Contemporary auditing and risk management Essay

Contemporary auditing and risk management - Essay Example In the event that our application is not complied with, we ought to cease to act as auditor to your company or to support the company in any revenue or tax matter. We must convey a copy of our resignation to an applicable office of the Revenue Commissioners within 14 days. We ought to report material pertinent offences to the administrator of the company in writing, in a period 6 months. Our costs or fees are calculated on the basis of the period spent on your matters by our staff and partners, and on the levels of expertize and obligation involved and expenses incurred and VAT. We shall not reveal, to potential competitors or third party, confidential information attained in during our professional duty without your permission unless a legal right to disclose. Under the law of our institution, we obliged to avail all documents available for scrutiny in the course of a general practice review. Where the engagement is dismissed the constitutional provisions governing dismissal or term ination of auditors in accordance to the Companies Act, shall apply. When we as auditors cease to continue in office, we have an obligation to notify UK Auditing and Accounting Supervisory Consultant within one month after the date of cessation. Once this letter has been approved, it will remain operative, from one audit employment to another, till it is replaced. We shall be thankful if you could sanction in writing your pact to the terms of our engagement letter, by appending your signature and returning copy of this letter, or inform us if they are not in accordance with your comprehension of our terms of appointment. Yours faithfully, _______________________ Loughran and Shrives Chartered Accountants We approve to the terms of this letter. ______________________________________ Signed for and on behalf of Land Securities Group Plc. Ethical Issues for New Clients Leaflet Study Title: Ethical Issues for New Clients Leaflet Firm: Loughran and Shrives Chartered Accountants Client: L and Securities Group Plc Ethical auditing is a procedure which examines the internal and external reliability of a company's values base. The key ideas are that it must be value-linked, and that it integrates a stakeholder method. Its purposes are two-fold: It is envisioned for transparency and accountability towards stakeholders and it is anticipated for internal regulation, to meet the moral objectives of the company. The importance of the moral audit is that it empowers the company to evaluate itself through a diversity of lenses: it incarcerations the company's ethical profile. Compliance with moral requirements involves: independence of a company with ethical standards supporting all stakeholders. Integrity of all the undertakings; where confidentiality, transparency, and accountability upheld. Objectivity and Professional Competence are added values. Our firm has been tested for the above ethical issues and proven fit of all. If you need any additional information now or at an y moment in the future, please contact: Name: Address: Phone No: Internal Control and Risk Management Letter The findings of the Cadbury Board provided an outline for corporate control which has become the foundation for the

Precis for two articles or write a good topic you think Essay - 2

Precis for two articles or write a good topic you think - Essay Example Even though population size is larger in developing countries and has higher growth rate, the greater threat is still developed countries. Developing countries however contribute to the threat of higher consumption through emigration to developed countries or through efforts for improving living standards and per capita consumption such as in China. China is a fast growing economy. While its current per capita consumption is 11 times lower than the one for developed countries, its large population means that continued increase in its per capita consumption would be a great threat to sustainability. Increase in its per capita consumption to 32 would increase global oil consumption by more than 100 percent and global metal consumption by almost 100 percent (Diamond 1, 2). If India could also join China to the 32-consumption level then the global consumption rate would increase by 300 percent while improvement of consumption in all developing countries would increase global consumption by about 1100 percent. Even though Americans suggest that improved governance and better policies could improve lifestyles in developing countries, these may not be valid solutions because economies may not be able to sustain increased consumption levels. Americans are also critical of countries with increasing consumption rates yet these rates are well below that in America. While developing countries may seek to improve their consumption rates towards equality, resource scarcity is a limitation and developed countries may not be willing to reduce their rates. Some of the factors to high consumption rates are however wasteful and minimizing them can ensure a balance with a level of sustainability. Political goodwill appears the necessary tool to this success (Diamond 2 , 3). Malakoff David authored the article, ‘Be fruitful and multiply?’ that the Conservation Magazine published in December 2009. The author identifies conflicting opinions on global

The Effects of the Harlem Renaissance to the Life of the Afro-Americans Essay Example for Free

The Effects of the Harlem Renaissance to the Life of the Afro-Americans Essay History tells us that the Blacks were initially known nothing but slaves in the United States. They have been introduced in the United States as slaves in the tobacco plantations and since then they have always been treated as inferior and subordinate to the White folks. â€Å"As dark-skinned people, African-Americans have identified themselves and been identified by others as different from first-class citizens. Their color stands for poverty and poverty’s stigma (Andersen 4). † There has been great effort for a few of them to resist this oppression among the Whites but they did not in any way succeed. They have become a subject of tortures, lynchings, and abuses. Their ways were seen as backward and not modern. The American Civil war was said to have ended slavery but never the oppression that goes along with it. After the abolition of slavery by the former President Braham Lincoln, the Blacks were no longer employed as slaves, laundrywomen, workers, and tenants to the White folks but they remained to be discriminated. They were not acknowledged as human beings. They were loathed. They were seen as different and not worthy of respect. As a consequence, they hated their color, their culture, and their origin. They were insecure of themselves. And while they weren’t able to gain respect from others, even more disheartening, is they did not gain respect for themselves (Andersen 285). These dire situations of the Black changed during the Harlem Renaissance and forward. While there are many black people who were lynched in the South and most African Americans were not allowed to exercise their right to vote as citizens of the United States, â€Å"the leaders of the Harlem Renaissance questioned the value of democracy for their people (Painter 193). † They encouraged the wealthy and the educated Whites to work with then in converting the racist ideologies of most of the White masses. They worked with their white allies and discovered a lot more talented African-American writers. They shepherded their works of literature to printing. For the first time in the history of the Blacks, major publishers agreed to bring out their works. The main objective as Jessie Fauset saw it was to â€Å"find our own beautiful and praise-worthy, an intense chauvinism that is content with its own types (Painter 194). † As established in the preceding paragraphs, the Harlem Renaissance drew out from the Negros all the necessary racial pride and connection among themselves in order to gain self-identity and eventually emancipation (Painter 189). What Hurtson has to do with it and all other Black American writers is the responsibility of providing a path for the advancement of racial consciousness through literature and the other arts. They publicize and romaticize the Black experience as unique in itself and something that is worthy of attention and appreciation. They have inculcated among the African-Americans the vitality of knowing themselves apart from what the Whites imposed upon them by looking back and deep into their cultures and origins. Through these efforts and endeavours by Hurtson and many other writers, they were able to weaken the demeaning stereotype that surrounded the Black ego since time immemorial and has made them realized their place in America as an independent and free group of people. Works Cited Andersen, Margaret and Taylor, Howard Francis. Sociology: Understanding a Diverse Society. Connecticut: Thomson Wardsworth, 2006. Campbell, Josie P. Student Companion to Zora Neale Hurtson. Westport: Greenwood Publishing Group, 2001

Mission of the organization defines the expected position and the fundamental purpose

Mission of the organization defines the expected position and the fundamental purpose Introduction The vision and mission of the organization defines the expected position and the fundamental purpose of the organization. The purpose of this assignment is to understand the vision and mission of the case company and to identify and understand the strategic aims and objectives of an organization and investigate its progress towards the fulfillment of those aims and objectives. For this different alternative strategies available to the organization are also considered. To fulfill the requirement of this assignment the organization selected for investigation is McDonalds. McDonalds is the leading fast food restaurant chain of the world and is serving more than 58 million customers on daily basis. McDonalds Vision and Mission Statement Every organization must have a vision and a mission. Vision and mission statements are the short phrases which sets the whole direction of the organization. Vision statement provides the whole picture of the organizations desired future position in a single phrase. This statement then sets a whole direction of all the strategic aims and objectives of the organization. Below is the vision statement of the case company i.e. McDonalds: To be the worlds best quick service restaurant experience, being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile Mission statement clarifies the fundamental purpose of the organization. Off course the purpose is to achieve the vision of the organization, but mission statement goes in further detail and answers the question of the existence of the organization. Mission statement of McDonalds is: To be the best employer To deliver operational excellence Achieving durable profits Expanding the brand name and extending the strength of McDonalds system through innovation and technology. Analyzing the vision and mission statement of the case company it is clear that organizations focus is mainly towards the external and internal customers i.e. consumers and employees. Furthermore, the company is committed to innovate and use the latest technology to earn huge profits. McDonalds Strategic Aims and Objectives An aim is a broader statement which tells what an organization wants to become and the objectives are the specific targets or tasks which leads towards the fulfillment of the aim of the organization. It is very important for an organization to set such aims which are practically possible and which can be measured. If this is not the case the organization will put its efforts and resources in that direction which is not possible at all. For effective working and success for an organization the aims and objectives must be realistic and it must also be associated with some time frame as if it is not the case then there will be confusion within the organization regarding the time to complete the tasks and projects (Fred David, 2006). Furthermore, the aims should be measureable, as the progress towards the fulfillment of objectives should be easily measured as if this is not the case then it would be very difficult for an organization to know that whether the desired results are achieved or not. McDonalds key to success all over the world is their priorities, which are also mentioned on their corporate website. The top priority of the leading fast food restaurant chain is the customers. As per the McDonalds corporate values the reason of the existence of the business are their customers and they work only to fulfill the needs and demands of the customers. As per the company it is not the matter of sales rather it is the matter of providing quality products along with the best services to the customers in affordable prices. The second priority is their employees or workforce. The company believes that the employees make the dream of the organization come true. The employees are their valuable assets and it is just because of the skills and competencies of their employees which enables the organization to achieve the set goals and targets. The company also believes the quality of their business model. According to the corporate values of the company the business model is set to meet the dynamic customer behavioral changes. The strategic aims and objectives of McDonalds and mentioned below and these shows that what are the top priorities of the company and it gives a hint why the company is so successful all across the globe: To maintain the leadership in fast food restaurant industry To serve the customer with good food in a friendly and fun environment Providing the quality food and value of money to the customer Providing the shareholder a positive return on their investments To meet the social and ethical responsibility Strategic Plan and its Component parts Strategic plan of any enterprise is a picture of the desired position of the organization. Strategic plan gives a root path that how the organization will achieve the desired place or position in the given industry (Maches, B. 2010). Three major components of strategic plan include formulation, implementation and evaluation of strategy carries that information and plan which provides a direction towards the organizational objectives (Kim Warren, 2008). Strategy Formulation Strategy formulation process starts with the situation analysis of the organization. Situation analysis is an important part of strategic plan as it gives an overview of the existing position of the organization. Situation analysis includes the analysis of internal and external environment of the organization. Different strategic tools can be used to evaluate this situation i.e. SWOT analysis, PEST Analysis etc. This also includes the evaluation of current mission and vision of the organization. Vision statement clarifies that what an organization want to become and on the other hand mission statements shows that what business the organization operates. Mission contains the products and services, its markets and its employee management policy. The assessment of external factors of the organization involves the listing down of finite list of factors which are a potential threat or opportunities for the organization in the external environment. By finite list is meant that not all the factors are focused. The priority is given to those factors which have high level of impact or form which high returns can be gained. The internal audit is also done in the situation analysis where the internal strengths and weaknesses of the organization are listed down (Fred David, 2006). After the clear understanding of the organizations current situation the real work begins where the strategies are formulated. The best practice is to involve the employees in this process as the employees from all levels will share their views and a better strategic decision will be expected. Here the strategies are developed to capitalize the opportunities available which were assessed in the external audit and minimize the threat of the factors. On the other side the strengths of the organizations require such strategies which further enhance them and the weaknesses are tried to be overcome. The next step in the strategy formulation stage is setting the long term objectives. Long term objectives are those which are associated with the sales and market share growth, it can be the growth of assets; it can be attaining any award from the government body etc. This is a very important phase as the long term goals and objectives show a direction to the whole organization. Long term objectives are set after a through consideration of external and internal strengths, weaknesses, opportunities and threats to the organization. The available resources and the expected resources are listed and based on those resources the long term but achievable, measureable and realistic objectives are set with proper timelines (Fred David, 2006). The final stage of strategy formulation process is the evaluation and selection of appropriate strategies to meet the long term objectives. In this the alternative strategies are also identified an evaluated and a contingency planning is also done. For instance in case of any external change which is beyond the change of organization such as change in legislations or change in market conditions then that contingency plan can be used. The existing strategies of the organization are the initial point for strategy evaluation. Strategy Implementation The next step in a strategic plan includes the strategy implementation. Developing an effective strategy does not ensures that the strategic plan will be successful. It was in the old times when the strategic planning was done only at the level of stagy formulation stage. Experiences of different organizations and further studies revealed that strategy formulation does not ensure the success of strategic plan. Implementation is another important part of the strategic plan. In the implementation phase the process of shifting the responsibilities to the middle and lower level of management is developed. As in the strategy formulation stage it was mentioned that to involve the employees of all the levels is important, so if any organization has done this during the strategy formulation them the strategy implementation process will be lot more easier. This is because the middle and lower level staff will have a clearer view of the strategies developed and they would be in a better positi on to implement those strategies in real practice (Kim Warren, 2008). Strategy Evaluation and Control After the implementation of strategic plan it is important like all other plans and project to evaluate the progress of that plan. Implementation phase end with the start of evaluation process. This is a continuous process until the strategic aims and objectives are not met (Fred David, 2006). There are many organizations such as McDonalds, who have strategic aims and objectives that shows continuity and a continuous process is required for that for instance one of the strategic objectives of the company is to provide the value to the customer. This is an objective which shows continuity as the fast food chain is aimed to provide the customer value to their money so for that strategy evaluation is required. This process ensures that the implemented strategies are progressing towards the achievement of organizational aims and objectives or not. In this process the required results or outcomes are compared with the actual results and if there is any kind of difference then with the cha nge in strategies of taking appropriate steps that difference is tried to be eliminated or at least minimized. Factors affecting McDonalds Strategic Plan Several internal and external factors can affect the strategic plan of McDonalds. These may include factors such as managements vision, financial factors, technological changes, legislative factors or market competition. As mentioned in the strategic plan earlier that the strategies are developed by considering the existing resources of the organization. It also includes the existing technology possessed by the company. If the existing system of McDonalds becomes obsolete with the introduction of newer version of the same system then the organization need to adapt that system to sustain in the market. In this case the strategic plan requires a change (Kim Warren, 2008). Same is the case with the market condition. If at the time of strategic planning the market conditions are evaluated and after implementation the market condition changes and requires a change then the strategic plan will also require a change. That is the reason it is suggested that McDonalds strategic plan should be flexible enough that can meet the changing market conditions. Furthermore the strategic plans are also depend on the vision of the management of the organization. If the management decides to go with a differentiation strategy because of the market need then the existing strategic plan will be changed. Financial aspects cannot be neglected in the strategic planning. Every strategy requires financial resources and if the financial resources are not sufficient enough to meet the new strategy then it will require a change in the strategic plan. However, these constraints can be minimized during the strategy formulation process by intensive research and evaluation of the internal and external factors, but still the dynamic market conditions and growing consumer needs cannot be predicted. McDonalds and Strategic Options If there is some change in the external environment of the company then in response to that the company opts strategic option. Moreover, strategic option is also chosen by an organization to grow and it tells that how the company wants to grow and what are the ways through which the completive advantage is taken by an organization over its competitors. By manipulating and taking advantage of the opportunities available for an organization the company can have a positive outcome. There are two renowned methods or ways which can be chosen by any organization to gain a competitive advantage over the other organization (Fred David, 2006). These two strategic options include the cost leadership strategy and differentiation strategy. Under cost leadership strategy the organization cut down its cost of production or cost of goods sold and hence increases their profit margins. As the business word today is highly competitive and inn the fast food restaurant industry the customers have so many options such as KFC, Pizza Hut etc. which are also providing high quality products. So in such scenario it is not possible for McDonalds to increase the prices of their products. So, cutting the cost of production and other operational cost will be the best strategy to increase their profit margins. The internal capabilities of McDonalds will require a focus and needs to be enhanced in order to achieve the goals of this strategic option. Another strategic option available for McDonalds is to offer such products and services which are unique in nature and are not available in the market. In this way the customer will have no other option to get the desired product or service. This will keep the customer intact with McDonalds and hence the profit margins of the organization will keep on growing. A best example of this is the ice cream provided by McDonalds. No other fast food chain provides the best quality ice cream and people are fond of McDonalds Ice Cream and this has been a unique product of the fast food chain which attracts millions of customers. Another unique feature of McDonalds is their quality customer services. In this era the customer service has gained utmost importance and McDonalds customer services is helping them to increase their market share. Even if the restaurant is packed with the customers the customer services quality remains the same which makes the fast food chain number one in the world. Strategic Option a Helping Hand to achieve Strategic Objectives Strategic options help the organization to achieve the organization strategic aims and objectives. However, a combination of the available strategic options is a good option for any enterprise as this can have a dual positive effect in the organizational performance and profit margins can also be increased with a wide margin. Using integrated strategic options allows the firm a more leverage to take decision on marketing mix. McDonalds can use either of the strategic option discussed earlier, but the more appropriate is to use the mix of both the strategic options. This will help to achieve the strategic objectives of the organization which were mentioned earlier in the document. Using a differentiation strategy, McDonalds will be able to charge the premium prices against the product features. However, keeping the legislation under consideration is also important before charging the premium prices from the customers (Kim Warren, 2008). On the other side of the picture the cost leader ship strategy will provide the company a more leverage to reduce their prices of provide discount offers to the customers as the company have more margin due to the increase in profit margin. McDonalds can offer different discount deals on their core products as these are also provided by their major global competitor KFC. So, if the fast food chain is following an integrated strategic option then it can attain competitive advantage on either side of the court. This will fulfill the first and important strategic objective of McDonalds i.e. to maintain the market leader position. As the fast food chain will be able to counter each offer given by its competitor and also can attack the competitor by offering new products and deals and maintain the market dominance. Furthermore, using the differentiation strategy the fast food chain can make their customer services so supreme that no other competitor can copy that. Along with the food quality which is already very unique can be improved further and new products can be launched which are not available in the market and not ever provided by any other organization. By suing this differentiation strategy the company will be able to achieve its another strategic objective i.e. to provide the customer with quality food and service. Cost leadership and differentiation strategies will improve the profit margins and the strategic objective to provide a positive return on investment of the shareholders and investors will be fulfilled. Concluding this discussion it is suggested to the McDonalds management to continue delivering the quality product and services and further reduce their operational cost without compromising the quality of their products and standard of their services. McDonalds Stakeholders Analysis Stakeholders are those bodies or parties which have direct or indirect interaction with the organization. These bodies are affected with the operations of the business positively or negatively. The major stakeholder for McDonalds includes their customers, shareholders and their employees. Customers Customers of McDonalds are the major focus of fast food chain. Mentioned earlier in the document that the companys corporate values indicate that customer is the king. The strategic objectives are also aimed towards the customer satisfaction by delivering value to them. Customer services is the important part of the McDonalds strategic planning as through quality customer services they are able to retain he customers. McDonalds branches and franchises are all over the world and they are huge in number. This is to facilitate the customer to provide the quality food with easy access. Furthermore the free home delivery service of the fast food chain shows that the organization is committed to produce their products and services at the door step of the customers. Shareholders Shareholders are another major stakeholder of the company. Strategic objectives of the company show that the company is committed to deliver return on investments. The company has adapted cost leadership and differentiation strategy which have given them a position of market leader and helped to increase the profit margins which is the major concern of the investors. Employees The employees are the key to success for any organization. At McDonalds it is not a different story. The company considers their employees as an asset like all successful organizations and is committed to facilitate their employees who in actual are the prime resources that leads towards the fulfillment of organizations strategic objectives. Five Competitive Forces Analysis of McDonalds Michael porter provided a frame work which contains the analysis of five different forces effecting the organization (Kim Warren, 2002). Through this analytical tool five different forces affecting McDonalds are evaluated. Figure 1 Porter Five Forces Model Threat of new entrants Fast food industry has gained a tremendous growth in the 21st century. Many fast food chains are operating in different countries. The major are KFC, Pizza Hut and Subway. However there are many local fast food chains that provide the same kind of products which these international fast food chains do. However, the quality and standard is not up to the level of these chains still these chains are able to grasp a handsome amount of market share. The entry in this business is not a difficult task; however, to launch a chain at the level of McDonald is quite difficult. Threat of Substitutes There are several substitutes available against the products of McDonalds, which are also liked by the consumers. So McDonalds also have to consider those substitutes while designing their strategies. Degree of Rivalry The competition in the fast food restaurant industry is intense. Having the major brands like KFC, PIZZA HUT and Subway , McDonalds really have to be up to the mark in terms of products and customer services to maintain the market leader position. Bargaining Power of Buyers Bargaining power of buyers in case of McDonalds is high as the customer has so many options so the fast food chains have to maintain their prices very competitive and keep the level of customer services up to the mark. Bargaining Power of Suppliers Bargaining power of supplier is not high in case of McDonalds. Suppliers try to add their names in the list of the big brand names such as McDonalds because of the frequency of their orders. Pest Analsyis of Mcdonalds Pestle analysis is to analyze the external forces which can affect the organization. Below is the brief analysis of McDonalds Figure 2 PEST Analysis Framework Political Forces Due to the global operations of the company there are several policies in different states which can affect the McDonalds policies and procedures. Economic Factors The global economy can affect the organization in many ways. The change in the fast food industry business can also affect the McDonalds in a positive or negative way. Social Factors Being operating in many countries across the globe, McDonald have to recognize the social and cultural factors. For instance in Muslim countries the fast food chain has to assure the community regarding the use of Halal chicken. Technological Factors The rapid change in technology will force the company to adapt it in order to survive in the competitive market. Furthermore, the introduction of new advertisement Medias gives a more chance to aggressively market the products through different channels. Conclusion McDonalds enormous success all over the globe is the result of their effective vision and mission which is leading the organization in the right direction. The selection of right strategies at the right time allows the organization to achieve the organization set aims and objectives. The progress of the company towards strategic aims and objectives is satisfactory. The selection of integrated strategic options will allow the company to progress more efficiently towards the achievement of strategic aims and objectives.

Mechanical Energy :: essays research papers fc

Have you ever wondered how a jet aircraft lifts its tremendous weight off the ground, or what gives a runner the stamina to reach the finish line in a race? In order to answer all these questions we must talk about the transformation of one sort of energy into another. The jet aircraft gets its power from jet turbines. These powerful jet engines create a high-pressure stream of very hot gases that push the aircraft forward as they leave the engine. This is an example of heat being transformed into movement. This is sometimes described as Mechanical Energy. However, this transformation could not take place without the fuel that the aircraft gets within its wings or fuselage. Fuel is considered a chemical energy. This diagram shows how the jet engine acts as energy to lift the aircraft off the surface of earth. Fuel can take the form of gases, solids or liquids. When fuels combine with oxygen from the air, they release their stored energy as heat. We recognize this process as burning. The individual relies on food for fuel which contains energy-giving substances that our bodies can store until we need this energy to use our muscles. When we do use our muscles within us, we may not always be sure that heat is given off. Our bodies do not burst into flames but the perspiration on our skin is a clue to what is happening. The movement of the windsurfer has a different explanation. The windsurfer is propelled along by a sail which collects mechanical energy from the winds that sweep along the water. This energy has been produced by the sun which warms the earth's surface and sets the air above in motion. The sun's heat comes to the earth as a form of radiant energy. When the heat reaches the surface of the earth, it causes the land or seas to rise in temperature. The sun is very hot. Infact, the center of the sun can reach temperatures of up to 27 million degrees Fahrenheit. This is because of another kind of energy reaction where new substances are continually being created as others are being destroyed. This reaction is known to us as the Nuclear Reaction. Today we are trying to imitate this reaction in improving our energy supply. Scientists have calculated that the sun has enough fuel to go on producing energy at its present rate for about five billion years. On earth

Doing the Right Thing in Hamlet :: The Tragedy of Hamlet Essays

Doing the "Right" Thing in Hamlet      Ã‚  Ã‚   When an individual has taken a certain course of action, who is to determine whether that action taken was right or wrong? And what basis should the individual passing judgment use to decide whether that action was right or wrong? Should the individual passing judgment consider the other individual's purpose or intent in taking the action, or should he consider the resulting consequences of the other individual's actions? If the individual passing judgment were to choose to do the first of these two alternatives, he would be taking a deontological stance, as compared to the later which describes the consequentialist view. As Stephen J. Freeman explains, consequentialism is the belief that "actions and/or rules are right as long as they produce the most favorable consequences for those affected by the actions or rules" (Freeman 63). Consequentialists view the morality of a consequence in two aspects. One aspect is what is called ethical egoism. Ethical egoism is "the idea that morality is defined as acting in one's own interest and in such a way as to maximize the consequences of good over bad" (Freeman 49). In contrast to ethical egoism is utilitarianism. Utilitarianists view morality as when an action promotes the greatest balance of good over bad for all people. "Utilitarianism is a teleological, goal-directed theory emphasizing happiness as the end result of human action" (Freeman 49). In Freeman's book on ethics, he discusses Holmes' proposal of two types of teleological ethical theories that apply to these two differing consequentialist views. Holmes' proposal is that of micro and macro ethics. Micro ethics regards the happiness of the individual as the highest good and defines what is right as the action that maximizes that end. By definition, micro ethics is very similar to the belief of ethical egoism. On the other hand, macro ethics views happiness as the well-being of a group as a whole and defines what is right as the action that maximizes that end. As used here, a group can be those people of a specific city, state, nation, or race, and any particular group has "greater importance than any particular individual or subgroup within it, because its good exceeds the sum of any and all of its parts" (Freeman 49). Those in support of macro ethics would justify the sacrifice of an individual or part within the group, as long as it brings about beneficial conseque nces for the group as a whole.

Deceptive Commercial Speech and Advertising

Deceptive Commercial Speech and Advertising According to the commercial speech doctrine, only deceptive speech that is considered commercial may be regulated. General deceptive speech is not commercial, may not be regulated. When deciding what may and may not be regulated, it is important to understand the subtle differences in what is considered commercial and non commercial speech. An analyzation of false advertising would give further understanding to the notion of commercial speech and how it may be degenerative to a society when untruthful. Commercial Speech According to the Supreme Court, the definition of commercial speech is a â€Å"combination of a core notion surrounded by a penumbral boundary defined on the basis of three characteristics† (Howard, 1991). This â€Å"core notion† of commercial speech is â€Å"speech which does ‘no more than propose a commercial transaction’† [1] Beyond this notion exists a body of commercial speech identified in the Bolger v. Youngs Drug Prods. Corp. 1983 case by whether the speech is as an advertisement, whether the speech refers to a specific product, or whether the speaker is economically motivated. 2] Although individually these characteristics are insufficient to establish speech as commercial, the combination of all three offers a strong argument for describing commercial speech. Advertising The Merriam-Webster dictionary lists an advertisement as something that is shown of presented to the public to help sell a product or to make an announcement. In short adve rtising may be described as a public notice published in the press or broadcast over the air. Many societies receive a bulk of their daily information from advertisements selling physical products, attempting to sway opinions, and introducing new ideas. The increase in media technology has opened a doorway to deliver a constant stream of information including advertisements that may be biased or altogether misleading. Current social network sites allow users to â€Å"like† or â€Å"check-in† to retailers and offer their own perception of goods and services. These social networks allow for the â€Å"word of mouth† method of advertising to increase in effectiveness due to the widespread availability of technology. Development Commercial speech is typically given limited First Amendment protections; however, there exists two types of commercial speech that are exempt from any protection whatsoever. Advertising that is false, misleading, or deceptive is given no protection by the government. Advertising that show cases unlawful goods or services will also receive zero protection from the government (Pember & Calvert, 2011). Doctrine The Commercial Speech Doctrine was developed to outline which protected commercial speech may be regulated. While little to no rights are granted to misleading ads or unlawful goods and services, protected commercial speech may also be subject to regulation if: there is substantial state interest to justify regulation, there is evidence that the regulation directly advances this interest, or there is reasonable fit between the state interest and the government regulation (Pember & Calvert, 2011). Before a state decides to regulate commercial speech that has presumed protection under the First Amendment, that state must assert a reasonable cause for wanting to regulate the speech. For example: a billboard that is blocking the view of drivers on the street nearby would be reasonable cause for regulating that speech. The state must next prove that this regulation of speech has directly effected the interest at which it was aimed. For example: the removal of the billboard must show a decrease in traffic violations in the area. Finally, the state must show that the regulation of commercial speech has been narrowly tailored to fit a specific interest. For example: the regulation involving the removal of a billboard must be specific to that particular billboard. Following these guidelines allows for a state to regulate commercial speech that is not misleading or unlawful in goods or services. Fraud, Falsity, and Misleadingness In 1981, J. Edward Russo, Barbara L. Metcalf, and Debra Stephens identified three approaches to unjust advertising. Each view parallels the three components of advertising communication. â€Å"Fraud focuses on the advertiser and assumes a deliberate intent to create false beliefs about the product. Falsity in advertising refers to the existence of a claim-fact discrepancy. Misleadingness focuses exclusively on consumer beliefs† (Russo, Metcalf, & Stephens, 1981). Advertisers who display low ethics and advertise deliberate misinformation are guilty of fraud; however, it remains an impractical approach. Proving a â€Å"deliberate intent† to mislead through an advertisement is difficult and may be irrelevant to the harm caused to consumers. Although, major industry regulator, the National Advertising Division (NAD) of the Better Business Bureau, does not generally require proof of fraud to remove an ad from publication, this does not apply in all situations (Russo, Metcalf, & Stephens, 1981). Falsity in advertising occurs when a claim is made that is not documented with fact. For example: a company advertises that a product with fly, but the product does not fly. Falsity is easily verified by proving that a discrepancy exists between advertisement and reality. Insufficiency of falsity occurs when an ad generates a consumer belief of falsity, even though one has not been directly stated. Misleadingness, the third view, focuses entirely on what consumers believe. â€Å"A demonstration of misleadingness requires the observation of false consumer beliefs in conjunction with exposure to the ad† (Russo, Metcalf, & Stephens, 1981). If an ad is believed to be in violation of this, it must prove that there is a direct relation between the release of the ad and change in societal belief. The Federal Trade Commission refocused its approach to misleadingness by focusing little on the actual message and more on the resulting consumer beliefs. References 1. Virginia State Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc. , 425 U. S. 748, 762 (1976) (quoting Pittsburgh Press Co. v. Pittsburgh Comm'n on Human Relations, 413 U. S. 376, 385 (1973)). Bolger v. Youngs Drug Prods. Corp. 463 U. S. 60, 66-67 (1983). Howard, A. (1991). The constitutionality of deceptive speech regulations: Replacing the commercial speech doctrine. Case Western Reserve Law Review, 41(4), 1093. Retrieved from EBSCOhost. Merriam-Webster Online Dictionary:http://www. merriam-webster. com/dictionary/advertisements Pember, D. R. , and Calvert, C. (2011). Mass media law. 17th ed. Boston, MA: McGraw-Hill. Russo, J. , Metcalf, B. L. , & Stephe ns, D. (1981). Identifying Misleading Advertising. Journal of Consumer Research, 8(2), 119-131. Retrieved from EBSCOhost.