Accounting for Business Decision Largest Supermarket Chain

Question: Describe about the Accounting for Business Decision of Largest Supermarket Chain. Answer: Introduction Woolworths Ltd. is largest supermarket chain of Australia headquartered in Sydney being established in the year 1924. It is mainly involved in food improvement, liquor and owning of petrol stations business in Australia (Annual report 2015: Woolworth). The company has a huge workforce diversity of about 111,000 people in its retail stores and distribution centers that enables it to offer high quality products and services to the customers. The company emphasizes on providing highest range of products to the customers and has established about 961 stores in the country to serve customer needs easily and instantly. Woolworths is recognized as Fresh Food People in Australia due to its emphasis in providing fresh food products to the customers. It works in close-association with Australian farmers and growers to procure fresh food ingredients for manufacturing its food products. The suppliers are considered as strategic partner by the company so that they provide highest quality raw mate rials for manufacturing best in class products for the customers (Woolworths Supermarkets, 2012). The company owns a large market share in retail sector of Australia and is second largest in terms of revenue in the county. It is recognized as largest liquor retailer in Australia. Woolworths also has a strong market presence in New Zealand retail sector. The four strategic objectives as outlined by the company are as follows: Gaining expansion in food and liquor business segments Optimizing shareholder value Developing and maintaining its growth record in newly developed business segments such as home improvements Establishing new era of growth The company aims to provide new and innovative products to the customers for meeting their changing needs and expectations. The senior managers of the company places strong focus on meeting the changing customer needs through identifying innovative ways of growth (Annual report 2015: Woolworth). As such, the company has established its various stores for home improvement and is also promoting its online sales for achieving customer satisfaction. It is investing largely in expanding its liquor and petrol business with the aim of increasing its market share in supermarket of Australia. The companys strategy also integrates on achieving sustainability through ensuring that its operational activities do not have any adverse impact on the community and environment. It has implemented effective strategies for reducing carbon and greenhouse gas emissions for supporting the development of community and environment (Mc Arthur, 2013). The company although enjoys a profitable position in the retail market of Australia but is presently declining in its financial performance. The main reason behind the declining profitability is its huge investment in home improvement sector that is not turning out to be profitable for the company. Also, it has placed large focus on developing its business in home improvement that has resulted in its less emphasis on its core segment of food products. However, it is now placing strong focus on regaining its momentum in the retail sector of the country with placing more focus on manufacturing its core food products (Woolworths Supermarkets, 2012). The present report, in this regard, examines and analyzed the financial performance of Woolworths for identifying the areas of improvement needed for enhancing its profitability in the future context. Financial Analysis of statements to accounts of Woolworths This section explains all the important items that are presented in the financial statements of the company and changes that occur in one year time period will be noted to form an opinion on the financial performance of the company (Brigham and Ehrhardt, 2011). Woolworth published its annual report every year that contains audited financial statements and for this report, annual report of year 2015 has been selected to review on. In order find out the increase or decrease in major items of balance sheet, the financial data of year 2015 will be compared to financial data of year 2014. The increase or decrease in the items will be presented in the form of percentage so that it is useful to analyze the data. The major financial statements are: Statement of Financial Position Statement of Profit and Loss Statement of Cash Flow Statement of Change in Equity Statement of Financial Position Statement of financial position is one of the most important statements among all four statements as it shows all the values of assets and liabilities presented with the company (Mumba, 2013). This statement is also known as balance sheet because this statement is based on the well known accounting equation: Assets = Liabilities + Stockholders Equity. As the per rule to make the balance sheet, all the present values of items in balance sheet are adjusted to the values at the beginning of year so that net change can be seen. The principle used in the framing the balance sheet is similar to the accounting equation and according to this equation both side of balance sheet must be equal. As discussed earlier this statement is most important among all, so it must be prepared with proper caution and high level of integrity. It helps investors and users of financial statement to evaluate the performance of organization through use of various financial tools like accounting ratio (Buckle, Bu ckle, and Thompson, 2004). In other words it can be said that this statement present the true and fair picture of organization activities. The major items present in the balance sheet are current assets, current liabilities, shareholders equity, long term liabilities and long term assets. As per IFRS, there is specific format to present the balance and it is mandatory for all the listed companies to follow that structure. As per that structure balance sheet must be drawn vertically instead of horizontally. This section will evaluate important items presented in the balance sheet of Woolworth Limited. In order to make comment on the performance of the company in year 2015, figures of year 2015 are compared with figures of year 2014 and any increase or decrease will be noted. It must be noted that every item in the balance sheet has its own importance while evaluating the performance of the company. In order to provide all necessary information to the performance of the company, notes to financial statements will also be evaluated along with primary values in the balance sheet. The following table shows all important figures of balance sheet in year 2014 and 2015: Statement of Financial Position Woolworth Limited Items 2015 2014 Increase of Decrease % Increase or Decrease in year 2015 Total Current Assets $ 7,661.00 $ 7,175.00 $ 486.00 6.77% Total Non-Current Assets $17,676.00 $ 17,030.00 $ 646.00 3.79% Total Assets $25,337.00 $ 24,205.00 $ 1,132.00 4.68% Total Current Liabilities $ 7,558.00 $ 9,169.00 $ (1,611.00) -17.57% Total Non Current Liabilities $ 5,334.00 $ 6,395.00 $ (1,061.00) -16.59% Total Liabilities $25,337.00 $ 24,205.00 $ 1,132.00 4.68% Total Equity $10,253.00 $ 10,834.00 $ (581.00) -5.36% Above table list the figures of important items in balance sheet along with the increase or decrease in value of items. The percentage of increase or decrease is calculated using the value of year 2014 as base and difference in value of year 2015 and 2014 as numerator (Buckle, Buckle, and Thompson, 2004). Through having looked at the values of various items in balance sheet it can be said that Woolworth has performed better in year 2015 as compare to year 2014. The management at Woolworth has made efforts to increase the value of current assets and non current assets in year 2015 as compare to year 2014. The value of current assets has been increased by 6.77 % and value of current liabilities got reduced by 17.57 %. This indicates that liquidity performance has got major change in year 2015 (Annual report 2015: Woolworth). The value of non current assets has also been raised by 3.79% due to purchase of new plant and machinery and other fixed for the expansion of business. The expansi on of business has been financed through issue of share capital (Brigham and Ehrhardt, 2011). The debt equity position of the Woolworth is also good as company has least amount of long term as compared to equity share capital (Buckle, Buckle, and Thompson, 2004). This shows the presence of balanced capital structure of Woolworth in both the years under analysis. Woolworth has invested more than 400 million dollars in plant and equipments in order to make major expansion in business. Company has used some part of reserves and part of net profit to finance the purchase of assets. There was decrease in amount of borrowing from financial institutions in year 2015 as compare to year 2014. Company has repaid the debt of more than 1000 million dollars in year 2015 (Annual report 2015: Woolworth). Statement of Profit and Loss The profit and loss account statement reflects the balances of sales revenue, cost of goods sold and net income earned in the particular year. This statement is important from the point of view of investors as it shows the earning efficiency of the company. Statement of Profit and Loss Woolworth Limited Items 2015 2014 Increase of Decrease % Increase or Decrease in year 2015 Revenue $60,868.00 $ 60,952.00 $ (84.00) -0.14% Cost of Goods Sold $44,345.00 $ 44,475.00 $ (130.00) -0.29% Non operating gain or (loss) $ 3,042.00 $ 3,533.00 $ (491.00) -13.90% Earning per Share $ 1.71 $ 1.97 $ (0.26) -13.20% Income Tax $ 930.00 $ 1,057.00 $ (127.00) -12.02% Finance Cost (Interest) $ 255.00 $ 278.00 $ (23.00) -8.27% Net Income $ 2,146.00 $ 2,452.00 $ (306.00) -12.48% The above table presents the values of major items present in the profit and loss account of Woolworth in year 2015 and year 2015. Along with the values, percentage increase and decrease has also been shown in order to comment on the profitability position of company in the year 2015 when compared to year 2014. Overall performance of company was good in year 2015 but when it is compared with performance in year 2014, there has been negative shift in revenue and net profit. It indicates that performance of company is not as per budget drawn for year 2015. There was 13.20% decrease in earning per share in year 2015 that indicates that market performance of company was not up to the mark (Annual report 2015: Woolworth). The negative trend in the net profit of the company itself tells whole story of the company in year 2015. It is indication of downfall of food and retail market in Australia and as per future estimates it can be said that there will be major downfall in net revenue in ne xt upcoming year (Houston and Brigham, 2009). Statement of Change in Equity Statement of change in equity points of various items that make up the value of shareholders equity such as retained earnings, change in foreign exchange reserves, value of equity etc. This statement is useful to notice the change in various value of shareholders equity over the period of time (Buckle, Buckle, and Thompson, 2004). Statement of Change in Equity Woolworth Limited Items 2015 2014 Increase of Decrease % Increase or Decrease in year 2015 Issued Capital $ 5,064.90 $ 4,850.10 $ 214.80 4.43% Number of Shares (in million) 1256.6 1248 8.60 0.69% Foreign Currency Reserve $ (37.20) $ 67.70 $ (104.90) -154.95% Retained Earnings $ 5,830.10 $ 5,423.10 $ 407.00 7.50% Non Control Interest $ 297.80 $ 272.90 $ 24.90 9.12% The above table shows important items that makes the statement of equity of Woolworth (Brigham and Ehrhardt, 2011). The table shows that company has raised $214.80 million of equity capital in year 2015 through issue of 8.60 million equity shares in the market. Looking at the adverse condition of market, company decided to increase the value of retained earnings through adding $ 407 million to the previous balance of retained earnings. The table indicates that there was increase in value of non controlled interest by $24.90 million reflecting an increase of 9.12% in year 2015 as compare to year 2014 (Annual report 2015: Woolworth). Statement of Cash Flow Cash flow statement generally gives information on the cash spent by the company in operating, investing and financing activities (Bull, 2007). Statement of Cash flow Woolworth Limited Items 2015 2014 Increase of Decrease % Increase or Decrease in year 2015 Net cash inflow (outflow) from operating activities $ 3,345.10 $ 3,472.70 $ (127.60) -3.67% Net cash inflow (outflow) from financing activities $(1,610.80) $ (1,371.90) $ (238.90) 17.41% Net cash inflow (outflow) from investing activities $(1,333.90) $ (2,031.40) $ 697.50 -34.34% Net increase (decrease) in cash during the year $ 1,333.40 $ 922.60 $ 410.80 44.53% This table reflects increase or decrease in values of major activities shown in cash flow statement of Woolworth in year 2015 as compare to year 2014. The cash flow from operating activity has decreased in year 2015 by 127.60 million dollars showing the net fall of 3.67 %. The decrease in cash inflow from operating activity indicates poor strategies used for cash collection and creditability rating. Company has used 238.90 million more dollars in year 2015 as compare to year 2014 to finance the activities related to financing such as repayment of borrowing, payment of dividend and many others activities. It can be seen from above table that company was able to generated 410.80 more cash in year 2015 as compare to year 2014 but overall performance of company has got adverse in year 2015 due slow down in market (Annual report 2015: Woolworth). Conclusion It can be summarized from the overall discussion held in the report that Woolworths need to improve its financial performance for regaining its market leader position in the retail sector of Australia. The analysis of the financial statements of the year 2015 depicted that company has improved its financial performance somewhat in comparison to the financial year 2014. It has increased the dividend paid to shareholders for maximizing shareholder value and obtaining their trust for supporting its future growth plans. The financial statements analyzed also reveals that companys capital structure incorporates large use of debt as compared to equity. However, the proportion of debt in its capital structure has reduced to a significant extent in the year 2015 as compared to the previous year. This indicates that company is focusing presently on achieving a stable financial condition and is therefore implementing effective strategies for eliminating risk in its business model. Woolworths i s divesting its non-profitable business of home improvement for generating funds in order to improve the proportion of equity in its capital as compared to the debt. The report has presented significant information about the financial condition of the company that will help the investors to make decision regarding holding or buying its shares. The main aim of preparing the report is fulfilled by developing a proper understanding of the different items of the financial statement so that performance of the company can be measured and economic decision can be drawn. Financial statements analysis has provided all the information regarding the financial position, changes in equity, performance and cash generated by the company. All these details would prove to be largely beneficial for the investors to make the opinion on investment decision and act as proper guide to them. Recommendations On the basis of findings obtained from reviewing the financial statements of Woolworths, the company is recommended to implement new growth strategies for improving its financial performance. It has been analyzed from the financial statements of the company that it is largely incorporating the use of debt in its capital structuring rather than issuing equity shares. The increase in debt structure will raise its liability therefore hampering its sustainability. The new investment of the company in home improvement business is not proving to be profitable and therefore it is recommended to divest it for raising equity capital. It should emphasize on investing its profitable business segment of food and liquor for regaining its market leader position in the retail sector of Australia. The investment in profitable business segments would lead to increased sales and revenue generation of the company. This would further support its expansion plans in food and liquor retail sector. Also, it should emphasis more on the development of online channels for reaching to its target customers easily and instantly. This would help the company to achieve increased customer satisfaction further improving the sales and profitability (Mumba, 2013). The development of online channels would also help the company to reduce its operational cost by eliminating the need of physical distribution centers for offering its wide range of products to the customers. In addition to this, the company is also recommended to enhance its reserves and retained earnings for meeting the contingency conditions. It can be seen from the review of the financial statements that company does not hold enough reserves and retained earnings that can negatively impact its future growth strategies. Thus, Woolwor ths is recommended to increase its retained earnings and reserves for meeting the occurrence of any adverse situations. References Annual report 2015: Woolworth. [Online]. Available at: www.woolworthslimited.com.au/icms_docs/182381_Annual_Report_2015.pdf [Accessed on:22 Spetember, 2016]. Brigham, E. F. and Ehrhardt, M. C. 2011. Financial Management: Theory and Practice. Mason: Cengage Learning. Buckle, M.J., Buckle, M. and Thompson, J. 2004 . The UK Financial System. 4th ed. New York: Manchester University Press. Bull, R. 2007. Financial Ratios: How to use financial ratios to maximise value and success for your business'. UK: Elsevier. Houston, J.F. and Brigham, E.F. 2009. Fundamentals of Financial Management. Cengage Learning. Mc Arthur, T. 2013. Woolworths makes progress on its strategic priorities. [Online]. Available at: https://www.fool.com.au/2013/08/29/woolworths-makes-progress-on-its-strategic-priorities/ [Accessed on: 12 September 2016]. Mumba, C. 2013. Understanding Accounting and Finance: Theory and Practice. USA: Trafford Publishing. Woolworths Supermarkets. 2012. [Online]. Available at: https://www.woolworthslimited.com.au/page/Who_We_Are/Our_Brands/Supermarkets/Woolworths/ [Accessed on: 12 September 2016].

Music as an Aesthetic Experience Essay Example

Music as an Aesthetic Experience Paper The introduction of Donald J. Funes book Musical Involvement addresses the topic of music as an aesthetic experience. The preface to the introduction is the realization that truly listening to music requires an active response, and this type of listening is not innate. All throughout the day we are bombarded with music and every day sounds, most of which remain in our periphery. It can be difficult to focus on a single event such as a concert, lecture or any other situation that requires a quite environment because we can attend to around seven sensory inputs at any one time, including our internal conversations. Suddenly our periphery senses can become distracting to the point where they detract from the single auditory source we are trying to focus on. Actively listening requires the listener to minimize the external an internal distractions so that the important details of the work are heard. Funes notes that this is a highly rewarding way of listening but it is not the only way interacting with music. Musical Involvement is a guide to learning how to actively listen to music to achieve an aesthetic experience. Funes argues that in order to have an aesthetic experience with music, then first it is necessary to perceive music as an aesthetic object which is only possible if an aesthetic attitude is adopted. There are several components to having an aesthetic attitude. The first is the realization that preconditioned responses limit experiences. Meaning, your attitude influences your perception. A negative attitude can prevent anyone from enjoying an experience. Learning to view a situation from other perspectives can improve control over mindset therefore expanding the possibilities of responses to experiences. We will write a custom essay sample on Music as an Aesthetic Experience specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Music as an Aesthetic Experience specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Music as an Aesthetic Experience specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Since a negative attitude is a contradiction to adopting an aesthetic attitude, all aesthetic listening is positive. To adopt an aesthetic attitude it is not necessary to develop a personal theory on aesthetics; it is only necessary to understand that it is possible to interact with music and sound aesthetically. The difficult part of listening to music as an aesthetic object is being distant from the music. To set aside any preconceived notions or associations about the work so that it may be enjoyed only for impractical reasons. Looking at something as an aesthetic object goes against any ideas of practicalities because it is highly improbably to enjoy something purely for itself if it is looked at with the potential of something else in mind. Another condition to the aesthetic attitude is adopting a sympathetic awareness, a willingness to experience all types of music because no style is superior to another. In the chapter on Perception in Lewis Rowells Thinking about Music, he discusses traditional problems of aesthetics for the listener. Although Rowell and Funes discuss similar ideas about aesthetic listening, the purpose of Rowells work is not to teach the listener how they should listen to music. Similar to an argument Funes makes, Rowell comments that even though some authors feel that there is an ideal way to listen, it is a good idea to understand that there is a range of possible listening experiences. The first problem Rowell discusses are the varying modes of perception. He sets the scene for exploring the listening experience with asking the question What am I doing. This question involves several other component questions that basically range around the listeners background in understanding music and how that might affect their experience. These questions only seem applicable to an experienced music listener who has some academic understanding of music. Later he discusses the idea of perception being a problem to discuss specifically because of the range of ways people listen to music. Rowell does discuss some modes of perception that can negatively affect the listeners experience and that just being simply conscious of these distractions can completely change the experience. Like Funes, Rowell discusses the idea of being detached from the music to achieve a more aesthetic experience. First he cites Kants definition of taste to discuss valid rules of judgment for all observers. Consequently, Kant determines it is necessary for all observers to look from an objective view. Rowell is not concerned at this point whether Kant is correct in his assessment of taste but instead he is only concerned that the listener detach themselves from the work for a more objective viewpoint. Although the idea of being distant from a work is sometimes ambiguous it can be interpreted at least three ways. The first as a literal distance, the second as a dimensional distance, and lastly the most important being a psychic distance in the form of emotional detachment. Like Funes, Rowell states the listener diminishes the possibilities of achieving an aesthetic experience when attention becomes focused on discovering the purpose of art. Finally, Rowell argues against a stance that various other authors have taking, the concept that the ideal musical experience is a total detachment from all contexts. Instead Rowell argues that although the ideal musical experience preserves a degree of distance by regarding all experiences as individual, it is necessary to have a sense of awareness about the style and performance of the work. Malcolm Budd begins The Repudiation of Emotion, the second chapter in Music and Emotion with a sizable disclaimer stating that although he is adopting the viewpoint of the listener it does not take any priority over the composer or executants viewpoint. For his purposes, Budd is only concerned with the listener who has achieve an aesthetic experience. The disclaimer continues to state that the purpose of compositions are not universally for active participation of the listener. Although, some music is intended to be incidental, the listener still has the capability of seeking an aesthetic experience with it and therefore all music is subject to the contents of the chapter. The purpose of this chapter is to discover the aesthetically significant relationship between music and emotions to explain why the listener has an aesthetic response. First Budd explains the irrelevance of the composers and the performers emotions when creating or performing a work. Although there may have been some emotional background for the creation or performance it does not mean the same emotion is audibly being transmitted to the listener. Therefore the only important instance of emotion is the emotion the listener experiences but the crucial question is whether the listener is has achieved this emotion from the quality (or intention) of the music. Budd establishes the only known negative response to this question is Eduard Hanslicks book The Beautiful in Music.

Table Topics - A Smart Party Game for Adult Students

Table Topics - A Smart Party Game for Adult Students I picked up my first box of Table TopicsTM on a whim while shopping in one of those funky little shops you see in the artsy parts of any city. A four-inch clear acrylic cube holds 135 cards, each with a provocative question that is sure to inspire lively, and meaningful, conversation. These little cards make a great game for the classroom or meeting room, around the table, or on the patio. Use them at any gathering of adults when you want stimulating conversation. Group Size Ideal for up to 10. Divide larger groups. Uses Introductions at a meeting, in the classroom, around the pool, at a party, anytime you want to inspire conversation. Time Needed Depends on the number of people and the time you allow for conversation after each introduction and answer. Materials Needed Cube of Table TopicsTM and a clock or watch. Instructions Select a person to begin, and ask him or her to pick a card from the Table TopicsTM cube. Explain that the person should give his or her name, and answer the question. Depending on the amount of time you have, allow a few minutes of conversation about the persons response, and then pass the cube to the next person. Card examples: Which piece of land would you wish to have preserved forever?Whats your favorite quotation?What song evokes the strongest memories for you? Alternatives Table TopicsTM offers nine different sets of questions: Original, Family Gathering, Gourmet, Family, Teen, Couples, Girls Night Out, Spirit, and Book Club. Choose the subject matter most appropriate for your group.​ For more information, visit  Table Topics.

Anti-Gravity Water Science Magic Trick

Anti-Gravity Water Science Magic Trick Amaze your friends with this simple science magic trick that turns ordinary water into anti-gravity water. Materials for the Water Trick Water glass with a round rim (wine glass or typical water glass)T-shirtWater Basically, all you need is water, a glass, and a cloth. A t-shirt is easy to find. Other excellent choices for the fabric would be a handkerchief, square of silk, or mens dress shirt. Choose a fabric with a tight weave or knit. Perform the Anti-Gravity Water Trick Place the cloth over the glass.Use your hand to push a depression into the fabric. This is so you can more easily fill the glass and also helps wet the material.Fill the glass about three-quarters full of water.Pull the fabric tightly over the glass.You have two choices here. You can quickly flip the glass, using a hand to hold the fabric tight. Alternatively, you can put one hand over the top of the glass, while using the other to hold the material tight and slowly invert the glass. Pull the hand over the glass away.The water doesnt pour out! How It Works Water has a high surface tension. In this trick, the water molecules absorbed into the fabric hold onto other water molecules inside the water glass. Even though there are gaps in the fabric, the attraction between water molecules overcomes the force of gravity trying to pull the water down. What do you think would happen if you lowered the surface tension of the water by using a glass that had a residue of detergent on it? What if you tried the trick with another liquid? Chances are good the surface tension of the water would be lowered enough that youd get wet! Another fun trick that works on the same principle is Magic Colored Milk.

Anti-Gravity Water Science Magic Trick

Anti-Gravity Water Science Magic Trick Amaze your friends with this simple science magic trick that turns ordinary water into anti-gravity water. Materials for the Water Trick Water glass with a round rim (wine glass or typical water glass)T-shirtWater Basically, all you need is water, a glass, and a cloth. A t-shirt is easy to find. Other excellent choices for the fabric would be a handkerchief, square of silk, or mens dress shirt. Choose a fabric with a tight weave or knit. Perform the Anti-Gravity Water Trick Place the cloth over the glass.Use your hand to push a depression into the fabric. This is so you can more easily fill the glass and also helps wet the material.Fill the glass about three-quarters full of water.Pull the fabric tightly over the glass.You have two choices here. You can quickly flip the glass, using a hand to hold the fabric tight. Alternatively, you can put one hand over the top of the glass, while using the other to hold the material tight and slowly invert the glass. Pull the hand over the glass away.The water doesnt pour out! How It Works Water has a high surface tension. In this trick, the water molecules absorbed into the fabric hold onto other water molecules inside the water glass. Even though there are gaps in the fabric, the attraction between water molecules overcomes the force of gravity trying to pull the water down. What do you think would happen if you lowered the surface tension of the water by using a glass that had a residue of detergent on it? What if you tried the trick with another liquid? Chances are good the surface tension of the water would be lowered enough that youd get wet! Another fun trick that works on the same principle is Magic Colored Milk.

Administrative Ethics Essay Example | Topics and Well Written Essays - 500 words

Administrative Ethics - Essay Example However, once that is established, the first dictum of the ASPA code of ethics tells us that service to the public is above service to oneself and that certainly applies in this case. If one is to remain quiet about this it is certainly possible that the boss would be very pleased and Tristate would also be very happy. Of course, there are plenty of vested interests in the construction of the mall simply because a lot of people have a lot to gain from the construction. It is basically a project worth billions of dollars to all the stakeholders and they are essentially serving themselves. Therefore, if we are to follow the code of ethics given by the ASPA, we have to consider what the best course of action would be to preserve the interest of the public. In this case, we can come with two different options of which the first option would be to report the matter to the higher authorities and see what they decide to do with it. Reports to the committee or reports to the council about the incident could be very useful in making sure that the right people have the right information about what is going on concerning the megamall project. In fact, the information could even be taken to the media since that would be more than likely to put an immediate halt to the process. The second option would be to see if the construction of the mall is really towards the benefit of the public. For example, there are many jobs to be created in the mall for the local community with white collar positions such store managers, financial accountants, legal advisors, logistics managers and several other managerial positions that would be needed by companies who setup operations in the mall. For the blue collared workers, there would be jobs in food courts, restaurants, mall security and other store positions that would do a lot for the economy of the region. Thus the public certainly has something to gain from the mall being there. The decision therefore becomes to tell or not

Corporate Governance Essay Example | Topics and Well Written Essays - 2000 words

Corporate Governance - Essay Example Such an argument is made with specific reference to the role that companies play in the social and economic lives of the society at large. The governance of corporations is also debatable at governmental level as per the political powers they may exercise and the world wide reach of the business in the globalized economy. Governments are taking keen interest in the governance matter of the companies not only to secure the national economy and shareholders rights but also to protect the global share of the country in the international markets. On the other hand, the finance providers including the individuals, banks, financial institutions and governments (in their role as investor) seek guarantee that their resources are being utilized in an efficient manner and create sufficient profits for them. This guarantee or assurance leads to the necessity of good corporate governance in place. In other words we can say that good corporate governance leads to increased shareholder trust and a ttracts potential investors due to the assurance that their resources will be secured (Macey 2008). Corporate governance can be defined in a number of ways. ... The main idea is the governance of corporations with an aim to increase stakeholder trust and confidence in the company’s operations, strategies, outputs and practices. Such a system of running businesses lead to the compliance with legal, constructive and social obligations which further enhances the credibility of the corporation in terms of gaining trust and assurance of the stakeholders (Monks & Minow 2004; Ali & Gregoriou 2006). Economic Reasons The corporations are governed by the directors through the managers and lower level staff, however, shareholders holds the directors accountable for the matters concerning the businesses. Corporate governance should be a matter of shareholders as their investments are at stake with the business’s reputation, operations and governance. Shareholders need an assurance of the security of their shareholdings. The returns that the business generates are eventually distributed among the shareholders. The governance of a corporatio n, hence, is of immense importance to the shareholders in terms of the economic benefits it may bring. Alternatively, any inappropriate action or decision taken by the directors held them accountable to the shareholders. Friedman (1962) suggests that the shareholder theory claims that corporation decisions should be made to enhance the value of shares to increase returns for the shareholders. Further, the agency relationship that exists between shareholders and directors may form the basis of good corporate governance practices, whereby, directors act as agents to the shareholders. In other words, the corporate governance codes and practices, as per the