The Great Recession Of 2008 Was A Worldwide Economic Downturn

The Great Recession of 2008 was a worldwide economic downturn that impacted the global economy. Economists consider the economic decline as one of the most damaging recessions that occurred since the Great Depression of 1930’s. Several documentations and research regarding the recession have been made to make a better understanding of the economic downturn in 2008 as well as the global economy as a whole. The book used as reference in this essay, the Diary Of A Very Bad Year: Confessions of an Anonymous Hedge Fund Manager, captured the events corresponding to the length of the Great Recession through separate interviews of an anonymous hedge fund manager (HFM). The interviews contain information shared by HFM that describes the Great†¦show more content†¦HFM’s experience as a hedge fund manager gives value into this information and the authority to describe what started the crisis. The advantage that follows from the source regarding this idea is that it record ed information that described the creation of the mortgage bubble in the financial market, and the damage dealt to the financial system when the mortgage market crashed from a finance expert. The disadvantage is that the subprime market might not be the only reason of the misallocation of resources, given the fact that HFM’s hedge fund was involved in the subprime market which might have formed a biased opinion on that matter (18-19). The nature of the source does not complicate the idea of the cause of the crisis, although concluding that the subprime market was the main cause could complicate the subject. This clearly shows that the idea of the misallocation of resources within the book had negatively impacted the financial system that built the momentum of the economic decline. Another main idea in the book is the linkages of the financial system to the real economy during the recession. In the duration of the financial crisis, unemployment as well as job loss increased, w age eroded, and companies and businesses closing were in significant numbers (66; 83). In a more specific example, the Reserve PrimaryShow MoreRelatedThe Courage Of Act Memoir Is Essential Reading For People Who Wants You Know What Happened At Federal Open844 Words   |  4 PagesThe Courage to Act memoir is essential reading for people who wants to know what happened at Federal Open Market Committee meeting on Aug. 5, 2008. It invokes comparisons to the Great Depression and at the same time suggests that Shucks, it was not all that great, was not a depression or anything (Bernanke). But Bernanke is persuasive in arguing that it was pretty damned high i.e. terrible and he and his members at the Fed deserve credit for the fact that it wasn t a heck of a lot greater. 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The Universal Declaration Of Human Rights - 892 Words

Human rigths is an essential component of a tolerant and individually satisfied society. They are created to defend people’s dignity, equality and liberty. However, for thousands of years people lived with no garanteed rights, until 1948, when United Nations adopted the Universal Declaration of Human Rights. But is the Universal Declaration of Human Rigths really universal to all states and humans living in them? I am going to argue if Human Rights should or should not be unically adapted to different cultures, religions and beliefs. There are two main concepts, which distinct the requirement of globally spread universality of Human Rights. First of all, both theories should be presented: relativism and universalism. They are two borderline doctrines, differing on the basic approach to universal truth. Universalism claims that it is impossible to preserve and fight for human rights without defending universalism itself, as it is the foundation for the expansion of liberty and equality in all cultures. The basic and most substancial statement in universalism is that Human Rights are acquired by all individuals, everywhere in the world, regardless of everything: religion, culture, ethnicity, gender, sexual orientation or their economical situation. Relativism, in contrast to universalism, states that human rights should be adjusted to different cultures, civilizations and religions. It implies that there are no universal human rights and people receive their rightsShow MoreRelatedThe Universal Declaration Of Human Rights1728 Words   |  7 Pagespeople. Culture can impede progress and leave women, minorities and other sub-sects of a society without the basic human rights that they deserve. Clinging too close to culture can be dangerous. 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Many critics now looking b ack have cited the overreaching ideals as the downfall of the declaration but yet many have responded saying itRead MoreThe Universal Declaration Of Human Rights3323 Words   |  14 Pagesthe Universal Declaration of Human Rights (1948), the concept of human rights has gradually become one of the most commonly accepted universal norms, referred to in United Nations resolutions, national constitutions and regional and international treaties. Even so, human rights violations occur on an almost daily basis in countries around the world. The term seems to be at the forefront of contemporary political discourses, with its meaning at most times remaining unclear. In theory, human rights

The World Wide Web Free Essays

string(64) " stream between LDAP client and the server \(Sheresh B, 2001\)\." Introduction The World Wide Web makes available so much information; only unfortunate is the fact that there were no tools to query such information to its fullest extent. The world needed an acceptable method for searching for and using resources over computer networks. Resources may take the form of computers, businesses, schools and users hence a Directory Access protocol. We will write a custom essay sample on The World Wide Web or any similar topic only for you Order Now A directory is a huge collection of well organized and indexed records or specialized databases that are optimized for a direct lookups (Barber B., et al. 2009). Some directories that can be accessed by LDAP server include the Active Directory (AD) and the Domain Name Service (DNS). The Directory services are categorized into two distinct groups; the local service and the global service group The local service has its service on a single machine while the Global service however has its data spread across many machines and provides its service on a bigger and broader scale that is to the World Wide Web. All these directories on the global directory services cooperate to provide the directory service. A typical example of this global service group is the Domain Name Systems. LDAP as an acronym for Lightweight Directory Access Protocol is a series of interconnected databases located in different locations on the internet and is an open standard lightweight version of a Directory Access Protocol. It is a protocol that runs over TCP/IP protocol and its data is optimized more for reading than for updating. The way of getting out this structured information from diverse sources in an efficient manner is what LDAP concerns itself about. LDAP is based largely on Directory Access Protocol. The Directory Access Protocol is designed for communication between directory servers and client’s complaint to the x.500 standard. The X.500 standard defines a protocol for a client application to access the X.500 directory. The X.500 directory service is an LDAP-enabled directory service that provides the capability to look up and search for information almost like the yellow pages services (Nancy, C., 2003). DAP is one of the X.500’s directory client access protocols that supports the search and lookup feature of the X.500 but DAP had some performance problems. Some problems of the DAP includes the size. The DAP was very large, complex and difficult to implement (Howes, T., et al, 2003). The LDAP was then introduced as it is faster and simpler without the performance problems DAP posed. The LDAP is based on a client-server model. In this system, there are LDAP servers that host public directory service and the clients that connect to the LDAP servers to search for results. LDAP clients are inbuilt into many address book applications today including some email clients like the Microsoft outlook. The Lightweight Directory Access Protocol employs the following operations. 1. Binding to server 2. Searching for an entry 3. Comparing entries 4. Adding an entry 5. Modifying existing entries 6. Removing an entry Of all the operations LDAP deploys, the binding process is the one that involves authentication and it is here that LDAP security becomes of much value. An LDAP client initiates a connection with the LDAP server by sending a bind operation. This bind request may contain the user authentication information. 1. LDAP SECURITY FEATURES This bind feature is captured under the security model of the LDAP models and it provides a mechanism for clients to authenticate themselves before they can access data from the LDAP server (Howes T., Smith, M. 1997). It is commonly done with the use of userID and password logons. The knowledge of these authentication credentials guarantees that the user is indeed genuine since LDAP is a connection-oriented, message based protocol (Carter, D. 2003). The number of times a login attempt can be made is totally configurable. The diagram shown below shows the process of binding to the server in much clearer view. Figure i (Adopted from: http://technet.microsoft.com/en-us/library/ee690469.aspx) The process whereby an LDAP client is authenticated by the LDAP server is known as BINDING(David, N., et al 2001). When a client is successfully authenticated, he is allowed access to the server based on his authentication privileges. T he different kinds of authentication includes Anonymous Authentication Basic Authentication Authentication over Transport Layer Security. Authentication via Secured Socket Layer Simple Authentication and Security Layer Access control List 1.1 ANONYMOUS AUTHENTICATION It is noteworthy to say that the Lightweight Directory Access Protocol supports anonymous access. This means anyone can have access to information provided by the LDAP server for some applications without the need to provide a DN and password. A DN is a unique name for an entry in the LDAP directory services. An LDAP server authenticates a user as anonymous if a bind operation is not sent with an initial bind operation. So, for security reasons, the ldap anonymous authentication should be disabled. An anonymous authentication feature can be disabled with the â€Å"disallow bind_anon† parameter (Carter, G. 2003). Figure ii. Screenshot of an openldap anonymous authentication. 1.2 BASIC/SIMPLE AUTHENTICATION The basic authentication is sometimes referred to as simple authentication method and it is a kind of authentication system used by web browsers like the internet explorer, Mozilla Firefox, Netscape web-browser and some client based application programs to connect to the server. This kind of authentication sends authentication credentials across to the LDAP server in clear text. These credentials usually take the form of a user authentication like the username and password. This type of authentication system is vulnerable to potential exploiters as the unencrypted authentication data is sent in the clear. Figure iii : Screenshot of a basic simple authentication. Obviously, an authentication method that will not permit eavesdropping is required. The developers then chose to incorporate an authentication framework called Simple Authentication and Security Layer – SASL (Howes T. et al, 2003). 1.3 SIMPLE AUTHENTICATION AND SECURITY LAYER The SASL is a powerful means of providing secure communications using Kerberos and a variety of other methods in LDAP v.3 by encrypting the entire data stream between LDAP client and the server (Sheresh B, 2001). You read "The World Wide Web" in category "Essay examples" The SASL option is needed when a The LDAP server provides a set of supported authentication mechanism and the client decides which of them to use. It is the mechanism that describes the flow of information that needs to occur to support a particular authentication method. (Howes T et al, 2003). Some of the mechanisms includes the Challenge-Response Authentication Mechanism Message Digest 5 (CRAM-MD5) – This is an algorithm which uses MD5 hash for client authentication, GSSAPI – This supports Kerberos authentication, SKEY – This employs a Message Digest (MD4) algorithm. Kerberous_v4 – which involves a Kerberos encryption algorithm (Anderson R. et al. 2002). With this more secured basic authentication, the message transfer is encrypted all through the server-client data exchange. Microsoft Windows NT LAN Manager (NTLM) – The NTLM is simply an authentication protocol like the Kerberos that improves authentication, integrity and confidentiality to users by hardening protocol against many spoofing attack. It is a challenge-response authentication protocol (Lefkovitz W., Wade W., 2001) that ensures that a user is indeed who he says he is by answering correctly the challenge that the LDAP server generates in three steps. * Negotiate_Message * Challenge_Message * Authenticate_Message. 1.4 AUTHENTICATION OVER TRANSPORT LAYER SECURITY This mode of encryption and authentication is closely related to the SSL, a Secure Socket Layer encrypts the data connection over which a simple password is transmitted. This protects data from packet sniffing by anyone with physical access to the network. SSL uses a certificate-based method for an SSL security to work. Like SSL, TLS also uses a certificate-based method of authenticating users. TLS provides proof of a server identity and protection of data in transit. The Access Control list is also a security feature supported by LDAP and this prevents data from being seen and modified by unwanted people. Figure iii showing TLS 1.5SECURED SOCKET LAYER SECURITY FEATURE This is an LDAP Administration and security tool developed by Netscape for creating secured connection between a client and server over the internet using port 636. According to Bialaski T et al,(2001), a secured LDAP connection is accomplished from client-side SSL. This mode of authentication is based on issuance of signed digital certificates from trusted authorities. In accordance to Bialaski T.,(2002), the mechanism for identity using SSL is the digital certificate. Figure iv LDAP client – server binding using SSL (Adopted from: http://sqltech.cl/doc/oas10gR3/core.1013/b25209/ssl_intro.htm). The two aspects of security using SSL are the identification and the encryption 1. Identification. – It checks to make sure that the client is indeed genuine by checking the digital certificates. 2. Encryption. – Encrypts data sent from one the client computer to the server and it is a security tool uses a secured TCP/IP port 636. 2. ACCESS CONTROL SECURITY FEATURE OF LDAP. An Access Control List is simply a list of permissions attached to an object (Reisman, B. and Ruebush, M., 2004). As the directory gets populated with data of varying importance, controlling the kinds of access to the directory and records in the directory becomes more vital. Permission as to who has a read, write or no access at all is used to grant or refuse a user or group of users (OU) a specific action (Reisman, B. and Ruebush, M. 2004). Each entry in a LDAP directory contains a special set of attributes which describes who is allowed access information within that entry denoted by DN. Distinguished names. The type of access granted a user determines the operations that can be performed. Most LDAP servers provide a set of access levels operations such as: – Add an entry – Delete and entry – Access an entry – Read an attribute – Modify an attribute – Search an attribute. An LDIF (Lightweight Directory Interchange Format) is a plain text data interchange format for representing LDAP directory content. It used mostly to construct a directory information tree, add an entry into the ldap directory, Delete an entry, export a directory and edit a directory (Zytrax, 2008). According to Carter G. (2003), The slapd.conf file is the central source of configuration information for the OpenLDAP standalone server (Slapd) The slapd,conf is the configuration file for slapd which is a stand-alone LDAP daemon that handles the connection management, access control and protocol interpretation. The configuration file is found in the /etc/openldap/slapd.conf. It is screenshot and displayed below. Figure v: Screenshot of anonymous user authentication in slapd.conf file Figure V above allows authenticated users to change their own passwords. Allows un-authenticated users to authenticate and prevents all other access to the user Password and it permits read access to everything else. 2.1SECURITY AUDITING FEATURES FOR LDAP As a network grows, it experiences a huge flow of user logons and even huge security problems. As an administrator, it is important to monitor the LDAP server activity The directory server comes with three types of log files. Access logs, Error logs and audit logs. ldap logging option in slapd.conf logs to a slapd-log file when configured. The type of information we require slapd-log to store is defined in the level option in slapd.conf file and it represented by a number which is shown in table 3.1 below. -1 Log all information 0No logging 1Trace function calls 2Packet-handling debugging 4Heavy trace debugging 8Connection management 16Packets sent and received 32search filter processing 64Configuration file processing 256Statistics of connections 512Print entry debugging Table 3.1 OpenLDAP logging levels Analysing the /var/log/slapd-log file gives a good idea on what kind of entries are being searched as well as the frequency of access on the ldap server. The downside to this is that the logfiles get very bulky with time. 2.2BRUTE-FORCING IN LDAP According to Radhamani, G. and Radha K. (2007), a brute force attack is a method of defeating an authentication scheme by trying very many possible combinations. The syslog is an essential tool in logging system events. When a user attempts an invalid logon attempt, the event is logged. Bruteforce attack login attempts are no different as they are conspicuous on the syslog file because multiple unsuccessful login attempts will be made.. To decrease the chances of a successful brute force login attack, the following steps should be taken. Length of authentication characters should be increased. : The user authentication credentials should be made more complex. The higher the number of characters in The I.P address from which the brute forcing is done be locked out after a certain period of attempts. Delay timing is implemented in between failed authentication attempts. CONCLUSION A directory, being a collection of well organized and indexed records optimized for direct lookups (Barber, B. et al. 2009) are very essential to our everyday information sourcing. It therefore requires that the records in this directory be secured. The following options list methods that can be employed for these records to be secured. Ensuring a secured communication between the LDAP client and server to checkmate sniffing. Access control listing must be configured properly and double checked for complexities in its setup that may lead to a loophole in ldap security. Login activities must be logged. Once these security features are put in place, the world of a more structured information sourcing would be a better place. REFERENCES Ambro D., Tittel E (2003); Solaris 9 system administrator certification. Anderson, R. and Johnston, A. (2002); UNIX unleashed Sams publishing Barber, B., Happel, C., Terrence, V. and Speake, G. (2009) CompTia Linux+ Certification study guide: Exam XK0-003.UK: Elsevier Inc. Bialaski, T. and Haines, M. (2001); Solaris and LDAP naming services: Deploying LDAP in the enterprise. USA: Carter, G. (2003) LDAP System Administration. O’Reilly Media, Inc., USA. David N. Blank-Edelman (2009) Automating system administration with perl. USA: O’Reilly Media, Inc., Howes, T., Smith, M. and Gordon S.(2003) Understanding and deploying LDAP directory services Addison-Wesley Howers, T. and Smith, M.; (1997) LDAP: Programming directory-enabled applications with lightweight directory access protocol; Sams Publishing. Lefkovitz, W. and Wade, W. (2001) Configuring Exchange 2000 server. USA: Syngress publishing. Inc, Nancy, C. (2003). Directory services: design, implementation, and management. USA: Butterworth-Heinemann. Radhamani, G. and Rao. R.K.(2007); Web services security and e-business. USA: Idea Group Inc. Reisman, B. and Ruebush, M. (2004) MCSE: windows sever 2003 network security design, USA: John Wiley and Sons, Sheresh B, Sheresh D.(2001); Understanding directory services Sams Publishing, Zytrax (2008); Chapter 8. LDAP LDIF and DSML, (Online)Accessed:23rd March 2011 How to cite The World Wide Web, Essay examples

Profit Maximization Is the Only Realistic Criterion by Which Business Organizational Effectiveness Should Be Reasonably Judged free essay sample

One side consists of purely economic view where management’s only social responsibility is to maximize profit while the other side is all about socio-economic position holding values and ethical rules that managers and non- managerial employees are expected to follow. General Overview Business ethics Definition: These are moral principles that guide the way a business runs / is conducted. Approaches to business ethics * Deriving Business Ethics from the Profit Motive * Deriving Business Ethics from General Moral Obligations * Business Ethics restricted to following the Law Corporate Social Responsibility (CSR) Definition: Understanding your business’ impact on the wider world and considering how you can use this impact in a position way. Dimensions of CSR * Ethical dimension * Economic dimension * Philanthropic dimension * Legal Dimension * Civil law * Criminal law CSR Perspective * Efficiency perspective * Managers as Agents * Manager as Owners * Strategic Corporate Social Responsibility Perspective * Inside Out Approach * Outside In Approach * Outside Out Approach * Social Responsibility Perspective In depth Discussion Business Ethics When business ethics is spoken of it usually means one of three things, i. . i. Avoid breaking the criminal law in one’s work related activities. ii. Avoid actions that may result in civil law suits against the company and iii. Avoid actions that are bad for the company’s image. Behaving ethically means distinguishing between right and wrong and making the best logical decision. It is not hard to identify unethical business practices; examples of such practices include; * Use of child labor * Use of unlawfully copy righted materials * Engaging in bribery * Unfair treatment of the employees * Discrimination and violation of human rights. Approaches to business ethics Deriving Business Ethics from the profit motive There has been an argument that there is symbiotic relation between ethics and business in which ethics naturally emerges from a profit oriented business. This approach has two versions; the weak and strong version. Weak Version This version suggests â€Å"good ethics result in good business† meaning moral business practices e quals profit. Example, it is profitable to make safe products which will result in low product liability lawsuits. F. Hartley’s book, â€Å"Business Ethics† argues that long term interests of a business are served best by seeking a trusting relation with the public. Hartley 1993) However this version has a number of problems. Criticism of the weak version * Moral business practices will have an economic benefit in a long run hence it provides less incentive for businesses designed to seek short term profits. * Some of these practices are not economically viable even in a long run. Example the act of keeping older workers who are no longer efficient as opposed to replacing them with younger more efficient workers * Importantly these moral business practices depend on what â€Å"at that time† will produce a profit. The same practices might not be viable economically in a different market. Strong version It suggests the reverse strategy that in a competitive and free market profit motive will bring about proper moral environment. I. e. when customers demand safe products and workers demand privacy then they will work for and buy from those companies that meet these demands. In simpler terms â€Å"good business results in good ethics† Milton Friedman argues that this will only happen if at all the governments allows a truly free and competitive market. Criticism of the strong version This approach assumes that consumers and workers will demand the morally proper thing. A consumer may opt for a lesser safe product if they know it will save money similar to workers, they might forego demands of privacy if compensated with higher wages. * Business ethics restricted to following the law Moral obligations in business are restricted to the law requirements. Moral principles beyond law requirement / supra-legal principles appear optional since there is a dispute of their validity from philosophers and a wavering society on their acceptance. Without a widely recognized system of ethics outside the law it is unreasonable to demand business people to be obligated to principles that are optional. We live in a cultural pluralistic society where the business related moral obligations are those already contained in the law such as product safety, safe working conditions, fair hiring and firing practices, honest advertisement etc * Deriving business ethics from general moral obligations This approach suggests that morality must be introduced as a factor outside both the law and the profit motive. Gene Lacznick, â€Å"Business Ethics: A Manager’s Primer† 1983 says â€Å"proper ethical behavior exists on a plane above the law. Law merely specifies the lowest common denominator of acceptable behavior. † Philosophers offer five fairly general moral principles as suggestions Harm principle: there should be fairness in all of the business’ practices Human right principle: Human rights should be respected by all businesses Autonomy principle: Businesses cannot infringe on the rationally reflective choices of people Veracity principle: Deceptive practices should not exist. Criticism * The principles are too general; they do not specify what counts as unfairness, human right violation or harm. * They are abstract in nature * They do not give clear guidance when dealing with complex situations * They are difficult to apply to concrete situations. CSR is a balance between law and ethics. It is a about taking a responsible attitude going beyond the minimum legal requirements and following straight forward principles that apply whatever the size of your business. Law Rules establishes by a government under which businesses operate. Going against law leads to punishment, usually paying a fine or jailed or sometimes both at once. Ethics Branch of philosophy dealing with right and wrong, moral principles or values governing a particular culture, group or individual. Dimensions of CSR Social responsibility is the organizations obligation to maximize its positive impact on stake holders and reducing the negative impacts. It includes legal, economic, philanthropy and ethical dimensions. * Legal Dimension It concerns obeying the government’s laws and regulations. Civil law duties and rights of individuals and organization * Criminal law laws that prohibit certain actions and violation will result to being imprisoned or fined or both * Economic Dimension It is all about how resources for the production of goods and services are distributed within the social system. As the manager you need to ask yourself do consumer favor companies that are socially responsible or those that are only concerned with making profit . * Ethical Dimension This refers to the behaviors and activities that are expected or prohibited by the organizational members, society or community * Philanthropy Dimension The organization’s contribution to the society CSR is mostly being linked to philanthropy, that is they mean the same thing and that it is just a corporate term used in today’s business world, but the two are very different, where one is just a selfless act as a human to give back to the community where no one is going to hold it against you if you do not do it and the other one is not because it is a direct connection to people and the environment. Difference between CSR and philanthropy. * CSR is behavior by business over and above legal requirements voluntary adopted. CSR is linked to the concept of sustainable development businesses need to integrate the economic, social and environmental impact in their operations * CSR is not an optional â€Å"add on† to business core activities but about the way in which business is managed. CSR cannot be related/ pinned to philanthropy. It’s a decision strategy aiming to ensure long term viability of the business b y assuming an active role in the development of the community, economy and environment. CSR Perspective There are three Corporate Social Responsibility perspectives, namely 1. Efficiency Perspective This is where the manager’s major focus is to maximize profit for the owners of the business; the needs of the other constituencies do not pose as important. Under this perspective two types of managers are looked at; a) Managers as Agents The managers have no obligation what so ever to act on behalf of the society especially if this act does not maximize profit for the share holders. The decision to serve society is made by the share holders. b) Manager as Owners He/she decides if acting on behalf of the society will achieve the self interests and interests of the whole company. . Social Responsibility Perspective Under this perspective the organization/ firms are required to fulfill certain obligations and responsibilities towards the society as a whole and not concentrate only on reaching the share holders demands. The firm is requires to find a balance so that they cab cater all their major stake holders’ needs. These major stake holders are: * Society * Employees * Financiers * Shareholders * Communities * Suppliers Advantages Undertaking this perspective will mean having good relationship with the stake holders. For employees: giving them what they require like better pay, good working conditions, employee benefits etc will mean they are motivated and hence increase productivity and reduce employee turnover. For suppliers: paying them on time, loyalty and ordering for products without glitches and cancellations will mean they will supply good quality products, discounts and on time delivery. For community amp; Society: providing employment opportunities, encouraging education, being environmentally friendly, not going against culture will mean acceptance, good reputation and of course good attraction for future investors. For financiers: like banks, government, donators etc if the firm has a good financial record and they are putting their funds into good use, the financiers will become long term supporters and this will also build trust between the two parties. For share holders: as long as supporting all the above stake holders does not interfere with getting a higher return at the end of the day, they should be happy and provide what is needed for the company’s general growth. Disadvantage The biggest problem with this perspective is that as manager it is impossible to cater for all the stake holders’ needs and expectations being we are humans and we have different needs and ideas, so you cannot give in to one without interfering with other. 3. Strategic Corporate Social Responsibility Perspective The above perspectives have been combined to form this one and three criteria are introduced to guide managers to acting responsible; a) Outside out approach The manger takes the time to look at social issues that are posing a problem in general and find ways his/her firm can contribute to help solve those problems. ) Inside out approach Manager’s only take the time to look at the internal issues that are important to the firm. The problems that are happening outside the surrounding environment do not impact on their decisions nor do they concern them with solving them. c) Outside in approach The manager will look at the issues surrounding the company outside an d pick out specific areas in which the company has an impact on or concern them in anyway. Corporate Social Responsibility works when†¦Ã¢â‚¬ ¦ There is trust and communication between the management and the employees * Owners look at and accept long term views * There is a holistically made decision from the management. Corporate Social Responsibility does not work when†¦.. * Owners want to get rich quick. It is a process that shows benefits after long term implantation. * There is poor treatment of employees * Management works with the thought that resources are unlimited * CSR is viewed as corporate philanthropy * CSR is viewed as a public relation strategy Arguments for the assumption of social responsibilities * Long run profits: Businesses that are SR tend to attain more and secure long run profits, as a result of better community relations and enhanced business image * Superiority of prevention over cure: To avoid incurring more costs to correct the social problems and loss of energy and concentration away from future accomplishment of its goals they should deal with them before they are too serious. * Possession of resources: Business will have the proper resources such as managerial talents, financial resources and technical experts to provide assistance to public and charitable projects that need support * Stockholder interest: The stock market will award business which are SR with higher price earnings ratio because they are viewed as less risky and open to public attack and eventually improve the price of a business stock in a long run * Balance of responsibility and power: If power is greater than responsibility there is an imbalance which brings about irresponsible behaviors that is not good for the public. There should be an equal large amount of responsibility to balance out the large amount of power businesses have in the society * Public image: The public considers social goals important, firms can build a favorable public image by pursuing those goals to gain access to better markets, employees, customers and other benefits. * Better environment Involvement of businesses lands a helping hand in solving difficulty social problems creating a better quality of life and desirable community to attract to hold skilled employees. * Discouragement of further government regulations: Becoming SR businesses are faced with less government regulations since they add costs and hinder flexible decision making of the management. Arguments against the assumptions of social responsibilities * Too much power Enough power has already been given to business by the society; undertaking social responsibilities will mean giving it even more power as it already a powerful institution in the society * Lack of broad public support Since there is a divide public on the issue of being socially responsible there hasn’t been a mandate from the society for businesses to involved in social issues. * Lack of skills Business leaders’ skills and abilities are highly linked / associated with economics; they are under qualified to deal with social issues * Costs Businesses end up absorbing costs or pass them over to the consumers at a higher price since many of these responsibilities don’t pay their own way * Violation of profit maximization In business social responsibility is measured when it strictly tends to its economic interests and leaves the rest to other institutions * Lack of accountability There is no direct accountability from business sectors to the public like with political representatives that pursue the social goals and are held accountable Conclusion and Recommendation It is very clear that in one way or the other businesses today have to think of their external environment because it impacts their decision and it will help make more profit in a the long run. If a business will choose to ignore this and concentrate on making profits alone, they must be sure they are only going to be around for a short term, chances are they will not get the biggest return for their shareholders, simply because if the society, community, government as well as suppliers do not get any support from this company then it is not worth their support and eeing how these stakeholders are important, business should totally rethink their business strategy. There is more positive impact involved in judging business’ effectiveness through business ethics and CSR, since these are the most realistic options available other than profit maximization. With this I make a stand to say profit maximization is not the only realistic criteria in which business effectiveness can be judged. I would recommend business get training and development on how to operate more responsible and ethically and still make profits. Reference: * www. scribd. om/doc/3934672/impotance-of-CSR-to-business * www. businesslink. gov. uk * www. citeman. com * http://www. utm. edu/staff/jfieser/vita/research/Busbook. htm * Business Ethics and Values Colin Fisher amp; Adam Lovell, Prentice Hall, 3rd edition 2003 * www. malwarwick. com/assest/presenatation/the-five-dimension-of-csr-slide. pdf * G F Cavanaugh, D. J Moberg and M Velasquez, â€Å"The Ethics of Organizational politics† Academy of Management Journal (June 1981) pg 363-374. * Crane A (2010) Business Ethics 2nd Edition Chapter 2 pg 45-50. Oxford University, Press London.