Advanced financial accounting Essay Example | Topics and Well Written Essays - 4000 words

Advanced financial accounting - Essay Example The use of Fair value of in the UK’s Financial Reporting Standards appears to take the position of the US Academics which is conservative in character. This is supported by the statement of The Association of Chartered Certified Accountants (ACCA) which stated that the UKs Accounting Standards Board (ASB) has put itself in a potentially serious conflict with the International Accounting Standards Board over the use of fair value.1 ACCA reported the response the IASB’s discussion paper ‘Fair Value Measurements’, where the ASB made clear it rejection of much of the underlying rationale of the IASB’ paper’s proposals. The ASB seemed to have asserted that the use of the US approach to fair value was not appropriate in Europe. While the US standard SFAS 1572 could useful as a methodology to know market-based exit prices, as admitted by the ASB, the UK board is not fully convince that the assumption that fair value3 should necessarily be equated with exit value.4 ASB does not also accept to have a ‘one size fits all’ approach to fair valuation as it suggested instead ‘standard by standard’ basis. It also criticized the statement â€Å"that fair value should always be assessed from the perspective of a market participant, rather than the entity† as it asserted more prominence to be given that would address the importance of entity-specific measures.5 Given the position taken by the ASB in its statement or comment concerning the fair value accounting, it is doubtful if UK will recognize the importance of fair values, with reference to international accounting standards the same way that IASB is giving the same issue in accounting. 2.2 Describes the alternative methods by which assets and liabilities could be measured, and critically assesses the performance of each method against the Qualitative Characteristics of financial information described in the ASB’s Statement of Principles (the Conceptual Framework). The

Micro and Nanotechnology Adoption by the Pharmaceutical Industry Essay Example for Free

Micro and Nanotechnology Adoption by the Pharmaceutical Industry Essay Micro and nanotechnology is starting to show promise in the pharmaceutical industry. The two key questions in this field are ‘what is nanotech’ and ‘aren’t all drugs nanotech – after all, they are in the nano size range’. These can be answered fairly simply; Nanotechnology is where the nano-size of a substance affects its activity – the size placing the substance at the interface between quantum and material effects. The classic example to demonstrate these effects is that of gold nanoparticles. Bulk gold is insoluble and metallic-yellow in colour. However, once the gold is formulated as a nanoparticle it is soluble and the size of the particle determines its colour – from bright blue to vivid red. Two key areas where nanotechnology is showing promise in the pharmaceuticals industry are tools for drug discovery, and secondly in formulation and delivery systems. In the development of tools to support drug discovery, nanotechnology is developing a trend to move away from high throughput to high content screening, where greater information on fewer compounds is achieved. As our knowledge about drug-target interactions increases, it is becoming apparent that high-volume/low-content screening can miss extremely interesting interactions and effects. For example, SPR biosensors can detect a ligand binding step and measure the binding constants. But it cannot measure surface stresses caused by binding, which are an important factor for example in antibiotic efficacy against MRSA and VRE. Here nanomechanical cantilevers have been shown to be effective in providing extremely elegant information that can explain the difference between various drugs that appear to have the same binding kinetics.[i] The move to high content screening has been slow due to the large investments in high throughput screening laboratories and so new systems need to be compatible. However, where systems are compatible with these techniques – for example using 96 well plate platforms, adoption is possible. As a result, improvements and adoption is currently iterative, rather than revolutionary, but it is happening. With regards to nanotechnology in formulation and delivery science, there are a number of early adopters of nanotechnology in the pharmaceutical industry. Table 1 shows a number of types of nanoparticle formulations that are already approved for marketing. The full list of approved ‘nano-enabled’ products is very small and those that have made it to the market are generally reformulations of existing generic drugs. We are still awaiting the second-generation nanodrug, where the nano-effect is integral to the product activity. Nanotechnology appears to be following the classic technology adoption curve as shown in Figure 1. This shows the bell-shaped adoption curve for any technology, overlaid by the technology acceptance line. Nanotechnology appears to have passed through the hype and trough and is now starting to be slowly adopted. It appears that the problem for nanotechnology in formulation is one of risk. Companies need to get their products to market quickly to allow as much market exclusivity time as possible not to recoup their investment, as this is a sunk cost, but to recoup the cost of developing future drugs, the cost of which is becoming ever more expensive. The Tufts Center for Drug Development estimated that the cost of bringing a single drug to market was in the order of $1.2 billion in 2008, compared to $802 million in 2000.[ii],[iii] Given these issues, companies won’t adopt new technology unless they know that the technology has a clear and fast route to approval. This is particularly poignant in drug formulation and other rate-limiting activities that occur post-patent filing. Once a patent is filed, the clock is ticking on the product’s life. If a product is going to be a $1billion a year blockbuster, lost revenues will be at least $2.7 million for every day a product is held from the market. This produces a catch 22 scenario; no-one will take the risk to demonstrate a new technology, especially if it is competing with existing and proven methods, so no-one will see a clear adoption path and use it. This is reminiscent of the fledgling biotech industry 15-20 years ago. Pharma was focussed on small molecules and didn’t want to risk bringing into their portfolio relatively unstable products, with complex manufacturing methods and which were without a clear regulatory pathway. Now however, many traditional large-pharma refer to themselves as biopharma companies and Amgen and Genentech (prior to the Roche purchase) are in the top twenty pharma by revenue. Early adopters, such as Abraxis and Elan, have started to clear a pathway to approval, but as yet no company has developed a true nanodrug – ie one which was conceived as a nano-enabled product from first principles as opposed to using nano-formulation on existing products. Nanotech has a lot to offer the pharmaceuticals industry and if it follows previous technology examples such as biotech, the successful early adopters will reap the rewards. It still has a number of hurdles to leap, such as a clear regulatory pathway and a demonstration of value above and beyond current technologies, before it can become mainstream. However, there are significant efforts by industry and governments to help it to jump the technology adoption gap quickly and ensure it can assist in developing the next generation of products that are needed to solve some of the significant unmet medical needs faced by patients and healthcare professionals. [i] Ndieyira, J. W. et al. Nanomechanical detection of antibiotic–mucopeptide binding in a model for superbug drug resistance. Nature Nanotech. 3, 691-696 (2008). [ii] Outlook 2008, Tufts Center for Drug Discovery (Available at http://csdd.tufts.edu/InfoServices/ OutlookReportsRequest.asp) [iii] Outlook 2000, Tufts Center for Drug Discovery (Available at http://csdd.tufts.edu/InfoServices/ OutlookReportsRequest.asp)

do our judgement of others define by the symbolz they signify :: essays research papers

Do our judgment of others defined by the symbols they signify?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Are judgment of others defined by the symbols they signify? Why do we judge people based on how they appear? From the min we see somebody wearing bagging jeans, big shirts, just the whole package. We take them to be no good. When that’s not always the case . Do we look at them for what they symbolize? By the way they walk, talk, act. Names and titles always symbolizes a person. It describes a persons outlook. When you hear psycho. We would think that the person is crazy. And would know to stay away.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Why do we judge people based on how they appear? When I was first saying bout the baggy jeans, big shirts. We look at them basally to be bad because most people who dress like that are. If I were to dress up as a police and walk down the street people will always come to me asking for help or something that a police individual would do. With Hester and scarlet letter. In the book people who wear the scarlet letter are known to have done something bad. And so they look down on her. With Mr. Dimsdale he is look upon as a someone who has no sin. Ideal. Just on what we appear to be.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Do we look at them for what they symbolize? of course we do. Its not right. But lets take for sample an old guy with baggy cut up clothes, long bread, just sitting down in a corner of a street. We take the old man don’t have a job, car, education, no life. And that just may be the case. But how a person symbolizes themselves to be that’s what we take them for. If a young lady comes in with her hair in a bun and very covered up, No make-up. Always keeps her head down .You take her to be shy , keep to herself or something like that. Just by her just doing all that. We take her to symbolizes a shy lady. As well as Mrs. Hibbins. She acts a witch. Everybody is going to take her to be one .   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Names and titles always symbolizes the person. With teenagers, society looks at teens to be wild, out of control people that just want to party. Just because of what their named â€Å"teens† .

What makes a business successful?

I have chosen to analyses three successful businesses to understand how each business has gained their success, these businesses Include Apple, Sad and McDonald's. Other than having success with a growing profit I will explain other factors that they have used. Apple Is an Innovative business that has dominated the technology sector. They have plenty of experience, since they have been In the technology industry for over 30 years.This means they have enough knowledge for their market and know how to meet consumer demands. Also they have an excellent racketing team that promotes their product worldwide most commonly through their simple yet effective TV adverts. They have a strong brand identity compared to its competitors since their apple logo is so recognized worldwide. Sad is a massive supermarket the 2nd largest retailer in the I-J following behind Tests. However I still believe that Sad is successful due to their main aim that Is based upon focusing on their customers.This Inclu des providing a friendly service and also by consistently putting the customer first by lowering prices to save money which automatically attracts more new consumers and also growing a larger market online. McDonald's Is the world's most popular fast food franchise with over 60 million customers per day. I believe It's such a successful company because of their sponsorship deals, they often team up with media partners for example film companies such as Dreadlocks when they release a new movie you are likely to see that theme in your local McDonald's.Also they have mastered international expansion which creates a huge global presence within over 100 countries. I have also chosen three businesses that are unsuccessful to carry out further research on which includes Blockbuster I-J, HEM and Comet. I will explain why I consider each business has failed in their market and how we can learn from their mistakes. Blockbuster UK is a film rental store that used to dominate the industry.It's faced troubles from the Increase of competitors that are online, they offer to stream films over the Internet which Is more suited to their current target market that are technology obsessed. The business which Is currently dominating Is Nettling that Is a popular website rather than a postal service meaning it's more ideal. It's a wealthy and powerful rival. What we can learn from this is that as a business you have to develop and match customers needs by focusing on what would be preferred by the customer and always adapting to new trends.HEM had an overall decline in sales for CDC and DVD'S undermined by competition from online retailers and online downloads. The common trend among music lovers was to buy their music in digital form rather than buying a CD. HEM has failed to keep their face and instead struggled with handling debt. What we can learn from this is exactly the same with Blockbusters that we need to develop the business in different ways to attach the target market a llowing them to survive and succeed such as WHO Smith.Comet reached a downfall due to new competitors and the movement of Internet competitors Is popular meaning other competitors have a larger target market and loyal customers. Also the market Is extremely competitive since new products are being made so princes half each year which means retailers have to sell double to online because it tends to be cheaper. What we can learn from this is that to become a successful business you need to understand the online world. Business must now offer different options such as a shop and a website.

Journal 1 – The Metamorphosis

The opening paragraph of this short story begins with the introduction of Gregor Samsa as a newly transformed insect. The narrator's intent in regards to this brusque stating of Gregor's new physical shape, is perhaps to convey Gregor's own surprised and confused feelings into the reader's mind. The narrator seems to anticipate what the reader is thinking, as he immediately states that Gregor is transformed, and what shape he now possesses. The narrator pushes his description to unfolding the exact contours of Gregor's body. He takes the perspective of Gregor, looking down on his own body, perhaps to heighten the vividness and brutal psychological shock of the first vision of his â€Å"numerous legs, which were pitifully thin compared to the rest of his bulk, waved helplessly before his eyes. † The reader is thus enabled, through this first-person point-of-view, to visualise that precise image, which inherently helps the reader better understand the effect of the transformation through Gregor's perspective. The paragraph detailing Gregor's metamorphosis is followed by a description of his room and of his non-bug life. The reader notices that where the first paragraph was leaning towards structure and a coherent and precise description of Gregor, this paragraph seems to consist of more random thoughts than anything else. It's as if Gregor's mind is wandering about his room, trying to rebuild his human character, whereas the previous paragraph had completely shattered his notion of humanity. We can see in the following quote just how determined Gregor is to re-ascertain his humanity, † What has happened to me? he thought. It was no dream. His room, a regular human bedroom, only rather too small, lay quiet between the four familiar walls. † Firstly, the fact that Gregor states very plainly that he lived in a good, human bedroom seems odd, as he feels the need to qualify the normalness of his place of residence through it's ‘human' appeal, instead of, say its ‘roomy' or ‘comfortable' appeal. Furthermore, the description of his room continues in its peculiarity, as Gregor feels compelled to further solidify the mundane-ness of his room through its ‘four familiar walls'. It seems that Gregor feels further compelled to make his room normal by depicting it as being of usual dimensions, hence the four walls, which are familiar – a contrast perhaps to his newly acquired uncomfortable feeling of not belonging, of being odd – hence the insect-like shape. The seemingly xenophobic attributes of his new character seriously conflict with the person he used to make himself be. As he states, â€Å"Above the table on which a collection of cloth samples was unpacked and spread out – Samsa was a commercial traveler – (†¦ † The position he held, and assumedly still has, of being a commercial traveler would lead one to believe that Gregor was not antisocial in any way, in fact the reader could assume that Gregor worked as a traveller because of his affinity with people. Yet the manner in which he now describes his room perhaps suggests that a deeper transformation had occurred, one that affected his self-confidence and his pers onality. Lead by hermit-like comments such as the â€Å"four familiar walls†, one can see that Gregor may now find sanctuary in the closeness of these walls, rather than seeking the public world of a traveller. This reaction is rather evident, as one could assume that any person would feel demoralized after being transformed into a huge bug. Yet where some people may be affected only physically, this transformation seems to have affected Gregor's psyche as well. Lastly, the end-description of the lady, â€Å"sitting upright and holding out to the spectator a huge fur muff into which the whole of her forearm had vanished! † seems odd, as Gregor's reaction to the huge fur muff somehow seems detached, like it was the first time he had seen it done. Ironically, Gregor tells the reader that he had recently framed the picture and had placed it above his desk, which would lead one to believe that he had looked at the picture before hanging it. Moreover, his reaction to the disappearing forearm may be related to the fact that he no longer has any, which would therefore explain his shocked reaction; the fact that a human is being portrayed in some light other than a normal one is both terrifying and appalling to Gregor, a notion that is explained again through his reaction to the picture, and perhaps thus to his physical state.

Tech Your Head essays

Tech Your Head essays Growth in technology is very similar to evolutionary growth. Our world has seen so much change since life first sprouted on our planet. Since the primordial soup of earths prehistoric waters created organisms life on earth has progressed quickly. Much like evolutionary processes found in life forms, technology builds on its own increasing order and thus speeds up. The technological developments of modern-day computer scientists will bring us computers faster than weve ever seen, a new intelligent life-form with mental powers equal or surpassing our own, and will raise moral and ethical questions currently unforeseen. Gordon Moore, the inventor of the integrated circuit, noted that the surface area of a transistor was being reduced by 50 percent every 12 months. When he made this observation he was chairman of Intel. Then, in 1975, he revised his observation to 24 months. With a biannual doubling of the number of transistors that you can fit onto an integrated circuit, the components on a chip as well as the speed of the computer are doubled. The idea of exponential growth in technological developments is known as Moores Law on Integrated Circuits. Almost all of the developments made in calculation technology from the abacus to the Apple II have laid appropriately on the timeline of technological evolution as prescribed by Thomas Moore, but now it seems there has been a recent acceleration in the acceleration of the evolution. Today, we use computers to design computers, and they meticulously calculate details in the newest design, then the designs are produced in factories that utilize full automation with very little intervention from humans. We can expect that computers will take their progression into their own hands, and at that point they will accelerate very rapidly. According to Ray Kurzweil, a highly educated and experienced man in the field of nanotechnology as well as the author of ...

Primark and Ethical Business.Doc Essay Example

Primark and Ethical Business.Doc Essay Example Primark and Ethical Business.Doc Paper Primark and Ethical Business.Doc Paper Primark and Ethical Business Introduction Primark the leading clothing retailer Rapid changes in media, transport and communications technology have made the world economy more interconnected now than in any previous period of history. Nowhere is this more evident than in the world of textile manufacture and clothing distribution. Consumers want fashionable clothes at affordable prices. Much of high street fashion is produced in various countries across the world. Businesses source clothes from countries like India, China, Bangladesh and Turkey because of lower material and labour costs in these countries. In order to meet consumer demand, Primark works with manufacturers around the world. Primark is part of Associated British Foods (ABF), a diversified international food, ingredients and retail group. Primark has almost 200 stores across Ireland, the UK, Spain, Netherlands, Germany, Belgium and Portugal. Primark’s annual turnover accounts for a significant proportion of ABF†s revenues and profit. Primark’s target customer is fashion-conscious and wants value for money. Primark can offer value for money by: Sourcing products efficiently Making clothes with simpler designs Using local fabrics and trims Focusing on the most popular sizes Buying in volume Not spending heavily on advertising. The largest Primark store is located on Market Street, Manchester, England. Some 100,000 sq ft (9,300 m2) of retail space is spread across its three floors. It took over from Liverpool in 2008 after TK Maxx moved from the basement floor to the Arndale Centre, allowing Primark to fu rther expand Corporate Social Responsibility Every business has the corporate social responsibility (CSR) to be Ethical in its business environment and CSR is about responsibility to all stakeholders and not just shareholders. What is Stakeholder? A person, group or organisation, has direct or indirect stake in an organisation because it can affect or be affected by the organisation’s actions, objectives and policies. Key stakeholders in a business organisation include its creditors, customers, directors, employees, government agencies, owners, suppliers, unions and the community from which the business draws its resources. What are Business Ethics? Ethics are moral guidelines which govern good behaviour so behaving ethically is doing what is morally right Behaving ethically in business is widely regarded as good business practice. Being good is good business† (D. Anita Roddick) â€Å"A business that makes nothing but money is a poor kind of business† (Henry Ford) Code of Practice A common approach is to implement a code of practice. Ethical codes are increasingly popular – particularly with larger businesses and cover areas such as: Corporate social responsibility Dealings with customers and supply chain Environmental policy actions Rules for personal and corporate integrity Primark from Ethical to Unethical Business Let’s take one of the above stakeholders the suppliers to analyse how the suppliers and supply chain can affect the business ethics and can make a business unethical business. A business cannot claim to be ethical firm if it ignores unethical practices by its suppliers. Use of child labour and forced labour, Production in sweatshops, Violation of the basic rights of workers, Ignoring health, safety and environmental standards. An ethical business has to be concerned with the behaviour of all businesses that operate in the supply chain i. e. Suppliers, Contractors, Distributors, Sales agents. So the Primark could not consider and concentrate on the supply chain of its suppliers who were hiring the child labour in the factories in various states of India and Bangladesh. Those suppliers were the main source of Primark retail clothing products in UK and. This issue was exposed by The Observer, The Independent News and the BBC panorama. Primark declared as least ethical business Primark, the discount clothing chain beloved of bargain hunters, has been rated the least ethical place to buy clothes in Britain. Primark scores just 2. 5 out of 20 on an ethical index that ranks the leading clothing chains on criteria such as workers rights and whether they do business with oppressive regimes. Mk One and Marks Spencer were ranked second and third worst for ethics by Ethical Consumer magazine (By Martin Hickman Consumer Affairs Correspondent Thursday, 8 December 2005, The Independent news) The Ethical Trading Initiative (ETI) The Ethical Trading Initiative (ETI), of which Primark is a member, has undertaken an investigation in to the reports. The ETI confirmed to Drapers this week that the investigation was ongoing and no conclusion had yet been reached. Primark refutes the claims stating it can offer good value and good quality because of low mark-ups and big volumes. We use simple designs, our overhead costs are extremely low and we dont run expensive advertising campaigns. Lapse in standards The information provided by the BBC enabled us to identify that illegal sub-contracting had been taking place and to take action accordingly, Primark explained. According to Primark, the garments affected accounted for 0. 4% of the retailers worldwide sourcing. It added that the sub-contracting involved home working and in some instances children were also found to be working at home We take this lapse in standards very seriously indeed, said Primark, which is owned by Associated British Foods Under no circumstances would Primark ever knowingly permit such activities, whether directly through its suppliers or through third party s ub-contractors. The Primark supplier in question, a major Indian exporter called Fab n Fabric, had employed a subcontractor who had discovered the ultimate disposable workforce: child refugees. Primark’s Code of conduct and Initiatives taken Under the terms of its code of practice for suppliers, Primark prohibits the use of child labour in its manufacturing chain. Primark says it will terminate relations with suppliers guilty of certain transgressions and those unwilling to make the necessary changes to their employment practices when breaches of its code are uncovered. Primark and Stakeholders Engagement Primark sacked the three suppliers before being hit by a wave of negative publicity inevitably coming its way from the documentary. The firm, owned by Associated British Foods, said it had made the statement to fulfil a responsibility to shareholders, not as cynics suggested to lessen the shock of an international expose. The retailer said that, as soon as it was alerted to the practices over a month ago by The Observer and the BBC it cancelled new orders with the factories concerned and withdrew thousands of garments from its stores. A statement from Primark Stores on Bangladesh 19/11/2010 A Primark spokesman said: â€Å"Primark shares and recognises many of the concerns raised by No Sweat. We acknowledge that conditions for workers in some factories do not always meet them high standards that we and other brands sourcing from these factories, expect. Primark believes ethical business practices are of the highest importance and that is why we work tirelessly with our supplies and other stakeholders, including those in Bangladesh, to raise standards and the welfare of the workers that depend on the orders placed at these factories. Primark is working in several ways to continually improve ethical standards and working conditions among suppliers. Primark’s Initiatives and Working with stakeholders Working closely with external partners featured strongly in much of what Primark achieved during 2010. Highlights include the following: Primark in Bangladesh In Bangladesh, 16 of the factories from which we buy have been working with Nari Uddug Kendra (NUK), an NGO that focuses on women’s rights. Together, Primark and NUK have provided training for factories on how to manage workers more fairly, and educate them about their rights. In 2009, 974 workers received training through this programme. Furthermore, Primark has created a new Ethical Trade Manager position in Bangladesh. One of the first initiatives to be launched by the Ethical Trade Manager will be tailored ethical training for suppliers in Bangladesh. Further plans are underway to recruit a female Ethical Trade Executive with a specific remit to focus on women’s issues in factories, which we know are particularly important I this context. Primark in China In China and Bangladesh, Primark began projects that aim to create long-term, sustainable improvements in labour standards and provide living wages for people. Several visits had been undertaken to both countries in 2009, to identify suppliers, factories and local implementation partners including NGOs, worker organisations, employer associations, and technical experts. Primark in India In southern India we are working at grassroots level with an NGO to understand and address the challenges faced by workers in communities where Primark’s products are made. The programme includes surveys to identify workers, families and children at risk, as well as providing a counselling service and helpline for people. A core part of this initiative is worker education and we have established groups that look at issues from hygiene and personal development to gender equality and workplace rights. Primark with International Organisations Through Primark’s membership of the ILO and International Finance Corporation (IFC) Better Work programme, we engage and collaborate with retailers and labour experts within countries to provide localised supplier training, remediation and worker engagement. Primark’s supplier factories in Vietnam are part of the initiative, and we support the efforts and plans of the ILO to implement the programme in other countries from which we source. Primark and BSR This year Primark joined Business for Social Responsibility (BSR), a CR organisation with over 250 corporate members. Primark is an active member of the BSR Mills and Sundries working group, a coalition of clothing retailers which looks at ethical and environmental performance within spinning mills, dye-houses and sundry manufacturers. BSR also worked with Primark on identifying key trends in labour migration in China, and how Primark suppliers could mitigate potential labour shortages through good human resource management. Finally, we are proud that Primark is BSR’s partner in Bangladesh for the health enabled returns programme, a groundbreaking initiative that provides healthcare and education for women in factories. Primark and ETI As a member of the Ethical Trading Initiative (ETI), Primark continued to be actively involved in a number of ETI groups in 2010 relating to the following: General Merchandise, Home working Principles of Implementation, Annual Report, Purchasing Practices, and China. Primark also increased its collaborative efforts with other brands, via membership of cross-brand forums in a number of countries as well as more informal joint efforts on supplier remediation. As 95% of the factories that supply Primark also supply other retailers, this joined-up approach is one of the best ways to achieve progress Primark altered internal system Primark has brought many changes in its internal system to meet the requirements of Ethical Trading Initiative and to over come the issue of least ethical business. Appointment of Ethical trade Director Team The Primark has employed Katharine Kirk, from Gap Inc, as Ethical Trade Director. No new supplier can be appointed without being audited, and then Cleared by her. Primark has been steadily expanding the size of its own ethical trade staff over the last 2 years. In-house there is currently an 8 person team (including the Director). Recent additions to the team include a new Ethical Trade Manager in Bangladesh and plans are underway to recruit a female Ethical Trade Executive for Bangladesh with a specific remit to focus on women’s issues in factories. Primark also has a new Ethical Trade Manager in Turkey, and a new Ethical Trade Executive to add to the strength of the existing team in India. The aim is to have in place a team of 15 by the end of 2010. Monitoring and Auditing In 2009 Primark had conducted over 1080 audits, which is almost double the number in 2008 (533 audits). The growing in-house ethical team, new third party auditor partners, and the online audit database are helping to support this growth. Audits are accompanied by a remediation programme for each supplier as required. This is the accepted way the industry seeks to raise standards. Primark uses a mix of our own in-house and third party auditors. Third party auditors performed around 70% of our audits last year. So the Primark is increasing the number of them. Most of their visits are unannounced or semi-announced. They are paid for by Primark, to reduce the burden on suppliers and factories. The focus of Primark’s auditing programme is the top 250 suppliers which represent 87. 6% of the selling value of the business. Primark had audited all suppliers ranked in the top 250 by the end of 2009. Primark audit according to: Level of turnover with a supplier, proportion of a supplier’s production that is dedicated to our business, country of manufacture, risk of production process, any other information about a particular supplier or factory that identifies risk. However, Primark recognised that audits are a necessary, but not sufficient, part of the solution to raising standards in the supply chain. Much is dependent on remediation and training. Remediation plan with Factories Primark has third party auditors and staff works out a remediation plan with each factory after an audit, and then a follow-up is conducted, mainly by our own team members. More than half the audits we do are follow-ups (55% of Audit in 2009) 18 months ago Primark began work on a new, cutting-edge, online audit management system. BSI Entropy’s management system helps us to keep track of non-compliances at the individual production site, as well as at country and buying department levels. The system helps us to follow up non compliances in a timely manner and identify root causes of problems and where additional training is required. Primark has established a dedicated living wages projects in China and Bangladesh. The lessons learned and models developed will be rolled out more widely within Primark’s supply base. The project entails using local experts in each country – NGOs, trade unions and productivity experts – to improve the systems within the factories. Primark buyers will also be involved in encouraging factories to make the necessary changes, sharing knowledge and experience with the factory management, as well as looking at how they can improve the way they buy – for example by paying close attention to the timing and volume of orders so as not to overstrain the factory. Training programmes All Primark buyers and key personnel have been trained in ethical trade. In total this has covered 209 staff equating to over 1,672 hours worth of dedicated ethical trade training. New staff members are also given training on ethical trade during their induction. Ethical trade training was provided to Primark’s China-based staff. The supplier training programme has been extended and dedicated events took place in China, the UK and India last year. In November Primark hosted 3 days of ET training for the top 50 Chinese suppliers and their factories in Shanghai. 192 individuals attended these sessions. In July 40 Irish and UK suppliers and factories attended one of the ethical trade workshops held in Reading and Birmingham Primark is about to launch a new Suppliers’ Extranet, an online information resource centre for suppliers which will include helpful training tools and guides for factories. Primark has also developed an online compliance training tool for suppliers with a specialist provider, so we can reach more factories, more quickly. Recommendations to improve Ethical Practices The ethical climate of a business organization can make the difference between a successful venture and an unsuccessful one, that there may be a co nnection between how a business is perceived and its internal ethical climate. Improving the ethical climate of your own business enhances and preserves its reputation, inspires loyalty and advertises that it has its ethics message right. It also fosters an ethical culture within the organization. Evaluating Ethical Behaviour I would like to recommend and suggest that companies should undergo internal ethics audits on a regular basis because that the regular internal audit of the business organizations ethics and compliance program adds great value to the organization. A business organization should take a top-down approach to ethics. By communicating and modelling behavioural standards from the highest levels of your business down to the entry-level positions. So we can ensure that there is no gap between ethical standards and the actual behaviour of employees. By regularly evaluating these standards and the behaviour of your companys leadership, you can effectively promote compliance to ethical behavioural norms for your organization. Educating Employees A business organisation should Increased focus in the business community regarding ethics-based issues has led to increased funding and research to increase ethical awareness. One strategy to improve the ethical climate of your business organization is to offer or even require classes in business ethics. Business ethics classes at the local community college or even classes offered directly through the human resources department can be a practical and cost-effective way to offer ongoing ethics training and motivation. Protecting Employees One problem that might arise in the promotion of ethical guidelines to your orkforce is the fear employees may have regarding their role in reporting unethical or questionable behaviour by another employee or even a supervisor. Employees must be assured that they will be safe from retaliation from other employees or supervisors who might be turned in for engaging in questionable activities. The best way to make this assurance is to offer employees a confidential channel through which they can report bad behaviour. A company ethics hot line is one way to increase employee willingness to speak out. Another might be a suggestion box kept in a secure location where other employees are not likely to see one of their fellow employees turning them in. Employees must be confidently assured that reporting bad behaviour is expected and safe. Supply chain sources Every business organisation should choose its supply chain sources with carefully and make sure that all your suppliers are taking care of human rights in their factories by visiting the factories of your business suppliers. Conclusion For companies with plans to establish a more formal code of conduct and ethics program or to improve existing ones, the tone must be set at the top. Effective standards for ethical conduct must be initiated, supported, encouraged, and practiced by top management. Furthermore, a code of conduct cannot be effective if it is not adequately communicated and explained. Todays technology provides various cost-effective methods for communicating an ethics code. These communication efforts should be provided in a steady stream even after the initial awareness campaign. The advantages that are to be gained from formally practicing in ways that adhere to ethical principles include, the development of company documentation that guides and informs staff members on their proper conduct both during normal business interactions and during ethically-challenging situations; A better understanding by staff members of their responsibilities, and an ability to align their values with those of the organisation; The assumption of an appropriate level of accountability by staff members in identifying and anaging business risks; The facilitation of fairness and moral management in business activities; Increased trust from, and between, internal and external stakeholders. Increased employee satisfaction; A more open-minded organisational culture in which the interests of the employer, employees, customers, suppliers, and other stakeholders are protected; An enhanced reputation within the community that helps attract new staff and customers, increases both public and community relations, and the potential for improved financial performance; and an enhanced reputation with competitors, governmental agencies and financial institutions by working with external agencies such as the International Labour Organization, the ETI and independent auditors, Primark helps to set and maintain standards. Its auditors work with suppliers over a period of time to help them meet the exacting standards set out by the Ethical Trading Initiative. This enables the supplier to become approved. So the PRIMARK has proved it wrong that its business operations are unethical, by taking the key measures and introducing many changes in its internal and external operations. Now Primark’s operations are based on Based on international Labour code and this is Translated into 26 Languages and published on Primark website. 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