportunity to use state of the art examination techniques to form latent prints. Forensic Specialist have to provide testimo ny in courts of law and conduct training for law enforcement officials. In order to take this position, there are a few qualifications you must meet like experience performing print examinations, partial and imperfect finger prints, and assist in investigations. The third department of the Forensic Sciences department is the Forensic Computer Examiner. Becoming a Forensic Computer Examiner is a very challenging career, it is the base of digital evidence. Being a Forensic Computer Examiner calls to recover and analyze digital evidence from operating systems, databases and communication networks. This field takes more previous education than the other three, must obtain a minimum of a master’s degree but the DEA prefers a Doctorate Degree. The DEA also provides other careers in professional and administrative support, careers from accountants, attorneys, to Human Resources personnel. The DEA takes pride in their employees by providing long-term benefits to their employees. Federal employees are eligible for health and life insurance, retirement benefits, along with annual and sick leave and paid holidays. You can find a link to apply for any of these positions at DEA.gov The Drug Enforcement Administration started with a purpose to control and fight against drug smuggling and use within the United States and control the usage of illicit drugs. The DEA has done an excellent job at controlling this task while growing as one of the largest federal agencies for the government. The DEA started out with 1,470 Special Agents and a 75 million dollar budget and now in 2014 they are home of over 5,000 Special Agents and a 2.02 billion dollar budget. With the aid of High Intensity Drug Trafficking Areas and the Demand Reduction Program the DEA is doing a fantastic job at controlling drug trafficking. Yet, with all of these states legalizing marijuana, one can not help but wonder what the future holds for the Drug Enforcement Administration. Works Cited DEA.gov / Home. DEA.gov / Home. U.S.Department of Justice, n.d. Web. 09 Nov. 2014. Welcome to the All-new GetSmartAboutDrugs.com. Get Smart About Drugs. Drug Enforcement Administration, n.d. Web. 11 Nov. 2014. Welcome to the All-new JustThinkTwice.com. Just Think Twice. Drug Enforcement Administration, n.d. Web. 11 Nov. 2014. NM HIDTA Home Page. NM HIDTA Home Page. Drug Enforcement Administration, n.d. Web. 11 Nov. 2014.

Advantages and Cost of Adoption in Australia of International Financial Reporting Standards Essay

The issue of adoption of international financial reporting standards (IFRSS) in Australia has been controversial issue since the first time Australian Financial Reporting council (FRC) announced the policy in 2002. Many believe that IFRSS adoption will lead to great advantages such as enhance financial report comparability, improve quality of financial reporting, attract more foreign investor, and other significant advantages. However, some also believe that the adoption merely result in disadvantages and cost for Australian business, accounting profession and even Australian government. Before deciding to fully adopt IFRSS, in 1996, the AASB issued Policy Statement 6 International Harmonization Policy with objective to ‘pursue the development of an internationally accepted set of accounting standards which can be adapted in Australia’. There were several considerations why government decided to do so: 1. ‘The existing arrangements for accounting standard setting are confusing, inefficient and not conductive to stakeholder participation 2. There is duplication between the AASB and PSASB 3. Australian Accounting Standards are not understood in, and are out of step with, the major capital markets in the United States (US), United Kingdom (UK), and Europe, resulting in higher costs of capital for Australian Business 4. The standards setting process is perceived to be dominated by the accounting profession and there is no real accountability to its users 5. Accounting standards do not reflect modern business practice, being too prescriptive and overly technical that imposing excessive costs on business 6. The process involved in standard setting have failed to attract broad input and the necessary level of financial support, with the result that accounting standards are not meeting the demands of constituents’ (CLERP 1997, pp. 11-12, cited from Pickeet. al, 2006). Despite those reasons, IFRSS adoption is promoted because several claimed benefits potentially arising from the policy especially for Australian Business. The most claimed benefit is attracting foreign investors due to lowering cost of capital. Cost of capital can be decreased because IFRSS adoption can diminish ‘premiums associated with the risk of not fully understanding the financial report’ (Collet et. al, 2001, cited from Gerhardy, P. G. , n. d. ). Another hypothesis is that IFRSS adoption can reduce ‘home bias’ that discourage investors from making cross border investment. One of factors contributing to home bias itself is the expensive cost of information about foreign investment (Kang and Stulsz, 1997 cited from Cofrig,V. M. , Defond, M. L. , & Hung, M. , 2007). By adopting IFRSS, it is hoped that information about foreign investment can be easily obtained and understood because it is generated from universal standards that are more familiar for investors. In addition, high accounting quality, transparency and comparability are commonly associated with financial reporting produced based on IFRSS that is internationally recognized and represent worldwide best practices. Those attributes alleviate ‘information asymmetries between managers and outside investors, thus increasing liquidity and ultimately lowering the required rate of return’ (Diamond and Verrecchia, 1991, cited from Daske, Holger, 2006). Association between higher accounting quality and IAS/IFRSS itself has been examined by Barth,M. E. , Landsman, W. R. , & Lang, Mark H. in 2008. They investigate firms from 21 countries that applied IAS and found that those firms generally ‘evidence less earnings management, more timely loss recognition and more value relevance of accounting amounts’. It has been suggested that IFRSS adoption benefits Australian business trough saving in reporting costs. This benefit especially applies for Australian Business that wants to list their stocks in other countries’ stock exchanges. It is obligation for companies to fulfill specific different requirement regarding financial reporting of each countries where the companies are listed. By adopting IFRSS, companies do not need to generate more than one set of financial reports to comply different requirement and regulation. It is also easier for multinational companies to consolidate their financial statement, thus it saves time and money. Beside easy consolidation, IFRSS adoption also simplifies appraisal process of companies to takeover or merger with overseas enterprises and improves management control due to increased comparability internal management report between different segments or branches. For multinational companies, it will ease transfer of accounting staff across countries as well (Uddin, M. S. , 2005). Furthermore, a reduction in audit cost might be experienced by companies, because adoption of global standards (IFRSS) merely require global audit tandards, tools or systems that usually cheaper than specific products or services. This audit commoditization will close the expertise gap between the big five and force them to reduce audit fee. (Perera et. al, 2003,cited from Gerhardy, P. G. , n. d. ). For Australian government, fully adopting IFRSS is highly likely result in cost saving because the government does not need to spend money for AASB. It is evidence that Australian government spent huge amount of money for domestic accounting standards formulation. Another advantage is that the government can ‘distance itself from any future corporate collapses, which tend to raise questions about the role of accounting and the quality of accounting standards in such incidents’ (ibid). Take example of HIH collapse. Furthermore, it can avoid miscalculation of investors’ tax liability, particularly tax related to income from overseas sources accepted by multinational companies (Uddin, M. S. , 2005) (global acceptance). Despite cost saving, IFRSS adoption might also increase overseas companies listing in the ASX (Haswell & McKinnon, 2003, cited from Gerhardy, P.G. , n. d. ). It also retains Australian companies listed on ASX. It is argument of Stoddart (1999, cited from McCombie, K. ,n. d. ) that ASX’s rigorous support on full adoption of IFRS is due to ASX’s ambition to become ‘the main exchange in the Pacific Rim’. Despite those enormous advantages, it has been argued that IFRSS adoption lead to significant costs. The main argument is that IFRSs do not consider local needs and priorities as every country has their own ‘business environment, legal systems, cultures, language and political environment’ (Henderson and Peirson, 2000 cited from Malthus, S. 2004). However, to overcome this problem, IASB can accommodate flexible reporting standards that enable companies to choose alternatives that are more suitable for their external condition. It is opinion of some opponents of IFRS adoption that IAS is ‘insufficiently detailed’ (Uddin,M. S. , 2005, p. 4) that require accountants’ and auditorâ€℠¢ professional judgment. However, overly detail might be contra productive and not flexible in anticipating every changes and differences. Education for stakeholders related to changes in financial statement is considered as significant as well. In a way, companies have obligation to ensure these users understand the changes. Companies also need to provide education and training for staff to adapt changes from preparing account using national standards to international standards. Since changes not only affect external reporting system, but also internal reporting such as budgeting system, this training might require huge amount of money. Often, companies need external experts in anticipating the changes such as actuaries and valuation experts that also need a lot of spending. However, this transition cost is only initial investment that is short term; the cost will be diminishing once companies have already been stable with the new systems. Learning from UK, based on a survey conducted by PricewaterhouseCoopers, majority companies in the UK suggested that transition from local accounting standards to international standards would not require high costs (Malthus, S. , 2004). Coming to the accounting profession, it has been argued that IFRS adoption also bear costs due to the policy. Those costs might come from the need to re educate members of the accounting profession itself. However, this argument is questionable because as a profession, accountants should improve their capabilities by ongoing training and education no matter what. Negative impacts of adoption of IFRS on rule makers such as Federal government and AASB have been public’s concern as well. Regarding federal government, it is argued that support devoted by federal government for IFRS adoption (Brown and Tarca, 2005) might put government ‘under political pressure not to impose rules on Australian companies that are inconsistent with those applied to companies in other countries’. In term of AASB, adoption of IFRSs raised questions about the role of the body. By adopting IFRS that replace local standards, AASB might lose its status and role. This loss arguably hurt nation’s sovereignty because Australia somehow is ‘one of the world’s leading authorities on accounting’ (Haswell and McKinnon, 2003 cited from Gerhardy, P. G. , n. d. , p. 24). AASB might also have limited influence on the standards formulation process under IASB, thus Australia’s interest and relevant environment might not be covered by international standards. However, this costs can be diminished as suggested by Carrol (2003d, cited from Gerhardy, P. G. , n. d. , p. 75) ‘that if Australia is to ensure that future standards developed by the IASB are relevant to the Australian environment it is necessary that Australia is positioned ‘as an influential leader in the international business environment’’. Having considered both advantages and costs, I would argue that benefit arising from IFRS adoption will be in the longer term worth the effort. The main reason for that is huge economic benefit arises from the IFRS adoption. On the surface, economic benefit is merely enjoyed by multinational companies and investors. However, it will trigger Australian economy development because multinational companies represent greater percentage of Australian economy sources that absorb high number of employment. Small medium companies (SME) that is argued might become parties bearing most cost will benefit from multinational companies as a business partners such as supplier, particularly if Australia promote specific regulation to encourage the mutual partnership. This will be domino effect that boost another sectors, thus benefit whole community. In addition, education cost that is claimed as significant cost only borne for short term and will be diminished in the long term. Education and training itself is inseparable part of accounting as a profession that need ongoing training to enhance capability and professionalism. The last reason is that IFRS adoption might be inevitable due to globalization that diminish border across nations and increase interdependency between nations.

Malaysian Economy Essay

The Malaysian economy is expected to strengthen further and projected to grow at a faster rate of 4.5% to 5.5% in 2013 supported by improving exports and strong domestic demand. In the Economic Report 2012/2013 released by the Ministry of Finance (MoF) last Friday, it said the assumption was based on the global growth that will pick up especially during the second-half of 2013 (2H13). It said that it was also premised upon the expectation of an improvement in the resolution of a debt crisis in the euro-area and stronger growth in the economies of Malaysia’s major trading partners. The Economic Report 2012/2013 was released in conjunction with the national Budget 2013 that was presented by the prime minister last Friday. It said that given that the domestic economy is expected to strengthen further in 2013; inflation is estimated to increase moderately mitigated by further capacity expansion in the economy. On the supply side, growth in 2013 is expected to be broad-based supported by expansion in all sectors of the economy. Of significance, the external trade-related industries are envisaged to benefit from stronger global growth, particularly during the 2H13. It said that the services and manufacturing sectors are expected to contribute 4.2 percentage points to the gross domestic product growth. MoF said that the prospects in the services sector are expected to remain upbeat in 2013, with the accelerated implementation with major initiatives under the National Key Result Areas and continued investment in the seven services subsectors under the National Key Economic Areas. It said that these initiatives are expected to drive the wholesale and retail trade, finance and insurance, and communication subsectors, which are expected to grow 6.8%, 5.2% and 8.2% (2012 :5.7%; 4.2%; 9.3%) respectively. On the value-added of the manufacturing sector, MoF said that it is expected to grow 4.9%, (2012 :4.2%) with export oriented industries expected to  benefit from the higher growth of global trade, while domestic oriented industries expand in line with better consumer sentiment and business confidence. MoF said that the electrical and electronic (E&E) subsector is expected to grow further, driven by higher demand for electronic equipment and parts as well as semiconductors in line with recovery in advanced economies. On the agricultural sector, MoF said that it is expected to grow 2.4% (2012:0.6%) following the recovery in the output of plantation commodities. MoF said that the production of crude palm oil is envisaged to rebound 2.5% to 18.9 million tonnes (2012: -2.5%; 18.4 million tonnes) on account of expanded matured areas to 4.44 million hectares (2012: 4.38 million hectares). On the mining sector, the report said that it is expected to expand 2.7% (2012: 1.5%) on account of higher production of crude oil and natural gas. â€Å"Production of crude oil is projected to increase 3.6% to 600,000 barrels per day (bpd) (2012: 1.6%; 579,000 bpd) due to higher regional demand,† said MoF. It added that several new oil fields are expected to start production in 2013, contributing to higher production of crude oil. On the construction sector, MoF said that it is envisaged to expand strongly at 11.2% (2012: 15.5%) with all the subsectors registering steady growth. On the domestic demand, MoF said that it is expected to grow at 5.6% (2012: 9.4%) and will remain the main driver of growth in 2013 underpinned by strong private sector expenditure. The report added that private consumption is projected to expand 5.7% (2012: 7%) on account of higher disposable income arising from better employment outlook, firm commodity prices and the wealth effect from the stable performance on the stock market following strong domestic economic activities. On private investment, Malaysia is expected to post a strong growth of 13.3% in 2013 (2012: 11.7%) attributed to the ongoing implementation of the Economic Transformation Programme projects. MoF said that public investment will continue to support growth and is expected to expand 4.2% in 2013 (2012: 15.9%) driven by higher capital outlays by the non-financial public enterprises (NFPE’s) and development expenditure by the federal government. It said that capital of the NFPEs will focus on the upstream oil and gas, transport, communication and utility industries. It added that in line with the expansion in domestic economic activities, national income in current prices is expected to increase 7.8% in 2013. The report also said that gross national savings is expected to expand strongly by 11.1%, with the private sector accounting 72.3% of total savings. On the balance of payments, MoF said that it is projected to remain favourable with current account continuing to record a higher surplus of RM71.9 billion or 7.3% of the gross national income. It said that the surplus in the goods account is projected to expand RM126.5 billion. â€Å"In 2013, exports are estimated to grow 3.9% (2012: 2.4%) supported by higher commodity exports and improving global E&E demand. The MoF said that inline with increased domestic activity as as to meet increased inputs for the manufacturing sector, imports are projected to grow at a faster rate of 5.2% (2012: 6.5%). On the services account, the report said that it is expected to improve with a lower deficit of RM8.2 billion driven by large surplus in the travel account, following expectations higher tourist arrivals. MoF said that other components in the services account are expected to remain a deficit.