Critical Discussion of Corporate Social responsibility (CSR)

Critical Discussion of Corporate Social responsibility (CSR) Corporate Social Responsibility Defined Corporate social responsibility (CSR) is when a corporation exceeds statutory business standards (Johnson and Scholes 2008). CSR policies are relevant because they state what a company intends to achieve, in addition, to its statutory obligations. A corporation has to comply with legal standards such as employment contracts. However, a company can exceed those principles if it chooses to pay a living wage rather than the minimum wage (Bloomer 2014). Introduction to the Critical Discussion The discussion will examine a traditional criticism of corporate social responsibility through the work of Friedman. This is a view which proponents of CSR will need to refute. The essay will then discuss how social and environmental responsibility can be reconciled, with profitability, using the work of Porter. The example of Hewlett Packard is discussed at length. This is because its policies emphasise how a multi-national company can achieve both environmental and social responsibility together with corporate profitability. The work of Handy is then considered. This argues that companies should have corporate objectives which are broader than just profitability and consider the purpose of the business. Friedmans View of Corporate Social Responsibility Friedmans view is a non-interventionist or laissez-faire vision of commerce. In his view business should aim to earn money while complying with the basic rules of the society such as paying taxes (Friedman 1970:1). It assumes that consumers are sovereign and are able to significantly influence corporate decision-making. This view of commercial organisations underplays the significance of consumer market failure. It is assumed that consumers can take their business elsewhere as Friedman believed that consumers can transfer their business to other producers (Friedman 1970). However, this is not possible if the consumer is unable to pay for another competitor firms products. This is the case if a consumer were unable to pay for the safety features, offered by a car manufacturer such as Volvo, as discussed below. To summarise, socially responsible polices, can be seen as unrealistic if consumers are unwilling to pay for them. Friedman argued that socially responsible business policies, such as promoting equality, can harm company performance. For example, Ben and Jerrys adopted a payment scheme where the highest paid employee could only earn no more than five times the income of the lowest paid firm employee (Barney and Hesterly 2010:7). This payment scheme made it difficult to recruit senior managerial talent to make sure that the company grew and remained profitable (Barney and Hesterly 2010). A More Progressive View of Corporate Social Responsibility There is an increasingly an expectation that companies will contribute to society to a greater extent than when Friedman was writing in the early 1970s. Companies operate in a social environment as well as an economic environment (Grant 2008). A firms ability to survive depends upon its acceptability among consumers who give the firm social legitimacy (Grant 2008:446). Examples of social awareness, such as a demand for safer cars, suggest that companies are wise to respond to consumer concerns (Grant 2008).Corporations have come under increasing pressure to contribute to the societies in which they operate and to adopt more socially responsible business practices (Christodoulou and Patel 2013:467). The corporate setting of voluntary objectives can be seen as an adequate response to the needs of society. Companies can set voluntary standards: to reduce the extent to which their actions cause negative externalities or side-effects (Barney and Hesterly 2010). For example, if a car manufacturer builds a car with a large number of safety features which more than comply with legal requirements. Volvo has promoted the benefits of a relatively safe car which adds value that the customer is willing to pay a premium for (Thompson and Martin 2005:95). However, this approach can also be seen as merely serving a premium segment of the market, rather than being particularly socially responsible. In this case, Volvo is taking a marketing position which conforms to sales objectives while offering better safety to the motorist (Johnson and Scholes 2008). Corporate social responsibility is only conforming to financial requirements. Porters View on Corporate Social Responsibility and the Environment The concept of CSR is useful as it can help reconcile the financial needs of business with say the safety needs of society. Porter argues that it is a mistake for business to see environmental legislation as a threat to be resisted (Porter and van de Linde 1995). Rather, socially responsible businesses can view regulation in a positive manner; that environmental regulation can be built upon to utilise resources more effectively. It is argued, that there are costs incurred with the elimination of environmental problems but that these are outweighed by the benefits, including financial savings and improvements to product quality (Thompson and Martin 2005). Therefore, it is possible for corporations to be socially responsible without compromising the financial status of the organisation. Porters argument is useful. It has allowed thoughtful companies, such as Hewlett Packard, to reconcile investment in environmental initiatives with corporate profitability. The Hewlett Packard Report Hewlett Packard has a strong reputation in terms of corporate social responsibility (thecro.com 2010). The companys CSR policies are detailed and indicate a high level of social responsibility. For example, the company presents environmental information, in a proactive manner, with evidence of wanting to improve recycling programmes. It aims to improve environmental programs to reduce the waste from its production operations (Hewlett Packard 2011). Through these environmental initiatives, the company can help reduce business costs. Hewlett Packards CSR report discusses how it aims to extract value from products which are at the end of their product life (Hewlett Packard 2011). An example is the companys commitment to re-manufacture its printer cartridges so that they can be used again. The company is attempting to promote a strong corporate responsibility through proactive environmental investment. Hewlett Packard has demonstrated strong social responsibility policies. This suggests that such policies can be implemented on a large scale. The company has provided a significant amount of disclosure on a wide range of corporate areas from the environment to human resource management. The detail provided by Hewlett Packard is superior to other companies given that online trade publications have viewed Hewlett Packards performance favourably (thecro.com 2013). Given that Hewlett Packard was assessed favourably then the information provided, in its CSR report, can be interpreted as thorough and accurate. The company attempts to improve the wider business community with measures to develop its external supply chain. The company aims for strong standards of behaviour outside the companys core business. This suggests that it is attempting to improve working relationships with its component suppliers (Hewlett Packard 2011). Hewlett Packards CSR document conveys that the company is enabling social responsibility to be addressed. The company suggests that it has a grievance procedure so that different stakeholders can report social or ethical problems to senior management (Hewlett Packard 2011). The company is clearly investing in a responsible approach as it describes legal observance as an absolute minimum which it expects of different stakeholders (Hewlett Packard 2011:82). They argue that their decision making achieves better employment standards, than laws in the different countries in which the company operates (Hewlett Packard 2011). Concerns over Hewlett Packards Stated Policies Hewlett Packard attempts to make the company accountable, to external industry scrutiny. Procedures have been outlined which should make sure that ethical labour standards are achieved (Hewlett Packard 2011). The concern is that ethical objectives could be difficult to implement. There does not appear to be a specific example of how this guidance statement could be delivered in practice. However, there is a well structured diagram which outlines how the company will provide a governance structure so that the company can comply with ethical challenges (Hewlett Packard 2011:82). Some of Hewlett Packards environmental statements can be interpreted as platitudes. The company claims that that it wants to conserve more resources than it consumes (Hewlett Packard 2011). The concern is that it is easy to provide such statements. However, it is more difficult to assess how they are going to conserve more than they consume. This is because environmentally acceptable re-manufacturing programmes will still require energy consumption despite the conservation of the materials. Hewlett Packard may have worse polices, in practice, than those conveyed by its report. This is because suppliers could be forced to comply with the companys standards. There are power relationships between dominant multi-national companies, such as Hewlett Packard, and their suppliers (Locke et. al. 2012). The international sourcing of computer components has left suppliers vulnerable to the dominant buying policies at Hewlett Packard (Wetherly et. al. 2011). These power relationships will tend to be overlooked, in corporate social responsibility reports, because companies will want to portray themselves in a favourable light. Corporate social responsibility policies have been criticised. The development of CSR policies have been difficult to implement for many firms (Birchall and Cook 2006). However, these criticisms should, generally, not be directed at Hewlett Packard due to the level of detail contained in its CSR report. Arguably, they have made an honest corporate attempt to contribute to society (Porter and Kramer 2002). The report goes beyond the legal compliance advocated by Friedman. The detail provided is of a superior standard when compared to a minimum level of legal compliance. The Business and Ethical Concepts of Handy The work of Handy, arguably, goes beyond the corporate responsibility work of writers such as Porter. This is because Handy emphasises the importance of mission statements and the purpose of the organisation. Handy argues that the purpose of a business . . . is not to make a profit, full stop. It is to make a profit so that the business can do something more or better. That something becomes the real justification for the business (Sage Publications 2015:15). Handy argues that a firms profit should be the means to a larger end (Sage Publications 2015). There are companies which adhere to a deeper purpose than merely profit. Tradecraft, in the UK, would be a good example as the companys purpose is to operate life-changing development projects (Traidcraft 2015). However, Traidcraft operates in a niche area of the retail market where affluent consumers, who are willing to pay higher prices, contribute to international development. Therefore Handys ideas may have limited application to businesses throughout the whole of the United Kingdom. However, his ideas are useful where they can be applied. Tradecrafts mission moves beyond immediate stakeholders, such as owners and clearly considers the needs of the broader society (Dess et. al. 2010). The company is an excellent example of a company which incorporates social and environmental, as well as financial factors, into its decision making (Dess et. al. 2010). The challenge for proponents of social responsibility is that many retailers only undertake social and environmental policies which do not damage their sales and profits. Many retailers will concentrate on environmental responsibility in their stores, where they can achieve resource efficiency targets (Jones et. al. 2009). Many retailers social responsibilities are guided by what they can achieve within their financial imperatives (Jones et. al. 2009). However, such corporate policies could lead to accusations of greenwashing. In other words, that the retailers commitment to the environment is limited and that social responsibility reports can play a public relations role rather than a social responsibility role. Many firms are engaging in greenwashing to mislead consumers about the extent of their environmental activities (Delmas and Burbano 2011). Conclusion There is evidence of improvements to companies social responsibility polices. This is because firms have realised that it is financially prudent to use environment resources wisely. It is also necessary for business to be sustainable and to invest in good employment practices and proper labour standards. However, there is a concern that corporate social responsibility is limited by what the consumer is willing, or able, to pay for more ethical approaches. There are few examples of businesses which are willing to adopt socially responsible policies which affect their profitability. Ben and Jerrys is one example before its takeover by Unilever. References Barney, J. and Hesterly, W., (2010), Strategic Management and Competitive Advantage: Concepts and Cases, Third Edition, Boston: Prentice Hall Burchell, J. and Cook, J. (2006), Confronting the corporate citizen: Shaping the discourse of corporate social responsibility, International Journal of Sociology and Social Policy, Vol. 26, No. 3/4, 2006, p. 121-137 Bloomer, E. (2014), Local action on health inequalities: Health inequalities and the living wage, Public Health England. Retrieved from  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/357407/Review6_Living_wage_health_inequalities.pdf Christodoulou, I and Patel, Z. (2013), Strategic Perspectives, Westminster Business School, University of Westminster, New York: McGraw Hill Dess, G., Lumpkin G. and Eisner, A. (2010), Strategic Management: Creating Competitive Advantages, Fourth Edition, Boston: McGraw Hill Delmas, M. and Burbano, V. (2011), The Drivers of Greenwashing, UCLA, California Management Review. Retrieved from  http://www.ioe.ucla.edu/media/files/Delmas-Burbano-CMR-2011-gd-ldh.pdf Friedman, M. (1970), The Social Responsibility of Business is to Increase its Profits, The New York Times Magazine, September 13, 1970. Retrieved from  http://www.umich.edu/~thecore/doc/Friedman.pdf Grant, R. (2008), Contemporary Strategy Analysis, Sixth Edition, Oxford: Blackwell Publishing. Hewlett Packard, (2011), HP 2011 Global Citizenship Report. Retrieved from  http://www8.hp.com/us/en/pdf/hp_fy11_gcr_tcm_245_1357670.pdf Johnson G. and Scholes, K., (2008), Exploring Corporate Strategy: Eighth Edition, Harlow: Pearson Education Jones, P., Comfort, D. and Hillier, D. (2009), Marketing Sustainable Consumption within Stores: A Case Study of the UKs Leading Food Retailers, Sustainability 2009, 1, 815-826. Retrieved from  http://www.mdpi.com/2071-1050/1/4/815 Locke, R, Distelhorst ,G., Pal, T. and Hiram M. S., Production Goes Global, Standards Stay Local: Private Labor Regulation in the Global Electronics Industry, Retrieved from  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1978908 Porter, M. and Kramer M., (2002), The Competitive Advantage of Corporate Philanthropy, Harvard Business Review, December 2002. , Retrieved from  http://www.expert2business.com/itson/Porter%20HBR%20Corporate%20philantropy.pdf Porter, M. and van de Linde, C. (1995), Towards a New Conception of the Environment-Competitiveness Relationship, The Journal Of Economic Perspectives, Vol. 9, No. 4. Retrieved from  http://www.conservationeducation.org/uploads/6/2/0/1/6201942/porter_-_environment__competitiveness_1995.pdf Sage Publications (2014), What is CSR. Retrieved from  http://www.sagepub.com/upm-data/34698_Chapter1.pdf Thecro.com, (2010), CRs 100 Best Corporate Citizens 2010. Retrieved from  http://www.thecro.com/files/CR100Best.pdf Thompson, J. and Martin, F. (2005), Strategic Management: Awareness and Change, Fifth Edition, London: Thomson Learning Traidcraft, (2015), Traidcraft: Fighting Poverty Through Trade. Retrieved from  http://www.traidcraft.co.uk/ Wetherly, P. and Otter, D. (2011), The Business Environment: Themes and Issues, Second Edition, Oxford: Oxford University Press

Animal Farm Essay

An allegory is symbolic narrative and the novel Animal Farm is nothing but symbolism. This novel represents many historical events that happened in Russia during the Russian Revolution. There are numerous battles in this book that symbolize the Revolution and other attacks that took place in Russia during the 18th century. This novel also represents the control of power and the people who gain it. Most of the animals on this farm symbolize people in Russian history. The novel Animal Farm has many characters that represent important figures in the Russian Revolution. In the beginning of this book Old Major tells the farm about his dream of a rebellion and how he believes that all the animals shall live equally and how someday they will not live by the rules of their farmer. Old Major represents Karl Marx. Karl Marx was the one who spoke of the rebellion and led people to think of ideas to start this historical movement but didn’t carry on the deed of following through with his ideas. Old Major’s speech had lead to many conversations and secret meetings that the animals put together. This is what happened after Karl Marx idea spread. Soon enough everyone was talking about a rebellion or an overthrow of the government. For the animals in the novel the Rebellion came and they went against their farmer in a full protest and chased him and his wife away from the farm. This represented the overthrow of the government for the Russians. After the Rebellion two leaders emerged and helped the animals work and run the farm smoothly. The two were Snowball and Napoleon. These pigs made the commandments and set the rules so that the animals kept themselves and the farm healthy. The two pigs represent two very different people in the Russian Revolution. Snowball represents Leon Trotsky and Napoleon represents Joseph Stalin. These two men try to run Russia for as long as they could with no troubles. The animals are soon encountered with a troublesome battle, The Battle of the Cowshed. The farmers come back and try to take back the farm. The farmers don’t succeed in doing this and sent home disappointed and a man short. This point in the book is symbolizing the Russian Civil War. Soon the animals are being split into classes and one class is starting to rise in power. The pigs are starting to do more and not have to work as hard. The other animals, on the other hand, have to work extra hard to get half the luxuries the pigs have. Boxer, the horse, always works hard and is loyal to the pigs and their decisions. Boxer represents the obedient, hard working people of Russia. Mollie, the pig, hides during battles and can be taken anywhere as long as there are sugar lumps and bows. Mollie represents the selfish vain people of Russia. The pigs are being put on the pedestal and are represented of the Loyalists of the Communist Party. These groups are starting to be more unequal the longer the pigs have control. This happens with the upperclassmen of the Revolution and the lower classmen will soon be unhappy. The next battle occurs over a windmill and is remembered as the Battle of the Windmill to the animals. This battle occurs when Napoleon thinks the windmill is an absurd idea and scares Snowball away using fear to control the farm. He brings out the dogs that are the â€Å"bodyguards† of the farm and are meant to scare the animals into doing what Napoleon wants them to do. The dogs represent KGB, secret police whom Stalin uses to control society. The Battle of the Windmill also represents the Russian Civil War but it also represents Stalin’s rise in power. The power that Napoleon gains makes him horrible and unfair, the animals are not as smart as him so they do not know what is happening behind the scenes. Napoleon starts changing every commandment and starts acting more like a human than anything else. This is amusing because the farm and the animals except the pigs are treated the same or maybe poorer than when Jones the farmer was in charge. Stalin, represented by Napoleon the pig, uses fear to control society and has made Russia worse than it was when the Czar was still ruling. The only thing that had gotten better is the conditions of the Loyalists of the Communist Party. As you can see this whole book is an allegory. The novel Animal Farm represents different historical figures and events from the Russian Revolution. The novel symbolizes how corrupt a person and society can be if given too much power. Animal Farm is a great representation of how Russian government was ran and how certain â€Å"classes† were treated.

The Benefits of Responding to a Quote with an Essay Samples

The Benefits of Responding to a Quote with an Essay Samples Unlike in APA style, you do not need to supply the year the quote was written in the authentic body of your essay, though you will have to do so in an in depth references page at the base of your essay. If this is the case, you've seen an overall instance of a crucial response essay. In these previous 2-4 minutes, you need to read over your essay and attempting to get a point or two by revising. A response essay enables a learner to react to an idea or information in an official way. What You Don't Know About Responding to a Quote with an Essay Samples Keep in mind, in-text citations have various requirements based on citation style, so make certain you're utilizing the right format. The citation can be introduced by making use of a line of text and a colon. Your citation must also include things like double spacing. If You Read Nothing Else Today, Read This Report on Responding to a Quote with an Essay Samples Ste phen's essay is rather effective. Therefore, the quote should offer evidence of that. Quoting more than 1 writer. Quoting fragments with over 1 author. At precisely the same time, you're utilize facts you know or your own observations to help support your opinion. Additionally, you don't need to write in complete sentences, or phrase things as elegantly as you will in the authentic essay, and thus don't fret about that. No matter the topic on which you're writing, all important responses follow the identical format. Quoting fragments on the Internet. Things You Should Know About Responding to a Quote with an Essay Samples Your closure ought to be warm and caring. Various things to various folks, since the situation demanded. This law will save yourself a whole lot of lives. We realize that depression is a larger issue in United Kingdom while in United States of america, it's about the lifestyles which people adopt and the way that it affects their lives. The Unexpected Truth About Responding to a Quote with an Essay Samples This informative article seeks to alert people of the disruptions that is going to be taking place a s a result of repairs that must be carried out. Moreover, she points out the rising number of accidents brought on by mobile phone usage. Employing hands-free headsets won't work because it's the call that is distracting, not holding the telephone. Politeness is critical to keeping a healthy working relationship between the customer and the supplier. If you don't have what the client requirements, permit the client know this clearly. We currently don't have any official communication lines with them and are unable to supply you with further details concerning the situation with the firm. After sending the quotation a supplier can use a follow-up email to stay in contact with the client, a central portion of securing the customer's business. Even if a text uses a conventional structure, it's still worthwhile to consider whether there was space for improvement. You should discover the last objectives of each text and the mutual features if you own a set of those. Once you'v e done that, take a look at their data. Kindly notify me should you require any other info. Analysis of Content Bierce's narrative is one which uses content as a way of playing with literary devices. Unlike the summary, it's composed of YOUR opinions in regard to the article being summarized. The author starts with a rather in depth story of an event or description of an individual or place. Then deal with argument opposing yours (in this instance, Perspective One). The New Fuss About Responding to a Quote with an Essay Samples It's the details that truly make this little experience come alive. And in order to have the time to rewrite, you must start way before the application deadline. In order to make an effective response essay, students must be persuasive, analytical, and include factual info. Luckily, there are lots of strategies people are able to utilize to make happiness, or at least strive for it. When you have gathered many ideas, you are going to work on figuring out your primary idea. This efficiency contributes to a more prosperous and progressive wo rld for everybody. Evidently, understanding how to clean burning oil isn't high on the list of things every 9-year-old should know.

Overview of the Whiskey Rebellion Essay - 1077 Words

Imagine being an active participant in the American Revolution in the late 1700s. Not only that, imagine being on the side fighting for your freedom. The war ends, youre in the clear for a leisurely life of freely doing what you please, and youre happy. Youre also a farmer that happens to be located in Pennsylvania. Before you know it, Congress comes to the decision to pass a tax on the production and distribution of whiskey, one of your main crops. What? Woah, woah, woah, wait a minute, did you not just fight a whole war against the taxes being imposed on you? A war for your rights? This cant be right, it just cannot be. Ah, but it is all too true. In the 1790s, a tax was passed that raised the price on distributing whiskey. This†¦show more content†¦Hamilton was able to persuade Congress into passing a twenty-five percent tax increase on such products. This did not go over all too well in the west, especially concerning small farmers in Pennsylvania. At the time, farmers p rocessed their corn and grain into whiskey, since it was less complicated to transport their crops in liquid form rather than in bulk. Whiskey was also used as barter at this time. In retaliation to this tariff, farmers took it upon themselves to harass the federal tax collectors, and showed their hostility and disdain by stopping judicial proceedings. In response to this, Congress attempted to lift the most severe proclamations of the levy, but this was to no avail in the farmers eyes. Since a majority of the farmers used the barter system, they simply could not come up with the money necessary to pay the tax. Their vexation mostly stemmed from their belief that the unresponsive government lacked to understand the hardships they faced since the government quite clearly did not grasp the concept of a deficiency of affluence (Encyclopedia of American History: Revolution and New Nation, 1761 to 1812). Throughout 1771 to 1773, the farmers resistance was noticeable although not yet nota ble until 1774, where they then decided to handle the complication themselves. Later on, in the summer of 1774 (July to be exact), AlexanderShow MoreRelatedThe Whiskey Rebellion: Frontier Epilogue to the American Revolution by Thomas P. Slaugther1010 Words   |  5 PagesProfessor Thomas Slaughter has provided a most thorough overview of the Whiskey Rebellion, which he asserts had by the time this book was conceived nearly two centuries after the episode transpired, had become a largely forgotten chapter of our nations history since the time of the Civil War. He cites as direct evidence of this fact the almost complete absence of any mention of the event in many contemporary textbooks of the conservative era of the 1980s, which this reviewer can attest to as wellRead MorePower Of The New Nation1853 Words   |  8 Pageswith John Jay and Gouverneur Morris. 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The effects of alcohol in College Students Essay - 1429 Words

On college campuses across America, the use of alcohol has been an topic in need of explanation for many years. The concept will be explaned with emphise on the negative effects of hooch. Alcohol in cardio-sport athletes is especially harmful. But at any rate the negative concepts apply to all student. Besides the fact that a large number of students are underage when they drink, alcohol can put students in dangerous situations and give them a headache long after the hangover is gone. The short and long term effects alcohol has can impair students physically and mentally, impacting their education and health. nbsp;nbsp;nbsp;nbsp;nbsp;In order to explain how alcohol can fully affect university students, the source of the issue must†¦show more content†¦Most students see drinking games as a social situation to relax and possibly meet some people, so most people do not expect to be a sexual victim: nbsp;nbsp;nbsp;nbsp;nbsp;†¦some men and women use drinking games as a format for demonstrating nbsp;nbsp;nbsp;nbsp;nbsp;interest in a potential romantic partner. Both men and women reported relatively nbsp;nbsp;nbsp;nbsp;nbsp;high frequencies of having been told that someone else was trying to get them nbsp;nbsp;nbsp;nbsp;nbsp;drunk during a game in order to have sex. In many drinking games, players can nbsp;nbsp;nbsp;nbsp;nbsp;identify another player and make that player drink. That targeting of another nbsp;nbsp;nbsp;nbsp;nbsp;person by making them drink may sometimes not be intended to incapacitate that nbsp;nbsp;nbsp;nbsp;nbsp;person, but merely be a (perhaps dangerous) way of getting someones attention. nbsp;nbsp;nbsp;nbsp;nbsp;(304) As with most acts of physical hostility, men tend to be the ones who target women as partners. Johnson further states that â€Å"In women, the drinking-game-related incidents accounted for 90% of the variance in overall incidents of being taken advantage of sexually that were associated with alcohol use† (304). Drinking games do not always have to have a sexual price though. Johnson reports that â€Å"Students, especially women, appear to drink more when playing drinking games than theyShow MoreRelatedThe Effects Of Alcohol On College Students Essay1312 Words   |  6 PagesAlcohol is one of the most popularly used substances in America (Fuertes Hoffman, 2016). 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A lot of drugs and alcohol become easily available to college students over the course of their college years. What can be done to help prevent students from abusing drugs and alcohol? Overall

The Fundamentals of Macroeconomics Free Essays

Before being able to grasp what economics has to offer it is important to understand the terms and concepts that are frequently used in economic. This paper will consist of two parts, part one will explain six terms; gross domestic product (GDP), real GDP, nominal GDP, unemployment rate, inflation rate, and finally interest rate. Part two will consist of describing how three economic activities, such as purchasing of groceries, massive layoff of employees, and decrease in taxes. We will write a custom essay sample on The Fundamentals of Macroeconomics or any similar topic only for you Order Now There will also be a few different examples that affect government, households, and businesses. (Part one) Start by describing the six economic terms. Gross domestic product (GDP) is the most used economic measure when it comes to determining the value of goods and services that are produced in a given year (Colander, 2010). There are four categories to GDP’s consumption, government spending, investments, and net exports. The GDP reflects the total amount of both goods and services that were bought and sold, and there for can measure a country standard of living. It does not account for any goods or services that they may have in other countries. Real gross domestic product (RDP) is the final value that is given to a product or service based on the current economy. This type of GDP adjusts with the price levels in order to produce a more accurate number. Nominal gross domestic product (NDP) is the gross domestic product without taking into account inflation and can be misleading because appear to be higher than it really is because it has not been adjusted for inflation. Unemployment rate is the amount of people that are not employed and are looking for work. This reflects only the people who are ability to work, willing to work, and are looking for employment. Inflation rate is a level price of goods and services increasing. Inflation causes the value of the dollar to decrease meaning that people have less purchasing power. The increase in this rate is usually calculated annually, but can also be requested monthly. Interest rate is the percentage charged on loans and is charged annually. The higher the risk the borrower is the higher the interest rate this could be because of past experiences, late payments or not paying at all. If the borrower is low risk, then the interest rate will be low. (Part two) There are many activates that affect businesses, household, and government economies, here are three and examples of how purchasing of groceries, massive layoff of employees, and decrease in taxes. The purchasing of groceries by customers controls supply and demand. When the economy is good customers buy more there is greater chances of businesses making a profit, and when the economy is in a recession customer buying power is low. The recession and customers not buying groceries businesses will have to lay people off. The purchasing of groceries also affects the government because the government receives sales tax on the purchase of these items. A massive layoff of employees will cause the unemployment rate to go up, and when people have been layoff they purchase less and collect unemployment. This affects businesses because demand of products and services are down, and they are not making as mush product as they once did. The household is effect with no money coming in they cannot pay their bills, or supply what the family needs to live. The government is affected because the people that were laid off are collecting unemployment from the government. Decrease in taxes happens sometimes when the government has to intervene to slow down or try to reverse a recession. The government uses this policy to lower taxes to get people more money to spend so businesses can make products. When a business is producing products they are able to buy their workers and hopefully be able to hire more workers to help meet demand. With the decrease of taxes the government will have less money coming in for schools, to fix the streets, etc. Economics is a constant cycle people have to work to make money to buy things that the household needs. Businesses need workers to produce products  or services, which they are paid to do. The government relies on the taxes from workers, and businesses. Whenever money is spent there is going to be someone at a loss and someone at a gain, but it seems to always to come around full circle. How to cite The Fundamentals of Macroeconomics, Papers

Impact of Tourism Industry on Economy of Australia

Question: Discuss about the Impact of Tourism Industry on Economy of Australia. Answer: Introduction Tourism industry is a major source of revenue of a country. This helps in the social and economic development of a country. Tourism industry triggers global economy apart from the economy of a country. Tourism industry is a major industry in Australia and tourists are attracted towards the varied natural beauty of Australia (Lee and Brahmasrene 2013). Tourists across the world travel to Australia to enjoy its diversity. It is seen that tourism industry represents 3.0% of the GDP of Australia and it is seen to contribute $47.5 billion Australian dollar in the financial year 2014 and 2015 (Chatziantoniou et al. 2013). It is also seen that tourism industry employs 580800 employees in Australia in the year 2014-2015. In this assignment, various aspects of tourism industry would be analyzed. The effect of the tourism industry on the economy of the country would also be analyzed in this assignment. An idea would be given about the analysis of the data regarding the tourism industry of Australia. The uses of various statistical methods would be shown in this assignment. The previous studies regarding the impact of tourism industry on the economy of Australia would also be studied in this assignment. Problem statement The problem statement of this assignment is to find the impact of tourism industry in Australia on the economy of the country. The aim of the research is to understand and interpret the impact of tourism industry in Australia on the economy of the country. The objectives of the research are as follows: To find the structure of tourism industry for the last 20 years To understand the change in the tourism industry for the last 20 years To find the structure of the economy of the country for the last 20 years To understand the change in the economy of the country for the last 20 years To understand the impact of change in tourism industry on the economy of the country in the last 20 years Research questions The questions of the research are as follows: How is the structure of tourism industry for the last 20 years? How is the change in the tourism industry for the last 20 years? How is the structure of the economy of the country for the last 20 years? How is the change in the economy of the country for the last 20 years? How is the impact of change in tourism industry on the economy of the country in the last 20 years? Literature review According to the viewpoint of Tribe (2015), it is seen that tourism industry can be a solution to the direct marketing organization. It is seen that tourism industry had been growing rapidly with time. People want to spend more time exploring different places and learning new things. It was seen that there were 7.4 million tourists that had arrived in Australia in the year 2015. Brisbane, Sydney and Melbourne are the coastal cities that are preferred by the tourists. High profile tourist destinations like the Gold Coast, Queensland and The Great Barrier Reef are also preferred by the tourists (Lee and Brahmasrene 2013). Tourism industry is important in Australia as it employs 5% of the workforce in Australia. From domestic tourism to international tourism, Australia gathers her revenue from every methods of tourism. It was seen that total economic value of domestic tourism industry was found to measure $63.3 billion in the year 2009. As per the viewpoint of Goodall and Ashworth (2013), it was seen that Australia has various icons for tourists to visit. It is seen that Australia has varied climatic conditions that ranges from deserts to wilderness, mountains to coastal areas and cities to rural areas. Coastal regions have high profile destinations while there are Tasmanian wildernesses that lie at the southernmost tip of Australia. Australia has various major attractions across the country. From Great Barrier Reef to Sydney Opera House, there are various major tourists attractions across Australia. It was seen that there were 7.4 million tourists that had arrived in Australia in the year 2015 (Chatziantoniou et al. 2013). It is seen that Australian tourism industry provides various advertising campaign that features various Australian famous faces. These campaigns attract from across the world and also encourages domestic tourists to visit different various places of Australia. According to the viewpoint of Webster and Ivanov (2014), it was seen that the tourism industry provides a significant contribution in the overall employment level and economic condition of Australia. Tourism industry and economic condition, both are seen to increase with time. However, it is seen that there is a decrease in the holiday expenditure as a share of household consumption. It can be interpreted that there had been increase in the expenditures of the daily household consumptions which had resulted in the decrease in the expenditure in tourism industry (Mowforth and Munt 2015). The holiday patterns of Australia were found to change over the years. It was seen that there had been decrease in the holiday travel pattern for the natives of the Australians while there had been an increase in the overseas night pattern. As per the viewpoint of Holden (2016), it is seen that the distribution pattern of visitors across the states is uneven. New South Wales was seen to have most visitors in Australia than other states. Tasmania was found to have the least number of visitors in Australia across both domestic and international tourists. Australia has aboriginal, which is the native tribe in Australia. It is also seen that they have various cultures and rituals which are not practiced in any other parts of Australia (Murphy 2013). These rituals and cultures are attractive to various tourists as they can explore and understand the native cultures and rituals of Australia. Kangaroo and Koala bears are the native animals of Australia which are not found in other parts of the world. Tourists across the globe want to see these native animals of Australia and they want to experience them at every cost. It is seen that there had been a decrease in the growth of increase in the revenue from tourism industry. This had been due to the decrease in the number of tourists in Australia over the past. This had been a severe issue regarding the economy of the country as a major portion of the revenue of the company comes from the tourism industry. Thus, the impact of tourism in the revenue of the country is a bigger issue that should be analyzed. In this assignment, an idea about this impact of the impact of tourism industry of Australia in the revenue of the country would be given. In this assignment, the methods of collection of data for this purpose would be given. The methods of analysis of this data would also be given in this assignment. The expected outcome and its conclusion would be provided in the methodology of the research. Data collection Both primary and secondary data would be collected for the research. Secondary data would be collected from the documents of the government of Australia and primary data would be collected from surveying the tourists of Australia. Both international and domestic tourists would be considered for this purpose. 30 tourists, which consist of both international and domestic tourists, would be surveyed using questionnaire method. Close ended questions would be asked to the samples to collect the primary data. The questions would be in Likerts scale and the responses of the respondents would be considered for the research. These data would undergo various statistical calculations in order to fulfill the objectives of the research. Data analysis The primary data and secondary data would undergo statistical methods like descriptive statistics, methods of central tendency, correlation, regression and methods of frequency distribution. These methods would analyze the data and help to fulfill the objectives. Various graphs, charts and tables would be provided in the research in order to support the analysis. Ethical consideration Various ethical issues would be considered in this research. The researcher would not force the respondents to answer the questionnaire and participate in the survey. The researcher should clearly state the aim and objective of the research to the respondents. The researcher should not use any arms and threaten the respondents to provide the responses. The researcher should not tamper the responses of the respondents and should use the data as it comes. The researcher must take the permission of the respondents prior to using the data. Expected outcomes It is expected that the there had been an increase in the daily expenses of the tourists which had resulted in the decrease in the expenditure in tourism. It is also expected that the expenditure in tourism industry of Australia had increased over time, which had resulted in decrease in expenditure by the tourists. It is also expected that various natural disasters had destroyed the attractive places of Australia and tourists had lost interests in touring Australia. References Chatziantoniou, I., Filis, G., Eeckels, B. and Apostolakis, A., 2013. Oil prices, tourism income and economic growth: A structural VAR approach for European Mediterranean countries.Tourism Management,36, pp.331-341. Goodall, B. and Ashworth, G. eds., 2013.Marketing in the Tourism Industry (RLE Tourism): The Promotion of Destination Regions. Routledge. Holden, A., 2016.Environment and tourism. Routledge. Lee, J.W. and Brahmasrene, T., 2013. Investigating the influence of tourism on economic growth and carbon emissions: Evidence from panel analysis of the European Union.Tourism Management,38, pp.69-76. Mowforth, M. and Munt, I., 2015.Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge. Murphy, P.E., 2013.Tourism: A Community Approach (RLE Tourism). Routledge. Tribe, J., 2015.The economics of recreation, leisure and tourism. Routledge. Webster, C. and Ivanov, S., 2014. Transforming competitiveness into economic benefits: Does tourism stimulate economic growth in more competitive destinations?.Tourism Management,40, pp.137-140.