Critically assess the contribution made by the 1989 UN Convention on Essay

Critically assess the contribution made by the 1989 UN Convention on the Transboundary Movement of Hazardous Waste and their Dis - Essay Example Greenpeace alerted all the likely ports which repeatedly turned away the ship. It is suspected that ship offloaded the remaining material in Indian Ocean. In November 1986, a Basel based pharmaceutical factory had a fire accident that resulted in an outflow of contaminated water into the Rhine River with some thirty tones of highly toxic material entering the river along with the contaminated water. This led to the Swiss based companies pushing for the Basel Convention so as to reverse the damage to the public relations caused by the contamination. In March 1987, a New York based ship carried 3,186 tons of solid waste and tried in vain to dump the waste in 6 U.S. states. By September 1987, the ship had traveled about 6,000 miles across Mexico, Belize and Bahamas and came back to its own base in New York without being able to unload the cargo of waste anywhere. By June 1987, the UNEP Governing Council in its 14th session brought out Cairo Guidelines and chalked out a programme to conv ene a global convention on the control of transboundary transport of hazardous waste. In June 1987, it was discovered by Greenpeace that traders in waste had tried to export more than 163,000,000 tons of waste by 1986. In August 1987-May 1988, Italian business firm sent eight thousand drums of hazardous chemical waste to a Nigerian port town mislabeling the drums as â€Å"relating to the building trade† and â€Å"residual and allied chemicals†. In their efforts to send the material back to Italy, the Nigerian factory workers experienced severe burns, nausea, vomiting blood and partial paralysis leading to Nigeria to recall its ambassador to Italy .and seized the ships to pressurize Italy to remove the wastes. After series of such incidents, by March 1989 Basel Convention was signed with Greenpeace denouncing it and Africa walking out. The U.S. opposed the ban to developing countries despite repeated requests of developing countries to impose the ban.1 Originally 116 pa rties signed the Convention which provides a global framework for transboundary movement of hazardous waste 2 It is equally concerned about the protection of global environment.3 The Single market in the EU introduced in 1993 regulates transboundary movement of goods including wastes.4 Three aims of the convention With the membership of 170 countries which do not include the U.S.A 5,the Convention’s three main aims are 1) reduction in hazardous waste generation, 2) reduced transboundary movements of hazardous waste and 3) hazardous waste management conducive to environment.6 Environmentally Sound Management (ESM) refers to treatment (management) of hazardous and other wastes in such a manner that human health and environment are protected from the adverse effects of the said wastes.7 In the context of Basel Convention, â€Å"wastes† refer to substances or objects that are disposed of, meant for disposal or those required to be disposed of, under national law. Managemen t in the context of ESM involves collection, transport and disposal of wastes including hazardous ones and the management also includes taking care of sites where the wastes are disposed. Disposal is referred to as actions contemplated under Annexure IV to the Convention document. Transboundary movem

Tech Environment Essay Example for Free

Tech Environment Essay The company I am continuing to work with is US Airways Group. There is plenty of hard and soft technology to list for the domestic environment. Some of the hard technology used in the domestic environment is aircraft, security system, and safety gear. Some soft technology used in the domestic environment is management, government regulations that govern the procedures of the company, and training for employees. The hard technology I listed above is the obvious technology the air line company utilizes yet there is more hard technology being used. The soft technology being used is essential to the success of the company which I will capitalize on later. I stated the hard and soft technology of the domestic environment but this same technology is used in the global environment also. Hard technology used within the global environment is aircraft, customs operatives, and safety gear. Soft technology used within the global environment is management, different government regulations than the domestic environment, and guides who help foreign travelers from different countries. Although the hard technology is about the same as it is in the domestic environment you may see some outdated equipment within the global environment. The soft technology used such as guides to assist foreign travelers may not be found within the domestic environment due to a large majority of passengers residing within the domestic environment. There are technological barriers for the domestic and global environments. Within the domestic environment there are flaws such as the security system. People find ways to breach the security system and are able to sneak items that should be able to sneak past the system such as drugs and weapons. Of course we do the best we can but this is the nature of the beast and we can always better our systems. Another technological barrier is that we need more foreign employees that can communicate with foreign passengers who travel within the domestic environment. It can be hard to travel within a location where you do not know anyone and no one understands your language. Within the global environment there are technological barriers also. I stated earlier that the technology in some locations is not as good as it is in the domestic environment. This is unfair to the passengers and to the people who work for the company. There should be up to date equipment for the global environment just as there is in the domestic environment. Another barrier is that customs can be difficult to deal with. I always hear of horror stories dealing with customs because they may take a long time to process certain individuals through or the rules are interpreted differently. The barriers can be overcome in both the domestic and global environments. The flaws within the security system are currently being corrected as we speak according to sourcesecurity.com. They have stated that â€Å"turning security weaknesses into strengths, using perimeter and surveillance solutions together, use of video analytics software and managing airport access control system† will better the security in airports significantly (Smith). I believe if those principles stated are applied then the security in airports will be safe as can be. The fact that we need more translators or guides that can speak other languages can be fixed. We need to create a job that specifically guides passengers from other countries to their next gate or to taxi services to get passengers to their next destination without any issues. The barriers within the global environment can be corrected just as they can be corrected in the domestic environment. The fact that the technology within the global environment needs to be up to the same standards is an issue that should be addressed. â€Å"To raise efficiency or establish a better competitive position, firms’ efforts are oriented towards developing capabilities to absorb, adapt and master technologies often developed elsewhere in a process of technological learning† (Goedhuys, Janz, Mohnen, 2008). I honest believe this is the only remedy for providing up to date technology, the company has to make it a priority to provide the same technology to the global environment. The customs can be corrected by provided a print out of what is allowed and what is not allowed to be brought into or out of a country a passenger is traveling through. The information is available online but some older passengers aren’t as savvy with technology so they may not r eceive the same information. With this tactic there is not any excuse for not knowing what is expected when going through customs. The strategies I stated above will be successful, only if they are applied. Without application the strategy will be a failure. Within the domestic environment the security system can be significantly improved and decrease the risk for terrorist attacks greatly. This technology needs to be protected by requiring a security clearance for all employees who work for the company. This way you have a thorough back ground check on everyone who works for US Airways Group and the risk for inside information getting out to enemies of the United States is low. Within the global environment technology needs to be advanced. The company can protect this technology by only providing the technology to its global counterparts and not the competition.

Marks of a leader Essay -- essays papers

Marks of a leader Leadership is the ability to guide, direct, or influence people. A good leader can do all of this while maintaining the approval of the people that he or she is leading. Some people want a leader to take control and others want a leader that is more flexible and will allow them to have a say in what the leader does. Due to this, leadership depends a lot on the people being lead. A good leader needs to know what kind of people they are leading because that should effect how they lead. People do not respond to the same things. For example, my little brother absolutely needs a strict authority figure in order to operate because he will try to take advantage of a more democratic leader. I on the other hand, respond better to the more friendly democratic type of leader because when some one is trying to strictly lead me I get into a rebellious attitude, which hinders my performance, and the ability of my leader to lead. A good leader should show strength and compassion. I cannot even imagine what would happen if an Army General showed even the slightest bit of fear during a battle. The leader needs to hold the group together and keep them strong. A leader needs to do what needs to be done for the welfare of his followers. This is where things get tricky because most of the time the people being lead don’t know what is really the best thing for them. This makes the job of a leader very difficult because they need to decide whether to do...

Effects of study habits in relation to the academic performance Essay

Introduction Education plays a vital role into every student, especially in our current situation where those who finish with degree are the only ones who has a chance of getting hired. Before even getting hired, people must first finish their studies. Students must survive through college but it is not as easy as it seems to be. They must accomplish all the tasks given in a limited amount of time that is why a study habit is needed. Study habits are the ways a student study. These are the habits that students develop while studying. They can be good ones or bad ones. Study habits are considered as one of the major factor affecting the student’s academic performance. It means that if a student possesses an ineffective study habit, he will not have a clear understanding in his subject which will most likely lead him to failure. If a student develops an effective study habits then he has a higher chance of passing. The researcher came up with this study since she herself does not have an effective study habit and always cram whenever the time to study is almost over. The researcher decided to find the effective study habits that most students prefer so that it will not be hard for them to survive through college works. Significance of the Study Through this research, students will become aware of the effects of study habits on their grades. The researcher believes this will be beneficial to the school administrators, teachers, parents, students, and to the future researchers. Moreover, the researcher believes that the student, especially the students in Section IJ will be benefiting from this study since it will provide a better understanding on how their study habits will be effective. To the School Administrators, this will help them to know and to inform the teachers on how they can effectively teach their students. To the Teachers, this will serve as a guide for them to teach more effectively in a way that all students will understand. To the Parents, this will serve as a guide for them on how they are going to help their children when studying or preparing for examinations.  To the Students, this will help them a lot not only in studying but also for their future.  To the future researchers, they may be able to use the result of the study in further research similar to what the study is. General Objective This study aims to determine the significant relationship between the different study habits and the academic performance of Section IJ students. Specific Objectives  1. To know the different study habits commonly practiced by the Section IJ students. 2. To identify the effects of the common study habits practiced by the Section IJ students. 3. To determine the significant relationship between Section IJ Student’s academic performance and study habits. Statement of the Problem This study aims to determine the effects of study habits in relation to the academic performance of Section IJ students. Sub-problems  1. What are the different study habits commonly practiced by the Section IJ students? 2. What are the effects of the common study habits practiced by the Section IJ students? 3. Is there a significant relationship between the study habits and the academic performance of Section IJ students? Scope and Limitations The study focuses on students of Section IJ so that they will be prepared more in the incoming tests. IJ students are college students that is why they are given more works than before. Having a study habit that suits them well will help finish their works faster. The researcher limits the study to the common study habits practiced by IJ students only. It does not matter whether the study habits they developed is good or bad as long as it has a good effect in their academic performance. Hypothesis There is a significant relationship between the study habits and academic performance of Section IJ students.

Case Study of river pollution Essay

Introduction River pollution has caused loss of lives and imbalances in the ecosystem. People, industries and natural causes contribute to the pollution of rivers. This makes the waters unsafe for both animal and human consumption. Conversely, what happens upstream may not be knowledge to those at the lower part of the river. In consequence, governments have come up with laws and regulations to curtain practices that may render the water harmless. Irrespective of the rules, river pollution still takes place. This study employs literature in the quest of all factors that surround river pollution. The Ganga River This is a river that has its source at southern slopes of the Himalayan ranges which is due to glaciations at Gangotri. It is four thousand metres above sea level. The river flows through mountains for two hundred and fifty kilometers before descending on an elevation of two hundred and eighty eight metres above sea level. Mandakini and Alaknanda are its tributaries. This river carries the largest quantities of silt in the world which is deposited at its delta (Wohl, 2011). Pertaining to Wohl (2012), for a long time, this river has enjoyed its purity but due to human encroachment, it has become much polluted. Purity of river water is dependent on its velocity. The faster it flows, the higher the purity. This river has numerous obstructionsso as to be utilized for irrigation purposes. With the escalation in commerce and communications, many towns have developed along the river. This river is polluted industrial and domestic waste waters, mass bathing as a performance of rituals, defecation at its banks by people who come from low income families, carcasses belonging to animals, human copses both unburned and half burned thrown into the river, agricultural residues from fertilizer and pesticides brought about by surface run off of water and solid garbage that is thrown directly into the river by people (Agre, 2013). In consequence to this, according to Ghosh (2012), the Ganga river is now a poisonous rier which is highly comprised of pollutats. In line with this,  the pollutants also comprise of heavy metals which are capable of causing cancer to the population. Key Players Ministry of Environment and Forests This is the major body in India that deals with all environmental issues at the central government level. It is funds and exercises control over all over bodies and agencies conserve the environment. This body oversees and supervises all the activities and financial spending of these other bodies. The ministry has been urged by some other bodies to change its proposal so as to perk up on controlling pollution for this river (Gopal & Agarwal, 2003). The Central Pollution Control Board (CPCB) This is the body that deals with all issues pertaining to the environment and its pollution in India. This body undertook a study in the year 1981 through to 1982 which enable it to classify methods through which the river is utilized and the pollution load. The report generated by this river gave the genesis of the Ganga Action plan. With reference to this report, it was established that pollution was from pesticide and fertilizers employment in agriculture, industrial wastes, domestic wastes and land use methods. This information was the basis on which the Department of Environment framed a policy (Gopal & Agarwal, 2003). The Ganga Project Directorate (GPD) According to (Jain, 2009), this body was founded in 1985 under the National Ministry of Environment and Forest. The rationale behind the formation of this body was for it to become a secretariat to the CGA and also to be the Apex Nodal Agency for the entire implementation process. Moreover, this body was to synchronize activities of divergent ministries that take part in the administration of funds. This body was thought to be a single investment which would be able to achieve the goal of improving the quality of water. The plan for this body was to be executed by the state governments which would assume management and operational tasks. The work of GPD was to exercise overall supervision. This body was to remain intact until the  completion of the GAP. The goal of this entire plan was to dissuade the wastes generated in the urban dwellings away from the river. This was to be enabled by treating the wastes through recycling and reuse. For efficiency of this plan, it was found out that it was a research was indispensible. This was to ascertain the nature and sources of pollution. In addition, a research would give an underpinning on which the most applicable plan pertaining to the utilization of resources of the Ganga River for forestry, animal husbandry and agriculture would be established. Additionally, the demographic, human and cultural settlement along the banks of the river would be ascertained. This led to the involvement of fourteen universities (Singh, 2007). National Ganga River Basin Authority (NGRBA) This is a body that was set up in the year 2009 as a nodal agency to supervise the coordination of authorities, the planning, monitoring and financing of all activities that are directed towards the eradication of pollution and the conservation of the all rivers. It was chaired by the prime minister and was founded under the NGRBA Act (The Energy and Resource Institute Consultant, 2011). Its activities were supposed to be cover cleaning of rivers in all states. Ganga River was a main target by this body due to an international conference that dealt with environmental issues that had been held two years prior. Through this body, corporate and civil bodies as well as the citizens were supposed to participate with the ultimate goal of alleviating river pollution (Agre, 2013). Foreign Aids Some of the countries and foreign bodies made a decision of partnering wit the Indian government with the chief goal of rescuing this river which is in dire need for intervention. Among them is the Israeli government which was ready to which was in position to cooperate with IITs through provision of technological, knowledge (Nandan, 2012). Additionally, the Australian government also has the goal of contributing the salvation of the Ganga River through funding projects that were designed to thwart the river from industrial pollution trough the AusAID program. The country also pledged to  aid India with expertise who would aid with coming up with better sustainable and safe methods for the management and disposal of the waste generated b y the tanneries. Governance Challenges Challenges that that face the policy and mitigation plan is that, pollution is partly caused by municipal sewage which is a component of the government. Additionally, some of the industrial wastes were found to be extremely toxic and hard to manage. In the same context, the government set up regulations which would control pollution by the industrial sector. A setback that emerged is that some of the industries did not comply hence they were forced to close down. The government had to engage in legal tussles with such companies, a step that led to expenditures and time consumption. With regard to this, commercialization has elevated along the shores of this river. This has led to the establishment of many industries and tanneries along the river, which do not or do not adequately treat their effluent before discharging it to the river. The government has tried several ways even with employment of motivation to perk up on the owners to treat their effluent. This has not yielded much fruit as some of them have not incorporated the plan in their practice (Bharti, 2012). The governance and management of the projects was under the docket of the state governments. They partnered with the non governmental organizations and foreign aid agencies which introduced the conservation plan to new obstructions. This is because the non governmental organizations gave up with their own mandates which were supposed to be complied with by the state governments. This impeded the decision making process. This did not only result in to delays of the entire project but also gave room for justification of contractors’ shortcomings (Chatterjee, 2008). The government is trying to put up mechanisms and projects that will lead to alleviation of pollution to enable the water at least attain bathing quality. With reference to Nandan (2012), this action has faced a blow when some of the members of the National Ganga River Basin Authority (NGRBA) stepped down form the task. This is with the reason that they had found out  that the government was not straight forward with the goal of averting pollution with regard to the Ganga River. Value Conflicts There has been an issue whether to privatize the waters of the Ganga River. Most arguments have been against this. The arguments are based on the thoughts that water is an economic good and with regard to this, it should be utilized for commercial purposes. Some people suggested that the water from the river should be bottled and sold at the market. This is in line with the draft water policy which echoed that due to the economic value of water, it cannot be in provision for free. This means that the water still faces greater chances of overuse. Contested Knowledge Hindus believe that the waters of the Ganga River are holy hence they utilize the river has been employed for ritualistic activities since time in memorial. This has led to the misuse, pollution and overuse. Additionally, with the information about plastics and polythene not being biodegradable, in accordance to Governace Knowledge Center (2012), the high court asked the government to veto the utilization of the same in all cities that are situated along the Ganga River. The court also recommended that the state government should encourage the citizens to indulge in the usage of biodegradable products. This very same ordered the administration to proscribe sewage discharges into the river. The court in deed brought out very good suggestions but it would be a bit challenging the government to implement this because some of the products are packaged in plastic and polythene packages. If people were supposed to avert from the use of plastics and polythene, it certainly means that they do not employ these products in their daily uses. Water recycling has been employed as a chief way of dealing with the effluents generated industries and domestically. There are twenty nine thousand industries in Kapur among which four hundred are tanneries. In accordance with this large transnational companies charged with the task waste water treatment have been set up the ultimate truth is that not all  the water generated by the companies can be treated and used for agriculture year in year out. Subsequently, some of the water has to come back to the river. This is one factor that did not yield fruits in GAP 1 as pointed out by Bharti (2012). Competing Interests The condition of the river has grown from worse to worst. This is on the grounds that those who are in charge of policy and decision making for the whole reclamation process do not hinge on the river for their livelihoods (Thakkar, 2013). Whether the water is clean, or the river flows or not, their lives are not dependent on this. Those whose livelihoods are dependent on this river are nowhere near the position of making key decision. Corresponding to this, there has been prominence on pipes, pumps and novel plants but no strategies for the management and governance of the river regime. For the sake of operation, sewage plants have been established but they do not function to capacity. The quality of their services is poor and no one has been held responsible. This in turn contributes to more pollution. Pertaining to the Gang a campaigns, the river is not supposed to be attached to sewage but the reality on the ground is that the rive r is a sewage in itself in accordance with Thakkar ( 2013). The Ganga campaigns have emphasized on the impeding of the project works at Mandakini, Alaknanda and Bhagirathi tributaries but the government has commissioned the same. This is irrespective of the denial by the Forest Advisory Committee twice to validate the project. Additionally, the Wildlife Institute of India also recommended that the project should not be given a go ahead. Institutional Barriers The Ganga Action Plan which was set up in 1985 was supposed to come to a conclusion by the month of March in the year 1990. According to Gopal and Agarwal (2003), this deadline was not yielded to instead many other deadlines arose form this. To the year 2008, the project was still on and was nowhere near conclusion. This slow pace has been attributed to many factors. The government was found not to release sufficient funds for this project. This has led the in between stagnation of the project. This is  because the government puts the money designated for this project into other uses. GAP was to disseminate its duties by establishing river fronts, enhancing Ghats used for bathing, electric crematoria, dealing with toile complexes, setting up treatment plans for the industrial effluents, laying down treatment plants for sewages and coming up with effective mechanisms for handling municipal wastes that accounted for seventy fie percent of Ganga river pollution. The ministry of environment and forest did not set up a timeline and deadlines for submission of reports about the undertakings of GAP. The court had set up deadlines but this ministry had no strategies of ensuring compliance to the same (Gopal & Agarwal, 2003). GAP itself could not account for its expenditures with reference to Agre (2013). Some of the funds had been misappropriate and most often work had not been accomplished. This was so both at the national level and also by the National River Conservation Directorate (NRCD). In accordance to finances, the stated complained that inadequacy of funds had been the stumbling block that had inhibited them from achieving the goals of this project. On the contrary, the funds that had been issued by the central government had not been effectively and faithfully utilized on the project. Conclusion Ganga River has been encroached and this has lead to extinction of some animal and plant species. In addition, human lives especially for the poor who solely depend on the river for their water uses are rendered susceptible. The government needs to explore its strategies from a serious point of view. All the projects set should be monitored to meet their completion in the set time. All the bodies associated, the people and the industries should carry out activities that perk up on the life of this river. References Agre, P. (2013). River Ganga in dire state of pollution and governance affairs. SERI News , 7 (10), 42-50. Bharti, S. (2012, July 31). Strengthen participatory urban governance to prevent pollution in Ganga at Kanpur and recognise the need to look for decentralized solutions. India Waterportal , pp. 36-42. Chatterjee, S. (2008). Water resources, conservation and management. New Delhi: Atlantic Publishers & Distributors. Ghosh, A. (2012, October 17). Ganga is now a deadly source of cancer, study says. The Times of India , pp. 23-24. Gopal, K. & Agarwal. (2003). River pollution in India and its management. New Delhi: APH Publishing Corporation. Governace Knowledge Center. (2012, December 7). Governace Knowledge Center. Retrieved September 30, 2013, from Allahabad High Court asks Up government to regulate pollution in river Ganga: indiagovernance.gov.in/news.php?id=1861 Jain, A. (2009). River pollution : regeneration and cleaning. New Delhi: A.P.H Publishing Corporation. Nandan, T. (2012, March 14). Israel ready to help India check Ganga pollution. Governance , pp. 22-17. Singh, L. (2007). River Pollution. New Delhi: A.P.H. Publishing Corporation. Thakkar, H. (2013, June 5). The Plight of Severely Polluted Ganges River. Epoch Times , pp. 15-17. The Energy and Resource Institute Consultant. (2011). Environmental and Social Analysis. New Delhi: N ational Ganga River Basin Authority. Wohl, E. (2011). A World of Rivers: Environmental Change on Ten of the World’s Great Rivers. Chicago: University of Chicago Press. Wohl, E. (2012, March 5). The Ganga-Eternally Pure? Global Water Forum , pp. 27-30.

Free Essays on Greek Hero

Greek Hero’s and Their Society The Greek heroes served society by demonstrating the morals and values of the Greek Gods in humanistic terms. All Greek heroes had similar characteristics and qualities. These qualities are an essential part of the hero’s make-up. Without them, the hero would not be able to overcome the challenges that life presented him. Along with specific qualities, Gods always played an important role in the creation of heroes. In fact, many of the hero’s fathers were Gods. Greek heroes shared the human condition of mortality. This quality of mortality made the heroes easier to relate to from a human standpoint. The quest was the heroes right of passage into glory. Every Greek hero needed a quest to become a champion among the Greek people. I believe Peruses is an excellent example of a hero meeting the needs of society by demonstrating qualities that where present in a hero. In the story of Peruses his immortal father was Zeus. Zeus was the fat her of many Greek heroes. Danae, Piraeus’s mother, was locked up in a golden chamber where no man would go. Acrisius, Danae’s father, did this because an Oracle had told him that Danae’s first born would kill him. Zeus, being very promiscuous, transformed himself into a liquid stream of gold. â€Å"Just as a shower of rain falls and becomes absorbed by the earth, so this golden shower penetrated the ceiling of the golden room. Danae found these riches pouring onto her lap.† pp.199 With out Zeus, Peruses would have never been born. Zeus then protected his family by carrying them across the sea and letting them survive their inevitable fate brought on by Acrisius. I feel that this helps teach society that your family should always be there for you when you need them. Being mortal helps Peruses by letting him experience poverty and other human conditions. This differs from many of the gods, and helps the story relate more to the reader. â€Å"Feeling self-c onscious about hi... Free Essays on Greek Hero Free Essays on Greek Hero Greek Hero’s and Their Society The Greek heroes served society by demonstrating the morals and values of the Greek Gods in humanistic terms. All Greek heroes had similar characteristics and qualities. These qualities are an essential part of the hero’s make-up. Without them, the hero would not be able to overcome the challenges that life presented him. Along with specific qualities, Gods always played an important role in the creation of heroes. In fact, many of the hero’s fathers were Gods. Greek heroes shared the human condition of mortality. This quality of mortality made the heroes easier to relate to from a human standpoint. The quest was the heroes right of passage into glory. Every Greek hero needed a quest to become a champion among the Greek people. I believe Peruses is an excellent example of a hero meeting the needs of society by demonstrating qualities that where present in a hero. In the story of Peruses his immortal father was Zeus. Zeus was the fat her of many Greek heroes. Danae, Piraeus’s mother, was locked up in a golden chamber where no man would go. Acrisius, Danae’s father, did this because an Oracle had told him that Danae’s first born would kill him. Zeus, being very promiscuous, transformed himself into a liquid stream of gold. â€Å"Just as a shower of rain falls and becomes absorbed by the earth, so this golden shower penetrated the ceiling of the golden room. Danae found these riches pouring onto her lap.† pp.199 With out Zeus, Peruses would have never been born. Zeus then protected his family by carrying them across the sea and letting them survive their inevitable fate brought on by Acrisius. I feel that this helps teach society that your family should always be there for you when you need them. Being mortal helps Peruses by letting him experience poverty and other human conditions. This differs from many of the gods, and helps the story relate more to the reader. â€Å"Feeling self-c onscious about hi...

Youth crime is a moral panic and an exaggerated response based on media representation of news stories about youth The WritePass Journal

Youth crime is a moral panic and an exaggerated response based on media representation of news stories about youth Introduction Youth crime is a moral panic and an exaggerated response based on media representation of news stories about youth IntroductionWhat is moral panic?Media representation of youth and youth crimeMedia representation on Moral PanicConclusionBibliographyRelated Introduction Is youth crime a moral panic or a moral crisis, many people will have different views however what view does the media have? The media tend to represent youth crime as a moral panic within society to create a stir and gain the public’s attention. I will be addressing how the media show this representation by analysing certain headlines and cases, which caused such controversy involving youth crime. Since the existence of youth crime the media use this particular offence as a catalyst of creating a moral panic within the community. I will look at the words they used and how they layout the news to create this moral panic and how exaggerated a story can become with help from the media. Moral panic can be defined as the intensity of a feeling expressed in the population about a certain issue that appears to threaten the social order of society (Jones 1999). Youth crime can be defined as â€Å"Juvenile delinquency† this refers to children generally under the age of 18 years old who behaves in a way, which is against the law. Majority of legal systems recommend specific actions for dealing with these youths, e.g. young offender’s institutes or detention centres. In the United Kingdom youth crime is generally summarised as young teenagers involved in anti-social behaviour and knife or gun crime. Youth crime has risen drastically in the past years. One major moral panic that occurred from youth crime was the Jamie Bulger case is 1993 which caused a massive uproar in society which resulted in the Criminal Justice and Public order Act 1994, therefore supporting the idea moral panic can be healthy for the society. What is moral panic? A moral panic refers to the reaction of the public based on a belief that a group poses danger to the society; they distinguish this particular group as a huge threat to their social values and culture (Encyclopaedia 2011). Stanley Cohen created the term moral panic in 1972 for recounting the media coverage of Mods and Rockers in the UK during the 1960s. Cohen describes moral panic as a â€Å"condition, episode, person or group of persons emerges to become defined as a threat to   societal values and interests† (Cohen 1973:9). He also states that those who create the moral panic due to having a fear of an threat to prevailing social or cultural values are referred to as moral entrepreneurs, where as those who are seen as a threat to the social order are defined as folk devils (Cohen 1973:16). Moral panics are seen as incidents that involve arguments and social tension and therefore disagreement is difficult because the problem is represented as taboo (Kuzma 2005). The media are representatives of â€Å"moral indignation†, although they are not fully engaged with the controversy, reporting the fact is enough to produce concern, anxiety and panic (Cohen 1973:9). Goode and Ben-Yehuda, voiced theories that moral panic consists of five characteristics. The first one they recognised is the concern that the behaviour of the group e.g. youth crime is most likely to have a negative impact on society. The second characteristic is that if the hostility towards â€Å"youths† increases, they will eventually become folk devils therefore creating a division (Cohen 1973:16). The third is a form of consensus although concern is not nationwide; there should be global acceptance that the youths pose a threat to society. The fourth characteristic is formed up of disproportionality and the action taken is disproportionate to the actual threat posed by the accused group. The final and fifth characteristic is volatility; moral panics are highly volatile and ten d to disappear as quickly due to a lack of public interest or other rising news reports (Goode and Ben-Yehuda 1994:57). Media representation of youth and youth crime Different types of media representations include radio, newspaper, magazines, websites and news channels they are all exclusively involved in spreading and broadcasting news directly to the public. How they represent the news is specifically up to them however they have a drastic impact on how the public view it as well as they are the main influence on people’s emotions and opinions. Furedi explains that moral panics tend to begin â€Å"at times when society has not been able to adapt to dramatic changes† and such changes lead to those becoming concerned and to express their fear over what they see as a â€Å"loss of control† (Furedi 1994:3) The media tend to concentrate on representing youth crime in both a negative and positive way, they show hatred and anger towards the youths who commit the crimes as well as sympathy and condolences on the youths who are victims of youth crime therefore this sways a person’s opinion due to the contexts of the news. An example of this is the case of Stephen Lawrence in 1993; the Daily Mail newspaper issued a cover branding all five suspects as murderers, challenging them to sue the newspaper for libel if they were wrong. The headline read Murderers† and accuses these men of killing, it quoted â€Å"If we are wrong, let them sue us (The daily Mail 1997). The papers front page provoked a wide range of different reactions. Many members of the public applauded it for stepping in where the law had deliberately failed; others were alarmed at such an obvious case of trial by media and responded by asking what if the five suspects had been black, not white? Media representations of youth concentrate mainly on violent crimes and report particular examples of juvenile offenders. The media see it as their duty to remind the public that behind the headlines there is a large number of youths offending in the criminal justice system. When they represent youth crime the media concentrate on how they come across to the public and their main duty is to make the offender apologies and to express remorse for their actions. Media representation on Moral Panic The way the media represent moral panic has to be done in a precise way as what they show has to impact people’s views and opinions drastically. Newspapers tend to start with a catchy headline to grab attention and to cause controversy. An example of this is the headline the Daily Mail issued on the murder of teenager Ben Kinsella, they quoted â€Å"T.V stars brother stabbed to death as he begged for help†, instantly people are drawn to this by the words T.V star and begged for help and are immediately overcome with compassion and interest.   Another example is the Evening standard website headed their article with the title â€Å"guilty: Animals who killed Ben Kinsella†, anyone who reads this instantly have the image that these youths are animals and killers and have immediately made up their opinion on the youths involved in the murder. It’s questioned what these examples of newspaper headlines have in common, and what relevance and significance do the y create for individuals. Its been said that they are all illustrations of an ‘episode, condition, person or group of persons’ that have, been ‘defined as a threat to societal values and interests’ the term Cohen established as ‘The Moral Panic’ (Cohen 1972: 9). Conclusion The main motions of these created moral panics (e.g. Jamie Bulger case) are provided by the media when submitting their representations, they express moral panic as anger rather than fear, these particular panics generally have a variety of outcomes e.g. justice or disappointment. It can be seen that the moral panic the media create can benefit the public in a positive way helping society wake up and create change, as shown from the Ben Kinsella’s murder many members of the public used his story to build youth crime charities preventing knife crime and helping stop young teenagers turning to crime. When examined many moral panics follow Goode and Ben-Yehuda’s five characteristics of how they are showed although they also stated a additional two characteristics with Cohen that state these two developments inform the individual that society is in the control of a moral panic and the creation of ‘folk devils’ and a ‘disaster mentality’ (Cohen 1972 :140 in Goode Ben-Yehuda 1994: 28). This comes with help from the media and they are the main influence in helping spread this moral panic without the media not many members of society can become involved with the creation of a moral panic. This is shown in the Stephan Lawrence case this terrible act was characterised modern British society ignoring the fact figures have shown such murders are extremely rare. Although it was not that this particular murder was a ‘symbol of nineties Britain’ but the media’s reaction to it (Bradley 1994: 1). Bibliography Bradley, Ann (1994) ‘A Morality Play For Our Times’ (Living Marxism issue 63). Cohen, S. (1973). Folk Devils and Moral Panics. St Albans: Paladin. Furedi, Frank (1994) ‘A Plague of Moral Panics’ (Living Marxism issue 73) Goode, Erich and Ben-Yehuda, Nachman- Moral Panics: Social Construction of Deviance: Oxford Wiley-Blackwell publishers (1994). Hough, Mike and Roberts, Julian. â€Å"Youth crime and youth justice†: the policy press (2003). Jones, M, and E. Jones. (1999). Mass Media. London: Macmillan Press. Kuzma, Cindy. Rights and Liberties: Sex, Lies, and Moral Panics (2005). The Daily Mail- â€Å"murderers† (14 February 1997). The Daily Mail â€Å"T.V stars brother stabbed as he begged for help† (June 30, 2008).

Collision and Collusion

Collision and Collusion Collision and Collusion Collision and Collusion By Maeve Maddox A philosophical question from a reader prompts this post: I find it very interesting how collision is so close to collusion, considering the strange financial shenanigans that occur in that business [insurance and collision repair].   What is the background of these two words?   Are they actually related in any way? Clearly, the reader has had less fortunate experiences with insurance companies and collision repair centers than I have. The only connection between collision and collusion that I can discern is the prefix col-, which is a rendering of the Latin preposition cum (with). In English words, cum has produced the prefixes com-, con-, and col-. These prefixes convey the idea of â€Å"together, together with, in combination or union.† For example, the noun companion combines com- with panis (bread). A companion is â€Å"a person to eat bread with.† Sharing a meal with someone is often a sign of intimacy. Collision comes from the verb collide (col + laedere). The Latin verb laedere means â€Å"to injure† or â€Å"to damage.† When things collide, they strike or clash together. Collusion comes from the verb collude (col + ludere), The Latin verb ludere means, â€Å"to play.† When people collude, they â€Å"play† together. The kind of play meant here is not the friendly kind. It’s the deceptive activity implied in the expressions â€Å"to play at,† â€Å"to play one false,† and â€Å"to play into someone’s hands.† Collision is â€Å"the violent encounter of a moving body with another.† On the street, a collision usually involves vehicles. In physics, particles collide. Both collision and collide are used figuratively to indicate a clash of wills. The noun collision may also be used attributively (i.e., to modify another noun). Here are examples of usage: Both of the Washington State Patrol troopers injured in collisions Sunday night near Northgate have been released from the hospital. Two Metro-North Railroad trains collided after a derailment near Fairfield, Conn., at the height of the evening rush on Friday. Somalia: What happens when political and humanitarian goals collide? Global Markets and National Politics: Collision Course or Virtuous Circle? Collusion is a secret agreement for purposes of trickery or fraud. In law, collusion is an agreement between two or more parties for the purpose of defrauding others or to gain an unfair market advantage, for example, price-fixing and inside trading. Here are some recent headlines: Big Tech Companies Agree To Pay Up Over Hiring Collusion Shell and BP accused of collusion in South Africa How Hospitals and Health Insurers Collude at Your Expense Business and Government Collude over Education Policy and Funding Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:Coordinating vs. Subordinating Conjunctions50 Nautical Terms in General Use20 Movies Based on Shakespeare Plays

SWOT Analysis of Business Plan for the Education Website Assignment

SWOT Analysis of Business Plan for the Education Website - Assignment Example This paper discusses about an Educational Website Business Plan as a business venture as available on the site: http://www.bplans.com/educational_website_business_plan/executive_summary_fc.php Details of the Business Plan under Consideration The Education Website Business is basically to educate people as to why they should use environmentally products that can sustain living on this earth. Due to rapid industrialization and growth of population, there has been a grave threat to our environment. Rapid climate changes such as floods, cyclones, or scanty rain falls throughout the world have threatened our living on this planet. A time has come to educate the people on this very sensitive matter and earn the living adopting eco friendly measures. The purpose of the website is to guide and educate people that with a little change in their living style and consumption habits they can make huge difference. The revenue comes in the form of commission received on selling products that can su stain life and do not harm our environment. As such, it does not require stocking or maintaining any inventory of products. Thus, plan is to keep expenses at the least and without involvement of any variable cost. A small Fixed expenses will be toward maintaining a website and very little will be spent on other small requirements. To make profit from the first year is not a sole aim; however, equally it has been kept in mind that business does not have negative cash flows. SWOT analysis will be crucial to understand the viability of this business plan. Strengths of the Plan This is a unique business plan and their lies its strength compared with any conventional business plan. The advantage is that it does not need huge financial resources for any machinery or equipment; neither any hard core marketing is required. This being a novel concept does not pose any threat in terms of real competition. The company has tied with several manufacturers who themselves, in turn, are staunch sup porters of eco friendly products. They produce and sell only those products which replace existing non biodegradable products such as plastics and bio fuels. Marketing means efforts required in popularizing the web site and that is done through link building and SEO techniques requiring minimal expense. Break even and financial ratio analysis indicates that business plan can take off without long gestation period. The business plan for an educative website like this is to provide the information to the people that are in search of environmentally friendly products. Ever since the awareness among people has increased, the market has also expanded many folds for such products. Currently, there are hundreds of businesses that exclusively manufacture such products. Since this is purely an education site, there is no need to create any distribution strategies; neither there is any need to keep any inventories on any of the product. People just visit the site, place their orders and make the payments. Orders are then diverted to the respective manufacturers deducting applicable discounts or commissions for delivery to the buyer. There is no need of any highly trained person for running this business and that is also strength of this business plan. Weaknesses The major weakness in the business plan is that it does not speak clearly how educative content will be developed in the beginning. In fact, it will require intense efforts either through search optimization techniques (SEO) or link building or through other techniques such as educative articles or schemes for environmental cause for making the buyers to visit this site. Great efforts will be needed to generate unique and educative

Wound care Essay Example | Topics and Well Written Essays - 1000 words

Wound care - Essay Example It is the hope of this author that such a unit of analysis will be beneficial in not only providing the reader with a more informed understanding of how this process normally takes place within the medical sphere; but also with regard to furthering best practices within the medical community and spreading awareness of common techniques and practices. One of the most overlooked aspects of wound care is with respect to the fact that many medical professionals focus too much attention on identifying the type of wound and follow a rather limited procedure in terms of how the wound should be addressed. For instance, a wound sustained as the result of a fall could easily have foreign objects embedded beneath the skin or other tissues of the body. Similarly, a persistent bedsore is not likely to have embedded material that could potentially cause issues with respect to treating in healing the wound at a later date. Yet, as a function of simplicity, many medical professionals are oftentimes tempted to treat all wounds in the same manner. This is not only a shortsighted approach, it does not benefit the ultimate health and Outlook of the individual patient in question. This necessarily brings the analysis to the first and most salient point that should be discussed. Essentially, the role of identifying the wound, asking salient questions , and gathering relevant information is the first and most important process that any medical professional should engage in prior to attempting to dress the wound (Chen et al., 2013). As illustrated previously, a fall or similar wound that could have introduced foreign particles beneath the skin or tissue requires an alternative approach as compared to a wound that was sustained without direct trauma being applied to the individual. Likewise, with a wound sustained as a result of a fall or

New Imperialism in Africa (Sudan and Egypt) Essay

New Imperialism in Africa (Sudan and Egypt) - Essay Example There were spurts of resistance to foreign invasion and dominance throughout Africa. Iweriebor (n.d.) points out that colonization of Africa was primarily orchestrated by European powers. The drive for conquest and colonization of Africa was for obtaining economic, political and social advantages among competing European powers. The underlying source of competitive powers among European states was the capitalist incentive. European powers were searching for natural resources, markets and ultimately profits in order to obtain economic, political and social dominance over one another. Specifically, Britain, Germany, France, Spain, Italy and Portugal were aggressively attempting to gain dominance in Europe and it was believed that acquiring foreign territories globally would improve economic, political and social prowess. The social problems that colonizing Africa was intended to address were unemployment, displacement, homelessness, poverty and many other social issues arising out of i ndustrialization. Roger, L. and History Guy Media. â€Å"The Wars of Sudan: From Egyptian Conquest to the Present†. Master of Arts Military History, Norwich University, 2011. http://www.historyguy.com/wars_of_sudan.htm (Retrieved March, 29th 2012). ... n 1875 and 1877, with Egypt’s control of Sudan, Sudan became involved with Egypt’s retaliation when Ethiopia attempted to take control of the coastal area of the Red Sea. Between 1881 and 1885, Egypt was a protectorate of the British. During that time, the Mahdi, a Sudanese religious official started a resistance movement against Egypt’s control over Sudan. The British deployed military aid to Egypt. It was only after a long drawn out war that the Egyptians and the British would withdraw. The Sudanese War lasted from 1896-1899 marking the return of the British and the Egyptians who defeated the resistance movement rejuvenated by the Khalifa, successors to the Mahdi. During the Second World War, Egypt and Britain controlled Sudan. The British in particular, began a movement to affect the liberation of Ethiopia from Sudan. Essentially, division in Sudan during the joint occupation of Egypt and the British had long-lasting consequences for Sudan with civil wars, and uprisings dividing the country most notable was the Darfur War from 2003-2010. 2011, independence referendum resulted in even more unrest within Sudan. CIA World Factbook. â€Å"Sudan.† Central Intelligence Agency. (n.d.). https://www.cia.gov/library/publications/the-world-factbook/geos/su.html (Retrieved March, 29th, 2012). Sudan received independence from Britain in 1956 and the consequences of imperialism and colonization of Britain is evidenced by the country’s economic, social and political struggles since that time. Politically, there is a struggle between Islamic and non-Arab Sudanese in the South seeking political and social dominance in Sudan. As a result, Sudan has suffered through two protracted civil wars during the greater part of the 20th century. The results have been devastating as Sudan

Hollywood Representations of Women in 1930s Films Research Paper - 3

Hollywood Representations of Women in 1930s Films - Research Paper Example The 1930s is an important era to explore the role and portrayal of women because the Depression era lends an interesting backdrop to explore how women are portrayed, due to the changing morals and increasing cynicism of the country, and also because the early 1930s is considered to be â€Å"pre-code† (Doherty, 1999, p. 3). This refers to the Hays Code, which was instituted in 1931, but not enforced until 1934, and this meant that, during the early 1930s, studios had more free reign to portray women in a lurid fashion. Additionally, the pre-code era portrayed women differently than in the post code era, as the post code era relied less on showing women as sex objects and more on showing women as equals to men (Doherty, 1999, p. 5). Under this topic, the following themes will be discussed: the representation of women in films in the early 1930s, the role of women in films, the portrayal of women in films in the 1930s, and the criticism of women’s roles in films in the 193 0s. Hollywood cinematography often objectified women for men’s pleasure (Kaplan, 1994, p. 3). According to Mulvey (1989, p. 56), female characters in Hollywood were presented as being worth looking at but not worth listening to. As such, in this era, men viewed women in different dimensions, often known as the Madonna/Whore (Kaplan, 1994, p. 103). This means that women were stereotyped either as sexually active whores, or pristine and powerless Madonnas (housewives). According to Gates (2011, p. 23), most Hollywood films present women images with the purpose of gratifying male viewers.   

How can organisations ensure that information held within their Essay

How can organisations ensure that information held within their information systems is both secure and also used in an ethical and socially responsible manner - Essay Example n accurate and quickly gathered information regarding markets, products, customers, ideas, and other aspects concerning the business, in order to properly plan and implement their future strategies. Businesses must also keep accurate records of their past, current, and future plans in order to function in an organized manner (Martin, pg. 256, 1973). As businesses must take due care of their possessions and assets to prevent damage or theft, businesses must also protect their information from being stolen or misused. While assets may be quite expensive and valuable for the firm, information is worth much more and has a higher risk involved. Cyber crime is at large in today’s technologically advanced world, in which thieves do not attempt to take physical assets from people, but directly aim to access intangible information, which is regarded as more valuable. Corporations keep their information safe on computers that are locked with passwords and only staff is permitted to access the information. However, often there are instances of information leaks or access to restricted records by competitors, which causes the business immense damage. Hackers and other cyber thieves access important information to commit frauds or to manipulate the business’s financial records. Many times, large amounts of cash are transferred from the business account to other accounts and they become irretrievable (Kankanhalli, Teo, Tan, & Wei, pg. 145-147, 2003). There are thousands of ways that businesses can suffer harm through the access of their personal information. Account numbers, financial information, customer records, meeting plans, and new business strategies are all recorded on computers and it is regarded as a safer place to put such information rather than in paper form where it is easily accessible to all. Unfortunately, while computers may be the safer place to put such information, saving it from ordinary people and ordinary thieves, yet it is still considerably unsafe

Hollywood Representations of Women in 1930s Films Research Paper - 3

Hollywood Representations of Women in 1930s Films - Research Paper Example The 1930s is an important era to explore the role and portrayal of women because the Depression era lends an interesting backdrop to explore how women are portrayed, due to the changing morals and increasing cynicism of the country, and also because the early 1930s is considered to be â€Å"pre-code† (Doherty, 1999, p. 3). This refers to the Hays Code, which was instituted in 1931, but not enforced until 1934, and this meant that, during the early 1930s, studios had more free reign to portray women in a lurid fashion. Additionally, the pre-code era portrayed women differently than in the post code era, as the post code era relied less on showing women as sex objects and more on showing women as equals to men (Doherty, 1999, p. 5). Under this topic, the following themes will be discussed: the representation of women in films in the early 1930s, the role of women in films, the portrayal of women in films in the 1930s, and the criticism of women’s roles in films in the 193 0s. Hollywood cinematography often objectified women for men’s pleasure (Kaplan, 1994, p. 3). According to Mulvey (1989, p. 56), female characters in Hollywood were presented as being worth looking at but not worth listening to. As such, in this era, men viewed women in different dimensions, often known as the Madonna/Whore (Kaplan, 1994, p. 103). This means that women were stereotyped either as sexually active whores, or pristine and powerless Madonnas (housewives). According to Gates (2011, p. 23), most Hollywood films present women images with the purpose of gratifying male viewers.   

International Management Assignment Example | Topics and Well Written Essays - 1250 words

International Management - Assignment Example The study reviews what globalization is. It depicts its various definitions, singles out its three types, and describes its constituents. The work examines how globalization influences the economies of nations. Special attention is paid to the impact of globalization in the USA, China, and India. The author explains the term global village which emerged in globalization times. It means integration of people, institutions into a shared objective. The USA, China, and India encourage their institutions to engage in foreign trade benefiting from the international commerce. At the same time the author describes negative opinions about globalization. Critics of globalization point a dim picture of this aspect. They claim that globalization erodes the sovereignty of states. The author shows why those views are invalid. Countries which have embraced the aspect of globalization are sovereign by all definitions. The work illustrates the opposite: China takes care of its domestic and foreign po licies without any interference from other countries. India is also a sovereign state, formulating and implementing its domestic policies without interference from other states, and, therefore, notion of globalization eroding the much valued state sovereignty is uncalled for. Countries which have not embraced globalization are suffering from the consequences. North Korea has closed its economy from liberalization resulting into poverty of its citizens and of the state.

Gmos and Organic Food Essay Example for Free

Gmos and Organic Food Essay Why spend more money on organic food? Why are GMO products lasting longer? These are commonly asked questions which will be explained. By the definition of GMO products, they encompass alimentary products grown from seeds that have been genetically altered. Organic products are those that are grown under the traditional way, without any intervention of Bio-engineering, and also without the usage of chemicals, known as pesticides. The Author, Michael Pollan in both, â€Å"Omnivore’s Dilemma† and â€Å"In Defense of Food† makes an extensive and detailed analyzation of the production of food now days. The big corporations (farms) are now known as manufacturing factories; where practically all the elements of their production process are strictly controlled. This highly technological system reduces the nutritional value of their products and in many cases their flavor as well, but it guarantees high volumes and longer shelf life of the products. An example of a food that would be known as a GMO would be tomatoes, which would be less healthy and again it wouldn’t taste the same as an organic one. Organic products are grown by small farmers according to old farming techniques. These products do not need the addition of micronutrients like GMOs; they maintain all the nutritional values and the original taste. Unfortunately, small farmers can not satisfy the demand that the market needs, let alone, the prices are higher. For example, if you were to sell organic tomatoes, you would have to need to sell them locally. If a company such as organic valley were to be ship organic products from California to New York, with them having shorter expiration date, they would end up going bad. It would be hard for everyone to have the budget to buy and eat organic food; even expensive restaurants don’t use organic food. So, what is better? Feeding a large growing population with GMO products; or to go back to square one, and run the risk of not having enough supply and have the prices skyrocket. At the end of the day, people will eat more GMO food for not everyone has money to buy organic food.

Analysis of OECD Principles of Corporate Governance

Analysis of OECD Principles of Corporate Governance Foreword The OECD Principles of Corporate Governance were endorsed by OECD Ministers in 1999 and have since become an international benchmark for policy makers, investors, corporations and other stakeholders worldwide. They have advanced the corporate governance agenda and provided specific guidance for legislative and regulatory initiatives in both OECD and non OECD countries. The Financial Stability Forum has designated the Principles as one of the 12 key standards for sound financial systems. The Principles also provide the basis for an extensive programme of cooperation between OECD and non-OECD countries and underpin the corporate governance component of World Bank/IMF Reports on the Observance of Standards and Codes (ROSC). The Principles have now been thoroughly reviewed to take account of recent developments and experiences in OECD member and non-member countries. Policy makers are now more aware of the contribution good corporate governance makes to financial market stability, invest ment and economic growth. Companies better understand how good corporate governance contributes to their competitiveness. Investors especially collective investment institutions and pension funds acting in a fiduciary capacity realise they have a role to play in ensuring good corporate governance practices, thereby underpinning the value of their investments. In todays economies, interest in corporate governance goes beyond that of shareholders in the performance of individual companies. As companies play a pivotal role in our economies and we rely increasingly on private sector institutions to manage personal savings and secure retirement incomes, good corporate governance is important to broad and growing segments of the population. The review of the Principles was undertaken by the OECD Steering Group on Corporate Governance under a mandate from OECD Ministers in 2002. The review was supported by a comprehensive survey of how member countries addressed the different corporate governance challenges they faced. It also drew on experiences in economies outside the OECD area where the OECD, in co-operation with the World Bank and other sponsors, organises Regional Corporate Governance Roundtables to support regional reform efforts. The review process benefited from contributions from many parties. Key international institutions participated and extensive consultations were held with the private sector, labour, civil society and representatives from non-OECD countries. The process also benefited greatly from the insights of internationally recognised experts who participated in two high level informal gatherings I convened. Finally, many constructive suggestions were received when a draft of the Principles was made available for public comment on the internet. The Principles are a living instrument offering non-binding standards and good practices as well as guidance on implementation, which can be adapted to the specific circumstances of individual countries and regions. The OECD offers a forum for ongoing dialogue and exchange of experiences among member and non-member countries. To stay abreast of constantly changing circumstances, the OECD will closely follow developments in corporate governance, identifying trends and seeking remedies to new challenges. These Revised Principles will further reinforce OECDs contribution and commitment to collective efforts to strengthen the fabric of corporate governance around the world in the years ahead. This work will not eradicate criminal activity, but such activity will be made more difficult as rules and regulations are adopted in accordance with the Principles. Importantly, our efforts will also help develop a culture of values for professional an d ethical behaviour on which well functioning markets depend. Trust and integrity play an essential role in economic life and for the sake of business and future prosperity we have to make sure that they are properly rewarded. OECD Principles of Corporate Governance The OECD Principles of Corporate Governance were originally developed in response to a call by the OECD Council Meeting at Ministerial level on 27-28 April 1998, to develop, in conjunction with national governments, other relevant international organisations and the private sector, a set of corporate governance standards and guidelines. Since the Principles were agreed in 1999, they have formed the basis for corporate governance initiatives in both OECD and non-OECD countries alike. Moreover, they have been adopted as one of the Twelve Key Standards for Sound Financial Systems by the Financial Stability Forum. Accordingly, they form the basis of the corporate governance component of the World Bank/IMF Reports on the Observance of Standards and Codes (ROSC). The OECD Council Meeting at Ministerial Level in 2002 agreed to survey developments in OECD countries and to assess the Principles in light of developments in corporate governance. This task was entrusted to the OECD Steering Group on Corporate Governance, which comprises representatives from OECD countries. In addition, the World Bank, the Bank for International Settlements (BIS) and the International Monetary Fund (IMF) were observers to the Group. For the assessment, the Steering Group also invited the Financial Stability Forum, the Basel Committee, and the International Organization of Securities Commissions (IOSCO) as ad hoc observers. In its review of the Principles, the Steering Group has undertaken comprehensive consultations and has prepared with the assistance of members the Survey of Developments in OECD Countries. The consultations have included experts from a large number of countries which have participated in the Regional Corporate Governance Roundtables that the OECD organises in Russia, Asia, South East Europe, Latin America and Eurasia with the support of the Global Corporate Governance Forum and others, and in co-operation with the World Bank and other non-OECD countries as well. Moreover, the Steering Group has consulted a wide range of interested parties such as the business sector, investors, professional groups at national and international levels, trade unions, civil society organisations and international standard setting bodies. A draft version of the Principles was put on the OECD website for public comment and resulted in a large number of responses. These have been made public on the OECD we b site. On the basis of the discussions in the Steering Group, the Survey and the comments received during the wide ranging consultations, it was concluded that the 1999 Principles should be revised to take into account new developments and concerns. It was agreed that the revision should be pursued with a view to maintaining a non-binding principles-based approach, which recognises the need to adapt implementation to varying legal economic and cultural circumstances. The revised Principles contained in this document thus build upon a wide range of experience not only in the OECD area but also in non-OECD countries. Preamble The Principles are intended to assist OECD and non-OECD governments in their efforts to evaluate and improve the legal, institutional and regulatory framework for corporate governance in their countries, and to provide guidance and suggestions for stock exchanges, investors, corporations, and other parties that have a role in the process of developing good corporate governance. The Principles focus on publicly traded companies, both financial and non-financial. However, to the extent they are deemed applicable, they might also be a useful tool to improve corporate governance in non-traded companies, for example, privately held and stateowned enterprises. The Principles represent a common basis that OECD member countries consider essential for the development of good governance practices. They are intended to be concise, understandable and accessible to the international community. They are not intended to substitute for government, semi-government or private sector initiatives to dev elop more detailed best practice in corporate governance. Increasingly, the OECD and its member governments have recognized the synergy between macroeconomic and structural policies in achieving fundamental policy goals. Corporate governance is one key element in improving economic efficiency and growth as well as enhancing investor confidence. Corporate governance involves a set of relationships between a companys management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined. Good corporate governance should provide proper incentives for the board and management to pursue objectives that are in the interests of the company and its shareholders and should facilitate effective monitoring. The presence of an effective corporate governance system, within an individual company and across an economy as a whole, helps to provide a degree of confidence that is necessary for the proper functioning of a market economy. As a result, the cost of capital is lower and firms are encouraged to use resources more efficiently, thereby underpinning growth. Corporate governance is only part of the larger economic context in which firms operate that includes, for example, macroeconomic policies and the degree of competition in product and factor markets. The corporate governance framework also depends on the legal, regulatory, and institutional environment. In addition, factors such as business ethics and corporate awareness of the environmental and societal interests of the communities in which a company operates can also have an impact on its reputation and its long-term success. While a multiplicity of factors affect the governance and decisionmaking processes of firms, and are important to their long-term success, the Principles focus on governance problems that result from the separation of ownership and control. However, this is not simply an issue of the relationship between shareholders and management, although that is indeed the central element. In some jurisdictions, governance issues also arise from the power of certain controlling shareholders over minority shareholders. In other countries, employees have important legal rights irrespective of their ownership rights. The Principles therefore have to be complementary to a broader approach to the operation of checks and balances. Some of the other issues relevant to a companys decision-making processes, such as environmental, anti-corruption or ethical concerns, are taken into account but are treated more explicitly in a number of other OECD instruments (including the Guidelines for Multinational Ente rprises and the Convention on Combating Bribery of Foreign Public Officials in International Transactions) and the instruments of other international organisations. Corporate governance is affected by the relationships among participants in the governance system. Controlling shareholders, which may be individuals, family holdings, bloc alliances, or other corporations acting through a holding company or cross shareholdings, can significantly influence corporate behaviour. As owners of equity, institutional investors are increasingly demanding a voice in corporate governance in some markets. Individual shareholders usually do not seek to exercise governance rights but may be highly concerned about obtaining fair treatment from controlling shareholders and management. Creditors play an important role in a number of governance systems and can serve as external monitors over corporate performance. Employees and other stakeholders play an important role in contributing to the long-term success and performance of the corporation, while governments establish the overall institutional and legal framework for corporate governance. The role of each of the se participants and their interactions vary widely among OECD countries and among non- OECD countries as well. These relationships are subject, in part, to law and regulation and, in part, to voluntary adaptation and, most importantly, to market forces. The degree to which corporations observe basic principles of good corporate governance is an increasingly important factor for investment decisions. Of particular relevance is the relation between corporate governance practices and the increasingly international character of investment. International flows of capital enable companies to access financing from a much larger pool of investors. If countries are to reap the full benefits of the global capital market, and if they are to attract long-term patient capital, corporate governance arrangements must be credible, well understood across borders and adhere to internationally accepted principles. Even if corporations do not rely primarily on foreign sources of capital, adherence to good corporate governance practices will help improve the confidence of domestic investors, reduce the cost of capital, underpin the good functioning of financial markets, and ultimately induce more stable sources of financing. There is no single model of good corporate governance. However, work carried out in both OECD and non-OECD countries and within the Organisation has identified some common elements that underlie good corporate governance. The Principles build on these common elements and are formulated to embrace the different models that exist. For example, they do not advocate any particular board structure and the term board as used in this document is meant to embrace the different national models of board structures found in OECD and non-OECD countries. In the typical two tier system, found in some countries, board as used in the Principles refers to the supervisory board while key executives refers to the management board. In systems where the unitary board is overseen by an internal auditors body, the principles applicable to the board are also, mutatis mutandis, applicable. The terms corporation and company are used interchangeably in the text. The Principles are non-binding and do not aim at detailed prescriptions for national legislation. Rather, they seek to identify objectives and suggest various means for achieving them. Their purpose is to serve as a reference point. They can be used by policy makers as they examine and develop the legal and regulatory frameworks for corporate governance that reflect their own economic, social, legal and cultural circumstances, and by market participants as they develop their own practices. The Principles are evolutionary in nature and should be reviewed in light of significant changes in circumstances. To remain competitive in a changing world, corporations must innovate and adapt their corporate governance practices so that they can meet new demands and grasp new opportunities. Similarly, governments have an important responsibility for shaping an effective regulatory framework that provides for sufficient flexibility to allow markets to function effectively and to respond to expectations of shareholders and other stakeholders. It is up to governments and market participants to decide how to apply these Principles in developing their own frameworks for corporate governance, taking into account the costs and benefits of regulation. The following document is divided into two parts. The Principles presented in the first part of the document cover the following areas: I) Ensuring the basis for an effective corporate governance framework; II) The rights of shareholders and key ownership functions; III) The equitable treatment of shareholders; IV) The role of stakeholders; V) Disclosure and transparency; and VI) The responsibilities of the board. Each of the sections is headed by a single Principle that appears in bold italics and is followed by a number of supporting sub-principles. In the second part of the document, the Principles are supplemented by annotations that contain commentary on the Principles and are intended to help readers understand their rationale. The annotations may also contain descriptions of dominant trends and offer alternative implementation methods and examples that may be useful in making the Principles operational. Shareholders should be furnished with sufficient and timely information concerning the date, location and agenda of general meetings, as well as full and timely information regarding the issues to be decided at the meeting. Shareholders should have the opportunity to ask questions to the board, including questions relating to the annual external audit, to place items on the agenda of general meetings, and to propose resolutions, subject to reasonable limitations. Effective shareholder participation in key corporate governance decisions, such as the nomination and election of board members, should be facilitated. Shareholders should be able to make their views known on the remuneration policy for board members and key executives. The equity component of compensation schemes for board members and employees should be subject to shareholder approval. Ensuring the Basis for an Effective Corporate Governance Framework The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities. To ensure an effective corporate governance framework, it is necessary that an appropriate and effective legal, regulatory and institutional foundation is established upon which all market participants can rely in establishing their private contractual relations. This corporate governance framework typically comprises elements of legislation, regulation, selfregulatory arrangements, voluntary commitments and business practices that are the result of a countrys specific circumstances, history and tradition. The desirable mix between legislation, regulation, self-regulation, voluntary standards, etc. in this area will therefore vary from country to country. As new experiences accrue and business circumstances change, the content and structure of this framework might need to be adjusted. Countries seeking to implement the Principles should monitor their corporate governance framework, including regulatory and listing requirements and business practices, with the objective of maintaining and strengthening its contribution to market integrity and economic performance. As part of this, it is important to take into account the interactions and complementarity between different elements of the corporate governance framework and its overall ability to promote ethical, responsible and transparent corporate governance practices. Such analysis should be viewed as an important tool in the process of developing an effective corporate governance framework. To this end, effective and continuous consultation with the public is an essential element that is widely regarded as good practice. Moreover, in developing a corporate governance framework in each jurisdiction, national legislators and regulators should duly consider the need for, and the results from, effective international dialogue and cooperation. If these conditions are met, the governance system is more likely to avoid over-regulation, support the exercise of entrepreneurship and limit the risks of damaging conflicts of interest in both the private sector and in public institutions. The corporate governance framework should be developed with a view to its impact on overall economic performance, market integrity and the incentives it creates for market participants and the promotion of transparent and efficient markets. The corporate form of organisation of economic activity is a powerful force for growth. The regulatory and legal environment within which corporations operate is therefore of key importance to overall economic outcomes. Policy makers have a responsibility to put in place a framework that is flexible enough to meet the needs of corporations operating in widely different circumstances, facilitating their development of new opportunities to create value and to determine the most efficient deployment of resources. To achieve this goal, policy makers should remain focussed on ultimate economic outcomes and when considering policy options, they will need to undertake an analysis of the impact on key variables that affect the functioning of markets, such as incentive structures, the efficiency of self-regulatory systems and dealing with systemic conflicts of interest. Transparent and efficient markets serve to discipline market participants and to promote accountability. The legal and regulatory requirements that affect corporate governance practices in a jurisdiction should be consistent with the rule of law, transparent and enforceable. If new laws and regulations are needed, such as to deal with clear cases of market imperfections, they should be designed in a way that makes them possible to implement and enforce in an efficient and even handed manner covering all parties. Consultation by government and other regulatory authorities with corporations, their representative organisations and other stakeholders, is an effective way of doing this. Mechanisms should also be established for parties to protect their rights. In order to avoid over-regulation, unenforceable laws, and unintended consequences that may impede or distort business dynamics, policy measures should be designed with a view to their overall costs and benefits. Such assessments should take into account the need for effective enforcement, including the ability of authorities to deter dishonest behaviour and to impose effective sanctions for violations. Corporate governance objectives are also formulated in voluntary codes and standards that do not have the status of law or regulation. While such codes play an important role in improving corporate governance arrangements, they might leave shareholders and other stakeholders with uncertainty concerning their status and implementation. When codes and principles are used as a national standard or as an explicit substitute for legal or regulatory provisions, market credibility requires that their status in terms of coverage, implementation, compliance and sanctions is clearly specified. The division of responsibilities among different authorities in a jurisdiction should be clearly articulated and ensure that the public interest is served. Corporate governance requirements and practices are typically influenced by an array of legal domains, such as company law, securities regulation, accounting and auditing standards, insolvency law, contract law, labour law and tax law. Under these circumstances, there is a risk that the variety of legal influences may cause unintentional overlaps and even conflicts, which may frustrate the ability to pursue key corporate governance objectives. It is important that policy-makers are aware of this risk and take measures to limit it. Effective enforcement also requires that the allocation of responsibilities for supervision, implementation and enforcement among different authorities is clearly defined so that the competencies of complementary bodies and agencies are respected and used most effectively. Overlapping and perhaps contradictory regulations between national jurisdictions is also an issue that should be monitored so that no regulatory vacuum is allowed to develop (i.e. issues slipping through in which no authority has explicit responsibility) and to minimise the cost of compliance with multiple systems by corporations. When regulatory responsibilities or oversight are delegated to non-public bodies, it is desirable to explicitly assess why, and under what circumstances, such delegation is desirable. It is also essential that the governance structure of any such delegated institution be transparent and encompass the public interest. Supervisory, regulatory and enforcement authorities should have the authority, integrity and resources to fulfil their duties in a professional and objective manner. Moreover, their rulings should be timely, transparent and fully explained. Regulatory responsibilities should be vested with bodies that can pursue their functions without conflicts of interest and that are subject to judicial review. As the number of public companies, corporate events and the volume of disclosures increase, the resources of supervisory, regulatory and enforcement authorities may come under strain. As a result, in order to follow developments, they will have a significant demand for fully qualified staff to provide effective oversight and investigative capacity which will need to be appropriately funded. The ability to attract staff on competitive terms will enhance the quality and independence of supervision and enforcement. The Rights of Shareholders and Key Ownership Functions The corporate governance framework should protect and facilitate the exercise of shareholders rights. Equity investors have certain property rights. For example, an equity share in a publicly traded company can be bought, sold, or transferred. An equity share also entitles the investor to participate in the profits of the corporation, with liability limited to the amount of the investment. In addition, ownership of an equity share provides a right to information about the corporation and a right to influence the corporation, primarily by participation in general shareholder meetings and by voting. As a practical matter, however, the corporation cannot be managed by shareholder referendum. The shareholding body is made up of individuals and institutions whose interests, goals, investment horizons and capabilities vary. Moreover, the corporations management must be able to take business decisions rapidly. In light of these realities and the complexity of managing the corporations affairs in fast moving and ever changing markets, shareholders are not expected to assume responsibility fo r managing corporate activities. The responsibility for corporate strategy and operations is typically placed in the hands of the board and a management team that is selected, motivated and, when necessary, replaced by the board. Shareholders rights to influence the corporation centre on certain fundamental issues, such as the election of board members, or other means of influencing the composition of the board, amendments to the companys organic documents, approval of extraordinary transactions, and other basic issues as specified in company law and internal company statutes. This Section can be seen as a statement of the most basic rights of shareholders, which are recognised by law in virtually all OECD countries. Additional rights such as the approval or election of auditors, direct nomination of board members, the ability to pledge shares, the approval of distributions of profits, etc., can be found in various jurisdictions. Basic shareholder rights should include the right to: 1) secure methods of ownership registration; 2) convey or transfer shares; 3) obtain relevant and material information on the corporation on a timely and regular basis; 4) participate and vote in general shareholder meetings; 5) elect and remove members of the board; and 6) share in the profits of the corporation. Shareholders should have the right to participate in, and to be sufficiently informed on, decisions concerning fundamental corporate changes such as: 1) amendments to the statutes, or articles of incorporation or similar governing documents of the company; 2) the authorisation of additional shares; and 3) extraordinary transactions, including the transfer of all or substantially all assets, that in effect result in the sale of the company. The ability of companies to form partnerships and related companies and to transfer operational assets, cash flow rights and other rights and obligations to them is important for business flexibility and for delegating accountability in complex organisations. It also allows a company to divest itself of operational assets and to become only a holding company. However, without appropriate checks and balances such possibilities may also be abused. Shareholders should have the opportunity to participate effectively and vote in general shareholder meetings and should be informed of the rules, including voting procedures, that govern general shareholder meetings: Shareholders should be furnished with sufficient and timely information concerning the date, location and agenda of general meetings, as well as full and timely information regarding the issues to be decided at the meeting. Shareholders should have the opportunity to ask questions to the board, including questions relating to the annual external audit, to place items on the agenda of general meetings, and to propose esolutions, subject to reasonable limitations. In order to encourage shareholder participation in general meetings, some companies have improved the ability of shareholders to place items on the agenda by simplifying the process of filing amendments and resolutions.Improvements have also been made in order to make it easier for shareholders to submit questions in advance of the general meeting and to obtain replies from management and board members. Shareholders should also be able to ask questions relating to the external audit report. Companies are justified in assuring that abuses of such opportunities do not occur. It is reasonable, for example, to require that in order for shareholder resolutions to be placed on the agenda, they need to be supported by shareholders holding a specified market value or percentage of shares or voting rights. This threshold should be determined taking into account the degree of ownership concentration, in order to ensure that minority shareholders are not effectively prevented from putting any i tems on the agenda. Shareholder resolutions that are approved and fall within the competence of the shareholders meeting should be addressed by the board. Effective shareholder participation in key corporate governance decisions, such as the nomination and election of board members, should be facilitated. Shareholders should be able to make their views known on the remuneration policy for board members and key executives. The equity component of compensation schemes for board members and employees should be subject to shareholder approval. To elect the members of the board is a basic shareholder right. For the election process to be effective, shareholders should be able to participate in the nomination of board members and vote on individual nominees or on different lists of them. To this end, shareholders have access in a number of countries to the companys proxy materials which are sent to shareholders, although sometimes subject to conditions to prevent abuse. With respect to nomination of candidates, boards in many companies have established nomination committees to ensure proper compliance with established nomination procedures and to facilitate and coordinate the search for a balanced and qualified board. It is increasingly regarded as good practice in many countries for independent board members to have a key role on this committee. To further improve the selection process, the Principles also call for full disclosure of the experience and background of candidates for the board and the nomination process, which will allow an informed assessment of the abilities and suitability of each candidate. The Principles call for the disclosure of remuneration policy by the board. In particular, it is important for shareholders to know the specific link between remuneration and company performance when they assess the capability of the board and the qualities they should seek in nominees for the board. Although board and executive contracts are not an appropriate subject for approval by the general meeting of shareholders, there should be a means by which they can express their views. Several countries have introd Analysis of OECD Principles of Corporate Governance Analysis of OECD Principles of Corporate Governance Foreword The OECD Principles of Corporate Governance were endorsed by OECD Ministers in 1999 and have since become an international benchmark for policy makers, investors, corporations and other stakeholders worldwide. They have advanced the corporate governance agenda and provided specific guidance for legislative and regulatory initiatives in both OECD and non OECD countries. The Financial Stability Forum has designated the Principles as one of the 12 key standards for sound financial systems. The Principles also provide the basis for an extensive programme of cooperation between OECD and non-OECD countries and underpin the corporate governance component of World Bank/IMF Reports on the Observance of Standards and Codes (ROSC). The Principles have now been thoroughly reviewed to take account of recent developments and experiences in OECD member and non-member countries. Policy makers are now more aware of the contribution good corporate governance makes to financial market stability, invest ment and economic growth. Companies better understand how good corporate governance contributes to their competitiveness. Investors especially collective investment institutions and pension funds acting in a fiduciary capacity realise they have a role to play in ensuring good corporate governance practices, thereby underpinning the value of their investments. In todays economies, interest in corporate governance goes beyond that of shareholders in the performance of individual companies. As companies play a pivotal role in our economies and we rely increasingly on private sector institutions to manage personal savings and secure retirement incomes, good corporate governance is important to broad and growing segments of the population. The review of the Principles was undertaken by the OECD Steering Group on Corporate Governance under a mandate from OECD Ministers in 2002. The review was supported by a comprehensive survey of how member countries addressed the different corporate governance challenges they faced. It also drew on experiences in economies outside the OECD area where the OECD, in co-operation with the World Bank and other sponsors, organises Regional Corporate Governance Roundtables to support regional reform efforts. The review process benefited from contributions from many parties. Key international institutions participated and extensive consultations were held with the private sector, labour, civil society and representatives from non-OECD countries. The process also benefited greatly from the insights of internationally recognised experts who participated in two high level informal gatherings I convened. Finally, many constructive suggestions were received when a draft of the Principles was made available for public comment on the internet. The Principles are a living instrument offering non-binding standards and good practices as well as guidance on implementation, which can be adapted to the specific circumstances of individual countries and regions. The OECD offers a forum for ongoing dialogue and exchange of experiences among member and non-member countries. To stay abreast of constantly changing circumstances, the OECD will closely follow developments in corporate governance, identifying trends and seeking remedies to new challenges. These Revised Principles will further reinforce OECDs contribution and commitment to collective efforts to strengthen the fabric of corporate governance around the world in the years ahead. This work will not eradicate criminal activity, but such activity will be made more difficult as rules and regulations are adopted in accordance with the Principles. Importantly, our efforts will also help develop a culture of values for professional an d ethical behaviour on which well functioning markets depend. Trust and integrity play an essential role in economic life and for the sake of business and future prosperity we have to make sure that they are properly rewarded. OECD Principles of Corporate Governance The OECD Principles of Corporate Governance were originally developed in response to a call by the OECD Council Meeting at Ministerial level on 27-28 April 1998, to develop, in conjunction with national governments, other relevant international organisations and the private sector, a set of corporate governance standards and guidelines. Since the Principles were agreed in 1999, they have formed the basis for corporate governance initiatives in both OECD and non-OECD countries alike. Moreover, they have been adopted as one of the Twelve Key Standards for Sound Financial Systems by the Financial Stability Forum. Accordingly, they form the basis of the corporate governance component of the World Bank/IMF Reports on the Observance of Standards and Codes (ROSC). The OECD Council Meeting at Ministerial Level in 2002 agreed to survey developments in OECD countries and to assess the Principles in light of developments in corporate governance. This task was entrusted to the OECD Steering Group on Corporate Governance, which comprises representatives from OECD countries. In addition, the World Bank, the Bank for International Settlements (BIS) and the International Monetary Fund (IMF) were observers to the Group. For the assessment, the Steering Group also invited the Financial Stability Forum, the Basel Committee, and the International Organization of Securities Commissions (IOSCO) as ad hoc observers. In its review of the Principles, the Steering Group has undertaken comprehensive consultations and has prepared with the assistance of members the Survey of Developments in OECD Countries. The consultations have included experts from a large number of countries which have participated in the Regional Corporate Governance Roundtables that the OECD organises in Russia, Asia, South East Europe, Latin America and Eurasia with the support of the Global Corporate Governance Forum and others, and in co-operation with the World Bank and other non-OECD countries as well. Moreover, the Steering Group has consulted a wide range of interested parties such as the business sector, investors, professional groups at national and international levels, trade unions, civil society organisations and international standard setting bodies. A draft version of the Principles was put on the OECD website for public comment and resulted in a large number of responses. These have been made public on the OECD we b site. On the basis of the discussions in the Steering Group, the Survey and the comments received during the wide ranging consultations, it was concluded that the 1999 Principles should be revised to take into account new developments and concerns. It was agreed that the revision should be pursued with a view to maintaining a non-binding principles-based approach, which recognises the need to adapt implementation to varying legal economic and cultural circumstances. The revised Principles contained in this document thus build upon a wide range of experience not only in the OECD area but also in non-OECD countries. Preamble The Principles are intended to assist OECD and non-OECD governments in their efforts to evaluate and improve the legal, institutional and regulatory framework for corporate governance in their countries, and to provide guidance and suggestions for stock exchanges, investors, corporations, and other parties that have a role in the process of developing good corporate governance. The Principles focus on publicly traded companies, both financial and non-financial. However, to the extent they are deemed applicable, they might also be a useful tool to improve corporate governance in non-traded companies, for example, privately held and stateowned enterprises. The Principles represent a common basis that OECD member countries consider essential for the development of good governance practices. They are intended to be concise, understandable and accessible to the international community. They are not intended to substitute for government, semi-government or private sector initiatives to dev elop more detailed best practice in corporate governance. Increasingly, the OECD and its member governments have recognized the synergy between macroeconomic and structural policies in achieving fundamental policy goals. Corporate governance is one key element in improving economic efficiency and growth as well as enhancing investor confidence. Corporate governance involves a set of relationships between a companys management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined. Good corporate governance should provide proper incentives for the board and management to pursue objectives that are in the interests of the company and its shareholders and should facilitate effective monitoring. The presence of an effective corporate governance system, within an individual company and across an economy as a whole, helps to provide a degree of confidence that is necessary for the proper functioning of a market economy. As a result, the cost of capital is lower and firms are encouraged to use resources more efficiently, thereby underpinning growth. Corporate governance is only part of the larger economic context in which firms operate that includes, for example, macroeconomic policies and the degree of competition in product and factor markets. The corporate governance framework also depends on the legal, regulatory, and institutional environment. In addition, factors such as business ethics and corporate awareness of the environmental and societal interests of the communities in which a company operates can also have an impact on its reputation and its long-term success. While a multiplicity of factors affect the governance and decisionmaking processes of firms, and are important to their long-term success, the Principles focus on governance problems that result from the separation of ownership and control. However, this is not simply an issue of the relationship between shareholders and management, although that is indeed the central element. In some jurisdictions, governance issues also arise from the power of certain controlling shareholders over minority shareholders. In other countries, employees have important legal rights irrespective of their ownership rights. The Principles therefore have to be complementary to a broader approach to the operation of checks and balances. Some of the other issues relevant to a companys decision-making processes, such as environmental, anti-corruption or ethical concerns, are taken into account but are treated more explicitly in a number of other OECD instruments (including the Guidelines for Multinational Ente rprises and the Convention on Combating Bribery of Foreign Public Officials in International Transactions) and the instruments of other international organisations. Corporate governance is affected by the relationships among participants in the governance system. Controlling shareholders, which may be individuals, family holdings, bloc alliances, or other corporations acting through a holding company or cross shareholdings, can significantly influence corporate behaviour. As owners of equity, institutional investors are increasingly demanding a voice in corporate governance in some markets. Individual shareholders usually do not seek to exercise governance rights but may be highly concerned about obtaining fair treatment from controlling shareholders and management. Creditors play an important role in a number of governance systems and can serve as external monitors over corporate performance. Employees and other stakeholders play an important role in contributing to the long-term success and performance of the corporation, while governments establish the overall institutional and legal framework for corporate governance. The role of each of the se participants and their interactions vary widely among OECD countries and among non- OECD countries as well. These relationships are subject, in part, to law and regulation and, in part, to voluntary adaptation and, most importantly, to market forces. The degree to which corporations observe basic principles of good corporate governance is an increasingly important factor for investment decisions. Of particular relevance is the relation between corporate governance practices and the increasingly international character of investment. International flows of capital enable companies to access financing from a much larger pool of investors. If countries are to reap the full benefits of the global capital market, and if they are to attract long-term patient capital, corporate governance arrangements must be credible, well understood across borders and adhere to internationally accepted principles. Even if corporations do not rely primarily on foreign sources of capital, adherence to good corporate governance practices will help improve the confidence of domestic investors, reduce the cost of capital, underpin the good functioning of financial markets, and ultimately induce more stable sources of financing. There is no single model of good corporate governance. However, work carried out in both OECD and non-OECD countries and within the Organisation has identified some common elements that underlie good corporate governance. The Principles build on these common elements and are formulated to embrace the different models that exist. For example, they do not advocate any particular board structure and the term board as used in this document is meant to embrace the different national models of board structures found in OECD and non-OECD countries. In the typical two tier system, found in some countries, board as used in the Principles refers to the supervisory board while key executives refers to the management board. In systems where the unitary board is overseen by an internal auditors body, the principles applicable to the board are also, mutatis mutandis, applicable. The terms corporation and company are used interchangeably in the text. The Principles are non-binding and do not aim at detailed prescriptions for national legislation. Rather, they seek to identify objectives and suggest various means for achieving them. Their purpose is to serve as a reference point. They can be used by policy makers as they examine and develop the legal and regulatory frameworks for corporate governance that reflect their own economic, social, legal and cultural circumstances, and by market participants as they develop their own practices. The Principles are evolutionary in nature and should be reviewed in light of significant changes in circumstances. To remain competitive in a changing world, corporations must innovate and adapt their corporate governance practices so that they can meet new demands and grasp new opportunities. Similarly, governments have an important responsibility for shaping an effective regulatory framework that provides for sufficient flexibility to allow markets to function effectively and to respond to expectations of shareholders and other stakeholders. It is up to governments and market participants to decide how to apply these Principles in developing their own frameworks for corporate governance, taking into account the costs and benefits of regulation. The following document is divided into two parts. The Principles presented in the first part of the document cover the following areas: I) Ensuring the basis for an effective corporate governance framework; II) The rights of shareholders and key ownership functions; III) The equitable treatment of shareholders; IV) The role of stakeholders; V) Disclosure and transparency; and VI) The responsibilities of the board. Each of the sections is headed by a single Principle that appears in bold italics and is followed by a number of supporting sub-principles. In the second part of the document, the Principles are supplemented by annotations that contain commentary on the Principles and are intended to help readers understand their rationale. The annotations may also contain descriptions of dominant trends and offer alternative implementation methods and examples that may be useful in making the Principles operational. Shareholders should be furnished with sufficient and timely information concerning the date, location and agenda of general meetings, as well as full and timely information regarding the issues to be decided at the meeting. Shareholders should have the opportunity to ask questions to the board, including questions relating to the annual external audit, to place items on the agenda of general meetings, and to propose resolutions, subject to reasonable limitations. Effective shareholder participation in key corporate governance decisions, such as the nomination and election of board members, should be facilitated. Shareholders should be able to make their views known on the remuneration policy for board members and key executives. The equity component of compensation schemes for board members and employees should be subject to shareholder approval. Ensuring the Basis for an Effective Corporate Governance Framework The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities. To ensure an effective corporate governance framework, it is necessary that an appropriate and effective legal, regulatory and institutional foundation is established upon which all market participants can rely in establishing their private contractual relations. This corporate governance framework typically comprises elements of legislation, regulation, selfregulatory arrangements, voluntary commitments and business practices that are the result of a countrys specific circumstances, history and tradition. The desirable mix between legislation, regulation, self-regulation, voluntary standards, etc. in this area will therefore vary from country to country. As new experiences accrue and business circumstances change, the content and structure of this framework might need to be adjusted. Countries seeking to implement the Principles should monitor their corporate governance framework, including regulatory and listing requirements and business practices, with the objective of maintaining and strengthening its contribution to market integrity and economic performance. As part of this, it is important to take into account the interactions and complementarity between different elements of the corporate governance framework and its overall ability to promote ethical, responsible and transparent corporate governance practices. Such analysis should be viewed as an important tool in the process of developing an effective corporate governance framework. To this end, effective and continuous consultation with the public is an essential element that is widely regarded as good practice. Moreover, in developing a corporate governance framework in each jurisdiction, national legislators and regulators should duly consider the need for, and the results from, effective international dialogue and cooperation. If these conditions are met, the governance system is more likely to avoid over-regulation, support the exercise of entrepreneurship and limit the risks of damaging conflicts of interest in both the private sector and in public institutions. The corporate governance framework should be developed with a view to its impact on overall economic performance, market integrity and the incentives it creates for market participants and the promotion of transparent and efficient markets. The corporate form of organisation of economic activity is a powerful force for growth. The regulatory and legal environment within which corporations operate is therefore of key importance to overall economic outcomes. Policy makers have a responsibility to put in place a framework that is flexible enough to meet the needs of corporations operating in widely different circumstances, facilitating their development of new opportunities to create value and to determine the most efficient deployment of resources. To achieve this goal, policy makers should remain focussed on ultimate economic outcomes and when considering policy options, they will need to undertake an analysis of the impact on key variables that affect the functioning of markets, such as incentive structures, the efficiency of self-regulatory systems and dealing with systemic conflicts of interest. Transparent and efficient markets serve to discipline market participants and to promote accountability. The legal and regulatory requirements that affect corporate governance practices in a jurisdiction should be consistent with the rule of law, transparent and enforceable. If new laws and regulations are needed, such as to deal with clear cases of market imperfections, they should be designed in a way that makes them possible to implement and enforce in an efficient and even handed manner covering all parties. Consultation by government and other regulatory authorities with corporations, their representative organisations and other stakeholders, is an effective way of doing this. Mechanisms should also be established for parties to protect their rights. In order to avoid over-regulation, unenforceable laws, and unintended consequences that may impede or distort business dynamics, policy measures should be designed with a view to their overall costs and benefits. Such assessments should take into account the need for effective enforcement, including the ability of authorities to deter dishonest behaviour and to impose effective sanctions for violations. Corporate governance objectives are also formulated in voluntary codes and standards that do not have the status of law or regulation. While such codes play an important role in improving corporate governance arrangements, they might leave shareholders and other stakeholders with uncertainty concerning their status and implementation. When codes and principles are used as a national standard or as an explicit substitute for legal or regulatory provisions, market credibility requires that their status in terms of coverage, implementation, compliance and sanctions is clearly specified. The division of responsibilities among different authorities in a jurisdiction should be clearly articulated and ensure that the public interest is served. Corporate governance requirements and practices are typically influenced by an array of legal domains, such as company law, securities regulation, accounting and auditing standards, insolvency law, contract law, labour law and tax law. Under these circumstances, there is a risk that the variety of legal influences may cause unintentional overlaps and even conflicts, which may frustrate the ability to pursue key corporate governance objectives. It is important that policy-makers are aware of this risk and take measures to limit it. Effective enforcement also requires that the allocation of responsibilities for supervision, implementation and enforcement among different authorities is clearly defined so that the competencies of complementary bodies and agencies are respected and used most effectively. Overlapping and perhaps contradictory regulations between national jurisdictions is also an issue that should be monitored so that no regulatory vacuum is allowed to develop (i.e. issues slipping through in which no authority has explicit responsibility) and to minimise the cost of compliance with multiple systems by corporations. When regulatory responsibilities or oversight are delegated to non-public bodies, it is desirable to explicitly assess why, and under what circumstances, such delegation is desirable. It is also essential that the governance structure of any such delegated institution be transparent and encompass the public interest. Supervisory, regulatory and enforcement authorities should have the authority, integrity and resources to fulfil their duties in a professional and objective manner. Moreover, their rulings should be timely, transparent and fully explained. Regulatory responsibilities should be vested with bodies that can pursue their functions without conflicts of interest and that are subject to judicial review. As the number of public companies, corporate events and the volume of disclosures increase, the resources of supervisory, regulatory and enforcement authorities may come under strain. As a result, in order to follow developments, they will have a significant demand for fully qualified staff to provide effective oversight and investigative capacity which will need to be appropriately funded. The ability to attract staff on competitive terms will enhance the quality and independence of supervision and enforcement. The Rights of Shareholders and Key Ownership Functions The corporate governance framework should protect and facilitate the exercise of shareholders rights. Equity investors have certain property rights. For example, an equity share in a publicly traded company can be bought, sold, or transferred. An equity share also entitles the investor to participate in the profits of the corporation, with liability limited to the amount of the investment. In addition, ownership of an equity share provides a right to information about the corporation and a right to influence the corporation, primarily by participation in general shareholder meetings and by voting. As a practical matter, however, the corporation cannot be managed by shareholder referendum. The shareholding body is made up of individuals and institutions whose interests, goals, investment horizons and capabilities vary. Moreover, the corporations management must be able to take business decisions rapidly. In light of these realities and the complexity of managing the corporations affairs in fast moving and ever changing markets, shareholders are not expected to assume responsibility fo r managing corporate activities. The responsibility for corporate strategy and operations is typically placed in the hands of the board and a management team that is selected, motivated and, when necessary, replaced by the board. Shareholders rights to influence the corporation centre on certain fundamental issues, such as the election of board members, or other means of influencing the composition of the board, amendments to the companys organic documents, approval of extraordinary transactions, and other basic issues as specified in company law and internal company statutes. This Section can be seen as a statement of the most basic rights of shareholders, which are recognised by law in virtually all OECD countries. Additional rights such as the approval or election of auditors, direct nomination of board members, the ability to pledge shares, the approval of distributions of profits, etc., can be found in various jurisdictions. Basic shareholder rights should include the right to: 1) secure methods of ownership registration; 2) convey or transfer shares; 3) obtain relevant and material information on the corporation on a timely and regular basis; 4) participate and vote in general shareholder meetings; 5) elect and remove members of the board; and 6) share in the profits of the corporation. Shareholders should have the right to participate in, and to be sufficiently informed on, decisions concerning fundamental corporate changes such as: 1) amendments to the statutes, or articles of incorporation or similar governing documents of the company; 2) the authorisation of additional shares; and 3) extraordinary transactions, including the transfer of all or substantially all assets, that in effect result in the sale of the company. The ability of companies to form partnerships and related companies and to transfer operational assets, cash flow rights and other rights and obligations to them is important for business flexibility and for delegating accountability in complex organisations. It also allows a company to divest itself of operational assets and to become only a holding company. However, without appropriate checks and balances such possibilities may also be abused. Shareholders should have the opportunity to participate effectively and vote in general shareholder meetings and should be informed of the rules, including voting procedures, that govern general shareholder meetings: Shareholders should be furnished with sufficient and timely information concerning the date, location and agenda of general meetings, as well as full and timely information regarding the issues to be decided at the meeting. Shareholders should have the opportunity to ask questions to the board, including questions relating to the annual external audit, to place items on the agenda of general meetings, and to propose esolutions, subject to reasonable limitations. In order to encourage shareholder participation in general meetings, some companies have improved the ability of shareholders to place items on the agenda by simplifying the process of filing amendments and resolutions.Improvements have also been made in order to make it easier for shareholders to submit questions in advance of the general meeting and to obtain replies from management and board members. Shareholders should also be able to ask questions relating to the external audit report. Companies are justified in assuring that abuses of such opportunities do not occur. It is reasonable, for example, to require that in order for shareholder resolutions to be placed on the agenda, they need to be supported by shareholders holding a specified market value or percentage of shares or voting rights. This threshold should be determined taking into account the degree of ownership concentration, in order to ensure that minority shareholders are not effectively prevented from putting any i tems on the agenda. Shareholder resolutions that are approved and fall within the competence of the shareholders meeting should be addressed by the board. Effective shareholder participation in key corporate governance decisions, such as the nomination and election of board members, should be facilitated. Shareholders should be able to make their views known on the remuneration policy for board members and key executives. The equity component of compensation schemes for board members and employees should be subject to shareholder approval. To elect the members of the board is a basic shareholder right. For the election process to be effective, shareholders should be able to participate in the nomination of board members and vote on individual nominees or on different lists of them. To this end, shareholders have access in a number of countries to the companys proxy materials which are sent to shareholders, although sometimes subject to conditions to prevent abuse. With respect to nomination of candidates, boards in many companies have established nomination committees to ensure proper compliance with established nomination procedures and to facilitate and coordinate the search for a balanced and qualified board. It is increasingly regarded as good practice in many countries for independent board members to have a key role on this committee. To further improve the selection process, the Principles also call for full disclosure of the experience and background of candidates for the board and the nomination process, which will allow an informed assessment of the abilities and suitability of each candidate. The Principles call for the disclosure of remuneration policy by the board. In particular, it is important for shareholders to know the specific link between remuneration and company performance when they assess the capability of the board and the qualities they should seek in nominees for the board. Although board and executive contracts are not an appropriate subject for approval by the general meeting of shareholders, there should be a means by which they can express their views. Several countries have introd