British Airways Management of Company Finance

Ahoussou kouadio Jean Christian Student number: 2522706 Management of company finance Analysis of the financial structure of British Airways Name of professor: Tony Kilmister British airways is one of the most valuable company in the world that is why I choose her. With the aim to evaluate the proportion of debt in British airways, we will study his financial gearing: income gearing and capital gearing. In order to calculate the company’s capital gearing according to the book value, we need especially the value of the long-term and short-term borrowings and the value of shareholders’ funds. But, there is several different formulas which arises some issues: the fact that the book value is lower than the market value (the first formula) and provisions can be considered either as liabilities or assets (the second formula), depending on firm. Then I will calculate the Weighted Average Cost of Capital. In 2004, the way of doing the balance sheets changed that’s why there are some differences between two reports. Part ——————————————————————————————1 Measure of the gearing and income ratio Part —————————————————————————– ————-2 Measure of the debt and equity based upon the market value Part ——————————————————————————————3 Estimation of the WACC. I) Measure of gearing and income ratios We will take those expressions: 1. Debt to equity ratio=Long term Liabilities/Shareholders’funds 2. Debt to debt plus equity ratio=LTL/(LTL+ Shareholders’funds) 3. Long Term Borrowings/Shareholders’ funds a) Gearing Ratio Capital Gearing = LTL / Shareholders' Funds    |2006 |2005 |2004 | |Capital Gearing |259. 75% |437. 6% |590. 7% | To set an upper rati o; we can incorporate the LTL at the shareholder value. Capital Gearing = LTL / (LTL + Shareholders' Funds) |   |2006 |2005 |2004 | |Capital Gearing |72. 2% |81. 4% |85. 5% | The provision are incorporates in those 2 formulas. We can consider that the provision can be take as liabilities (highly certain) or as equity (ultra-prudence). Capital Gearing = Long Term Borrowing (LTL – provisions) / Shareholders' Funds |   |2006 |2005 |2004 | |Capital Gearing |193. 5% |341. 4 % |475,40% | Net Debt: Net debt = (Finance debt – cash and liquid resources)/ Equity For British Airways, Net debt = (loans, finance leases and hire purchase arrangements + Convertible Capital Bonds, net of other current interest bearing deposits and cash and cash equivalents – overdrafts) British Airways' definition from the annual report 2006) |? million |2006 |2005 |2004 | |Capital Gearing |1641 |2922 |4158 | The figures of long term liabilities are higher than the net debt that explain the fact that the ratios are different; The company health seem less vital, because of the cash and those equivalent, and deposits. Overdrafts are not representing a big amount, we include them. Since 2004 a policy of high liquidity is developed in order to reduce the debt, they tried to repay the debt earlier. The debt are reduced by the conversion of the 112 millions of convertible bonds. â€Å"The ? 320 million 9 3/4 per cent Convertible Capital Bonds 2005 issued in 1989 matured on June 15, 2005. On that date 47,979,486 ordinary shares were issued in exchange for 112,317,274 Convertible Capital Bonds on the basis of one ordinary share for every 2. 34 Bonds held† (British Airways Report 2006). The capital gearing of the company is around 65% in almost all gearing indicators and more in som of them, as a conclusion we can say that the financial statement of the company is risky and more the company is weak due to the payment on the debt. We can also highlight the fact that British Airways is finance by debt. Its has a important amount of lease and purchase arrangement, which exceeds the bank loans. b) Income Gearing This ratios show us the security of creditor’s fund and the debt exposure. While using Income Ration we highlight the relation of the company’s income and its interest commitments. Income Ratio = Interest payable / Profit Before Interest and Tax |% |2006 |2005 |2004 | |Income Gearing |0,17 |0,26 |0,87 | Interest are taking a lower place in the profit (strategy reduction of debt). In fact, we use the Interest cover to see if the company can meet its interest. Interest cover = Profit before interest and tax / Interest charges |Times |2006 |2005 |2004 | |Interest Cover |5,79 |3,80 |1,15 | The company can afford her interest. 1) Because of the decrease of the amount of debt, 2) The profit before tax and interest increased by 269%, the risk is less important. We can also use another formula, which gives a better image of the finance. It based on the fact that cash has not been received. As a conclusion we can says that: :British Airways reduced its long term debt by 28. 5%, and keep their interest payment low and increase the PBIT strongly. From the shareholder point of view, the company takes high risks so they have a good return on investment although reduction of the debt of the company makes the rate of return lower and lower. II) Measure of the debt and equity based on the market value a) Value of Equity Share Price*:Number of Shares*: 2004: ? 2,181 083 845 000 2005: ? ,941 082 903 000 2006: ? 2,791 130 882 000 *I took those which were in the report. *The difference in the number of shares between 2005 and 2006 is the conversion of the 112 millions of Convertible Bonds into 47,979,486 shares. The value of equity is now: |? |2006 |2005 |2004 | |Value of Equity |3 155 160 780 |2 100 831 820 |2 362 782 100 | b)Rating: Value of Debt [pic ] The rating shows that the company take risks for financing because she invest in high return share in the junk bond or high yield market those are really unstable. This means that the company is highly financing by debt, investor need an important rate of return regards to the risk of non payment. In spite of that, British Airways’s main source of external funding is less sensitive to credit rating than the unsecured bond. The impact of the credit ration is not important for some parts of the debt. We will use the faire value of the debt to calculate the market value of debt. Because of the â€Å"†fair values of the Euro-Sterling notes and Euro-Sterling Bond 2016 are based on the quoted market values at March 31, 2006. The fair values of floating rate borrowings are deemed to be equal to their carrying values. † British Airways Report Example in March, 31st 2006: [pic] Market value of the debt is: |? million |2006 |2005 |2004 | |Market Value of Debt |4 130 |4 682 |5 954 | |Book Value of Debt |4 081 |4 492 |5 716 | The problem is: Those market values are blending the current liabilities. In the purpose to respect the ratios made before, I will deduct with percentage the current liabilities. The new market value of debt is: |? million |2006 |2005 |2004 | |Market Value of Debt |3645 |4216 |5244 | |Book Value of Debt |3 602 |4 045 |5 034 | There is the a market where Debt are trade daily, that explain the difference between years. ) Measure of gearing based on market values We use here the gearing ratio to compare the book value and the market value of the company: Capital Gearing = LTL / Shareholders' Funds |% |2006 |2005 |2004 | |Capital Gearing |115,5 |200,7 |221,9 | We can make a second ratio in order to set an upper limit: Capital Gearing = LTL / (LTL + Shareholders' Funds) % |2006 |2005 |2004 | |Capital Gearing |53,6 |66,7 |68,9 | Figures are lower than the one we made with the book value. The equity are valued in the book value at 25p whereas in the market value at an average price of the three years at 230p This divergence makes the ratios lower, thus with the b ook values the company seems to be less indebted and also less risky to investors. III) Estimation of the Weighted Average Cost of Capital (WACC) a) Cost of Equity To estimate the cost of equity, we can use two ways: 1) the dividend valuation model 2) the Capital Asset Price Model (CAPM). In this case, we can not use the dividend valuation model because the company did not distribute dividends since 2001, so the cost of equity will be 0 that would lead to irrelevant results. British Airways has not distributed dividends because: -They wants to strengthen the balance sheet by making new investment, then it invests into the company Quantas and also into the 5th Terminal in Heathrow. British Airways is the 13th highest performing company out of the 93 FTSE 100 companies remaining for the performance period April,1st 2003 to March, 31st 2006. The board of director indicated that the payment of dividends will be resumed at an appropriate time. To calculate the cost of equity, the CAPM is the only model available: Ke = Rf + ? (Rm – Rf) Rf ( the risk-free return; Rm ( the market risk; ? ( quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile. For British Airways, the Beta is, for the three years, 0,91. The risk-free return can be found in the website of the Bank of England for each years and the market risk is the caps of the FTSE 100 of year N less years N-1 divided by the caps year N-1: (Caps N – caps N-1) / caps N-1 The risk-free return rate is: 2004: 4,75% 2005: 5,1% 2006: 4,2% The market risk is: |   |31. 03. 2006 |31. 03. 2005 |31. 03. 004 | |Caps FTSE 100 |5964,6 |4894,4 |4385,7 | |year N – year N-1 |1070,2 |508,7 |772,4 | |Market Risk (%) |21,87 |11,60 |21,38 | The Cost of Equity using the CAPM is: |% |2006 |2005 |2004 | |Cost of Equity |20,1 |10,9 |19,7 | ) Cost of debt In order to obtain the cost of debt, the best ratio is to divide the interest payable by the debt: |% |2006 |2005 |2004 | |Cost Of Debt |2,62 |3,01 |3,50 | They leads to the same conclusion decrease in Debt and interest. We can add that no debt has been taken in 2006. All the purchase have been made by internal cash flow. c) The WACC The Weighted Average Cost of Capital is used to measure the cost of capital. The formula is: Ko = Ke (Ve/Vo) + Kd (Vd/Vo) Where: Ke (the cost of equity Ve (the value of equity Kd (the cost of debt Vd (the value of debt Vo (the total value of the firm: |? million |2006 |2005 |2004 | |Vo |7 236 |6 593 |8 079 | The WACC is: |% |2006 |2005 |2004 | |WACC |10,08 |5,41 |8,04 | The amount of Debt decreased but the WACC stay in the average, that because of the high level of the cost of equity. 2005 is discernible by a share price lower than the two other years. This leads to a lower shareholders' funds and also an higher influence of the debt’s drop, therefore the lower WACC. However, the CAPM have some limitations. – He is based on several assumptions: – The investors are rational and risk-adverse who set a level of risk. – The investors have the same single-period planning horizon. – The investors have homogeneous expectations on the future yield. The investors can borrow and lend unlimited amounts at a risk-free rate. – There is neither taxes nor cost of transactions – The investors have all an efficient portfolio which maximize the yield, for a level of risk given. Whole of efficient portfolio form a curve called the efficiency frontier†¦ To conclude, from the point of view of market value, we can say that British airways succeeded to face its commitments in term of debt and equity. Indeed, they took advantage of an increase in share price. The repayment of share allowing to reduce the gearing in debt capital.

Evolution of the Nation & the Civil War Essay

The end of the Civil War brought about political and economic reform to the United States. Reforms in the Reconstruction Period were passed to foster and maintain economic activity, creating industries and expanding businesses, contributing to the boom of Industrial Revolution in the country. Years of political clout and debate remarkably laundered constitutional amendments for the black man’s rights (Oberholtze, 1917). Inventions paved the way to the development of new industries such as telecommunication, transportation, electricity and construction. The discovery, access to and processing of raw materials -facilitated by technology- allowed products to be transported from manufacturing factories to populated areas for distribution. Such enterprise development measures were supported by the improvement of the transport and communication system via paved roads, bridges, canals, railroads and the telegraph. New jobs were created to cater to the needs of the fast growing economy and population. Enormous infrastructures were built to accommodate the growing city dwellers and workers. Increase in profits of manufacturing industries encouraged a steady influx of immigrants working in the production lines (Engerman, 2000). Competition and increasing market goals forced companies to expand trade and operations in other countries, imperialism’s objective. Altogether, technological advancement, cheap labor and availability of capital led to America’s heavy industrialization. This period of rise and fall largely contributed to America’s development into a superpower. However, as a young nation, America was set back with undesirable impacts of industrialization. As production staff volume increased, conflict between workers and management grew. Industrial achievements due to aggressive marketing of manufactured goods and increased foreign trade introduced more white collar jobs facilitating corporate operations. Management and administrative work were better rewarded than assembly-line work, providing better opportunities for educated and powerful who came to enjoy lucrative lifestyles; while creating inequalities of wealth, discontent and rousing uprisings from laborers who formed unions to pursue their rights. Marxist leaders helped reshape capitalist thought and corporate laws. Growing market demand meant increasing supply needs leading to resource exploitation in some areas leaving irreparable damage to the environment. Concern for increased production overshadowed the seemingly abundant resources. Even large corporations who came to have leverage in policy-making used their power to generate more profit. Developments in transportation made it easy for people to move about creating a melting pot of US residents and migrants, gave way to explosion of population in urban areas, forming cities. The attraction of immigrants made uprisings in social injustices -competition and aggression- between old American settlers versus the new immigrants. Urban legislators targeted services to win the votes of increasing foreign workers maligning the democratic electoral process. Too aggressive amassing and building of wealth and power triggered the economic crash of 1873 when the government’s major investment bank, financer of government reconstruction loans and the Northern Pacific Railroad, crashed (Bancroft, 1902). For many years, new business management styles were practiced by corporations, every time cleaning up failed ventures with hopefully better alternatives. Many times, the finance and investment sector failed but lessons were dealt with outmost concern for capital and development-oriented sources. As population grew in cities, people moved to occupy the western territories. Development gradually followed increasing the number of states joining the union. At the same time, America had growing concern for the rapid growth of the British Empire. Following British example, America colonized territories and expanded the home base and also the market for its produce. American industrialists pushed for westward progression, integrating the continent-wide unified market reducing production cost and increasing value per output of production enabling American working class to earn higher than counterparts across the globe. Higher wage was initially purported by higher bid of wage levels experienced in the pre-industrialization era using slave-labor and eventually sustained by capitalism during the reconstruction period despite the increase in laborers and economic conflict many years after. Nevertheless, the labor force and farmers suffered greatly being dependent on businesses that supported their sources of income (McElvaine, 1993). The years of depression was a roller coaster ride for most corporate giants who still reap the most benefit even during economic downfall. During World War I, America tapped the international market (McElvaine, 1993). They penetrated into countries that did not have resources for food production. US production increased to cater to the needs of incapacitated economies. With its strong capitalist foundation, the US took advantage of World War I devastation across Europe and Japan (Olson, 1988). Forced to reduce trade barriers, Europe, Japan and their colonies were opened to globalization, with efforts initiated by American powers. Development of farm machinery automated farming practices and increased US production. The US became the world’s foremost producer of agricultural products in power economies like Europe and Japan were destroyed. The downside, farmers became all the more dependent on new businesses offering loans, transportation, equipment manufacturers and middle men who facilitated crop entry into international markets. Though, when the war ended, competition became stiff forcing America to make internal changes to beef up industrial efforts. This led to the development of advertising and marketing strategies encouraging people to consume. People wanted to get away from the prolonged depression and rode with the bandwagon, buying what advertisers offered. A mass culture of consumerism proliferated. This was made possible even for people who would not afford through the credit system, promoting instant access to commodities and luxuries and deferring payment with terms (McElvaine, 1993). Many US bankers reached across the globe and lent European countries for post war reconstruction. Economic instability after war did not go along US banks’ objectives and increased the risk of non-payment of loans. This would eventually lead to the Great Depression affecting businesses and communities worldwide. The entire financial industry suffered leading to property and business closures (Olson, 1988). The imposition of higher taxes on imports caused local markets to patronize locally manufactured goods. However, other countries retaliated by imposing high taxes on US exports, resulting in less foreign trade profits and eventually less power in international market penetration (McElvaine, 1993). The growing rate in stocks investment of major industrial companies caught the attention of many. Stock buying became a trend, relying in the belief that this will make people rich. The Stock Market Crash of 1929 marked the domino economic disruption made vulnerable by unequal distribution of wealth and banking problems. Renewed global strategy in achieving international trade through humanitarian and democratic efforts became America’s initiative to promote global security. Priority was also given to secure citizens through provision of social welfare. State-governed economic planning organized nationwide industrial regulations to propel the rise from the Depression. Powerful American businesses have lobbied for rights in exploring resources in other countries despite conservative and anti-colonialism proponents in US government limited US economic expansion. However, open trading between economies leveled the playing field in production and markets. The Progressive Era marked a turning point of US imperial power into a more humanist and democratic torch bearer in an effort to resolve the problems and issues brought about by industrialization and urbanization. Leaders focused on long-term goals, core values and implementation of development programs. Reformists, including President Franklin Roosevelt in the New Deal, sought to end monopolies, destroy political corruption and lessen the gap between the affluent and poor. Through the New Deal, authorized nationwide assistance to socio-economic development of individuals. Agencies were set up to provide employment, regulate mortgage and housing conditions, administered social security, consumer rights and raised funding for education, food and drug safety. Concerns of the working and business class were brought together (Mintz, 2006). Progressive ideologies affected political, social and cultural movements in the local and eventually made impacts on international human rights revolution and the initiation of international governing bodies to secure international relations in politics and economics. Radical changes in international standards and relationships were fostered. The UN and the NATO was founded in 1945 and 1948, respectively. The US became stronger despite its diversity. Operation Breadbasket was launched to increase employment of cultural minorities. From its indistinguishable character, America’s economic, social and technological transformation continues to awe the world. Today, its mandate for democracy and freedom still thrive and inspire other nationalities. References Bancroft, H. (1902). The Financial Panic of 1837. The Great Republic By the Master Historians Vol. III. Retrieved 11-5-2008 from http://www. publicbookshelf. com/public_html/The_Great_Republic_By_the_Master_Historians_Vol_III/thepanic_ce. html Engerman, S. and K. Sokoloff. (2000). Technology and Industrialization, 1790-1914. In The Cambridge Economic History of the United States, Vol. II. Cambridge: Cambridge University Press. McElvaine, R. S. (1993). The Great Depression: America 1929-1941. Three Rivers Press. Mintz, S. (2006). Learn About the Progressive Era. Digital History. Retrieved 11-5-2008 from http://www. digitalhistory. uh. edu/modules/progressivism/index. cfm. Oberholtze, E. (1917). A History of the United States since the Civil War, Vol. 1. Macmillan. Olson, J. (1988). from World War I to the New Deal, 1919-1933. Historical dictionary of the 1920s. New York : Greenwood Press.

Bhopal Gas Tragedy and Its Ethical Issues Essay

SUMMARY Bhopal Gas Tragedy was a gas leak incident in India, considered one of the world’s worst industrial catastrophes. It occurred on the night of the last year of 1984 at the Bhopal Union Carbide Corporation (Union Carbide India Limited – UCIL) pesticide plant in Bhopal, Madhya Pradesh, India. A leak of methyl isocyanides gas and other chemicals from the plant resulted in the exposure of hundreds of thousands of people. It also causes environmental issues such as pollution of soil and water. The gas leak in India was caused by bad maintenance and failure of several safety systems to cut off the expenses. HISTORY Bhopal is a city in central India with population of 800,000 people in 1984. At that time, home to the largest mosque in India, Bhopal was a major railway junction. Its main industries consisted of manufacturing heavy electrical equipment, weaving and printing cotton cloth, and milling flour. In 1969, American Union Carbide Corporation, a company headquartered in Danbury, Connecticut, reached an agreement with the Indian government for the construction of a Union Carbide plant in Bhopal. Union Carbide would hold a 51 percent interest in the plant through its share of ownership of an Indian subsidiary of American Union Carbide. The agreement was seen as a win–win situation. India would have the plant and its jobs as well as the production of produce pesticides, a product needed badly by Indian farmers in order to increase agricultural productivity. In addition, Union Carbide also agreed that it would use local managers, who would be provided with the necessary skills and management training so that the plant would be truly locally operated. The plant used methyl isocyanides (MIC) gas as part of the production process for the pesticides. MIC is highly toxic and reacts strongly with other agents, including water. Operation of a plant with MIC processes requires detailed monitoring as well as security processes to prevent sabotage. While the plant began operations with high hopes, by 1980 the relationships were strained because the plant was not profitable. Union Carbide had asked the Indian government for permission to close the plant but the government felt the products from the plant as well as the jobs were needed for the Indian economy. Sometime in the early morning hours of December 3, 1984, MIC stored in a tank at the Bhopal plant came in contact with water, and the result was a boiling effect in the tank. The back-up safety systems at the plant, including cooling components for the tanks, did not work. The result was the toxic mixture began to leak and workers at the plant felt a burning sensation in their eyes. The boiling of the water and MIC caused the safety valves on the tank to explode. Following the explosion, the white smoke from the lethal mixture escaped through a smoke stack and began to spread across the area to the city of Bhopal. As the gas spread, it wove its way through the shanty towns that were located near the plant. The occupants of these shanty towns were Bhopal’s poorest. As the gas floated through these makeshift neighborhoods, 3,500 lives were lost and 200,000 were injured. The injuries included blindness, burns, and lesions in the respiratory system. The initial deaths and injuries were followed by long-term health effects. Of the women who were pregnant and exposed to the MIC, one-fourth either miscarried or had babies with birth defects. Children developed chronic respiratory problems. Smaller children who survived the toxic gas were sick for months and, weak from a lack of nutrition and ongoing illnesses, also died. MIC also produced strange boils on the bodies of many residents, boils that could not be healed. The problem of tuberculosis in the area was exacerbated by the lung injuries caused by the leaking MIC. In the year following the accident, the Indian government spent $40 million on food and health care for the Bhopal victims. Warren M. Anderson, Union Carbide’s chairman of the board at the time of the accident, pledged that he would devote the remainder of his career to solving the problems that resulted from the accident. However, by the end of the first year, Mr. Anderson told Business Week, â€Å"I overreacted. Maybe they, early on, thought we’d give the store away. [Now] we’re in litigation mode. I’m not going to roll over and play dead.† Following the accident, Union Carbide’s stock fell 16 points and it became, in the go-go 80s, a takeover target. When GAF Corporation made an offer, Union Carbide incurred $3.3 billion in debt in order to buy 56 percent of its own stock to avert a takeover. Through 1992, Union Carbide remained in a defensive mode as it coped with litigation, takeover attempts, and the actions of the Indian government in seeking to charge officers, including Anderson, with crimes. U.S. lawyers brought suit in the United States against Union Carbide on behalf of hundreds of Bhopal victims, but the case was dismissed because the court lacked jurisdiction over the victims as well as the plant. Union Carbide did settle the case with the Indian government for a payment of $470 million. There were 592,635 claims filed by Bhopal victims. The victims received, on average, about $1,000 each. The ordinary payment from the Indian government, as when a government bus harms an individual, is $130 to $700, depending upon the level of the injury. Individual awards were based on earning capacity, so, for example, widows of the Bhopal accident received $7,000. The Indian government also pursued criminal charges, including against Mr. Anderson. Lawyers for the company and Mr. Anderson continued to fight the charges, largely on the basis that the court had no jurisdiction over Mr. Anderson. However, to be on the safe side, Mr. Anderson did not return to India because of his fear of an arrest. In May 1992, the Indian government seized the plant and its assets and announced the sale of its 50 percent interest in the plant. When the sale occurred and Union Carbide received its share of the proceeds, it contributed $17 million to the Indian government for purposes of constructing a hospital near Bhopal. The plant now makes dry-cell batteries. Following the accident, Union Carbide reduced its workforce by 90 percent. Because of the share purchase, Union Carbide had a debt-to-equity ratio of 80 percent. In addition, the Union Carbide brand was affected by the accident and the company could not seem to gain traction. Dow Chemical would acquire the company in 1999 for $11.6 billion. In 2008, a study revealed that pesticide residues in the water supply for the area surrounding the plant were at levels above permissible ones. There are about 425 tons of wastes buried near the former plant. Advocates continue to appear at Dow shareholder meetings in order to demand clean-up. Dow’s response is, â€Å"As there was never any ownership, there are no responsibility and no liability—for the Bhopal tragedy or its aftermath.† ETHICAL ISSUES In Bhopal Union Carbide Corporation, a one of subsidiaries of Union Carbide Corporation has so many failures in working condition issues such as bad maintenance of the machinery, lack of safety and environmental standard to save money, and also had not concern of the natural environment. Sadly the case was dismissed because the court lacked jurisdiction over the victims as well as the plant. The insufficiency of scientific knowledge is inseparable from the inadequacy of justice. In 1999, Dow Chemical acquired Bhopal Union Carbide Corporation and as publicly owned corporation, the company is unable to accept any responsibility for the Bhopal catastrophe due to share price. Then the government of India sold the company’s assets to construct hospitals near Bhopal to take care the victims. There is dilemmatic problem for Bhopal Union Carbide Corporation, since they knew that the business was not profitable but the Government asked it to run  to support Indian farmers’ productivity and also Indian Economy through the plant. Because of that dilemma, The Bhopal Union Carbide Corporation disregard the Environmental Responsibility to save the money by ignored the work condition issues and keep the business run. KEY PARTIES TO UNETHICAL ISSUES There are four key parties occurred to Bhopal Gas Tragedy. There are: 1.Environments. The ring one which impacted by the tragedy is environment around the pesticide plant. The ring one consists of: (1) civilizations around the pesticide plant – Shanty Towns, and (2) Ecosystems – such as trees, water, and soil. 2.Government of India. The one who is control the environmental issues for industries and business. Government of India responsible to makes the policies to compromise between business and environment safety. 3.Bhopal Union Carbide Corporation (UCIL). The one of subsidiaries of Union Carbide Corporation, who had a business of pesticide plant in India – Bhopal with Indian Management, was responsible because of unfriendly environmental business or we could say that they are not pay attention to Corporate Social Responsibility (CSR). 4.Union Carbide Corporation. (UCC) The Parent Corporation of Bhopal Union Carbide Corporation. The chairman is the one who is most responsible of the Bhopal Gas Catastrophe. The chairman name is Anderson, he arranged with the government of India to build the pesticide plant. CONTRIBUTING FACTORS TO UNETHICAL ISSUES Attempts to reduce expenses affected the Bhopal Union Carbide Corporation’s (UCIL) employees and their conditions, they did several things below: 1.Less stringent quality control and thus looser safety rules; 2.Less training in controlled the factory. It means the employee didn’t exactly know what to do and what not to do; 3.Promotions were halted. It seriously affecting the employee morale and driving the skilled employee finding another job/factory. 4.Workers were forced to use English Manuals Book, while only a few of the employee had a grasp of the language. Because of that situation, UCIL affecting several situations such as: 1.The MIC tank alarms had not worked for four years.   2.There was only one manual back-up system, compared to a four-stage system used in the United States. 3.The flare tower and several vent gas scrubbers had been out of service for five months before the disaster. Only one gas scrubber was operating: it could not treat such a large amount of MIC with sodium hydroxide (caustic soda), which would have brought the concentration down to a safe level. The flare tower could only handle a quarter of the gas that leaked in 1984, and moreover it was out of order at the time of the incident. 4.To reduce energy costs, the refrigeration system was idle. The MIC was kept at 20 degrees Celsius, not the 4.5 degrees advised by the manual. 5.The steam boiler, intended to clean the pipes, was out of action for unknown reasons. 6.Slip-blind plates that would have prevented water from pipes being cleaned from leaking into the MIC tanks through faulty valves were not installed. Their installation had been omitted from the cleaning checklist. 7.The water pressure was too weak to spray the escaping gases from the stack. They could not spray high enough to reduce the concentration of escaping gas. 8.According to the operators, the MIC tank pressure gauge had been malfunctioning for roughly a week. Other tanks were used, rather than repairing the gauge. The build-up in temperature and pressure is believed to have affected the magnitude of the gas release. UCC investigation studies have disputed this hypothesis. 9.Carbon steel valves were used at the factory, even though they corrode when exposed to acid. 10.UCC admitted in their own investigation report that most of the safety systems were not functioning on the night of December 3, 1984. 11.The design of the MIC plant, following government guidelines, was â€Å"Indianized† by UCIL engineers to maximize the use of indigenous materials and products. Mumbai-based Humphreys and Glasgow Consultants PVT. Ltd. were the main  consultants, Larsen & Toubro fabricated the MIC storage tanks, and Taylor of India Ltd. provided the instrumentation. Besides that, there were also serious communication problems and management gaps between Union Carbide Corporation and its Indian operation. OPTIONS TO FINISH THE UNETHICAL ISSUES Anderson at the very start should have a feasibility study and environmental study for build up Bhopal Union Carbide Corporation, pesticide plant in India, to calculate the requirement of the plants related to India’s demand of pesticide and environment safety. If the plant is already built and it’s not profitable, Anderson should have closed the plant. But because of the Government demand to support the Indian Economy, Anderson should have to negotiate the government of India to take the plant as India’s state-owned company. So basically, all of the operational requirement will be the problems of India’s Government. Since Bhopal Gas Tragedy was already happened in India, there are few options to take the unethical issues done: 1.Union Carbide Corporations’ Chairman, Anderson, have to solve all of the problems causes by Bhopal Carbide Corporation’s Operation mistakes. It may take a lot of money to gather consultant and built infrastructure to help the victims such as Rehabilitation Center, Hospital, and also the compensation since the disaster begins would shut down the economics around the plant. 2.Anderson can also ask the India’s Government to contribute in solving all of the problems causes by Bhopal Carbide Corporation’s Operation mistakes since the Government of India was asked of helps to support Indian Economy and didn’t have regulation for Safety of Industrial policies. 3.Anderson use Point 2 plus ask the international media to regain his name due to the bad Indian management which â€Å"Indianized† U.S. Industrial safety  to environment. FREQUENTLY ASKED QUESTIONS 1.Should the Bhopal plant have been operated using U.S. safety and environmental standards? As a company operating outside the country, American Union Carbide Corporation should apply a U.S. safety and environmental standards because country where they operate (India) has not implemented a safety and environmental standard. The company should apply with the more strictly standard. In 1973, the Indian parliament had passed the Foreign Exchange Regulation Act (FERA), which aimed to increase state control over foreign business ventures. The act reduced the amount of equity that a foreign corporation could provide to any given project, in order to dilute foreign ownership of Indian-based firms. The bill also strongly encouraged the transfer of proprietary production technology to Indian firms, rather than just the formulation and sale of products, so that it could lay the groundwork for eventually nationalizing such technologies. In the case of the Bhopal plant however, UCC wanted to retain control of both the project and the technologies they had invented. While FERA did not allow foreign corporations to be the majority stakeholder in a project, an exception was made for UCC on the grounds that it was bringing in â€Å"special technology.† In order to retain their 50.9 percent stake in the undertaking, UCC cut the cost of construction from $28 million to $20 million dollars, primarily by using substandard technology and cheaper materials. Although UCC claims that its plant in Bhopal was built to the same safety specifications as its American facilities, when it was finally constructed there were at least eleven significant differences in safety and maintenance policies between the Bhopal factory and its sister facility in Institute, West Virginia. For example, the West Virginia plant had an emergency plan,  computer monitoring, and used inert chloroform for cooling their MIC tanks. Bhopal had no emergency plan, no computer monitoring, and used brine, a substance that may dangerously react with MIC, for its cooling system. The Union Carbide Karamchari Sangh (Workers’ Union), a union of Bhopal workers that formed in the early 1980s, recognized the dangers at the factory but their agitation for safer conditions produced no changes. 2.What would the U.S. policy be on the shanty towns? 3.Should the case have been moved to the United States for recover? Since Anderson is American, and the 51% shares of UCIL was owned by UCC in U.S. (categorized as Foreign Direct Investment), it should have been an U.S. – India issues to recover. With U.S. recovery helps, it will create a good relationship between U.S. and India. And probably the industry owned by U.S. citizen will trusted more by Indian. 4.List all of the costs of the accident to Union Carbide. It is estimated 100,000 to 200,000 people have permanent injuries. Reported symptoms are eye problems, respiratory difficulties, immune and neurological disorders, cardiac failure secondary to lung injury, female reproductive difficulties and birth defects among children born to affected women. The Indian Government and UCC deny permanent injuries were caused by MIC or the other gases. The gas cloud was composed mainly of materials denser than the surrounding air, stayed close to the ground and spread outwards through the surrounding community. The initial effects of exposure were coughing, vomiting, severe eye irritation and a feeling of suffocation. People awakened by these symptoms fled away from the plant. Those who ran inhaled more than those who had a vehicle to ride. Owing to their height, children and other people of shorter stature inhaled higher concentrations. Many people were trampled trying to escape. A total of 36 wards were marked by the authorities as being â€Å"gas affected†, affecting a population of 520,000. Of these, 200,000 were below 15 years of age, and 3,000 were pregnant women. In 1991, 3,928 deaths had been certified. Independent organizations recorded 8,000 dead in the first days. Other estimations vary between 10,000 and 30,000. Another 100,000 to 200,000 people are estimated to have permanent injuries of different degrees.

How to satisfy the customers in alain distribution company ( water and Research Paper

How to satisfy the customers in alain distribution company ( water and electricity company) - Research Paper Example Commonly, it has been interpreted that satisfaction is characterized by a feeling that is brought about by the evaluation process regarding what customers expect, such as the decision to purchase the service along with their needs and desires associated with such purchase. Moreover, according to Bitner and Zeithaml (2003), satisfaction reflects whether the service has fulfilled the customers’ needs and expectations. Satisfaction can be a positive and emotional state as an outcome of the evaluation of a working relationship (Boeselie, Hesselink, and Wiele, 2002). Over the recent years, due to such definition, there has been a focus on service quality and customer satisfaction among service providers and researchers alike, although such concepts are two conceptually distinct variables from the perspectives of customers. Background of the Study The researcher aims to focus on the Al Ain Distribution Company (AADC) which is a public joint stock company in the United Arab Emirates owned by the Abu Dhabi Water and Electricity Authority. AADC remains to be the largest distributor of electricity and water in the eastern region of Abu Dhabi (AADC, 2009). The company holds total ownership, control and regulation of electricity and water distribution, and operation of services for electricity and water supply. AADC aims to commit to their shareholders by bringing about the required investment returns. It also attempts to demonstrate excellent service quality by making sure that the provision of electricity and water is at a high level of superiority and that professionalism is shown through customer transactions and business actions that fulfill customer needs. Finally, AADC aims to stay committed to their employees through equitable treatment, effective employee recruitment and development, empowerment, competency maximization, recognition of contributions, and a safe and secure working environment. Through such objectives, the AADC aims to follow high standards t o bring about favorable outcomes in their daily course of action. Research Objectives The current study aims to address one main objective and that is to examine the relationships of perceived service quality dimensions, as suggested by Parasuraman, Zeithaml and Berry (1988) (reliability, responsiveness, tangibility, empathy, and assurance) on the satisfaction of customers in Al Ain Distribution Company (AADC). Review of Related Literature Customer Satisfaction A wide number of researchers have examined the important role that customer satisfaction plays in achieving long-term business success (Homburg and Stock, 2005; Schmit and Allscheid, 1996). Although customer satisfaction has been described through various definitions, generally, a process for evaluation is a vital component that comprises customer satisfaction. It is an evaluation provided by customers with regards to their consumption experience or service encounter based on how favorable it should be (Hunt 1977). Engel and Blackwell (1982) also referred to this concept as an evaluation whether the selected option is in accordance with prior notions regarding such alternative. Hence, such conceptualizations point out that customer satisfaction is the process of assessing the observed differences between expectations and actual performance/encounter. Furthermore, according

Slp bus 499 Essay Example | Topics and Well Written Essays - 500 words

Slp bus 499 - Essay Example Also the last objective as already been discussed is the commitment to sustainable development. Wal – Mart ensures complete usage of its resources and helps in improving the environment. Here customers realize that the organization supports them and also cares for the satisfaction of the customer needs. Also the organization has shown social responsibility to the society. The above mentioned strategies support one another in all aspects. It is noted that all the objectives and the strategies that have been set down by the company are linked to one another in a manner – the mission and vision of the company. This allows and shows that the company is headed only in one direction and thus the strategic goals of the company will be met easily and more efficiently due to the united approach. Thus it is clear that the strategies developed by the company support each other in all manners and allow the company to grow evenly towards the same goals. Wal – Mart has very carefully planned and designed its strategies based on the mission and vision that have been set. The company’s strategies in all aspects, including the strategies based on the customer perspective, financial perspective, learning and growth perspective of the company. Thus the strategies that have been built are well linked and the casual chain is clear with completeness to the company’s main vision and mission. The one new objective that can be included to improve the performance of the company is to include a better learning and growth perspective for the employees. This is one of the only parts of the organisation that does not have importance to employee development. The organisation has been accused for a number of issues where the employees have been wrongly treated and the no importance has been given to employee development. Thus one of the major strategies that Wal – Mart should accommodate in their strategy is to provide emp loyees with a ground for learning and self

Book summary and critique Essay Example | Topics and Well Written Essays - 500 words

Book summary and critique - Essay Example Details of his courageous battle and determination to defeat cancer, despite being the tremendous odds of survival, were narrated in a matter-of-factly form. His commitment to his craft was his ultimate concern right after being diagnosed with cancer – even more than the possibility of untimely demise. Armstrong acknowledged the disease as an eye-opening opportunity to remunerate of his life, as he indicated â€Å"my illness was humbly and starkly revealing, and it forced me to survey my life with an unforgiving eye† (Armstrong & Jenkins, 4). The exceptional determination to win encouraged him to strive beyond expectations and enabled Armstrong to catapult to fame from winning the Tour de France in seven consecutive years from 1999 to 2005, despite the rigors of the dreaded disease. His inspirational experience provided the impetus for the establishment of a foundation, the Lance Armstrong foundation, with the mission of improving the lives of people who have been drast ically affected by cancer. Critique The book was inspirational for readers from all walks of life.

Enterprise Resource Planning Assignment Example | Topics and Well Written Essays - 2500 words

Enterprise Resource Planning - Assignment Example "The ERP market showed solid organic growth in 2004 as IT spending improved," says Jim Shepherd, vice president of research at AMR Research. "The market was also affected by consolidation within the segment, as well as ERP vendors acquiring best-of-breed players to broaden their portfolios." The top ten ERP vendors by revenue are in the following order: SAP, Oracle, PeopleSoft (acquired by Oracle December 28, 2004), Sage Group, Microsoft Business Solutions, SSA Global, Geac, Intentia, Lawson, Infor Global Solutions. The report, "The Market Analytix Report: Enterprise Resource Planning, 2004-2009", delivers revenue and growth rates for the top ERP players as well as growth forecasts through 2009. AMR Research expects the enterprise applications market to grow from $47.8 billion in 2004 to $64.8 billion by 2009. SAP has had a solid reputation and has been the market leader and its revenues grew from about $8 billion in 2003 to about $9.4 billion in 2004. That amounts to a 17 percent increase in revenue, with software licenses up by 20%. SAP reached these figures without any major acquisitions. Being a viable alternative to confused customers who were witness to the Oracle and PeopleSoft takeover saga, it benefited by luring their customers towards its products. When it is all said and done, SAP-owned 40 percent of the market for ERP software in 2004, says AMR, which predicts SAP will own 43 percent of the market by the end of 2005. To do this, SAP must grow revenues 11 percent this year to about $10.4 billion. The sap is growing very well and is expected to gain more than twice the revenue and market share of Oracle by the end of 2005.Before the hostile takeover of Peoplesoft by Oracle in 2003, PeopleSoft was the second largest ERP vendor with 13 percent of the market, and Oracle was a clos e third with about 12 percent of the market. In 2004, the combined market share of those two vendors dropped two percentage points to 22 percent, and in 2005, the combined Oracle-PeopleSoft will drop three more points to 19 percent of the market, according to AMR. Microsoft Business Solutions garnered a solid 13 percent from $683 million to $775 million, to claim 3 percent of the market. AMR sees the ERP division of the world's largest software company growing revenues by 15 percent in 2005, to $891 million, which would give it a 4 percent share.  

Braving the Economic Slowdown Essay Example | Topics and Well Written Essays - 1750 words

Braving the Economic Slowdown - Essay Example Threats to the company must be identified and the major challenges must be addressed in order to secure the future and continual operation of the company. The cash flows of the company must be properly monitored and strategies must be formulated in order to avoid long maturing investments as these are the ones which carry very large risks for failure. The top management and leadership of the company must be quick and decisive in order to allow the implementation of changes to be successful. This paper presents what strategies needs to be implemented for the year in order for the company to achieve better competency and survival while also maintaining and ensuring the future of the company Braving the Economic Slowdown: Analysis and Strategy Development Introduction In light with the global business crisis and the reduced economic activities, the company needs to tread carefully on the ventures and strategies for its operational aspects. Times like these call for more precise decision making and planning so as not to waste even more precious resources and advantages, lest the company fail like many others in this recession. But in order to have a better grasp of the situation, we must first delve into understanding the nature of such crisis in order to determine and identify the threats and major challenges that the company is and will be facing. Therefore, the background of the crisis and the global entities and sectors that are most vulnerable should also be recognized. Limiting factors and hindrances should also be put into

Magazines,just like all of their mass media counterparts have been Essay

Magazines,just like all of their mass media counterparts have been facing declining readership and fragmentation of their readership base. How are magazines re - Essay Example In a sense, the widespread decline of magazine readership can be initially assumed as caused by a variety of factors such as the increasing realization among readers that it’s basically not worth turning the pages of magazines nowadays because they can acquire the information they need or deemed important somewhere else such as televisions, radio, weeklies, free sheets and most prominently the Internet. Moreover, for some, magazine reading is highly habitual which can suffer from developments in people’s lifestyles. Everyday life has been de-ritualized in the contemporary period which established magazine reading as a form of diversion and amusement, which then becomes insignificant in the working and free time rhythms of a number of individuals. Hence, if both the outmoded appearance and purpose of the magazines and foremost adjustments in the lifestyle of its readers have created it somehow a dying out mass medium, then the challenge to readership research has turn ou t to be even greater. Readership research is no longer lavishness or something to simply buff up the magazine, to compose it even better than it may have appeared beforehand. Increasingly, research may be essential to keep the magazine and its business significant in a growing varied, competitive, even hard lined market with an escalating number of unsympathetic audiences. There was a period, not too many years ago, when several people feared that magazines would be weighed down by television; that readership would decline in the technological age and promotional materials would abandon the print media for the glamour of the video screen. From 1995 to 1980, the television outgrew rapidly any other mass medium, both in viewership and marketing revenue.1 Nevertheless, the magazines have recovered strongly. 1990 showcased the magazine industry as a healthy, developing component of nations across cultures. In fact, during this time it’s safe to conclude that magazines

HR Management Essay Example | Topics and Well Written Essays - 1250 words

HR Management - Essay Example It is also responsible for the devising of strategy and its apposite implementation on the staff members, conducting training sessions for them and arranging seminars, meetings and discussions for the boosting up of their morale. In addition, forecasting, planning, allocation of resources and keeping the work environment healthy, steady and peaceful are also included in the responsibilities of human resource department. Human resource department also maintains equilibrium within the organisation and condemns any type of discriminatory behaviour on the basis of caste, class, community, ethnicity, race, religion, age-group, sexual orientation and gender, where no biasness or prejudice could be inflicted upon the employees on the basis of above-described characteristics. â€Å"HR Managers are usually the ultimate sources of expert advice and guidance on harassment and discrimination in their centres. They need to be knowledgeable of centre’s policy but also have an understanding of harassment and discrimination beyond the policies themselves.† (Retrieved from genderdiversity.cgiar.org) Consequently, sexual discrimination is strictly prohibited in workplace, and the persons guilty of such acts are liable to be tried at the court of law. The government has strictly condemned gender discrimination in work places at both governmental and private sectors. It has issued decrees and passed anti-discriminatory laws including Sex Discrimination Act 1975 and the Equal Pay Act, so that the female employees could also obtain same status equal to men at organisations and work places. Hence, the above-described provisions of Sex Discrimination Act 1975 manifestly view discrimination between men and women on the basis of their gender as the discriminatory one. Though, the act has been in vogue for the last three and half decades, yet it is mere theoretical in nature; as in

Human Resource Management for Tourism, Sports and Creative Industries Essay

Human Resource Management for Tourism, Sports and Creative Industries - Essay Example ative sector relies on recruiting and retaining the appropriate volunteers in the workplace whereas in HRM in Tourism Industry relies on the effective HR practices. However, today human resource in tourism, sports and creative industries are facing the challenges in recruiting, retaining the committed employees and motivating the skilled workers in the workforce, which is focused on offering high quality service to the customers (Armstrong, 2009, p.4-5). Before starting the discussion on how effective human resource management could contribute to the success of event industry, Bratton and Gold (1990) have done a critical analysis on the theory and practices of HRM in the areas of performance management, recruitments and selection and training and development. In the present day globalization, the different areas of industry have undergone a sea change. The Chinese companies are facing the competitions with American companies; the American companies are facing the competitions with the Europe, India and everywhere. There is no monopoly. Hence, for the survival of any industry a high degree of professional management is required at every stage of processing. However, HRM is the vital question that is to be applied at all event management, and there are various types of event industry, which might be either Tourism or can be Sports or anything. The span of activities of HRM starts from the scope of work to the management of international human resources. The literature of Human Resource Management Journal by Bratton and Gold had presented the hard and soft skills of the HRM in different fields of HR practices. The hard skills of HRM focus on the business and the HR strategy in order to help the organization achieve its company strategic goa ls. On the contrary, the soft skill emphasizes on the training and development of the unskilled employees. However, HRM for Tourism, Sports and Creative Industry plays an essential role in the corporate, professional, social and

Balanced Scorecard Essay Example for Free

Balanced Scorecard Essay A balanced scorecard is very helpful to any organization and should be viewed as a very important document throughout the company. Wal-Mart has developed a scorecard so that their customers can see what goals that the company wants to achieve and also how to achieve those goals. If you look at the scorecard on a regular basis, then you will know exactly how your company is running and what areas you need to work on. Wal-Mart wants everyone to know where to look at their scorecard and how to achieve the goals that they feel will make them even more successful. Wal-Mart also expects that every employee should follow this scorecard to guarantee they are doing the right things to make the company grow even faster and stronger than they already are (Balanced Scorecard Basics, 2014). The financial part is a very important part to Wal-Mart. With this part being successful you will be able to pay all the employees the right amount and also pay all the bills so that the company can make more money and keep thriving in the world today. Also with the financials down, the shareholders will see an increase in the amount of what the shares are selling for and that lets them know what they are making for owning those shares in the company. A competitive position is a major key within a huge retail chain like Wal-Mart. They are number one compared to other store chains similar to them. They continue building stores all over the world while a lot of the competitors keep shutting their stores down. Staying atop of this list is what makes Wal-Mart the leader in general merchandising stores (Wal-Mart Stores, 2013). Another major area of a balanced scorecard is how the customers see what Wal-Mart is doing. This is the most important part other than the  financials but work hand in hand with the financials. If the customers see Wal-Mart as a bad company then they will not buy the items that Wal-Mart is selling and then Wal-Mart will not be able to afford their bills and payroll and eventually have to close down. If they see Wal-Mart as a great place to shop then they will tell everyone that they know to shop there and that will make the revenue rise and make more profit for the company so that they can become even more successful in the future. The customers perspective always pays a big role in any company, if you keep them happy, then the will spend more money and time and energy with your company instead of your competitors (Balanced Scorecard Basics, 2014). Innovation is what you need to do to improve the company and learn how to grow and become a stronger economy. Wal-Mart is trying to be innovative in how they get their ads out to the general public. They are starting to email adds out to individuals emails letting their customers know of great deals and opportunities that are coming up in the local stores (Balanced Scorecard Basics, 2014). They are also developing an app for the smart phones of today with the deals and specials going on within the company. They are trying to get their products and service out in the community. Last but not least are the internal methods. They look at areas they think they will excel in and also the areas that will not excel so much at. The areas that Wal-Mart plans to excel at are usually the electronics. They look at other ideas to help them excel even more than usually and develop a plan to implement how to excel further in these areas. The Ares that are weak, they look for reasons that they are weak and how can they implement a plan to make those areas excel in also. When they can get all the areas in the store to excel greatly then they will become very successful and continue to grow beyond measure. This paper has demonstrated how a strategic plan of a balanced scorecard can help any company grow to a different standard. With these scorecard in effect and followed out completely then any company will succeed in everything that they want to do and become very successful. References Wal-Mart Stores. (2013, November 6). Retrieved March 31, 2014, from Forbes. Balanced Scorecard Basics. (2014). Retrieved March 31, 2014, from Balanced Scorecard INstitute: https://balancedscorecard.org/Resources/AbouttheBalancedScorecard/tabid/55/Default.aspx

Human Rights Records of Multinationals in Nigeria

Human Rights Records of Multinationals in Nigeria Chapter 1 Introduction From time immemorial man has depended on his environment for all his material needs. Adam and eve for instance survived with the most basic of sustenance and the story is that they lived exclusively on fruits gathered from the Garden of Eden including the forbidden one. This is a classical case of mans insatiability with just what is immediately available or sustainable. It is not necessarily greed or avarice but mans advancement, increasing needs, and quest for the unknown. The instruction to increase and multiply created new pressures for him. The few fruits he gathered from the garden could not sustain his ever-increasing family. Eden also became too small as a result of his obeying the instruction to increase and multiply, and the need to move to unknown destinations became imperative, where he ran into hostile situations such as excessive cold, heat, other various forms of inclement weather; in addition to unfriendly plant and animal life. Movement from point A to B by foot whic h was the only option available at the time must have been very painful and slow. Therefore man had to fashion out ways of transportation. This started with rafters made from such materials as papyrus, to dug- out wooden canoes for water transportation; the forerunners of our mass transport system, and a large component of mans current environmental problems. Mans development continued unabated until the industrial revolution that completely changed forever the relationship of man with his environment. The creation of the internal combustion engine could be regarded as a major landmark in mans existence on earth which has facilitated the enormous movement of man, and the reduction of the universe into the proverbial global village. It is in this quest for man to satisfy his needs and wants through modern transportation, accommodation, leisure and several other aspects of human endeavor that has led to unprecedented demand for energy. Energy in the form of wind, water, sun, fossil etc has become a preoccupation of modern life. However, one which appears to have an obviously devastating consequence on mans environment today is fossil energy the prime mover of mans various activities. The exploration, extraction and exploitation of fossil fuel have so irreversibly impacted the earth that they are considered as the major causative factors of global warming. In Nigeria the early exploration of solid minerals which started in 1903 was immediately followed by such exploration for fossil oil. The major international company that was involved in this early exploration was Shell DArcy. There is every indication that the native communities where these explorations were going on were completely unprepared for the shock of oil activities. First and foremost, there were no specific existing laws in the Nigerian system guiding such human activities and therefore any attempt at either avoiding disaster or remedying any that occurred was almost completely at the discretion of the operating company. According to the Nigerian Ministry of Solid Minerals Development, mineral exploitation in the country was largely carried out without regards to the adverse effects on the environment or the host communities. It was not until 1946 that the minerals ordinance was enacted with provisions for reclamation of mined out lands. In consequence therefore a unit; m ines land reclamation unit was established to reclaim the hundreds of abandoned mines land all over the country which were relics of the colonial mining activities. The same or far worse could be said to be the case for oil mineral exploitation. One must bear in mind that Shell DArcy was neither CARITAS nor RED CROSS. In the process of their exploration and indeed exploitation, several incidents of damage to the ecosystem had occurred and there are several unwritten stories of this great damage to the ecosystem. The first mineral act for Nigeria was actually written in 1946 *123) and from all indications it was quite defective and concentrated mainly on Solid Minerals, and what the Nigerian government saw as the revenue that would accrue to the nation. The areas dealing with environmental impact abatement occupied very limited space and importance. It is instructive to mention here that the entire minerals and mining sector which included solid minerals and crude oil mining was unde r one ministry ab initio. It was only when crude oil took precedence over solid minerals that the two were separated in the 1970s before a full- fledged Ministry of Solid Minerals development was established in 1995 which is the structure as at today. There have been several reported cases of monumental damage to the ecosystem generally and specifically to farm lands, fishing areas and other water courses in the Niger delta of Nigeria as a result of accidents or carelessness on the part of oil companies in several Niger delta areas such as Ogoni land, the current Bayelsa, Warri axis (Bob, 2005). Such devastation has consistently occurred, with the oil companies either paying lip service to such disaster abatement or actually offering very painfully limited amounts of redress to host communities. One reality is clear; because government either by omission or commission (more of commission) had not been in a position to protect the host communities; and their crying interests, we have had cases of unrest in the Niger delta area. Prominent among these unrests are the Ogoni uprising, and of recent, MEND (movement for the emancipation of the Niger delta) with their negative attendant consequences on the Nigerian nation and her economy. These cases of unrest have been extensively documented and had attracted international attention and sympathy. Much as one would say that the extant laws guiding the exploration and exploitation of crude oil in the country have undergone serious reforms, several factors outside the laws have come to further exacerbate an already difficult situation. Opinion is that while the existing laws are not extremely favorable to host community existence and indeed the entire ecosystem, other human failings in the Nigerian system have lent their weight to inflicting extensive pain on host communities of oil producing areas. The most hurting has been positively identified as â€Å"corruption†. The oil companies are 100% profit making organizations. Therefore in this system where a gift of a gold watch and a cup of coffee, could easily make a minister whose job includes enforcement of extant laws to look the other way while operating bodies break all the existing laws, these oil companies naturally found it easier to side track national laws in order to operate at maximum profit while inflicting un told pain and hardship on host communities. Objectives: The primary objective of this paper is to broadly examine the interaction between multinationals and the host countries in which they do business from a human rights perspective. For the purpose of this discourse, I will limit my case studies to three prominent multinationals in Nigeria, which are Shell, Chevron, and Exxon Mobil. As earlier stated, some of these industries present a huge number of dangers and in many cases extremely hazardous consequences for employees, inhabitants of certain communities and indeed the environment particularly their effect on flora and fauna. While some of these dangers presented may not be committed intentionally, some individuals are nevertheless made to suffer less than desirable conditions, in the hands of company security agents all of which border on human rights violations. Therefore in this paper, positive and the negative roles played by the multinationals will be examined in order to help assess their human rights records properly. As an in tegral part of this research also, extant laws, covenants and treaties if any that these multinationals have signed regarding their operations within the country will be examined, as well as the company`s operational guidelines. Organization Of Dissertation Chapter 1 is basically concerned with the introduction. For the purpose of this work however, the next chapter will give a brief overview of the country and the history of oil exploration in Nigeria as well as a discussion of the major concept which is human rights from the perspective of several scholars. Chapter 3will focus mainly on the human rights performance of these multinationals (negative and positive), beginning with their corporate social responsibility and how well they have behaved in host communities and abided by their business principles. The forth chapter then will solely be focused on the spillover effects of the activities of the multinationals and as such the reaction of the host communities and the Nigerian government in general. The fifth chapter will be the conclusions and recommendations. Research Question 1. What are the human rights records of multinationals in the oil industry in Nigeria specifically shell, chevron, and Exxon Mobil? 2. How well have these companies kept to their public statements and operating principles? Chapter 2 This chapter will give an overview of the country and a brief history of its oil exploration and exploitation in the country, vis a vis, the definition of human rights as defined by several scholars. Overview Of Nigeria Nigeria is undoubtedly the most populous nation in Africa with an estimated 140 million people. The nation comprises 36 states and one federal capital territory. Nigeria is also blessed with vast agriculture and mineral resources which include, but not limited to cocoa, cassava, coal, bauxite, tin, tantalite, iron ore, limestone, gold, many precious metals/stones, and most importantly crude oil. Despite being one of the major producers and exporters of oil in the world and also a member of the OPEC, the country has continued to experience endemic poverty and strife notwithstanding the abundance of the above mentioned. All of this can directly be linked to corruption and mismanagement of funds by the ruling elites, with billions of dollars being made each day by major multinationals in diverse joint venture agreements with the government owned Nigerian National Petroleum Corporation (NNPC). Bob (2005, p.59) argues that â€Å"Nigeria`s highly centralized, notoriously corrupt and ethni cally riven political system have made it possible for the country`s leaders both military and civilian to siphon most of the revenue from oil†. This institutionalized corruption has almost always been implicated in serious cases of human rights violations. *MITCHELL. According to several authorities including the, US state department, among others, oil exploration and exploitation have often precipitated gross human rights violations, citing several cases of extrajudicial killings, torture (US*), and most of all environmental devastation which has led to the destruction of total ecosystems. Oil Exploration In Nigeria The history oil exploration in Nigeria could be dated as far back as the drilling of oil wells in Nigeria by the Nigerian bitumen company in 1903 when mining exploration activities started in Nigeria. However the first major discovery and exploration of oil was in 1956 in oloibiri village in eastern delta of Nigeria (Olorode et al, 1998, p.14). This operation was carried out by Shell DArcy now known as shell petroleum development company (SPDC, 2009). Subsequently, oil companies such as ExxonMobil, Chevron Texaco, ENI/Agip, and TotalFinaElf joined in oil exploration activities mostly in the Delta region under a joint venture agreement with state owned NNPC. The oil industry has definitely made a huge impact on the socio-economic life of Nigeria especially as one of its major sources of revenue. However oil exploration as an extractive industry has negatively impacted on the indigenous populations where oil drilling and exploration occur. Despite huge profits amassed by the oil indust ry, gross environmental devastation and degradation have routinely cropped up with little or no solution being proffered to the situation by the oil industry operatives. According to reports by the committee for the defense of human rights (CDHR), the industry has inflicted unprecedented agony on indigenous communities by completely disrupting water ways, destroying soil, water, air, animal, plant life, and generally causing massive destruction in the eco system especially on the flora and fauna (Olorode, 1998, p.15). Communities affected by oil exploration are those of the Niger delta. The Delta region is made up of a number of indigenous communities and states which include Rivers state, Delta, Bayelsa, cross river and Akwa Ibom and they account for about 80 percent of the oil and gas produced in Nigeria. The remaining 20 percent are scattered in different parts of the country such as, Imo, and Ondo *(CDHR). Apart from oil and gas, the Niger Delta is also blessed with agricultural land, creeks, forests, rivers, creeks, and coastal waters with fish and sundry marine life (Okonta and Douglas, 2000, p.33). Ironically even in the midst of these abundant natural resources, the region remains one of the poorest and most under developed in the country, with the people suffering from unimaginable diseases and a complete absence of basic facilities which include electricity, clean water, education, hospitals, housing, and good roads*. Decades of wanton mismanagement of funds and corruption have been cited as the reason for paltry GNP per capita of 280 us dollars, but the reality in the Niger delta is even far worse. A recent survey by the world bank stated that 7 in every 10 Nigerian`s live below $1 a day (*). Furthermore the area has one of the highest population densities in the world, with an estimated 3 percent growth per year, and this burgeoning population in the face of under development has been referred by Okonta and Douglas as the â€Å"human ecologists ultimate nightmare; a growing population in an attempt to survive (is) destroying the very ecosystem that should guarantee its survival† (Okonta and Douglas, 2000, p.34). Most of the suffering of the peoples of the Niger Delta could be attributed to oil companies invading their territories and paying little attention to the plight of the people, and also the ever corrupt government officials and political elites willing to accept bribes and cuts from these multinationals to remain silent. These acts of commission and omission by state functionaries have sometimes been exploited by the multinationals resulting in the brutal repression of dissenting host communities using instruments of state violence (*). Following is a reference to various definitions and concepts of human rights as elucidated by the aforementioned authorities. Human Rights â€Å"All human beings are born free and equal in dignity and rights†. —Article 1 of the United Nations Universal Declaration of Human Rights (UDHR) According to the United Nations declaration of human rights (UDHR), rights fall into two major categories namely civil and political rights, as well as socio-economic and cultural Rights†. (Malone, 2003, p.20). Civil and political rights which are also considered as first generation rights are argued to be those unalienable rights to which an individual is entitled. According to the UNDHR they include the right to life, right not to be tortured, right to fair hearing and judicial process. Forsythe, for instance, explained human rights to be â€Å"those fundamental moral rights of the person that are necessary for a life with human dignity.† (Forsythe, 2006, p.3) Landman (2006), defined human rights as â€Å"a set of individual and collective rights that have been formally promoted and protected through international and domestic law since the universal declaration of human rights in 1948† (p.8). Alston (2005), cited Karel Vazali`s categorization which argues that there are three generations of human rights namely, the first generation – civil and political rights, i.e. right to life and political participation. The second generation according to Alston includes economic, social and cultural rights or collectively, right to subsistence. The third generation rights which is the solidarity rights encapsulates the right to peace and most importantly for the purpose of this discourse is the right to a clean environment. There are two schools of thought with regards to environmental human rights which are enshrined in article 21 of the African charter on human and people`s rights, which argues that the right to a healthy or adequate environment, constitutes a fundamental component of human rights (African Charter on Peoples and Human Rights: Ratification and Enforcement, Act 1990). The second school of thought posits that environmental human rights are derivable from other human rights including, but not limited to the right to life, the right to health, as well as the right to property (Ibid). The whole concept of environmental rights is informed by the concept of a right to a habitable environment for the present and generations yet unborn. According to Olorode (1998, p.8), â€Å"the extractive industries constitute one of the human activities which have immediate and significant consequences on the environment†. Odu (1977) as quoted in Olorode (1998, p.8) also argued that â€Å"extractive industries may alter the ecology so completely that it cannot support agriculture or fishing† Since this treatise is primarily concerned with the human rights records of select multinational oil companies in Nigeria, relevant clauses of the Nigerian constitution on fundamental human rights are worthy of reference. Chapter four of the Nigerian constitution deals solely with fundamental human rights as enumerated in sections 33 to 46, the keynotes of which are reproduced hereunder: â€Å"33. Right to life 34. Right to dignity of the human person 35. Right to personal liberty. 36. Right to fair hearing. 37. Right to private and family life. 38. Right to freedom of thought, conscience and religion 39. Right to freedom of expression and the press. 40. Right to peaceful assembly and association. 41. Right to freedom of movement. 42. Right to freedom from discrimination 43. Right to acquire and own immovable property. 44. Compulsory acquisition of property. 45. Restriction on and derogation from fundamental human rights. 46. Special jurisdiction of High Court and Legal aid† (Sections 33-46, Constitution federal republic of Nigeria (FRN) 1999) Furthermore section 20 of the same constitution provides that â€Å"the state shall protect and improve the environment and safeguard the water, air and land, forest and wildlife of Nigeria. It can therefore be argued that adequate provisions are already in place at least on paper, for the protection and enforcement of the fundamental human rights of Nigerians with particular reference to environmental rights. However, section 44(3) vests the entire property and control of all minerals, including oil and gas occurring in any land, upon or under any waters within the Nigerian territory and its exclusive economic zone on the government of the federation which shall manage these resources in the manner prescribed by the national assembly (Constitution, FRN, 1999). This constitutional provision is more often than not relied upon by the government and its institutions, sometimes allegedly at the behest of the multinational oil giants, to suppress and repress legitimate agitations by aggrieved host communities. The aggrieved host communities are usually either seeking for their fair share of the oil wealth, outright resource control, or demanding for concrete remedial measures against the sundry negative environmental impacts of oil exploration and exploitation such as gas flaring. According to reports by Osouka and Roderick (2005, p.4) Nigeria flares more gas than any country in the world, averaging a staggering 2.5 billion cubic feet of gas associated with crude oil. This they argue to be equal to 40% of all Africa`s natural gas consumption which have contributed more greenhouse gases than the entire sub Saharan Africa as a whole. They posit that â€Å"the flaring of associated gas in the niger delta is a human rights, environmental and social monstrosity† (Osouka and Roderick 2005), because the health and livelihood of the inhabitants of these communities are adversely affected by these unmitigated flares which contain a plethora of pollutants resulting in â€Å"an increased risk of premature deaths, child respiratory illnesses, asthma and cancer† Osouka and Roderick (2005, p.29). Osuoka and Roderick further reported that the commission had contended that the Nigerian government had in principle admitted complicity for this hazardous practice by stating that â€Å"there is no denying the fact that a lot of atrocities were and are still being committed by the oil companies in Ogoni land and indeed the entire niger delta area of Nigeria† (Osuoka and Roderick, 2005, p.29) Prior to the 1999 constitutional provision, the federal military government had in 1969 promulgated the petroleum decree which effectively abrogated the 1954 revenue allocation formula that provided for the equal sharing of mining revenue between the regions and the federal government (Oronto and Okonta, 2000, p.40). Furthermore decree 6 of 1975 increased the federal governments share of the oil proceeds from 50% to 80% leaving the states with only 20% (Oronto and Okonta, 2000, p.41). Oronto and Okonta further contended that a senior permanent secretary in the administration of former military head of state general Gowon had â€Å"cynically remarked in a public lecture that the people of the niger delta were most unlikely to pose any real threat to the regimes continued exploitation of their oil wealth as they were relatively few in population and thus could be easily subdued†, (Oronto and Okonta, 2000, p.41). They therefore concluded â€Å"that this is exactly what the Nigerian military junta has done beginning from the mid eighties when the people of the Niger delta began to raise their voices in protest (Oronto and Okonta, 2000, p.41). Following in the next chapter therefore is a detailed report on the activities of the select multinationals with particular reference to their corporate social responsibility (CSR), on the one hand, and their alleged collusion with the authorities to perpetrate gross human rights violations against the host communities, on the other. However business and operating principles will first of all be examined before delving into the detailed report. Chapter 3 Operating Principles â€Å"The voluntary principles on security and human rights are a unique tripartite, multi stakeholder initiative established in 2000 that introduced a set of principles to guide extractive companies in maintaining the safety and security of their operations within an operating framework that ensures respect for human rights and fundamental freedoms. The voluntary principles address three main areas: risk management, interactions between companies and public security and interaction between companies and private security† Voluntary principles on security and human rights, 2000 Prior to this time, shell which was the first multinational to start exploration in Nigeria had to abide by the 1948 universal declaration of human rights which called on all, including companies to respect the rights of individuals. However there were no concrete laws in the nation at the time as regards exploration and exploitation, therefore SPDC formed its own set of principles to which it conducted its operations in 1979 (SPDC, 2003). Subsequently other multinationals in this review (Exxon Mobil, and Chevron) began their operations within the nation in 1955 and 1913 respectively with their own business principles that would guide their operations and several other treaties that they signed on to. One critical factor about their operating principles is that they appear to be similar in most of the various areas of human rights and CSR with virtually the same rules. SPDC for instance has in its portfolio a set of guiding principles apparently aimed at bringing development to the h ost communities in particular and the entire environment of its operations generally, some of which are: Sustainable development: Responsibility to the society Health, safety , and security Local communities Communication and engagement Shell argues that the above mentioned principles govern all of its operations and bodies within the country. For instance its business principles to society is â€Å"to conduct business as responsible corporate members of society, to comply with applicable laws and regulations, to support fundamental human rights in line with legitimate role of business, and to give proper regard to health, safety, and the environment†(SPDC, 2009*). Principle 5 therefore guarantees health, while one which is regarded as primary in relation to this discourse is principle 6 which states that â€Å"Shell companies aim to be good neighbours by continuously improving the ways in which we contribute directly or indirectly to the general wellbeing of the communities within which we work. We manage the social impacts of our business activities carefully and work with others to enhance the benefits to local communities, and to mitigate any negative impacts from our activities. In addition, Shell companies take a constructive interest in societal matters, directly or indirectly related to our business†. (SPDC, 2009) Similarly, ExxonMobil argues that its â€Å"standards of business conducts provide a framework for their operations responsibly, and that they abide by the United Nations Declaration of Human rights as it applies to companies, the fundamental Principles and rights at work of 1998 ILO Declaration, and are active participants of the earlier stated voluntary principles on Security and Human rights and most recently the UN global compact (*). They also argue that they â€Å"comply with all environmental laws and regulations and apply responsible standards where laws or regulations do not exist† (ExxonMobil, 2009) interesting! Chevron also like the other companies in this review abides by the UNDHR, and has adopted certain treaties and covenants such as the ILO principles and rights at work, the UN global compact, as well as its own company`s business operating principles which are all geared towards ensuring that it operates and maintains high standards in its activities in host countries/communities (*). According to the company`s principles regarding respect for human rights, it maintains that it supports universal human rights and as such condemns human rights abuses (sec 1.27,p.29). Furthermore with regards to the environment, â€Å"Corporate Policy 530 commits Chevron to comply with the letter and spirit of all environmental, health and safety laws and regulations â€Å"(sec 1.4) P.14. With this said, a full detailed report of the human rights records of the multinationals under study will be reviewed. Spdc (Shell Petroleum Development Company) Unarguably one of the biggest and profitable companies in the world, Shell first began its global operations in 1907 as an offshoot of the British owned shell transport and trading company (STTC) and the royal Dutch petroleum company of the Netherlands (Okonta and Oronto,2000. P.62). Since then, the multinational has spread its wings to virtually all countries of the world, and this giant produces oil and gas in approximately 45 countries of the world with interests in other natural resources such as zinc, uranium coal mining and a host of others in about a hundred countries (ibid P.62). â€Å"As measured by its business peers and even many of its adversaries, it is seen as an outstanding company† (Doyle, 2002. see preface). SPDC was granted its exploration license in 1938 to prospect for oil throughout Nigeria† (Okonta, Douglas, 2001, pp.37-39), and it teamed up with British Petroleum to open up the Nigerian oil Fields the first oil well being explored and drilled in Oloibiri in 1956 (ibid). On the 17th of February 1958, shell`s first official oil shipment from Oloibiri was made, producing an estimated 367,000 barrels a day. (*REVIEW SENTENCE)SPDC in its own ways has impacted positively and added value to the lives of the citizens, for example through the annual shell scholarship which is open to virtually all students in the Nigerian higher education system. Furthermore, shell was recognized as the first multinational to begin a HIV/AIDS in Nigeria intervention programme and thus this programme has reached most states in the federation*. SPDC has also sponsored several programmes such as IT and various digital learning programmes for schools in Nigeria. However for the most part, shell has built a few schools within the delta region one of which happened recently in Bayelsa state(*). In the area of compensation for environmental devastation and involvement with human rights abuse, SPDC, argues that it offers adequate clean up of the polluted environment and has compensated the best way it can (*REF). Most recently, the families of late ken Saro Wiwa and his colleagues were settled by the multinational, however it was assumed by the general public as settlement for shell`s involvement with the c ase, shell on the contrary denied, and claimed that it was a humanitarian gesture aimed at establishing a trust fund for Ogoni people (SPDC, 2009). Most recently, SPDC launched series of business radio programs towards the economic development of the Niger Delta which would also use initiatives such as LIVEWIRE, telecommunications self employment programmes among others (Yusuf, 2009, p.A4) SPDC also claims to support and finance community development initiatives in the Niger Delta outside of its tax obligations. These initiatives are reportedly in the area of small business development (SPDC, 2009, p.1). In 2008, SPDC contributed $56.8 million to the over $158.2 million statutory disbursements to the NDDC by Shell-run operations, in addition to another $25.2 million SPDC contribution to an additional $84 million investment by operations run by SPDC in various development projects (ibid,p.1). SPDC also reportedly invested $2.25 Million in partnership with USAID Nigeria and the International Institute of Tropical Agriculture in an $11.3 million project to develop cassava farming over a five year period. More than 3,200 farmers were said to have received training under this programme (ibid, p.2). However, it is generally believed that the exploitation and devastation of land of the people of the Niger delta began with the first discovery of crude in Oloibiri village in the Delta region of the then Eastern Nigeria in 1956. For the records, there was a 50-50 profit sharing agreement put in place by the Nigerian government and multinational oil companies at the time shortly before Nigeria gained its independence from the British in 1960. Amidst all of this Nigeria had a series of changed governments including several military coups which gave room for corruption. Presently, shell accounts for about 50 percent of oil production in the country the bulk of it in the Niger Delta with the attendant gas flaring, oil spillage, illegal building of canals and waste dumping that has brought the human ecosystem of the Delta area to a near-total collapse, destroying farmland, economic crops and fishing creeks*. While this degree of devastation, poverty, disease, loss of lives and property occurs in this area, unfortunately shell despite many covenants and treaties it has ratified on corporate re

The Nature Of Good And Evil English Literature Essay

The Nature Of Good And Evil English Literature Essay Humans: are they born with an innate goodness, or will they revert to their primal, animalistic nature? As important as this question is in our world today, it is one that many choose to ignore, or never even think about. The novel Lord of the Flies has many different objects representing both good and evil. The characters on the island uncovers a lot about todays society, and the characters themselves are a representation of leaders today and of good and evil, right and wrong. Even in modern times, evil has been present in people that, instead of considering the wellbeing of others, do the worst things to fulfill their evil wills. Consequently, the events of modern times along with the symbolism and leadership found in Lord of the Flies shows that, more often than not, evil will triumph in society. Every object on the island has its use, either good or bad. Be that as it may, the bad objects overshadow the good objects. One such object on the island is Piggys glasses. Piggys glasses symbolize hope of rescue, and power. They represent power because the glasses are the only way to start the fire. The fire itself is the primary source of hope for the little uns, and when the glasses are taken by Jack, the little uns go to him because he is now the only one who can light the fire. They are attracted to Jack because he can provide what they want (fire, food, and protection). This also reflects on society today because many people follow leaders who can give them what they want, regardless if that leader has the competency to actually lead his or her people. The same goes for the little uns and Jack. Since Jack has the power of fire, they do not care that he is trying to murder Ralph. They choose to ignore the cruelty because Jack can provide for them a signal to be rescued, and meat . This has been reflected during Hitlers reign of the Third Reich. He promised the German people a way out of the depression, and as long as the people got that, they did not care how this would be achieved. Piggys glasses also symbolize the ability to see clearly and understand, that is to say, wisdom. The lens of the glasses cracking represents losing sight of what is needed to be done, and what is morally right and wrong (Lorcher). The same happens in society. The people with wisdom are shunted and put aside, and the line between right and wrong begins to blur, allowing humans to do progressively worse and worse things without a voice of reasoning to stop them. An example of a good object on the island is the conch. The conch, found by Ralph, was used to call all of the boys to one place. It is a representation of peace and unity. Because Ralph found the conch, he was considered the authority figure and named leader of the boys, and he was responsible for holding it and calling the boys to meetings. However, he lost his leadership authority when the conch was broken and Piggy was killed. As soon as this symbol of unity and peace was broken, the island fell into chaos. From that chaos, Jack rose to become dictator of the boys. He even created a fortress from which he could rule. Because there is no longer an object that symbolizes good, Jack is able to twist things his way, allowing him to rule as a dictator. In contrast to the conch is Jacks knife. The knife symbolizes Jacks brutality and thirst for power. When he asks Ralph, Which is better-to have laws and agree, or to hunt and kill, he shows that, to him, laws are unnecessary, and that hunting and killing is better, even essential (Golding 225). Throughout the novel, Jack tries to gain power, and in his attempts he causes many problems. However, once he gains power, he uses every technique he knows to hold on to it. The main threat to his power is Ralph. Even after Ralph is left all alone with no followers, Jack insists on gathering his tribe of savages and hunting him. He has every intention of killing Ralph. Even when they first met at the start of the story, Jack and Ralph had clashed for power. Throughout the story, because of their differing ideas and philosophies, they clashed for power. This clashing represents the struggle for power between leaders in the world today. And, like in the novel, the evil leaders seem to always com e to the forefront and win over the people. Another evil object on the island is the Lord of the Flies himself, symbolizing the evil of humans that comes from inside. The Lord of the Flies is actually a pigs head on a sharpened stick. It was meant as an offering to appease the beast on the island. When Simon is walking in the forest, he comes upon the Lord of the Flies and has a conversation with him. The head tells Simon that there is, in fact, no beast on the island. The evil that has been going on is actually coming from the boys themselves, from inside them. He tells Simon that the beast is actually the hate, greed, jealousy, and lust for power inside them, and if they do not let go of these horrible traits, they will be divided, making it much harder to be rescued. And even if they are rescued, these traits will stay with them, magnified from their time spent on the island, and they will take these traits into the civilized world. Simon runs away from the Lord of the Flies, and runs into Jack and his band of hunters. Beca use Jack and his group symbolize the evil that the lord of the Flies was talking about, they killed Simon. There is an association between the objects and the characters themselves, and this shows that evil exists and usually wins over good. The way the characters act and react, and the way they make use of the objects, show that evil will always be the victor. Ralph is among the few good people in the novel, and is the protagonist of the story. Jack is the complete opposite, being the main antagonist. After trying to gain power over Ralph throughout most of the book, Jack becomes fed up and takes a group of boys to become his hunters. He trains them to kill, and trains them to enjoy doing it. At the end of the novel, everyone (except Ralph) is forced to join his tribe, and he is supreme dictator of the tribe. When going on hunts, he would fire his tribe up with a chant: Kill the Pig! Cut her throat! Spill her blood! (Golding 90). The most evil person on the island, and the first follower of Jack, is Roger. When hunting, he enjoys killing the pig. But Roger relished the act of killing Piggy, and torturing the twins to discover the whereabouts of Ralph. He symbolizes the people in this world that hurt others to fulfill th eir own personal agendas, and he also represents sadists in society that enjoy causing harm to others. Simon is the complete opposite of Roger. He is regarded as Christ-like (Yvonechick-online posting). He is the only person on the island with a conscience because he asks questions nobody can answer, and is deeply troubled by certain events (such as his talk with the Lord of the Flies). He represents hope for humanity, but although he is Christ-like, his death does not bring salvation. The twins, Sam and Eric, symbolize the common person. Most common peoples loyalties lie with the one in power, even if that persons beliefs and actions do not coincide with their own. This is because of self-preservation, and we as humans look to our own needs first. Since the person in power can provide for certain needs, the common people will give the leader their loyalty. This happens in the novel as well. At first, they are loyal to Ralph. When Jack takes over, however, they are forced to join hi m and are loyal to him, albeit if it is only because they are afraid of being hurt and think it is necessary for survival. Piggy wears glasses, has asthma, and cannot speak very well. He also is not athletic. These imperfections are significant because Piggy is a symbol for the people that cruel leaders have oppressed and taken advantage of. Because of his many imperfections, he is an easy target, and the novel displays this. Every time Piggy tries to speak or take charge, he is interrupted or stopped, and generally laughed at. The ending of the novel, however, truly shows that humans, when it comes to survival, resort to their animalistic and evil nature. The novel ends with Ralph crying for the end of innocence, the darkness of mans heart (Golding 235). Golding sums it up in that one sentence. The boys have lost their youthful innocence, and have reverted back to primal and animalistic norms. They all came from respectable, well-educated backgrounds, yet when it comes to survival, they resort to violence and treachery. The things they did were not taught at their school, and they did not learn them anywhere else; this proves that humans have an evil nature inside them that comes forth when we need to (essentially, we come first). A psychologist named Freud has even given this evil nature a name: the Id. According to Freud, the source of instinctual energy, which works on the pleasure principle and is concerned with immediate gratification is the Id (Huffman 457). For the boys on the island, it is the Id that surfaces in such an extreme incident, being inside the children (and consequently, all of human kind) all along. The Id has sur faced in many instances throughout recent history, but the one that is most obvious is the Holocaust. Events in recent history, like the Holocaust, show that human nature is evil and that even in civilized societies humans will revert to this base nature of ours. The country of Germany was torn apart by a great economic depression resulting from the First World War. A virtually unknown man named Adolf Hitler rose to power quickly. His ability as an orator was great, and he ensnared the people of Germany with promises of getting their country out of the depression. Once he revealed his terrible plan, the German people went along with it. Why? They were thinking about their own selves, and they wanted results. What better way than to place all the blame of their situation on the Jews, and at the same time get rid of the people who supposedly put them in that position in the first place. Even after killing over six million Jews, who did absolutely nothing wrong, the people of Germany turned aside and chose not to see what was happening. Even the rest of the world ended up turning away a nd letting it continue, at least for a while. The same scenario is shown in Lord of the Flies. Jack rises to power, and gets followers because he promises them power and, more importantly, meat. Just like Hitler, he uses his group of followers to terrorize the other boys into following him. Einstein says it best: The world is a dangerous place to live; not because of the people who are evil, but because of the people who dont do anything about it (brainyquote.com). He makes the boys fear him, and fear is an effective way of getting people to do what you want them to, regardless of how vile the action is. Jack and Hitler both got rid of unwanted voices that carry potential information that can undermine the leader. In the case of the novel, Simon is killed after speaking with the Lord of the Flies. Without those voices in society, evil is allowed to run rampant and unchecked. The human race also has a greed component that goes hand in hand with evil. When a normally good man or woman is given a position of power, that person will usually want more and more. Sometimes, their greed and ambitions will blind them to their values and morals, and they will resort to actions they normally would never do, all just to become more and more powerful. Macbeth, considered an extremely loyal friend to the king, was given a prophecy (most likely a self-fulfilling prophecy) that he was to kill the king and be king himself. He gets a taste of power, and wants more. His ambition and greed (along with his ever growing paranoia) cause him to commit more evil deeds. Jack became jealous of Ralphs authority, and when he got a taste of leadership, he immediately wanted more. Evil will win out in the end because humans generally look toward instant gratification, and are willing to put aside their morals. William Goldings Lord of the Flies shows that humans are, in fact, born with an innate evil. The characters in the book show that humans will resort to their evil roots to survive. This is applicable to society today because the boys all represent some aspect of our society, ranging from common people to authoritative figures. The boys also show that their needs come first above the needs and well being of others, as presented in the hunt for Ralph at the end of the novel. The symbols in Goldings brilliant work also support the fact that humans have an evil nature. The conch represents the order and integrity of society, yet it is broken, showing that evil will triumph over good. The knife is an evil object, representing thirst for blood and lust for power. Recent historical events also highlight the fact that humans are evil at heart. One such event is the Holocaust and the atrocities committed by Adolf Hitler in his efforts to create a pure race. The symbolism of the objects, the c haracters, and the events of history all tie in together to confirm that humans are innately evil, and will resort to evil. After all, it is much easier to be and do evil than it is to take the high road and do good.