Marriott Corporation: The Cost of Capital

In April 1988, Dan Cohrs, vice president of project finance at the Marriott Corporation, was preparing his annual recommendations for the hurdle rates at each of the firm's three divisions. Investment projects at Marriott were selected by discounting the appropriate cash flows by the appropriate hurdle rate for each division. In 1987, Marriott's sales grew by 24% and its return on equity stood at 22%. Sales and earnings per share had doubled over the previous four years, and the operating strategy was aimed at continuing this trend. Marriott's 1987 annual report stated: We intend to remain a premier growth company. This means aggressively developing appropriate opportunities within our chosen lines of business—lodging, contract services, and related businesses. In each of these areas our goal is to be the preferred employer, the preferred provider, and the most profitable company. Mr. Cohrs recognized that the divisional hurdle rates at Marriott would have a significant effect on the firm's financial and operating strategies. As a rule of thumb, increasing the hurdle rate by 1% (for example, from 12% to 12. 12%), decreases the present value of project inflows by 1%. Because costs remained roughly fixed, these changes in the value of inflows translated into changes in the net present value of projects . Figure A shows the substantial effect of hurdle rates on the anticipated net present value of projects. If hurdle rates were to increase, Marriott's growth would be reduced as once profitable projects no longer met the hurdle rates. Alternatively, if hurdle rates decreased, Marriott's growth would accelerate. Marriott also considered using the hurdle rates to determine incentive compensation. Annual incentive compensation constituted a significant portion of total compensation, ranging from 30% to 50% of base pay. Criteria for bonus awards depended on specific job responsibilities but often included the earnings level, the ability of managers to meet budgets, and overall corporate performance. There was some interest, however, in basing the incentive compensation, in part, on a comparison of the divisional return on net assets and the market-based divisional hurdle rate. The compensation plan would then reflect hurdle rates, making managers more sensitive to Marriott's financial strategy and capital market conditions. Professor Richard Ruback prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright  © 1998 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www. hbsp. harvard. edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permi ssion of Harvard Business School. Marriott Corporation: the Cost of Capital 1. How does Marriott use its estimate of its cost of capital? Does this make sense? Marriott has defined a clear financial strategy containing four elements. To determine the cost of capital, which also acted as hurdle rate for investment decision, cost of capital estimates were generated from each of the three business divisions; lodging, contract services and restaurants. Each division estimates its cost of capital based on: Debt Capacity Cost of Debt Cost of EquityAll of the above are calculated individually for each of the three divisions, and this is a critical aspect due to the varying cost of debt in particular for each division. Marriott then calculate company wide cost of capital using weighted average of the individual divisions cost of capital. This is a very clever approach, particularly as we see that for example the lodging unit, has a 74% debt percentage in the capital structure, and the fact that Marriott use long term cost of debt for lodging (which in this case is c lose to Government debt 110 bps margin) demonstrates the low risk investors perceive this side of the business to haveWe believe this approach is sound due to the difference in the cost of capital between the divisions being a function of the risk associated with the investments considered so this approach incorporates the fact that risk between the divisions varies. Given this we believe the method chosen by Marriott is compliant with the â€Å"Marriott Financial Strategy† as the capital costing approach is due diligent and reflect the single entity risk (bottom-up) rather than an estimated top-down.We believe this approach enables Marriott to optimize the financial performance and in turn increase the shareholder value. 2. If Marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what would happen to the company over time? Marriott's three divisions are very different in terms of business area, business risk an d capital structure (debt capacity). The result is varying capital costs between the divisions. For instance Lodging has a significant lower cost of capital (WACC) than the Restaurant and even than the company as a whole.Using a single company-wide hurdle rate would create an uneven process in assessing investment opportunities across the divisions. In practical terms the accept/reject decision would not reflect the inherent business risk of the division, which could lead to investments being accepted, while they should have been rejected. Given the WACC calculations in the following questions, we see there is a significant difference in the cost of capital between the different divisions varying from 8. 85% (Lodging) to 12. 11% (Restaurants)Therefore, if we were to use one single corporate hurdle rate, we would assume in this instance that we would use the Marriott WACC of 10. 01%, then we may reject an investment in ‘Lodging’ which would yield a positive NPV and vice versa, we may accept an investment opportunities in ‘Restaurants’ which potentially would yield a negative NPV. Going back to the brief, we know that typically an increase in hurdle rate of 1% will decrease present value of project inflows by 1%. If we were to then use one hurdle rate (10. 1%) and take the lodging hurdle rate (8. 85%) this would be an increase in WACC of 13. 10% (lodging) and would therefore decrease PV of project inflows by the same 13. 10% – so the effect of using a single rate is compounded, firstly it impacts the decision, and the PV due to the discount impact. Over time a single hurdle rate (if consistently higher than the existing approach) would significantly hurt the performance of company as the approach could lead Marriott to reject (or accept) investment opportunities which should have been accepted (or rejected).This would destroy shareholder value. 3. What is Marriott’s Weighted Average Cost of Capital? What types of investmen ts would you value using Marriott’s WACC? To calculate Marriott’s WACC, we need to assess three factors 1) Capital structure, 2) Cost of debt, 3) Cost of Equity. As the corporate tax rate is given we will not manually calculate it. If required we would have used the financial statement in appendix 1 to do so.After having calculated the three factors mentioned above we employ the following formula to find WACC: WACC = (1-t)*rD*(D/V) + rE*(E/V) where Re = After tax cost of equity, Rd = pre tax cost of debt, E = market value of the firm's equity, D = market value of the firm's debt, V = E + D = firm value, E/V = percentage of financing that is equity, D/V = percentage of financing that is debt and t = corporate tax rate. 1) Capital Structure We find the capital structure in Table A on page 4 in the case. As the â€Å"debt percentage in capital† – D/V in the WACC formula – is given we find the equity percentage in capital (E/V) as: E/V= 1 – D/V. Using this we see Marriott is funded using 60% debt and 40% equity. We do realize the data in Table A is the target-leverage ratio, but we are comfortable using the target capital structure for this purpose instead of the current capital structure. 2) Cost of Debt The cost of debt is mathematically defined as Cost of Debt = (1-t) rD, where rD is the rate for pretax cost of debt and (1-t) represents the tax shield via the corporate tax rate. In the following rD is calculated, while the tax shield is not included until the final WACC calculation.Marriott’s debt was divided into two different segments; floating rate and fixed rate. 40% of Marriott’s debt was floating rate where the interest rate payment changes with changes in the market interest rates, while 60% was fixed rate. The case gives a â€Å"debt rate premium above government†, but information about term structure or other features of the floating debt are limited. We believe the correct way to estimate t he cost of debt is to estimate the cost per debt type/segment and then in a second step weigh the costs using the debt structure.To do this we estimate that the floating debt rate is best estimated using the 1yr government rate in Table B – for the reason that we do not have any shorter term data or average, and this most closely would represent floating. While for the fixed debt portion we have selected the 10yr government rate. Again, this is due to a mix of long term and shorter term fixed debit. This is the best assumption we can take using the data provided. Given the above the cost of debt of Marriott is: [Average((1yr Gov. ate)*(Floating debt fraction) + (10yr Gov. rate)*(Fixed Debt Fraction)) + â€Å"Debt Rate Premium Above Government†] [Average((6. 90%)(40%) + (8. 72%)(60%)) +1. 30%] = 9. 29% 3) Cost of Equity Cost of Equity is found using the Capital Asset Pricing Model (CAPM) or rE = RF+ ? i(E[RM] – RF), Where rF is the risk free rate we estimated ear lier, ? is the systematic risk or the overall risk factor and (E[RM] – RF) is the ‘price of risk’ or ‘market risk premium’ (MRP) investors expect over and above what the risk free securities yield.To be consistent in selecting expected market return and the risk free rate, we have selected to use the same time period for both estimates. Using Exhibit 4 and 5 we find the appropriate data. We take the longest time period available as we believe this is the conservative method as outliers in the data is crowded out due to the law of large numbers, which increases the empirical probability of accuracy. Given this we have selected 1926-87 average returns of the long-term U. S government bond as the risk free rate (RF) thus RF is 4. 58%. (Exhibit 4).The MRP is estimated using Exhibit 5, where we use the S excess return over the long term U. S government bond over the same time period as the risk premium (E[RM] – RF) = MRP = 7. 43%. S is chosen as th e â€Å"market return† as the stock index represents a wide and diversified range of equity across different sectors and industries. Given this we believe it is fair to use the S excess return over the risk free rate as the market risk premium (MRP) To find the ? we need to adjust the equity ? given in Exhibit 3 as it reflects the current capital structure and not the target structure.To re-calculate in order for the ? to reflect the Marriott target capital structure, we first calculate the unleveraged ? and then re-leverage it with the target capital structure. The unleveraged ? is calculated using: Unlevered ? = Equity ? / (1 + (1 – t) x (Debt/Equity)). As all data is given in Exhibit 3, we find unleveraged ? = 0. 7610. (See detailed calculations in excel sheet under tab â€Å"Exhibit 3†). To re-leverage the data we re-write the formula: Equity ? = Unlevered ? * (1 + (1 – Tc) x (Debt/Equity)) = 0. 7610 *(1+(1-34%)*(60%/(1-60%)) = 1. 514.We now have all the data need to calculate the cost of equity: rE = RF + ? (E[RM] – RF ) 4. 58%+ 1. 514(7. 43) =15. 83%. Finally we find WACC by employing the formula: WACC = E/V ? rE + D/V ? rD ? (1 – t) 40%*15. 83% + 60% *(9. 29%(1-34%)) = 10. 01%. Please find all detailed calculations in the attracted excel sheet under tab â€Å"Table A†. We would value an investment of similar risk, which would offer us a return higher than the WACC of 10. 01%, as anything over and above this in terms of return would be adding value as the present value of the future cash flows in that case would be positive.In otherwords, we could use WACC as our discount rate and hurdle rate to calculate NPV of potential investment projects of physical asset, where it is expected the financing will be similar to the financing of the company conducting the investment. 4. What is the cost of capital for the lodging and restaurant divisions? The WACC calculation methodology is the same for the divisions as t he calculations under question 3. However the inputs are changed to mirror the attributes and characteristics of the divisions.Please also see excel spreadsheet included within this submission for breakdown of the calculations. Lodging: Cost of debt: For the calculations of the fixed rate debt, we are using the 30 year government bond rate instead of the 10 year. This is a reflection of the comments in the case about the longer durability of the asset and longer financing. For the floating leg of the debt, we continue to use the 1 year government bond rate. rD = Average((1year US (Table B)*Fraction of Floating Debt + 30 Year US*Fraction of Fixed Debt) + 1. 10% rD = Average((6. 90%*50% + 8. 5%*50%) + 1. 10% = 9. 03% Cost of equity: To be consistent we opt for the long-term securities and long-dated data just as we did when calculation the cost of equity in question 3. As for the ? we use the peer group as presented in Exhibit 3. Hence to find the unleveraged beta, we take the average of the equity ? s of the peer group the average debt/equity ratio. After having calculated the unleveraged ? , we re-leverage using the target capital structure of the lodging division. We realize the limitations of using comparable companies to estimate the ? nd understand the criticality of defining the right peer group of comparable companies. We could most likely have increased the accuracy of our calculations by being more due diligent in the selection to find companies that were a closer match to the Lodging (and restaurant) division. However, for the purpose of the calculations in this case, we use the peer group defined in the exhibit. Restaurants: Cost of debt: For the calculations of the fixed rate debt the 10 year government bond is used. rD = Average((1year US (Table B)*Fraction of Floating Debt + 10 Year US*Fraction of Fixed Debt) + 1. 10% D = Average((6. 90%*25% + 8. 72%*75%) + 1. 10% = 10. 07% Cost of equity: To reflect the shorter nature of the assets in the restaur ant business division, we use short-term securities to estimate the risk free rate and the risk premium. We use the same method for estimating ? as we did for the Lodging calculations. Using the data described above, we find WACCLodging to be 8. 85% and WACCRestaurants to be 12. 11%. These findings support the notion that incorporating debt will lower the cost of capital due to the tax shield. Lodging has a debt/equity ratio of 74/26 against the 42/58 in the restaurant division. See detailed calculations in the attached excel sheet) We would also like to point out that of the restaurants given in the brief, many of these would in essence not necessarily be our peer group per se and we would be more selective over the restaurants we would selected to more closely mirror Marriott’s restaurants. With our aim to ensure we have the closest peer group possible for comparison. 5. What is the cost of capital for Marriott’s contract services division? How can you estimate its e quity cost without publicly traded comparable companies?We use the same framework as for the WACC calculations under Q3 and Q4. However, as we do not have a defined ? for the Contract Service division or an adequate peer group, we will estimate the ? using the existing data for Marriott and the two divisions. We know from the literature that a (holding) company’s ? is the weighted ? ’s of the individual business divisions. We use the revenue as the catalyst for the weighing of the ?. For the purpose of the calculations we use the unleveraged ? ’s. Mathematical this can be expressed as: ?(Marriott) = Revenue Weight (Lodging)* ? Lodging) + Revenue Weight (Contract Division)* ? (Contract Division) + Revenue Weight (Restaurants)*? (Restaurants). To find the ? (Contract Division) we re-write the formula to: ?(Contract Division) = [? (Marriott) – Revenue Weight (Lodging)* ? (Lodging) – Revenue Weight (Restaurants)*? (Restaurants)]/ Revenue Weight (Contra ct Division) ?(Contract Division) = [0. 7610 – 40. 99%*0. 5841 – 13. 49%*1. 0014]/45. 52% = 0. 8490 Adjusting for the target capital structure we find ? (Contract Division) equals 1. 223 Using this data, we find WACC for the Contract Service division to be 10. 82%.

Barry Bonds

One of the baseball’s most troublesome issues has been the increasing use of performance enhancing drugs. Retired home slugger, Jose Canseco has claimed that 85 per cent of big leaguers use steroids and Xen Caminiti, who died in 2004 from drug overdose, stated in a highly publicised article in Sports Illustrated that the incidence of steroid use has mushroomed to 50 per cent of active players. Although other players have stated this figure to be exaggerated, the problem has become widespread within major league baseball.A well known sports orthopaedist, Dr. John Andrews asserted that there has been a dramatic rise in muscle and tendon injuries among baseball players related to the increased use of supplements creatine, human growth hormone, and steroids (Teitelbaum, 2005, p. 107). The use of amphetamines in major league baseball gained substantial notoriety in 1970 when Jim Bouton, a pitcher for the New York Yankees during the 1960s and the author of highly controversial book Ball Four admitted using amphetamines and estimated that 40% of other players did as well.As with football, the size and strength of professional baseball players appear to have increased markedly during the last two decades. As a consequence, suspicions of anabolic steroid use have been dramatically soared during the last decade. In 1995, the general manager of the San Diego Padres admitted to the prevalence of steroid use in at least 10%-20% of the league players (Hinitz, Yesalis, Bahrke, 2002, p. 12-13). Jose Canseco, who was the first player to hit 40 homers and steal 40 bases in the same year, wrote in his book ‘Juiced’ that he used steroids to help him build the muscles he needed to succeed.He also claimed that (although without proof) many players in the game had done the same. This cast grave doubts on the home run records set by Mark McGwire, Sammy Sosa and Barry Bonds and others. In 2005, the congress held a special hearing to investigate the steroid problem i n baseball. Commissioner Bud Selig while testifying admitted that the sport’s hands were tied because of a complicated agreement with the union that represented the players. Baseball was not allowed to test most players for steroids. Even for those who were exposed, punishment was light (Stewart, Kennedy, 2006, p. 61).Barry Bond, the legendary baseball player, shot to power and fame by winning three MVP awards in 1990s and he was recognised as the best all round player of the decade. He became the second 40-40 player in 1996, and narrowly missed the fit in 1997. In 1998, he became the first 400-400 player in history. 1 In 2000, the house belonged to Barry, who at the age of 35 was on the brink of a remarkable run of five career defining seasons. Up to that point, he had hit 445 home runs over 14 seasons of play. In 2000, he set a personal home run record with 49, and in 2001, he set a new all time record with an incredible 73 homers.The unprecedented late career explosion of 258 home runs in five years raised suspicions that Bonds had taken illegal performance drugs, such as steroids, which Bonds vehemently denied. In 2003, Bonds hits 45 home runs, which brought him within three of his coach May’s mark on the 1. URL: http://www. baseballlibrary. com/baseballlibrary/ballplayers/B/Bonds_Barry. stm, retrieved on 15th Dec, 06 lifetime list. In 2004, Bonds chased his 660th career home run to join Mays as third on the all time leaders list. But he just fell short of Mays record. He admitted struggling with the notion of surpassing his childhood idol.Bonds openly admired his idol and said, â€Å"I love him so much. It is hard subject to talk about† (Linge, p. 178). Finally, in the fifth innings of the Giants home opener, Bonds achieved the fit and coach May expressed immense happiness that third place on the lifetime homer list was staying within the Giants family (Linge, p. 178). Currently, Bond has 734 home runs, 22 from breaking Hank Aaronâ₠¬â„¢s career record of 755. He could play only 14 games in 2005 following three operations in his right knee, he came back in full force in 2006 to bat 270 with 26 homers and 77 RBI in 130 games for the Giants in2006.Although he had arthroscopic surgery on his left elbow in October, he still has potential power. 2 Beginning in 1998 with injection in his buttocks of Winstrol, a powerful steroid, Barry Bonds took a wide array of performance enhancing drugs over at least five seasons in a massive doping regimen that grew more sophisticated with passing years. These facts were published in Game of Shadows, a book written by two San Francisco Chronicle reporters at the forefront of reporting BALCO steroid distribution scandal.The Book revealed day-to-day detail of how often and how deeply Bonds was engaged in the persistence doping. According to the book, Bonds used the drugs in virtually every conceivable form, by either injecting himself with a syringe or being injected by 2. Retrieved from the URL: http://sportsline. com/mlb/players/playerpage/7447 on 14th Dec, 06 his trainer, swallowing pills, placing drops of liquids under his tongue, and in case of BALCOs notorious testosterone based cream, and he applied it locally.The authors compiled the information over a two-year investigation that included, but was not limited to, court documents, affidavits filed by BALCO investigators, confidential memoranda of federal agents (including statements made to them by athletes and trainers), grand jury testimony, audiotapes and interviews with more than 200 sources. 3 Bond while denying the charge of steroid use was rather vague in his denial statements. In one of his statement Bond was quoted as saying, â€Å"Doctors ought to quit worrying about what ballplayers are taking. What players take doesn't matter.It's nobody else's business. The doctors should spend their time looking for cures for cancer. It takes more than muscles to hit homers. If all those guys were using s tuff, how come they're not all hitting homers? â€Å"4 People from all walks of life, from baseball fan, players, and analyst reacted to Barry’s steroid controversy and the consequent BALCO trial. Baseball player Turk Wendell reacted in Denver Post, â€Å" If my personal trainer, me, Turk Wendell, got indicted for that, there’s no one in the world who wouldn’t think that I wasn’t taking steroids.What, because he is Barry Bonds, no one’s going to say that? I mean, obviously he did it. (His trainer) admitted to giving steroids to baseball player. He just 3. http://sportsillustrated. cnn. com/2006/baseball/mlb/03/06/news. excerpt/index. html retrieved on 15th Dec, 06. 4. http://sportsillustrated. cnn. com/2006/baseball/mlb/03/06/bonds. quotes/index. html, retrieved on 15th Dec, 06 doesn’t want to say his name. You don’t have to. It’s clear just seeing his body†. 5 Journalists were although divided in their opinion regardin g the issue, majority were convinced that Bonds was guilty.Journalist George Will have expressed his view about Barry Bonds, his steroid use and its impact on the baseball statistics in the following lines. According to him, â€Å"â€Å"(Barry) Bonds' records must remain part of baseball's history. His hits happened. Erase them and there will be discrepancies in baseball's bookkeeping about the records of the pitchers who gave them up. George Orwell said that in totalitarian societies, yesterday's weather could be changed by decree. Baseball, indeed America, is not like that. Besides, the people who care about the record book — serious fans — will know how to read it.That may be Bonds' biggest worry. †5 The group who sympathises with Barry Bonds feels that he is a victim of racial prejudice. They feel that even if it is true that Bonds takes steroids, the attention that he receives far outshines that of any other athlete under investigation in the same probe. W hat the allegations of steroid use imply is that Bonds had reached his achievements on the field unfairly, and given his reputation as an unlikable player, the sportswriters and fans intend to believe this allegation.Beyond his actual guilt or innocence in this steroid probe, the public’s interest in Bonds involvement with steroids goes beyond the fact that he is an accomplished baseball player (Bloom, 2004, p. 111). 5. http://thesteroidera. blogspot. com/2006/08/memorable-steroid-era-quotes-1995-2006. html retrieved on 15th Dec, 06 Considering the fact that Barry Bonds was a steroid user, which has been proven without doubt, he should not be allowed into the Hall of Fame. This is a case of cheating and deceiving the public who passionately follow the game.If he is inducted into the hall of fame, it will be tantamount to accepting his deceitful act, which will be detrimental to the future of baseball. Moreover, since Pete Rose was denied the hall of fame for his deceiving act , it will be justifiable if Bond is treated in the same manner. As his name is already tainted, it is unlikely that people will remember him, forty, fifty years from now. His unsporting conduct and violation of sports ethics will eventually obscure him from popular memory. Only those with excellent and untainted track record, moral integrity, and true sportsmanship deserve to be incorporated into the Hall of Fame.References Bloom, J (2004) Barry Bonds: A Biography, Greenwood Press, USA Hinitz, D. R. , Yesalis, C. E. , and Bahrke, M. S (2002) Performing enhancing substances in sport and exercise, Human Kinetics Publishing Linge, M. K (2005) William Mays: A Biography, Greenwood Press, USA Stewart, M, Kennedy, M (2006) Long Ball: The legend and lore of the home run, Milbrook Press, p. 64 Teitelbaum, S. H (2005) Sports Heroes, Fallen Idols, University of Nebraska Press. The Hastings Centre Report (1985) Blood, Sweat, and Drug: The high cost being number one, Vol. 15, No. 5. p. 2

Compare and Contrast the Philisophical Contributions of Nietzsche and Mill Essay

Compare and contrast the philosophical contributions Nietzsche and Mill make to our understanding of political and social tyranny. Both philosophers, Nietzsche and Mill make contrasting and similar contributions to our understanding of the two terms. I intend explore how each philosopher does this and the differences and similarities between their two philosophies. Before comparing and contrasting the contributions of both Nietzsche and Mill to our understanding of political and social tyranny, it is important to define exactly what these terms mean, and to distinguish between the two. Political tyranny on the one hand is the imposition of positive liberty by a tyrant to an individual or a collective group of individuals. That is, a situation where a certain way of life is dictated to citizens through the presence of obstacles, barriers or constraints. If we lived in a politically tyrannical society, we would be living under the control of a dictator, ruled by a single governing body. Furthermore, the pressure for an individual to conform to these â€Å"rules† can be seen as a result of ones fear of public disapproval – a recognised form of social tyranny. Philosopher John Stewart Mill, rigorously educated by his philosopher father James Mill, began making contributions to politics and philosophy from the early 1830s, when he wrote profusely on such political and philosophical matters. He was greatly influenced by the works of Jeremy Bentham and his interested in Utilitarianism. Mill’s book, â€Å"On Liberty† published in 1859 and written with his wife, saw Mill move away from the Utilitarian notion that individual liberty was necessary for economic and government efficiency and advanced the classical defence of individual freedom as a value in itself. It advocated moral and economic freedom of individuals from the state. His basic argument is simple: liberty from political and social tyranny is good because it allows for new and improved ideas to evolve and good because liberty forever puts old ideas to the test. – His ideas were and still are enormously influential and the ideas presented remain the basis of much political thought. In â€Å"On Liberty† Mill refers to tyrannical societies of the past where liberty meant protection from the tyranny of political rulers. They consisted of a governing One or a governing tribe, who derived their authority from inheritance or conquest. (NZ) To prevent the weaker members of society from being preyed upon by â€Å"innumerable vultures† it was thought that there should be an â€Å"animal of prey† stronger than the rest. – The aim being to set limits to the power of the tyrant. With this came a time where, as human affairs progressed, what was wanted was that rulers should be identified with the people, and that their interests should be the interests of the whole nation. This, Mill refers to as â€Å"the tyranny of the majority† which was held in â€Å"dread† (and commonly still is.) At this point, Mill is suggesting that majority rule itself could become a tyranny and that the suppression of minorities by the majority should be taken as a serious threat to a fair and just society. Mill claims that â€Å"society as a whole can issue wrong mandates and practice a tyranny more formidable than many kinds of political oppression.† He argues therefore that protection against political tyranny is not enough: there also needs to be protection from social tyranny or â€Å"the tyranny of prevailing opinion† the latter being harder to achieve protection from. Mill saw that this kind of political tyranny could prevent the development of individualistic behavior. Such tyrannies could work in two ways: through the adoption of laws which operate against idiosyncratic, non conforming or dissenting individuals. Or, through the power or pressure of public opinion, (which is notoriously prone to error, superstition or tradition.) Hence Mill argued that public opinion should not be a law that everyone should conform to, and that the individual should have protection of the law against the prevailing sentiments of society. – Essentially, we each need freedom to develop our individuality. So for Mill, the central problem is therefore to establish the legitimate extent to which the state can interfere in the affairs of individuals whilst maintaining acceptable levels of individuality. Mill’s answer is clear and is demonstrated through his â€Å"Harm Principle† which states that â€Å"the only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. His own good, either physical or moral, is not sufficient warrant.† -So Mill is referring to not just any harm, but specifically physical harm. If a person is harmed then his or her sovereignty over self no longer exists because sovereignty is after all the foundational position of power; this is Mill’s justification of the harm principle. Children and those who cannot take care of themselves are allowed to be interfered with beyond the harm principle as they may well harm themselves unintentionally; such children and those who cannot take care of themselves do not, and cannot, have sovereignty over self. Applying Mill’s Harm Principle strictly to current law would therefore remove â€Å"paternalistic† laws. For example there would be no reason to prohibit the laws prohibiting suicide, or drug taking or the wearing of seatbelts or crash helmets. From this perspective, laws that attempt to control such self regarding actions are wrong. They stunt the possibilities for individual development; the state should not be like an over protective parent, as for Mill, this does nothing but prevent the development of fully mature adults. Mill’s argument primarily questions what is the rightful limit to the sovereignty of the individual over himself? And how much of human life should be assigned to individuality, and how much to society? Mill says, to individuality should belong the part of life in which the individual is interested: to society, the part which chiefly interests society. Essentially, what are the limits of the law and what are the abilities of the individual? Evidently for Mill, the idea that the state should be involved in â€Å"self regarding† actions is entirely wrong. The individual must be allowed maximum freedom of choice in matters that are to do with personal choice His assertion reflects his own strong commitment to the idea of individual liberty and the belief that â€Å"free individuals† develop into more fully formed human beings. His arguments essentially reflect a strong belief in human reasoning and the ability for all of us to develop into mature autonomous individuals. Mill’s approach is therefore libertarian in that he saw the confining controlling state as a danger: whereas a society populated with free thinking individuals is a mature and successful society. Specifically referring to social tyranny, Mill states that â€Å"though society is not founded on a contract, everyone who receives the protection of society owes a return for the benefit† – meaning, if you conform to society, or public opinion, you will receive protection, i.e. you will not be condemned by society. – Mill furthermore claims that it would be a great misunderstanding to suppose that this doctrine is one of selfish indifference about the well being of others. – There is indeed a need for an increase in the exertion of promoting the good of others, but Mill feels this can be done without physically or mentally punishing those who behave in a way that people don’t agree with. – â€Å"Benevolence can find other instrument than whips and scourges, either of the literal or metaphorical sort† So, if a person shows â€Å"rashness, obstinacy or self conceit† or pursues â€Å"animal pleasures† at the expense of those of feeling and intellect, it is expected that they will be lowered in the opinion of others. But, Mill makes it clear that we are not bound to seek the society of such an individual. – We have a right to avoid it, and a right to caution others against the individual. â€Å"If he displeases us, we my express our distaste: but we shall not feel called upon to make his life uncomfortable† – So if an individual has made a bad choice, we shouldn’t condemn them further. – â€Å"If he has spoiled his life by mismanagement, we shall not for that reason desire to spoil it further† At this point, Mill makes a clear distinction between the part of a person’s life which concerns only himself and that which concerns others. He questions how the conduct of a member of society can be a matter of indifference to the rest of society, â€Å"no person is entirely isolated.† If he damages his property, he does harm to those who derived support from it, or if he deteriorates his bodily faculties, he becomes a burden on others. So even if his actions do no direct harm to others, he is never the less detrimental by example. As a liberalist, Mill stresses the importance of the individual and freedom. In a liberal sense, freedom means individual freedom. You are at â€Å"liberty† to do as you wish, there are no constraints upon how you choose to live your life, you are able, unhindered by tradition or inherited position to achieve your full potential. This idea opposes the characteristic of political tyranny – i.e. the imposition of positive freedom; restriction and barriers. As Isaiah Berlin explained, negative and positive liberty are not merely two distinct kinds of liberty; they can be seen as rival, incompatible interpretations of a single political ideal. There are different ways to define liberty within a society. Isaiah Berlin talks about the two different types. Berlin agrees with the idea of negative liberty and thinks the purpose of government is not to show any visions of life; rather, it is to give them freedom to find out for themselves what the good life is. Berlin supposes that there should be a small government that will protect everyone’s individual rights. In a society where negative liberty is prevalent problems begin to arise when you begin to worry about government and not your private life. Negative liberty also allows everyone to have a sphere of rights. You are also able to become what you want and you have more self-control, because there is no pressure to conform to the â€Å"norm† of the community in order to keep the society running smoothly. Rousseau, an advocate for positive liberty thinks that self-mastery is necessary for us as individuals and says that we should want to be the masters of our own life. Positive liberty is, † Wishing to be a subject, not an object; to be moved by reasons, by conscious purposes, which are my own, not by causes which affect me, as it were, from outside.† By participating in your government and thinking for yourself you can achieve self mastery. By having political self-mastery you are free to form a society which forms your values, which leads to democracy. Mill, as a liberalist, believes there ought to be a minimum area of personal freedom which on no account can be violated. Mill says, â€Å"If this boundary is overstepped, the individual will find himself in an area too narrow for even that minimum development of his natural faculties which alone makes it possible to pursue, and even conceive, the various ends which men hold good or right or sacred.† Mill says there must a certain amount of personal freedom so that you grow as an individual, so therefore, there needs to be a distinction between private life and public authority. ‘Freedom for the pike is death for the minnows’; the liberty of some must depend on the restraint of others. In this type of society some people are held back for the betterment of others. The idea that for every person on top there must be someone below them must be accepted. The other philosopher in question, Frederic Nietzsche, German philosopher of the late 19th century challenged the foundations of traditional morality and Christianity. He believed in life, creativity, health, and the realities of the world we live in, rather than those situated in a world beyond. Like Mill, Nietzsche wanted to replace old values with new ones. He wanted to move towards a new type of human being. – â€Å"The Uberman† In Nietzsche’s writing, â€Å"Beyond Good and Evil† he speaks of the â€Å"new philosophers† – individuals of ‘socio – intellectual status’ who must pave the way forward for a new world. – Who must rise above the confinements of political and social tyranny. Essentially, through asserting their â€Å"will to power.† Nietzsche refers to these individuals as the aristocrats, the elites. These â€Å"noble† men will assert their will to power. – An ability that will have been passed down from generations. The new philosophers or â€Å"noble breed† will possess the â€Å"master morality† the morality of the aristocratic, that which makes values for others and sees itself as noble. At this point, Nietzsche introduces the ‘notion of superiority’ – the idea that these â€Å"free spirits† or new philosophers will assume a place of superiority in the social and intellectual hierarchy over those who are confined by political and social tyranny. In several aphorisms, he emphasizes a higher type of man, one who believes and demands an order of rank and disdains democracy and equality. Those inferior individuals, he refers to as â€Å"the herd.† The herd succumb to social and political tyranny, and so are â€Å"slaves† to it – and they can not change. – It is not in their genes. It is ok for the herd to be confined by political and social tyranny, but not for the elites. – The elites must be the dominant force, not controlled by a force. Nietzsche’s fundamental principle is â€Å"the will to power.† Nietzsche refers to it as â€Å"an essence of life.† For Nietzsche, the underlying driving force of change is will. All drives come from a will to power, which is; the drive for freedom and domination over other things. We see it in our daily lives; in every argument there is a striving force for mastery and victory; even in the hierarchical nature of organisations e.g. manager vs. worker, teacher vs. pupil, politicians, preachers and even in the sex act itself. But, for Nietzsche, political and social tyranny seeks to tame this primeval drive and to suppress it. It is the weak and the herd who let their desires and will be suppressed. It is the role and duty of the ‘new philosopher’ to cultivate it. Nietzsche strongly attacks religion. Especially Christianity. For Nietzsche, religion is a modern manifestation of political and social tyranny. Religion seeks to suppress the will to power. He refers to religion as â€Å"an ongoing suicide of reason† and has similarities with Freud in that he thinks religion is a ‘neurosis’ or mental illness. â€Å"Wherever the religious neurosis has appeared on earth we find it tied to three dangerous dietary prescriptions: solitude, fasting and sexual abstinence.† So for Nietzsche, being a Christian, means denying ones desires, it means self sacrifice for the sake of God (whom he believes is dead) and showing pity and charity for others allegedly leads to the elevation of the weak-minded. Nietzsche believes we shouldn’t show such charitable acts, or make unnatural sacrifices. Christians are the herd, because they follow such beliefs and live their lives by them. The herd are not in control of their lives, for they live by a set of principles that are not their own. Christianity as a form of tyranny takes over the individual. We self mutilate when we feel guilty. Nietzsche says we shouldn’t feel guilty, as its better to do something and experience it, taking from it what we will, rather than be told not to do it at all. Political and social tyranny does not give an individual the chance to do this and places restrictions upon the individual. Like Mill, Nietzsche valued individualism above all else, but he saw that as a result of the acquiescence to social and political tyranny (e.g. religion) followed a â€Å"herd mentality† where everybody follows one another for fear of disapproval by public opinion, or in the case of religion, disapproval by God. The herd has ‘given up’ their will to political and social tyranny. And so are weak to their superiors, as reflected in their values. But Nietzsche suggests that people want this. He refers to slaves wanting and accepting political and social tyranny, and relating to the modern manifestation of this through religion, it provides truth and certainty. The slave is led by a superior guide, and wants to be, because it is comforting. So hence, Nietzsche sees the Enlightenment or ‘age of reason’ as ‘enraging to the slave’ because it removes an ‘Absolute Truth’ I.e. God. So forth, the slaves have to find their own truths. Both philosophers contribute from different stand points. Mill on one hand speaks from a liberalist perspective. Liberals see humans as essentially rational thinking creatures capable of making informed decisions and despises the kind of paternalistic controls of a political tyranny that characterised the previous feudal period. Where Nietzsche on the other hand comes from an elitist standpoint. So, for Nietzsche, the most â€Å"human† or natural of societies are those based on aristocratic principles. Thus, societies with clear and very wide social class divides are the most appropriate of humanity. Clearly defined class distinctions that Nietzsche would have liked are the times of the Ancient Greeks, Romans, Feudalism and even aspects of Nazism. – Orders in which richness, excess, cruelty and sensuality were encouraged. This is where a major difference between Nietzsche’s philosophy and Mill’s becomes apparent. Mill criticises the political control of a tyrant on an individual’s freedom, yet Nietzsche claims that these aristocrats are â€Å"living for themselves† The aristocrats have asserted their will to power over the people. He justifies this by saying that these societies are natural, because the will to power was exercised properly, by the powerful over the weak. Both have similar views on the topic of religion, arguing that no longer should one set of religious truths be imposed on a population. To move forward, to progress, is to explore the world through the exercise of human reason and critical enquiry. For Nietzsche, we must continually question everything, for there is no absolute truth. We have to find our own truth. We do this by being individual, and not following a herd. For Mill, we are rational thinkers, and bases his theory on this view – that we will come to sensible conclusions. Hence, both philosophers advocate maximising negative liberty as a necessary condition for human flourishing. With the freedom to be individual without the barriers or constraints of tyranny, we as a society and as individuals’ progress and new ideas are formed. New values are made, replacing old ones. The Elitist vs. the Liberalist approach is where the two philosophers differ in attitudes. Taking into consideration a rejection of negative liberty, this could be used to pave the way for an alternative account.

Find a newpaper article on wine industry and draw a link to a Assignment

Find a newpaper article on wine industry and draw a link to a macroecnomic concept - Assignment Example The key concept the article deals with is the demand and supply side of the wine industry. In order to gain an in depth understanding of these two mechanisms, aggregate demand and supply analysis needs to be made. This is necessary because the article highlights that other industries such as tourism and manufacturing have also suffered losses in the recent past. The aggregate demand (AD) is the total amount of goods and services that are demanded by the domestic householders, government, private businesses and the foreign consumers at a certain price level. The aggregate supply (AS) is the real output of an economy at a certain price level. AD and AS will change as price level changes and the mechanism that AD, AS varies at different price level in turn indicated the equilibrium real output and the equilibrium price level of an economy taking into account the equilibrium of product, monetary and labor (employment) markets. The article focuses on the macro-economic and micro-economic factors that are troubling the Australian wine industry. The article explores the reason for Australian company Foster’s parting away with its wine business. First, it highlights the many macro-economic factors such as global economic slowdown and strengthening of Australian currency to be responsible for weak sales figures. But the major argument of the article is that the domestic consumption of Australian wines has decreased. The reason is said to be ‘conservative consumerism’ emerging among the Australians. To highlight this new phenomenon the article mentions the rise in sales of cheaper French wine. The figure below depicts change in Pricing and Aggregate supply with shift in Aggregate demand. In the news article the writer supports the decision of Foster’s to dissociate itself with its wine business. As mentioned earlier, there are many reasons given for this step. The reasons

Discussion about a book called ministry of fear Assignment

Discussion about a book called ministry of fear - Assignment Example This paper thus helps to provide an insight depicting the relationship that began brewing between Arthur and Anna during the time that the two spent together, trying to reconcile differences as well as understand that their hate for each other could actually be transformed into pure love. Anna is a young Austrian woman and her brother is a Nazi spy, however, even then, she takes Rowe’s side and helps him uncover the Nazi agents that he is about to have an encounter with. Throughout the course of the story, she tries her best to warn him and keep him out of trouble, only because she realises that she has fallen in love with the Englishman. The author writes, â€Å"It is impossible to go through life without trust: That is to be imprisoned in the worst cell of all, oneself.† (Greene, Graham) This is very apt of the book itself because of the kind of relation that developed between Anna and Arthur despite the two belonging to different sides. Greene has tried to portray, t hrough Anna and Arthur, how love can take various forms in the worst of situations. The main reason for the existence of their relationship is to try and safeguard each other from the circumstance they have been thrust into.

Ebooks - Will the consumer adapt to them Essay Example | Topics and Well Written Essays - 5000 words

Ebooks - Will the consumer adapt to them - Essay Example It is the point of this paper to explore about ebooks in order to find out if consumers will actually adapt to them by understanding the status quo and the important trends in the days to come. Thus, it is important to discuss the advantages and the disadvantages of ebooks over printed books. The discussions must include the circumstances and uncertainties surrounding the success of ebooks over printed books. An ebook is an electronic book which means it is something that one cannot hold unlike the real printed book, because it is an electronic file (Sebastian, 2001). There are many important aspects that one needs to know about it. The most common of course include its degree of usability and its economic consideration just to name a few. Ebooks are becoming popular in the modern age of technological revolution (Sebastian, 2001). In the advent of advanced information system, internet has become one of the primary sources of relevant information. Along with the internet, comes the convenience of uploading ebooks either for free or for a particular payment prior to access. This convenience has encouraged many people to use ebooks as an easy way to access relevant or important sources of information. In other words, ebooks have become a wide accepted innovation of printed books in the age of information technology. With ebooks even people from other parts of the world can easily access books that are of great importance for them. Ebook can be a novel with complete pictures or photographs, it can be a training manual, it can be a special report, and it can be a short story and many more. Over the span of time, accessing ebook has been improved a lot and to the extent that there are even devices made just to give a real hip for a great read (Dhir, 2004). Ebook has become a lifestyle and it is important to consider gathering enough information about it especially if there is a need to study the degree of its acceptability in the market. Ebooks are now

Software Design Essay Example | Topics and Well Written Essays - 500 words - 1

Software Design - Essay Example Architecture is all about the User Interface (UI) of a system (Bass, Len, Paul C., and Rick K., 2003, 2nd Ed.). Software design is a sequence of reaching a solution to software hitches. It takes into consideration issues to do with compatibility, modularity, packaging, extensibility, robustness, security, fault-tolerance and usability. In a System Development Life Cycle (SDLC), software architecture forms the fundamentals that determine the design of that software by specifying the organization techniques to be implemented during the next step of designing. A software design document is a well written and stable description (done by the software designer) of the software product outlining all sections of software and their intended functionalities. This document is deemed to provide a complete description of the intended end result of the software, while keeping to a quality view of the system. Therefore, a well-documented bad design will serve no purpose if it describes â€Å"space† none existing features. It will be better to have a good design that conforms to the system architecture and organizational expectations but without documentation rather than a well-documented but poorly done design. The quality of any piece of code in a design would be determined by using varied code quality measurement techniques such as focus on the fundamentals of Object Oriented Programming styles and the design patterns; writing of clean codes (codes that are to the standards and principles in relation to the problem); and identifying WTFs â€Å"Bad Smells† within the code (Robert C. Martins). The need to experiment with software design is to gather information/ data about the design and analyze it by considering how the intended experimental factors would fit wholly into a model expected to meet the precise objective set for the experiment and satisfy the

Economics Paper 2 Essay Example | Topics and Well Written Essays - 500 words

Economics Paper 2 - Essay Example International Trade costs U.S job: International trade benefits both the countries. Standard of living of both countries increase, the countries can utilize their labor in something that is surplus and create boom in that product. National debt will burden the future: It is not always that national debts that burden the country. If the Government utilizes the funds in development of the future generation ; Even though the future generation will have to pay a little more tax but they will be duly benefited. Sweat Shops exploit workers: In poor countries getting a sweat shop job is better than not getting any job at all. By improving the work place amenities the cost of production will increase and the manufacturer will try and balance out their expenditure by reducing employment. This will lead to the employees losing their job. Trade Deficits means weak economy: In a booming economy there is more money to buy. Hence the Trade Deficits are seen. Also when people invest in a booming economy the money flow is outwards.So the money appreciates making it expensive for the foreign buyers. So Trade Deficit is not a sign of weak economy Monopolies charge any price:: It is not always that monopoly companies charge the highest. To make their products sell they may even charge low. The consumer may also benefit by the monopoly as it gives them a specialized market of that particular good in a competitive price. Manufacturers make products that wear out so that they can sell more: Even if the companies increase the price of products lasting longer, competition will make them reduce their price, thus benefiting the consumer. Money comes out of printing press: Most of the money in US economy is not in hard cash but in a/c in banks. When they lend out loans and in turn gets more checques.That way it increases its money making. But if they

How successful is Rolex's current marketing strategy Research Paper

How successful is Rolex's current marketing strategy - Research Paper Example In order to reach the right target market, Rolex has made a drastic change in its marketing strategy by moving from traditional mediums such as Television Advertisements and advertisements in newspapers and magazines to celebrity endorsements such as Roger Federer and events sponsorships; both of these elements have created a new image in the market. As people are willing to invest in those brands that will enhance their relationship with their favorite personalities, Rolex has capitalized on this aspect. The primary research conducted among the college students revealed that they are willing to own Rolex brand as it helps them in developing an association with their favorite star. Hence, Rolex is doing aggressive marketing so that it can capture the attention of its target market, enhance its distinctive image worldwide and keep on making valuable contribution in the wristwatch industry. Introduction In luxury wristwatch industry, Rolex is the leading name, and it has become a statu s symbol worldwide. Since Rolex has been meeting the demands of its customers for so many years and has been given top ranking in the world’s best brands list, it is of great interest to know the secret of the success of Rolex. One of the important aspects of every brand is its marketing strategy because it gives it a sense of direction about the efforts that need to be done so that it can capture the attention of its target market and convey positive message to its customers (Key Note, 2011). Research Objectives and Questions The main research objectives of this study are: 1. To gather information about top brands of wristwatch industry. 2. To identify the marketing activities conducted by Rolex to attract the customers. 3. To evaluate the image held by the customers about Rolex brand. In order to understand the current marketing strategy employed by Rolex, following research questions will be addressed to achieve the objectives of the study: 1. Why is Rolex a successful bra nd? 2. What is the marketing strategy followed by Rolex to maintain its position in the market? 3. Why are the customers of Rolex satisfied with its wristwatches? Importance of the Study The study will help in understanding the importance of marketing strategy in creating a right positioning in the market. When the marketing strategies of top ranked brands are studied, an in-depth understanding about the relevant topic can be developed. Rolex’s current marketing strategy will assist in analyzing the success of Rolex in such a dynamic and competitive wristwatch industry. Limitations of the Study The scope of the research is limited as there are both time and resource constraints. The research is exploratory in nature and it is comprised of questionnaire-survey. The questionnaire has been designed in consensus with the previous work done by some authors as the questions are designed in accordance with the variables identified to be studied for the research purpose which is disc ussed in the Literature Review section. The availability of pure study of the subject was another constraint as the researcher is inexperienced and may lack certain skills which can affect the research paper. Literature Review Brief Introduction of Rolex Whenever a customer wears Rolex watch, it enhances the person’s personality which makes a statement that the person has a great taste of style and fashion (Gautschi, 2005). Since Rolex watches are designed exclusively for the upper class, only selected

Operations Management Essay Example | Topics and Well Written Essays - 2750 words - 3

Operations Management - Essay Example For Nestle S.A, a Swiss multinational nutritional and health-related goods provider and the largest food company in the world, it is essential to realize the importance of operations management, of its strategies and directions. Proper operations management will allow the company to satisfy the requirements of its customers, develop intrinsic capabilities for the long-term success, understand where it should locate its resources and expand them accordingly, develop relationships with other organizations and invest the proper type of technology in the development of its business operations. Founded more that hundred years ago, today Nestle attracts customers all around the world with the variety of such products as baby food, bottled water, breakfast and cereals, coffee products, confectionery and dairy products, snacks and pet food. Being the largest food company across the globe, Nestle finds it more important to be the world’s leading food company. However, constant changes in the global market require the company to achieve efficiency in its products and service operations in order to stay commercially viable. The following paper will critically assess the operational methods and strategies adopted by Nestle; it will identify what the operations objectives are and then suggest the sort of process that should be operating. For the purpose of proposing the improvement for the operations of the company, certain recommendations will be gives as well. There is no organization that can plan its future actions with every detail it expects. However, what all business need is the strategic direction to what it will move forward. Whether the operations function is realized by the company, it needs to form a set of business principle and rules that will be guided by the decision making process. The most important feature of the operations of a particular company is the aligning of its activities with the overall strategy of the organization

An analysis of Information Security Governance in the Universities in Zimbabwe Essay Example for Free

An analysis of Information Security Governance in the Universities in Zimbabwe Essay Abstract The complexity and criticality of information security and its governance demand that it be elevated to the highest organizational levels. Within a university setup, information assets include student and personnel records, health and financial information, research data, teaching and learning materials and all restricted and unrestricted electronic library materials. Security of these information assets is among the highest priorities in terms of risk and liabilities, business continuity, and protection of university reputations. As a critical resource, information must be treated like any other asset essential to the survival and success of the organization. In this paper the writer is going to discuss the need for implementing Information Security Governance within institutions of higher education. Further than that, a discussion on how to best practice Information Security governance within the universities in Zimbabwe followed by an assessment on how far the Zimbabwean universities have implemented Information Security Governance. A combination of questionnaires and interviews is going to be used as a tool to gather data and some recommendations are stated towards the end of the paper. Introduction Governance, as defined by the IT Governance Institute (2003), is the â€Å"set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the enterprise’s resources are used responsibly.† Information security governance is the system by which an organization directs and controls information security (adapted from ISO 38500). It specifies the accountability framework and provides oversight to ensure that risks are adequately mitigated as well as ensuring that security strategies are aligned with business and consistent with regulations. To exercise effective enterprise and information security governance, boards and senior executives must have a clear understanding of what to expect from their enterprise’s information security programme. They need to know how to direct  the implementation of an information security programme, how to evaluate their own status with regard to an existing security programme and how to decide the strategy and objectives of an effective security programme (IT Governance Institute, 2006). Stakeholders are becoming more and more concerned about the information security as news of hacking, data theft and other attacks happen more frequently than ever dreamt of. Executive management has been showered with the responsibility of ensuring an organization provides users with secure information systems environment. Information security is not only a technical issue, but a business and governance challenge that involves adequate risk management, reporting and accountability. Effective security requires the active involvement of executives to assess emerging threats and the organization’s response to them (Corporate Governance Task Force, 2004). Furthermore the organizations need to protect themselves against the risks inherent in the use of information systems while simultaneously recognizing the benefits that can accrue from having secure information systems. Peter Drucker (1993) stated: â€Å"The diffusion of technology and the commodification of information transforms the role of information into a resource equal in importance to the traditionally important resources of land, labor and capital.† Thus as dependence on information system increases, the criticality of information security brings with it the need for effective information security governance. Need for Information Security Governance within universities. A key goal of information security is to reduce adverse impacts on the organization to an acceptable level of risk. Information security protects information assets against the risk of loss, operational discontinuity, misuse, unauthorized disclosure, inaccessibility and damage. It also protects against the ever-increasing potential for civil or legal liability that organizations face as a result of information inaccuracy and loss, or the absence of due care in its protection. Information security covers all information processes, physical and electronic, regardless whether they involve people and technology or relationships with trading partners, customers and third parties. Information security addresses information protection, confidentiality, availability and integrity throughout the life cycle of the information and its use within the organization. John P. Pironti (2006) suggested that among many reasons for information security  governance, the most important one is the one concerned with the legal liability, protection of the organization’s reputation and regulatory compliance. With the university setup, all members of the university community are obligated to respect and, in many cases, to protect confidential data. Medical records, student records, certain employment-related records, library use records, attorney-client communications, and certain research and other intellectual property-related records are, subject to limited exceptions, confidential as a matter of law. Many other categories of records, including faculty and other personnel records, and records relating to the universitys business and finances are, as a matter of university policy, treated as confidential. Systems (hardware and software) designed primarily to store confidential records (such as the Financial Information System and Student Information System and all medical records systems) require enhanced security protections and are controlled (strategic) systems to which access is closely monitored. Networks provide connection to records, information, and other networks and also require security protections. The use of university information technology assets in other than a manner and for the purpose of which they were intended represents a misallocation of resources and, possibly, a violation of law. To achieve all this in today’s complex, interconnected world, information security must be addressed at the highest levels of the organization, not regarded as a technical specialty relegated to the IT department. Information security is a top-down process requiring a comprehensive security strategy that is explicitly linked to the organization’s business processes and strategy. Security must address entire organization’s processes, both physical and technical, from end to end. Hence, Information security governance requires senior management commitment, a security-aware culture, promotion of good security practices and compliance with policy. It is easier to buy a solution than to change a culture, but even the most secure system will not achieve a significant degree of security if used by ill-informed, untrained, careless or indifferent personnel (IT Governance Institute, 2006). In an interview the executive director and information security expert on IT Governance and cyber security with the IT Governance and Cyber Security Institute of sub-Saharan Africa, Dr Richard Gwashy Young has this to say â€Å"†¦remember in  Zimbabwe security is regarded as an expense not an investment† (Rutsito, 2012). Benefits of Information Security Governance Good information security governance generates significant benefits, including: The Board of directors taking full responsibility for Information security initiatives Increased predictability and reduced uncertainty of business operations by lowering information security-related risks to definable and acceptable levels Protection from the increasing potential for civil or legal liability as a result of information inaccuracy or the absence of due care. The structure and framework to optimize allocation of limited security resources Assurance of effective information security policy and policy compliance A firm foundation for efficient and effective risk management, process improvement, and rapid incident response related to securing information A level of assurance that critical decisions are not based on faulty information Accountability for safeguarding information during critical business activities. Compliances with local and international regulations will be easier Improved resource management, optimizing knowledge, information security and information technology infrastructure The benefits add significant value to the organization by: Improving trust in customer/client relationships Protecting the organization’s reputation Decreasing likelihood of violations of privacy Providing greater confidence when interacting with trading partners Enabling new and better ways to process electronic transactions like publishing results online and online registration. Reducing operational costs by providing predictable outcomes—mitigating risk factors that may interrupt the process The benefits of good information security are not just a reduction in risk or a reduction in the impact should something go wrong. Good security can improve reputation, confidence and trust from others with whom business is conducted, and can even improve efficiency by avoiding wasted time and effort recovering from a security incident (IT Governance Institute, 2004). Information Security Governance Outcomes Five basic outcomes can be expected to result from developing an effective governance approach to information security: Strategic alignment of information security with institutional objectives Reduction of risk and potential business impacts to an acceptable level Value delivery through the optimization of security investments with institutional objectives Efficient utilization of security investments supporting organization objectives Performance measurement and monitoring to ensure that objectives are met Best practices The National Association of Corporate Directors (2001), recognizes the importance of information security and recommends four essential practices for boards of directors. The four practices, which are based on the practicalities of how boards operate, are: Place information security on the board’s agenda. Identify information security leaders, hold them accountable and ensure support for them. Ensure the effectiveness of the corporation’s information security policy through review and approval. Assign information security to a key committee and ensure adequate support for that committee. It is critical that management ensure that adequate resources are allocated to support the overall enterprise information security strategy (IT Governance Institute, 2006). To achieve effective information security governance, management must establish and maintain a framework to guide the development and maintenance of a comprehensive information security programme. According to Horton, et al (2000), an information security governance framework generally consists of: An information security risk management methodology; A comprehensive security strategy explicitly linked with business and IT objectives; An effective security organizational structure; A security strategy that talks about the value of information both protected and delivered; Security policies that address each aspect of strategy, control and regulation; A complete set of security standards for each policy to ensure that procedures and guidelines comply with policy; Institutionalized monitoring processes to ensure compliance and provide feedback on effectiveness and mitigation of risk; A process to ensure  continued evaluation and update of security policies, standards, procedures and risks. This kind of framework, in turn, provides the basis for the development of a cost-effective information security program me that supports an organization’s goals and provides an acceptable level of predictability for operations by limiting the impacts of adverse events. In his article Kaitano (2010), pointed some characteristics of good corporate governance coupled with good security governance. These include and not limited to: Information security being treated as and organization wide issue and leaders are accountable. Leads to viable Governance, Risk and Compliance(GRC) Milestones It is risk-based and focuses on all aspects of security Proper frameworks and programs have been implemented It is not treated as a cost but a way of doing business Roles, responsibilities and segregation of duties are defined It is addressed and enforced by policy Adequate resources are committed and Staff are aware and trained It is planned, managed, measurable and measured It is reviewed and audited The overall objective of the programme is to provide assurance that information assets are protected in accordance with their value or the risk their compromise poses to an organization. The framework generates a set of activities that supports fulfillment of this objective. Principles for information security within the University In their article titled Information Security Policy: Best Practice Document, Hostland et al (2010) pointed out some guiding principles for information security within a university setup. The following are some of the principles they mentioned: 1. Risk assessment and management The universitys approach to security should be based on risk assessments and should be continuously done and the need for protective measures evaluated. Measures must be evaluated based on the universitys role as an establishment for education and research and with regards to efficiency, cost and practical feasibility. An overall risk assessment of the  information systems should be performed annually. Risk assessments must identify, quantify and prioritize the risks according to relevant criteria for acceptable risks. Risk assessments should be carried out when implementing changes impacting information security. Some recognized methods of assessing risks like ISO/IEC 27005 should be employed. Risk management is to be carried out according to criteria approved by the management at University. Risk assessments must be approved by the management and if a risk assessment reveals unacceptable risks, measures must be implemented to reduce the risk to an acceptable level. 2. Information security policy The Vice Chancellor should ensure that the information security policy, as well as guidelines and standards, are utilized and acted upon. He must also ensure the availability of sufficient training and information material for all users, in order to enable the users to protect the universitys data and information systems. The security policy should be reviewed and updated annually or when necessary, in accordance with principles described in ISO/IEC 27001. However, all important changes to universitys activities, and other external changes related to the threat level, should result in a revision of the policy and the guidelines relevant to the information security. 3. Security organization The Vice Chancellor is responsible for all government contact. The university should appoint CSO (Chief Security Officer). Each department and section should also be responsible for implementing the units information security. The managers of each unit must appoint separate security administrators. The Registrar Academics has the primary responsibility for the information security in connection with the student registry and other student related information. The IT Director has executive responsibility for information security in connection with IT systems and infrastructure. The Operations manager has executive responsibility for information security in connection with structural infrastructure. He also has overall responsibility for quality work, while the operational responsibility is delegated according to the management structure. The Registrar Human Resources also has executive responsibility for information security according to the Personal Data Act and is the controller on a daily basis of the personal information of the  employees. The Registrar Academics and Research Administration have also executive responsibility for research related personal information. Universitys information security should be revised on a regular basis, through internal control and at need, with assistance from an external IT auditor. 4. Information security in connection with users of Universitys services Prior to employment security responsibility and roles for employees and contractors should be described. A background check is should also be carried out of all appointees to positions at the university according to relevant laws and regulations. A confidentiality agreement should be signed by employees, contractors or others who may gain access to sensitive and/or internal information. IT regulations should be accepted for all employment contracts and for system access for third parties. During employment, the IT regulations for the universitys information security requirements should be in place and the users responsibility for complying with these regulations is to be emphasized. The IT regulations should be reviewed regularly with all users and with all new hires. All employees and third party users should receive adequate training and updating regarding the Information security policy and procedures. Breaches of the Information security policy and accompanying guidelines will normally result in sanctions. Universitys information, information systems and other assets should only be utilized for their intended purpose. Necessary private usage is permitted. Private IT equipment in the universitys infrastructure may only be connected where explicitly permitted. All other use must be approved in advance by the IT department. On termination or change of employment, the responsibility for termination or change of employment should be clearly defined in a separate routine with relevant circulation forms. The universitys assets should be handed in at the conclusion of the need for the use of these assets. University should change or terminate access rights at termination or change of employment. A routine should be present for handling alumni relationships. Notification on employment termination or change should be carried out through the procedures defined in the personnel system. 5. Information security regarding physical conditions IT equipment and information that require protection should be placed in secure physical areas. Secure areas should have suitable access control to  ensure that only authorized personnel have access. All of the Universitys buildings should be secured according to their classification by using adequate security systems, including suitable tracking/logging. Security managers for the various areas of responsibility should ensure that work performed by third parties in secure zones is suitably monitored and documented. All external doors and windows must be closed and locked at the end of the work day. On securing equipment, IT equipment which is very essential for daily activities must be protected against environmental threats (fires, flooding, temperature variations). Information classified as sensitive must not be stored on portable computer equipment (e.g. laptops, cell phones, memory sticks). If it is necessary to store this information on portable equipment, the information must be password protected and encrypted in compliance with guidelines from the IT department. During travel, portable computer equipment should be treated as carry-on luggage. Fire drills should also be carried out on a regular basis. 6. IT communications and operations management Purchase and installation of IT equipment and software for IT equipment must be approved by the IT department. The IT department should ensure documentation of the IT systems according to universitys standards. Changes in IT systems should only be implemented if well-founded from a business and security standpoint. The IT department should have emergency procedures in order to minimize the effect of unsuccessful changes to the IT systems. Operational procedures should be documented and the documentation must be updated following all substantial changes. Before a new IT system is put in production, plans and risk assessments should be in place to avoid errors. Additionally, routines for monitoring and managing unforeseen problems should be in place. Duties and responsibilities should be separated in a manner reducing the possibility of unauthorized or unforeseen abuse of the universitys assets. Development, testing and maintenance should be separated from operations in order to reduce the risk of unauthorized access or changes, and in order to reduce the risk of error conditions. On system planning and acceptance, the requirements for information security must be taken into consideration when designing, testing, implementing and upgrading IT systems, as well as during system changes. Routines must be developed for  change management and system development/maintenance. IT systems must be dimensioned according to capacity requirements and the load should be monitored in order to apply upgrades and adjustments in a timely manner as it is especially important for business-critical systems. Written guidelines for access control and passwords based on business and security requirements should be in place. Guidelines should be re-evaluated on a regular basis and should contain password requirements (frequency of change, minimum length, character types which may/must be utilized) and regulate password storage. All users accessing systems must be authenticated according to guidelines and should have unique combinations of usernames and passwords. Users are responsible for any usage of their usernames and passwords. Data Gathering A structured questionnaire adapted and modified from previous questionnaires used by Corporate Governance Task Force, (2004) was used as the main instrument to gather data. Of the total 13 universities in Zimbabwe, 9 managed to participate in this research. The questionnaires were completed by the Executive Dean, IT Director, Operations Manager or Chairperson for the department. Section I: Organizational Reliance on IT The first section was designed to help in determining the institution’s reliance on information technology for business continuity. Table 1: Characteristics of Organization Questions Scores/Frequency 0 1 2 3 4 Dependence on information technology systems and the Internet to conduct academic, research, and outreach programs and offer support services 9 Value of organization’s intellectual property stored or transmitted in electronic form 2 7 The sensitivity of stakeholders (including but not limited to students, faculty, staff, alumni, governing boards, legislators, donors, and funding agencies) to privacy 2 3 4 Level of regulation regarding security (international, federal, state, or local regulations) 1 4 3 1 Does your organization have academic or research programs in a sensitive area that may make you a target of violent physical or cyber attack from any groups? 5 1 2 1 Total score 1 9 6 7 22 Scoring: Very Low = 0; Low = 1; Medium = 2; High = 3; Very High = 4 Section II: Risk Management: This section assesses the risk management process as it relates to creating an information security strategy and program. Table 2: Information Security Risk Assessment Questions Scores/Frequency 0 1 2 3 4 Does your organization have a documented information security program? 2 5 2 Has your organization conducted a risk assessment to identify the key objectives that need to be supported by your information security program? 2 4 3 Has your organization identified critical assets and the functions that rely on them? 2 2 5 Have the information security threats and vulnerabilities associated with each of the critical assets and functions been identified? 2 4 2 1 Has a cost been assigned to the loss of each critical asset or function? 1 3 3 2 Do you have a written information security strategy? 2 4 2 1 Does your written information security strategy include plans that seek to cost-effectively reduce the risks to an acceptable level, with minimal disruptions to operations? 4 2 2 1 Is the strategy reviewed and updated at least annually or more frequently when significant changes require it? 2 3 3 1 Do you have a process in place to monitor federal, state, or international legislation or regulations and determine their applicability to your organization? 2 2 3 2 1 Total 10 16 26 14 16 Scoring: Not Implemented = 0; Planning Stages = 1; Partially Implemented = 2; Close to Completion = 3; Fully Implemented = 4 Section III: People This section assesses the organizational aspects of the information security program. Table 3: Information Security Function/Organization Questions Scores/Frequency 0 1 2 3 4 Do you have a person that has information security as his primary duty, with responsibility for maintaining the security program and ensuring compliance? 4 3 1 1 Do the leaders and staff of your information security organization have the necessary experience and qualifications? 5 2 2 Is responsibility clearly assigned for all areas of the information security architecture, compliance, processes and audits? 3 4 1 1 Do you have an ongoing training program in place to build skills and competencies for information security for members of the information security function? 2 2 3 2 Does the information security function report regularly to institutional leaders and the governing board on the compliance of the institution to and the effectiveness of the information security program and policies? 2 3 3 1 Are the senior officers of the institution ultimately responsible and accountable for the information security program, including approval of information security policies? 3 4 2 Total 16 17 14 7 0 Scoring: Not Implemented = 0; Planning Stages = 1; Partially Implemented = 2; Close to Completion = 3; Fully Implemented = 4 Section IV: Processes This section assesses the processes that should be part of an information security program. Table IV: Security Technology Strategy Questions Scores/Frequency 0 1 2 3 4 Have you instituted processes and procedures for involving the security personnel in evaluating and addressing any security impacts before the purchase or introduction of new systems? 2 3 3 1 Do you have a process to appropriately evaluate and classify the information and information assets that support the operations and assets under your control, to indicate the appropriate levels of information security? 1 2 3 2 1 Are written information security policies consistent, easy to understand, and readily available to administrators, faculty, employees, students, contractors, and partners? 2 3 3 1 Are consequences for noncompliance with corporate policies clearly communicated and enforced? 1 3 2 3 1 Do your security policies effectively address the risks identified in your risk analysis/risk assessments? 2 3 4 Are information security issues considered in all important decisions within the organization? 3 2 3 1 Do you constantly monitor in real time your networks, systems and applications for unauthorized access and anomalous behavior such as viruses, malicious code insertion, or break-in attempts? 1 3 3 1 1 Is sensitive data encrypted and associated encryption keys properly protected? 2 3 2 1 1 Do you have an authorization system that enforces time limits and defaults to minimum privileges? 2 2 2 3 Do your systems and applications enforce session/user management practices including automatic timeouts, lock out on login failure, and revocation? 2 3 2 2 Based on your information security risk management strategy, do you have official written information security policies or procedures that address each of the following areas? Individual employee responsibilities for information security practices 4 3 1 1 Acceptable use of computers, e-mail, Internet, and intranet 2 3 2 2 Protection of organizational assets, including intellectual property 2 2 3 2 Access control, authentication, and authorization practices and requirements 1 2 3 1 2 Information sharing, including storing and transmitting institutional data on outside resources (ISPs, external networks, contractors’ systems) 2 1 3 2 1 Disaster recovery contingency planning (business continuity planning) 1 1 3 4 Change management processes 2 3 2 2 Physical security and personnel clearances or background checks 1 3 3 2 Data backups and secure off-site storage 1 1 3 4 Secure disposal of data, old media, or printed materials that contains sensitive information 2 3 4 For your critical data centers, programming rooms, network operations centers, and other sensitive facilities or locations: 2 3 4 Are multiple physical security measures in place to restrict forced or unauthorized entry? 1 2 3 3 Is there a process for issuing keys, codes, and/or cards that require proper authorization and background checks for access to these sensitive facilities? 2 1 3 3 Is your critical hardware and wiring protected from power loss, tampering, failure, and environmental threats? 1 4 4 Total 17 45 58 50 47 Scoring: Not Implemented = 0; Planning Stages = 1; Partially Implemented = 2; Close to Completion = 3; Fully Implemented = 4 Discussion As shown by the total scores on Table 1, a majority of the university has a very high reliance on the IT in their services. This is depicted by the structure and characteristics of the university. Information risk assessment and management leaves a lot to be desired by the universities. Most the universities have partially implemented such programs. A large number of employees in the IT departments of most universities do no have sufficient skills to implement good information security governance. Most universities lack the leaders who have the rightful know how on the subject. In addition  to that, there is no a representative in the council who will be an IT expert, hence most leaders lack interest and initiatives on information security. Due to lack of full responsibility of information security by the leaders, to implement processes for information security might also be a challenge especially to the IT department as normally is the department given the responsibility. Conclusion There is a need for institutions to start focusing on proper information security governance. For a start organization such as the Government, the Computer Society of Zimbabwe, Zim Law Society, POTRAZ, ICAZ, IIAZ, Zimbabwe Institute of Management and other industry governing bodies should put their heads together and define the appropriate legislations that mandates information security governance either by referring to existing international frameworks (PCI-DSS, SOX, COSO, ITIL, SABSA, Cobit FIPS, NIST, ISO 27002/5, CMM, ITG Governance Framework) or by consulting local information security and business professionals to come up with an information security governance framework. As the Zimbabwean economy is slowly sprouting, the art of information security governance in the universities should also take a leap. The adoption information security governance will ensure that security will become a part of any university and thus customers confidence will be boosted. References Drucker, P. ‘Management Challenges for the 21st Century’, Harpers Business , 1993. Corporate Governance Task Force, Information Security Governance: Call to Action, USA, 2004. IT Governance Institute, Board Briefing on IT Governance, 2nd Edition, USA, 2003, www.itgi.org. IT Governance Institute, Information Security Governance: Guidance for Boards of Directors and Executive Management, 2nd Edition, USA, 2006. ISO/IEC 38500: Corporate Governance of Information Technology, 2008. IT Governance Institute, COBIT 4.0, USA, 2005, www.itgi.org IT Governance Institute, COBIT ® Security Baseline, USA, 2004, www.itgi.org National Association of Corporate Directors, ‘Information Security Oversight: Essential Board Practices’, USA, 2001 John P. Pironti,  Ã¢â‚¬Å"Information Security Governance: Motivations, Benefits and Outcomes,† Information Systems Control Journal, vol. 4 (2006): 45–8. 21. Rutsito, T. (2005) ‘IT governance, security define new era’ The Herald, 07 November. Kaitano, F. (2010) ‘Information Security Governance: Missing Link In Corporate Governance’ TechZim. http://www.techzim.co.zw/2010/05/information-security-governance-missing-link-in-corporate-governance [accessed 02 May 2013]. Horton, T.R., Le Grand, C.H., Murray, W.H., Ozier, W.J. Parker, D.B. (2000). Information Security Management and Assurance: A Call to Action for Corporate Governance. United States of America: The Institute of Internal Auditors. Hostland, K, Enstad, A. P, Eilertsen, O, Boe, G. (2010). Information Security Policy: Best Practice Document. Corporate Governance Task Force, (2004). Information Security Governance: Call to Action, USA

Results from the Job analysis method Essay Example for Free

Results from the Job analysis method Essay Observation method allows employers to watch and judge how employees perform in their specific jobs. Supervisors or managers would have a better understanding on how the employee performs. They can decide whether the performance from the employees would need to improve or if theyre satisfied with the current progress. However, employees may feel insecure as they are being watched. It can also be time consuming and results gathered may not be accurate as the employees may change their attitude or habits towards their work. Individual interview method is the most accurate and precise form of job analysis. Understanding the job would be clearer and easier. Questions and doubts can be answered and clarified. Information can be gathered quickly and are more likely to be accurate. Group interview method is when an interview takes place in groups of three to five candidates at a time. Like individual interview method, the interviewer and interviewee can interact face to face. Interviewer can get first hand information about the candidates attitude and character. However the disadvantages of group interview is that the interviewers choice maybe bias. Diary method is time consuming compared to the other six job analysis methods. This report focuses on observation, individual and group interview method. We have chosen them because this is the best way to interview them. A job description would give job-seekers and overall idea of what will they be doing, how the job should be done, the kind of conditions they would be working in and what steps are needed to be done in a specific job. It should accurately describe the contents and environment of the job, and the conditions of employment. Such details in a job description would be the job title or position, the essential duties and tasks that are to be performed, and the characteristics of the job, environmental conditions, the authorities and responsibilities of the job-seeker. Job specification specifies the minimum qualifications that the candidate must possess in order to attain the job successfully. Based on the information gathered from the job analysis, the job specification identifies the essential knowledge, skills, education, working experience, type of certification and the abilities needed to possess by the candidate. The applicants must have these basic requirements before they can apply for the position.

Concepts At Servant Leadership

Concepts At Servant Leadership According to Greenleaf servant-leaders are driven to serve first, rather than to lead first, always striving to meet the highest priority needs of others. In comparing Christianity and Islamic religion in regards to servant leadership, the characteristics must be observed: listening, empathy, healing, awareness, persuasion, conceptualization, foresight, commitment to the growth of people, and building community. This paper will address two religions Islamic and Christianity one that is compatible and the other not compatible with Greenleafs characteristics of servant leadership. It will focus on TDIndustries, which has demonstrated servant leadership. Also, it will explain the importance of self-awareness and emotional intelligence and the role it play in enabling leaders. In 1977 Robert Greenleaf introduced the concept of servant leadership. Servant-leaders emphasize the development and elevation of followers. Servant-leadership is a natural feeling; it serves others by investing in their development and well being for the benefit of the common good. The core Christian values include hope, righteousness, love, and putting God first in our lives. Christianity share similar values of servant leadership. In Matthew 20:26-28, Christ tells us that we need, first of all, to lead in an attitude of servant hood. Christianity is about a personal relationships with God and with others. Christian servant leaders serve God through investing in others so that together they may accomplish a task for Gods glory. Christians, non-Christians, and women are treated equally in society and American court of law. The majority of Christians regard women with dignity and respect, having been created alongside men in the image of God. The Islamic religion share some but dose not share the essential characteristics of servant leadership. The Islamic religion treats Muslims and non-Muslims very different. Non-Muslims are referred to as dhimmi, which are considered second class citizens. They are not allowed to present evidence against a Muslim in a court of law governed by the Koran. Since his oath was unacceptable in an Islamic court his Muslim opponent could not easily be condemned. In order to defend himself, the dhimmi was obliged to purchase Muslim witnesses at great expense . The punishment that a guilty Muslim received for a crime would be greatly reduced if the victim were a dhimmi. The Islamic state is forbidden from discriminating between citizens on the basis of race, creed, colour or anything else. In origin all the rules of Islam apply equally to Muslims and non-Muslims. Under Islamic Shariah law, non-believers Christians and Jews anyway are permitted to live as long as they support Islam through thei r Dhimmi taxes and are willing to accept what amounts to a third or fourth class existence, always subject to false accusations and ill treatment. Dhimmis always live in fear. Dhimmi is the status of infidels under Islam who are permitted to live in Muslim jurisdictions but only with restrictions as second class citizens. Additionally, Muslim women also suffer under a dual standard and experience second class status. Jack Lowe, Sr. founder of TDIndustries dedication to servant-leadership began many years ago; he developed a leadership approach based on his religious convictions. It was the responsibility of his leaders to build his organization by ensuring the achievement of their employees personal and professional career goals. This servant leadership approach to and management has enabled TDI to make the necessary changes for survival during difficult times. For the last five decades, they seemed increased profit growth and employee satisfaction. By taking care of their employees, TDI is ranked number 36 on Fortune magazines 100 Best Companies to Work For (2006). What makes this organization so great? This is an employee-owned contractor company. The board of directors is elected by employees. According to Jack Lowe Jr. (2006) there are key elements of servant-leadership that are continuously emphasized at TDIndustries: being a servant first, making sure that other peoples needs are served, and serving through listening. Firstly, we are committed to providing outstanding career opportunities by exceeding our customers expectations through continuous aggre ssive improvement. Secondly, to ensure their employees needs are served annual survey are compared to a national average. Finally, top management would invite employees in to discuss critical issues and brainstorm ideas to solve business related problems. Jack Lowe Jr. believes in open communication and through these key elements all employees has an opportunity to share their views and suggestions at least once every two years. TDIndustries has consistently practiced and call attention to the success they have experienced as a result of institutionalizing these key elements of servant leadership. Their strong commitment to servant-leadership has created an environment of mutual trust and respect between employees and leaders. By encouraging and respecting an individual value, team trust is increased. Any by respecting others, the leader in turn earns respect. Where there is strong trust, there is strong commitment to a vision that creates value, meaning, and purpose. Employees know their voices are he ard and leaders are genuinely interested in their ideas. On an interpersonal level, the importance of self awareness to Marvin knows his strengths and weaknesses can help gain the trust of others and increase his credibility, which will increase his leadership effectiveness. On an organizational level, acknowledging the he does not have all the answers and will make mistakes and knowing when to ask for help. Marvin believes having good human skills will have a high degree of self awareness and a capacity to understand or empathize with others. By developing his emotional intelligence, he establishes a strong bond with employees and management. His emotional intelligence is key to his skills as a respiratory therapist. Being compassionate about serving his patients is an emotional competence base on empathy. Trustworthiness is a competence that is based on self-regulation. Both of these competencies are critical in helping to make him an outstanding therapist. In closing, servant leadership is not a particular style of leadership, but rather relates to the motivation behind a leaders thoughts, words and actions. Servant leaders must ensure that their vision and principles are in line with other in their organization. While serving other first may not appear easy and is the heart of servant leadership; it could be easier when leaders hold a similar vision and value for themselves. Christianity show more similar characteristics of servant leadership than Islam. Christian servant leaders serve God through investing in others so that together they may accomplish a task for Gods glory. This ultimate accomplishment of Christian leaders will spread to help mentor and grow additional leaders who can be sent out to establish new ministries and train even more leaders. Significant oppositions with servant leadership theory were found within Islam. These oppositions do not preclude servant leadership from being practiced within those traditions but r aise serious questions as to how compatible these traditions actually are with the whole theory and its implications. The Islamic state is forbidden from discriminating between citizens on the basis of race, creed, color or anything else. However, under Islamic Shariah law, non-believers Christians and Jews anyway are permitted to live as long as they support Islam through their Dhimmi taxes and are willing to accept what amounts to a third or fourth class existence, always subject to false accusations and ill treatment. Jack Lowe, Sr. of TDIndustries is regarded as a true visionary in taking this company to the next level in servant leadership. He utilized servant leadership and religious convictions, by consistently treated their 1400 employees the way he wish to be treated and a partner. This is reflected by being a servant first, making sure that other peoples needs are served, and serving through listening. Being true to himself and his employees through servant leadership, h elp to bridge the respect and trust between employees and leaders. Showing self awareness and emotional are key characteristics in servant leadership. Expressing compassion when serving patients and being conscious of what you are good at while acknowledging what you still have yet to learn. This includes admitting when you dont have the answer and owning up to mistakes.