Cultural Globalization: Advantages and Disadvantages

Cultural Globalization: Advantages and Disadvantages February 14th is an important day for lovers. When this day most people will buy roses and chocolates give to the person they like. We called this day Valentines Day. Valentines Day is from Europe. However, China also has a festival like Valentines Day that is Double Seven Festival. Double Seven Festival is a Chinese traditional festival, in this day most of the girls would go to pray to get a better love. Nowadays most Chinese people do not know what need to do now. This situation tells us the traditional culture is losing. With the reform and opening up in China, lots of new cultures crowed into China. These cultures get into China, a lot of Chinese are interested in these new cultures. Because of this, Chinese culture with the world is getting more and more closed. Nowadays, most Chinese teenagers forget what we should do, when we are in some traditional festival. The major reason of this problem is technology, such as television, internet and transport. Maybe we will lose our traditional culture in the future. So we must to know some advantages and disadvantages of globalization and which thing can affect our culture. To be honest, we do not want to lose our traditional culture. So there are some ways to save our culture. In this ways, we may make the world know more about our culture and learn it. So protect and spread our culture is what teenagers like us should do. Background Information As we know, there are 56 ethnic groups in China; China has a large number of cultures. The Hui nationality is major one of this. Islam from the middle Tang dynasty was introduced into China, by Song dynasty to Ming and Qing dynasties; it has a history of more than 1300 years. By some research that more than 2000 cities and counties in our country, more than 95% of the Hui nationality lived. Hui clothing apparel and han the same generally, men with white hat, women wear a white hat and hair all packaged in it. Now most of the Hui nationality only when hui festival wearing like this. Another one is Miao nationality. Since 1949, Miao has been an official term for one of the 55 official minority groups recognized by the government of the Peoples Republic of China. Miao main living in the south of China, in the province of Guizhou, Yunnan, Hunan, Hubei, Sichuan, Guangdong, Guangxi, Hainan, and other places. According to the 2000 Population Census, the number of Miao in China is estimated that there are about 9.6 million. The Miao nationality includes Hmong people as same as other culturally and phonetically related ethnic groups who do not call themselves Hmong. These consist of the Hmu, Kho (Qho) Xiong, and A Hmao. The White Miao (Bai Miao) and Green Miao (Qing Miao) are Hmong groups. Nowadays, some young Hmong people do not speak Hmong or only know a little Hmong. Because of this, we know that our culture is losing. The major reason of this problem is globalization. With the rapid development of science and technology, globalization has not only to promote the development of our economy but also changed our culture. However, the impact of globalization on traditional Chinese culture not only disadvantage but also advantage. Disadvantages of Globalization There are three main aspects in the impact of globalization on culture. One is demise of the traditional festivals, than is limit our cultural innovation another one is control cultural autonomy. This problem can make our losing our culture. These problems can make the loss of our traditional culture so we must pay more attention to this problem. First of all, demise of the traditional festivals is the major effect. In the process of globalization, with the expansion of the cultural exchange and spread of western culture is like the flood into China. However, the reality tells us that as the western festival culture was introduced into China, more and more Chinese people have a special liking to those foreign festivals, and some traditional festivals of Chinas national culture are possible, even forgotten. Such as Double Seven Festival and Valentines Day is similar but many Chinese people know how to do in Valentines Day, do not know to do in Double Seven Festival. Because of this blind obedience and discomfort, which leads to the process of globalization, the traditional festival in the Chinese culture is facing great danger, and even some traditional festivals towards a decline. Next is limiting our cultural innovation. In the process of globalization, we in the production of a large number of advanced high-end technologies imported from abroad. But too much reliance on foreign science and technology, we will actively introduce embodied in, and less on their work in the digestion and absorption. Such as, too many products we just copy this not to learn its specific principles. So we just followed the footsteps of other countries did not go beyond those. These are reflected in the process of globalization, the culture shows lack of innovation. Another one is controlling of cultural autonomy. The process of cultural globalization will inevitably lead to world culture full range of conflict in the world field , occupy a leading global cultural transmission performance for the US-led Western culture in the position of the dominant culture. This situation makes the Chinese people pay more attention to the Western festivals. If this situation continues, we will not have our own traditional festivals. So we need pay more attention for our traditional culture. Advantages of Globalization As we all know, globalization is a double-edged sword. It not only to brought some of the threats and challenges, but also brought us a number of development opportunities. There are two benefits of globalization, one is strengthened, and it attaches great importance to the government for culture. Another one is show the world the Chinese traditional culture. So these two things can accelerate the development of our country. Improving the governments emphasis on culture is a main benefit of globalization. The process of reform and opening up, Chinese government issued a series of measures in national cultural preservation and development, through the cultural legislation, protection system and policy, cultural management, and other means, effectively resist the globalization to culture risk, for example, from central to local government departments, actively take advantage of our unique national culture to declare world cultural heritage. In legislation, the Chinese government has Dragon Boat Festival, Mid-Autumn festival, Qingming traditional festival of the national legal holidays. And as Beijing Beijing folk culture rescue project spend large sum of money; Sing big cultural province construction in Hebei province. Nanjing has a history of 2,500 years, held in April 2004, the worlds historical and cultural city of Expo. These are reflected from the side, the government began to pay attention to Chinas national culture. At same time, show Chinese traditional cultures to the world are another point. China as an Oriental ancient civilization with a history of 5000 years, appears to have been in the west is a full of mysterious place. Since the Marco Polo mind has been popular in Europe, Westerners have been the Chinese national culture has a great interest. With the ever-accelerating process of globalization, foreign exchange and dissemination of Chinese culture rapidly. For example, China has been established in many countries in the world Confucius institutes, the world set off a wave of Chinese hot already. More and more foreigners are attracted to Chinas national culture unique charm. This shows also happens to be that the more national, the world, the harmonious thought of ancient Chinese Confucian culture, to solve the conflict of international relations at present stage, also has a great significance. Many Chinese classical philosophies contain simple dialectics thoughts, and in comparison, wes tern philosophy also showed unique charm. In the process of globalization, through international exchanges and interaction of culture, Chinas national culture has on the world stage showed a dazzling brilliance! Conclusion The Chinese nation has a long history of 5,000 years, the culture of grandeur to the development of human culture in the east, and even the whole world widely profound influence, this is enough to worth us forever proud. However, we want to know, the Chinese culture is one of the world culture is very important and extremely characteristic of strengths of Chinese and western culture. We have a lot more than western things, there are also many less than western. Under the international background of the globalization, the development of our national culture is facing the severe test, and full of new opportunities. All in all, it is necessary for us to grasp the cultural globalization, in the spirit of courage to open both absorb useful to Chinese national culture essence of western culture, and emphasize the inner spirit of national culture value, make the national culture and foreign culture blend in the new development opportunity, realize the modernization of Chinese national cultu re.

The Meaning of Heart of Darkness in the Post-Colonial Climate Essay

The Meaning of Heart of Darkness in the Post-Colonial Climate Since its publication in 1899, Joseph Conrad’s Heart of Darkness has rarely been disputed on the basis of its literary merits; in fact, it was long seen as one of the great novels of the burgeoning modern era, a sort of bridge between the values and storytelling styles of the waning Victorian period and those of the modern era (Gatten), and regarded a high-ranking space amidst the great literature of the century, if not the millennia (Mitchell 20). Conrad’s literary masterpiece manages references to other great literature, universal themes which cut to the heart of philosophical questions of the innate goodness or evil of man, and historical references such as the Belgium and Roman empires (Kuchta 160), among other accomplishments, and so has garnered a lexicon all its own in the annals of literary criticism, debate, and analysis. Much consideration given Heart centers around a pivotal concern of the era in which it was written: that of what, in hindsight, were the early death rattles of the heyday of European colonialism, specifically in Africa. There is some debate amongst critics as to whether the novel, ultimately, is a morality tale about human greed, power, and evil (one could toss in deceit, cowardice, and a host of psychological considerations as well), or more a sociological commentary upon the morality of colonialism and imperialism from the point of view of a highly disillusioned expatriate turned agent for the empire, turned anti-imperialist (the character of Marlow in the novel: Conrad himself, in spite of his best efforts to disguise his input behind characterization) (Films for Humanities and Sciences). The truth is almost certainly, ... ...erald. Teaching the Politics of Heart of Darkness. An Introduction to Literature. Terry, Joseph. New York, NY: Longman, 2001. 1691-1692 Kuchta, Todd. â€Å"Envisioning Africa: Racism and Imperialism in Conrad's Heart of Darkness.† Victorian Studies 44 (1 October, 2001): 159. Mitchell, Angus. â€Å"New Light on the ‘Heart of Darkness.’† History Today December 1999: p20-28. Mwikisa , Peter. â€Å"Conrad's image of Africa: Recovering African voices in Heart of Darkness.† Mots Pluriels: April 2000. Ngugi Wa Thingà ³. Writers in Politic: A Re-engagement with Issues in Literature and Society. Revised and enlarged ed. Nairobi, Oxford and Portsmouth: James Currey,East African Educational Publishers and Heinemann, 1981. Zeger, Barry. â€Å"Sometimes a Cigar is a Large Black Phallus.† Spy Magazine; July/August 1996: 13.

To Autumn Essay -- Literary Analysis, John Keats

John Keats, an English Romantic poet, is considered one of the most beloved of all English poets. His work is known for sensuous descriptions of the beauty of nature and deep philosophic questions that it often brought up. This can be observed in his six odes written in 1819. The complexity and profundity behind the poems are the reason that they are considered to be among Keats greatest works, although the last ode composed in the sequence, â€Å"To Autumn† seems to stand out from the others. â€Å"To Autumn† is particularly significant because Keats is able to improve his perception of beauty from his previous perception that is explored throughout the other odes. Although, in both the form and descriptive surface, there is nothing that is overly confusing or complex, it is very simplistic, this is part of what makes the poem so special. Keats makes full use of literary elements by personifying autumn to achieve vivid imagery and by using the concept of death as an a llegory to artistic creation. â€Å"To Autumn† has the ability to suggest, explore and develop the overall theme of beauty through the use of these literary elements without getting in the way of its simplistic surface. While the structure of the poem is very simplistic, there are a few interesting features worth nothing. â€Å"To Autumn† is three stanzas of eleven lines each, which corresponds to the length of the season of autumn, which is three months long. In each stanza, the first four lines follow a rhyme scheme of ABAB, but then it switches from line five to eleven, to a rhyme scheme of CDEDCCE. This can signify how Keats conveys his theme, the first part of the stanza serves to introduce the subject of the stanza, while the second part gives room to elaborate and develop the ... ...eated or old forms of beauty that will return. Also, even though the spectator of these beautiful art forms will eventually die, morality cannot stop someone from spending their time on Earth admiring nature and beautiful art forms. â€Å"To Autumn† was the final work that was produced by John Keats and it marks the end of his poetic career. This is an appropriate poem for Keats to end on, as he is finally able to escape the fantasy world, that he often turned to in previous odes, in order to make a connection within the real world. While keeping the structure of the poem simple, Keats personifies the seasons, to further express the warm images of autumn and the beauty that can be found in nature. While also learning through the passing of time and allegories to art, that the acceptance of morality does not destruct the appreciation of beauty but rather furthers it.

Present Value

Selling price The selling price would equal to the sum of the potential profits realizable by the purchased asset. In order to present a proper amount with respect to the time value and including the market risk and risk premium, the profits have to be discounted to the present value using the appropriate discount rate. The sum of the discounted cash flows for the next two years of the asset’s useful life is $299,021.75. The same number represents a fair price for purchasing the asset, as it includes potential benefits realizable by the investment, as well as accounts for the possible risks on the basis of the fixed discount rate. Price adjustment under higher rates and inflationThe higher inflation rate would require the appropriate price markup. Market interest rates as well as the risk rates are higher under the growing inflation. Therefore, the price of the asset will be increased, by marking the adjusting the dollar value using the appropriate inflation rate.LocationIf th e asset would be located in the area with unstable governmental and economic situation, it would cost less. The unexpected and sharp market prices fluctuations could alter the projected profit margins. The implementation of long-term contracts would be under a threat. However, with only two years of potential profits, the latter argument does not represent the most critical issue in determining the price level. The risks associated with the potential benefits are significantly higher than in the case of operating in a stable economy. Consequently, the asset would lose some of its value, and its selling price would be lower.BondsThe goal of the firm is to maximize present shareholder value. This goal implies that projects should be undertaken that result in the positive net present value, that is the present value of the expected cash inflow less the present value of the required capital expenditures. Using net present value as a measure, capital budgeting involves selecting those pr ojects that increase the value of the firm because they have a positive NPV. The timing and growth rate of the incoming cash flow is important only to the extent of its impact on NPV. The increase in the net present value means the decrease in the discount rate. This data can be observed in the financial plan section, using cash flows, where the present value of a cash flow stream is equal to the sum of the present values of the individual cash flows. Moreover, in determination of the net present value cost of capital percentage can be used.The cost of capital for any investment is the rate of return capital providers would expect to receive if they would invest their capital elsewhere (opportunity cost).  The annual financial reports for the two companies suggest at a first glance that Cisco systems would be a more sound investment, as it represents a more favourable income statement balance. General Motors Company shows very low profits for the last periods, however its profit m argins are steadily growing. A significant loss, which negatively affects the current credit rating of the company, is realized in prior periods due to discontinuing operations and losses on requisitions. However, the company’s liquidity shows a close to industry’s median value. General Motors shows a more confident overall stability of business operation, while Cisco system greatly depends on innovation and research and development, which is associated with greater costs and bigger risk involved.However, the business indicates less dependency on fixed costs, which allows to attain not only technological or innovative advantage on the market, but also to win better trading bargains offering more favourable prices to customers. The business operations of Cisco largely depend on the appropriate timing and immediate reaction.Cisco should have a higher discount rate than General Motors, because it requires a more profound analysis for determining the potential performance of the company. The higher risks associated with the investment should be accordingly accounted for including the calculation of the market rate and the risk premium. General Motors offers lower returns but higher stability, which means less risk. Making a long term investment in bonds with the same pay rate would be more sound and reasonable for General Motors Company, as it provides a less risky opportunity of return. However, its benefits are limited compared to the potential suggested by the Cisco systems company.

A Madman’s Diary, The True Story of Ah Q and The New Years Sacrifice Essay

I. Introduction: Much of Lu Hsun’s stories are recollections of his past struggles. He admits this in the preface of his collection of works entitled, Call to Arms. But as this collection was viewed by Lu Hsun himself as a way to encourage young dreamers to pursue their aspirations and spare themselves of the agony of his youth, much of it becomes a mirror as well of the Chinese culture and history. Hence, Lu Hsun is not only a chief commander of China’s modern Cultural Revolution; he is also the founder of modern Chinese literature. This paper aims to make a modest critical analysis of Lu Hsun’s work using his first three short stories namely; A Madman’s Diary, The True Story of Ah Q and The New Years Sacrifice. These are chosen to identify patterns of themes, subjects and beliefs that are embodied in his writings. Also, we hope to be able to understand Chinese traditions and heritage using the same short stories. In the end we may find literature as a strong method of making a noble contribution to the world with its inherent power to opine, philosophize and influence. Let us begin with a brief telling of the stories’ plots and details. After which we enumerate the significance of each and lastly to provide a general assessment of the story’s lessons and socio-cultural and political implications. This last part of the analysis is relevant as we have had hints already of the intentions of the author to provide an empowerment to the readers for the attainment of certain goals. The paper will end in such a way that Lu Hsun is commended for his creativity in the craft to have shown consistency of his agenda as manifested in his literary machinery – ergo, becomes successful and compatible endeavors of revolutionary and literary toils. II. A Madman’s Diary The first story is a narration of Lu Hsun’s reading of a diary of his old friend. The latter referred to as the madman, through his personal accounts have expressed the nature of his illness. He sees his own brother, relatives, neighbors and doctor as man-eaters. The content of the diary may seem weird and dreadful yet the author of the diary charged of insanity has managed to think and speak of historical accounts to prove his case. For instance, he called a previous enemy, Ku Chiu which in translation means â€Å"Ancient Times†; his doctor, Li Shih-chen who in history was a famous pharmacologist and authored the Materia Medica. Both usage have latent meanings and will be explained later. The madman also has knowledge of several traditional myths like his mention of Yi Ya, who according to ancient records cooked his son as present to Duke Huan who was ruler since 685 to 643 B.C. of Chi; he mentioned also Chieh and Chou who were known tyrants in history; Hsu His Lin who during the end of Ching dynasty was a revolutionary executed in 1907 whose heart and liver were believed to have been eaten because of his assassination of a Ching official. Again, these historical descriptions have significance in the goal of the author of Madman’s Diary. The context of the story may seem to its audience a basic case of mental illness but this is true unless proper decoding is employed. The story suggests that there is a past experience which the madman has underwent which we could think of as the cause of his psychosis. According to the author, the madman has suffered from persecution. The sentiment of the main character at the time he was sick already against other people characterizes the same feelings he felt against them before this condition. Man-eating in the story symbolizes the feudal system in China. The oppression that the tenants suffer from their land lords has caused the madman to perhaps hate the former. The man-eaters in the story as observed by the madman consist of his neighbors, brother, doctor, etc.; basically all those who are of the land-owning class. The conspirators making themselves man-eaters as well include his own mother- this is due to the latter’s inability to reprimand his brother. To the madman’s mind, those who support and those who are silenced by the oppression are alike. This is why he refers to them as man-eaters as well – they all look at him in the same way like fierce animals ready to eat him and his flesh. Everyday, the madman has to deal with the same looks and reactions. He thought he was doing a good job of having been able to decipher their true intentions of killing and eating him. In the end however it pained him to have known that his sister could have died in the same experience of being eaten by other people. It pained him that his own family has not done anything while his mother’s weeping did not change the fact of her daughter’s tragic death. The seemingly unjust treatment of the community against a madman like him is translated into the majority’s incapacity and lack of buoyancy to uphold a revolution such as that which would overhaul feudalism and promote equality. Yet, the madman has seen that Mr Chao for instance did not look solely at him with anger but with fear as well. One is afraid to change the status quo where he/she is already benefiting. Just like Mr Ku Chiu who was displeased with his intervention on his account sheets twenty years ago. Ku Chiu meaning Ancient Times symbolizes the long history of feudal oppression in China. The madman might have made wild statements in his diary but to a madman this signifies discontent, confusion, mixed emotions of fear and pain, none of which is equivalent to happiness and peace. He said he has not seen the moon for over thirty years. He must have been imprisoned or isolated that long from the community, the people barely recognize him just like the dog which looked at him twice. In the new day or perhaps new circumstance he is into, he only remembers the feelings of annoyance against them. Yet he witnessed the children, lively as they may appear but the madman, reluctant about their purity thought they also had eyes that misinterpret him. When he said their parents could have told them about his story, he was referring to the possible transfer of the tradition of tyranny to the new generation and the hindrance to their quest for truth, justice and equality. The madman abhors the fact that the own victims of this cruelty have not done anything to antagonize but why do they look at him like that? This is expressed in the part below: â€Å"†¦Those people, some of whom have been pilloried by the magistrate, slapped in the face by the local gentry, had their wives taken away by bailiffs, or their parents driven to suicide by creditors, never looked as frightened and as fierce then as they did yesterday†¦Ã¢â‚¬  (Lu Hsun, A Madman’s Diary, April, 1918) He sees their laughers, discussions of him, teeth and speech as comprising their secret signs. There are statements in the story which the author has provided for us to understand further the nature of the norm in their history. Like when the madman remembers the time when he would be commended by his brother for his indifference vis a vis wrong doings: â€Å"†¦I remember when my elder brother taught me to write compositions, no matter how good a man was, if I produced arguments to the contrary he would mark that passage to show his approval; while if I excused evil-doers, he would say: â€Å"Good for you, that shows originality†¦Ã¢â‚¬  At that time , it would have been better if you are blind and deaf and perhaps insane to resist the subjugation. This is also presented in the part where Mr. Ho, the doctor tells the madman: â€Å"Don’t let your imagination run away with you! Rest quietly for a few days and you will be alright†¦Ã¢â‚¬  The madman sees this statement as a warning for his deed of courage and integrity. – to be brave and righteous yield death of a man. Toward the end of the story, the madman asked a twenty year old lad if it was right to eat human beings and if such was an accepted act simply because it has always been like that. The author here is arriving at an assumption that a tradition of cruelty could have been regarded by most of them as justifiable by its permanence and embedded nature. But a challenge has been set forth in the end; that is to become a real man. For the madman, real men don’t eat human beings. Although as claimed, primitive people have done so, he advised his brother that to remain like them is the same as reptiles and animals who eat flesh and must be ashamed of themselves. This is a way for the author to propose that to desist tradition (the four thousand years of eating flesh) is to put a halt to oppression – this is the act of a real man. He calls on a change of spirit and ideas so he tells them in the story; â€Å"You should change at once, change from the bottom of your hearts! You must know that in future there will be no place for man-eaters in the world . . . .† His final words are equally challenging and meaningful. It was a call for change especially for the youth – â€Å"Perhaps there are still children who have not eaten men? Save the children. . .† III. The True Story of Ah Q The second story is written in December, 1921. Ah Q is a worker in the Weichuang village who has become a laughing stock and destination of insult from amongst his fellow villagers. His death was a tragic one considering that while his origin has not been known to the author or to the village people in the story, the cause of his execution is also neither defined by him nor his fellowmen. It is in this cycle confusions and uncertainties that the story becomes a revelation of the situation of China during the early nineteenth century. Lu Hsun has used characters in the story with meaningful roles in China’s history. Mr. Chao and Mr. Chien are both influential and wealthy people in the village whose sons have given them pride by passing the examination and having been posted to high positions in the society; Whiskers Wang and Young D who are servants like Ah Q had different perspectives and never united; The Imitation Foreign Devil who studied in Japan and has returned to the village without any meaningful contribution; the nun whom Ah Q have maltreated for his perceived false modesty of her; the townspeople; the military captain; the successful provincial candidate; the old man with a clean shaven head – they all did not spare Ah Q a little. It appeared that Ah Q was fond of drinking wine, sleeping after a day’s job at the Tutelary God’s Temple and imagining his own definition of victories. For Ah Q being beaten by a son is a victory; and every time he is teased by the village folks for his scar that looked like ringworm on his head and crushed to the wall for his eccentricities, he considers them losers – for they are his sons. This weird claim of Ah Q has made the people a lot more irritated of him. To him his only two defeats were namely; his defeat by Whiskers Wang who he regard as his equal; and by the Imitation Foreign Devil. He found dignity in humiliating a small nun. When he lost his job due to an incident with a maidservant at the Chao family house, he headed to the other town where a stroke of luck provided him with goods enough to be sold and become a source of his new profit. Yet along with his return to the village and his renewed sense of respect for himself when the people started to talk about him and his fortune, a revolution occurred. Without much clarity, he was caught as suspect to a robbery by the revolutionaries at the Chao family. He told the captors that he might have approved of the revolution but he was not allowed to join because the Imitation Foreign Devil prohibited him. Uneducated, Ah Q was made to draw a circle as signature in a paper whose content was unknown to him and later that day, he was set as an example to the people and all other revolutionaries for death execution. One must have knowledge of China’s history to be able to appreciate further Ah Q’s story. The Qing dynasty with its long-lived rule and enormous failures has caused a deterioration of performance along traditional lines. The arrival of foreigners who were driven by the industrial revolution of the West had caused much indignation and loss of resources for the prideful denizens of China. With their superior weaponry and cultural superiority might have brought China’s independence they have nonetheless encountered opposition. This foreign presence has resulted to changed political demands among the revolutionaries. The Taiping Uprising for instance considered as the longest peasant rebellion denounced Confucianism and found new aspirations in Christianity. The dynasty resorted to the Chinese provincial armies to suppress the Taipings. A lot has changed since the abolition of the civil service examination in China based on the Confucian classics. There has been a program of sending students to Japan for modern studies that brought radical ideas convinced of overthrowing the dynasty and revolutionizing China. This success of reformation however by Sun Yat Sen has not abandoned feudalism, and has worsened due to China’s dependency in the new market economy and international trade, the condition of the peasants who were displaced and deprived. Warlordism and the lack of nationalism have deepened the problem of China until the success of the CCP in the 1940s. These events took place prior and perhaps during the writing of Lu Hsun’s Ah Q. Clearly, Ah Q represents the peasant revolution which has been isolated from the intellectuals’ endeavor. When Ah Q was denied participation by the Imitation Foreign Devil, the author has implied here that those who have attained education in Japan in the nineteenth century have not fulfilled the true essence of a revolution. They failed to establish unity among its people as superiority among the land owning class prevails. Thus, Ah Q might have wanted to revolt for as he claimed in the story, â€Å"revolution is good†, but it was late for him to prove his strength and capacity. He was executed in a crime he has not committed.   His lack of knowledge failed him to understand the situation – this is more painful for him.

Invent Your Own Religion

Skylar Mabe Religious Experiences Coffee Cult The Coffee cult was created as a unifying religion. Drinkers of the bitter liquid accept all kinds of drinkers: milk and sugar, honey, no sugar, no milk, black and even decaf. Members of the Coffee Cult, the drinkers, battled the likes of the tea, hot chocolate and soda drinkers for land and power since the beginning of time. In fact, the coffee cult was the most victorious among beverage worshipers. Because all pure beans have a bit of caffeine, the crusaders were able to stay awake longer than all the other thirsty ones.The coffee crusades took place over 100 years to conquer the holy lands of South America, where the sacred bean first flourished. Since then, the crusades continue over much land in Africa and some parts of Europe. The cult began in the 1400s when the bean was first discovered. The wealthy first had rights to the indulgent drink until a group of around the clock laborers caught wind of the side effects of The Bean. The l aborers worked from sun-up until sun-down but could never produce enough of anything to make a product. They stole The Bean and began experimenting. They cooked with it and crushed it into powder.They chewed it and put it on their skin but nothing could come close to The Bean and water. The ingredients were so simple, anyone could do it- and that’s exactly what they loved. The laborers didn’t have to be rich to experience the caffeine high, they just had to boil water and mix it with their stolen goods. â€Å"Coffee† as it would soon be known as was brewed at 6am, before nobility woke up and after the laborers had been awake for hours. They would brew it quickly and drink it slowly. Although it helped production by 200%, there was only a small amount of people who would go the lengths to steal it from the wealthy and bring it back.They were known as the Coffee Cult. One day the cult stole enough to brew and to plant so they traveled to the rainforests of South A merica, far away from the wealthy and began cultivation of what became one of the most sacred beverages in the world. The morning time is sacred to all Drinkers. All devout drinkers rise at 6am to enjoy at least 2 cups of coffee before starting their day; however, the only way to be looked down upon as a Drinker is to NOT have had a cup of coffee by 1400 hours. There are many different levels of the Coffee Cult; the highest and most respected are the coffee crusaders.They must learn all there is to learn about coffee in order to fight for it. In order to be a coffee crusader, you must first go through all stages of The Bean. The beginning stage is the first step in all coffee rituals and all rituals take place at 1400 hours. Stage One: Thirsty one becomes a Drinker The thirsty one must drink a cup of pure (black) coffee, and savor a bean- taking care of it all day until the dawn of a new day where the bean must be consumed. If there are any imperfections due to lack of care for the Bean, the thirsty one must wait 14 days to try the ceremony again.Once the bean in consumed the thirsty one is then considered a Drinker. Although there are many stages one can excel to, the common name for all cult members is â€Å"a Drinker. † Stage Two: Drinker becomes a Brewer In the second stage to becoming a crusader you must first learn how to reproduce the black gold. A ceremonial iron coffee maker is given to the drinker. The drinker carries the iron machine to his/her kitchen where he makes his first cup of coffee for his family and closest friends; they serve as the witnesses for this stage. On rare occasions, this stage is also used to convert a thirsty one to a drinker.It is considered a sacred and once in a lifetime experience when the new Brewer can brew coffee for a thirsty one to convert them to a drinker. Stage Three: Brewer becomes a Grinder Anyone can brew a cup of coffee but it takes an expert and lover of The Bean to be able to posses the knowledge to gr ind The Bean. To become a Grinder, there are 2 parts: Self-grinding and machine-grinding. The first part is learning the texture of The Bean. To learn the texture and smell the aroma one must grind The Bean with a mortar and pestle. A ceremonial 14 beans are self-grinded and kept beside the coffee maker for the life of the Drinker.The second part of becoming a Grinder takes place the next day at 1400 hours. A ceremonial iron grinder is again taken to the kitchen where close family and friends witness the brewer count out the number of beans it takes to make 12 cups of coffee and insert them into the grinder where they are used to brew the pot of coffee for the transformation cup. Not until the Brewer finishes his pure cup of coffee is he a Grinder. Stage Four: Public Dedication In order to become a Barista, one must first show their love and dedication, not only to their family and closest friends but also to all believers.The Grinder will wake up for 14 days (these days do not have to be in a row) at 5am to go to his or her local â€Å"coffeehouse† (an optional place with multiple brewers and grinders where all drinkers can meet and have coffee before they start their day) to brew and grind coffee for the other drinkers. Because those 14 days do not have to be completed consecutively, the public dedication could take anywhere from 2 weeks to 6 months. Once this stage is finished, the Drinker is judged on his coffee by the members of his coffeehouse.Depending on his score, he may be able to attend Barista School. If the Drinker does not make a high enough score this step must be repeated until he is able to move on; however, many drinkers end their journey here. To be able to make coffee for a group of people outside of friends is a high honor. If the Drinker does make a high score, he is ready for schooling and could possibly get paid for public coffee making. Stage Five: Becoming a Barista School for the drinker lasts 14 weeks. It’s a rigorous course in which The Drinker goes home to home to learn of different types of coffee.After that The Drinker studies The Bean through science, religion, its artistic appearance and its aroma. The most important step in becoming a Barista is the reproduction of The Bean. Once the Drinker masters growing The Bean on his own, he is ready for the final stage: The Perfect Pairings. Some perfect pairing for the bean consist of warmed milk, water, caramel, chocolate and whipped cream. Once they graduate from their schooling and training, they become a Barista and are eligible for pay in the coffeehouse, if they chose that as a career.Stage Six: The Crusader arises The gap between a Barista and a Crusader is small but meaningful. If there is a need, any and all Baristas will be called into battle and immediately become a Crusader. If there is no need for battle, a Barista can chose to study under 2 past crusaders and begin a coffee farm. The act of growing a large amount of coffee beans for t he cult’s use can also make a Barista a Crusader. Only a Crusader can grow the bean, otherwise it will wilt and taste sour. Without coffee growing education, no Bean will grow properly.The Coffee Cult depends on the crusader to further their Coffee kingdom and keep The Bean in stock. Although not everyone can become a crusader, it takes almost ten years, everyone can learn a little about coffee through their family and the stages they wish to go through. Since the beginning of the coffee cult, the wealthy and the laborers have dissolved their problems and have learned to be connoisseurs of caffeine together. Recently there has been a great rift in the Coffee Cult. The Caffeinated drinkers and the Decaffeinated drinkers have differed in what they believe is the root of their religion.Some think it is the feeling of being stimulated, rather it be in the morning or afternoon, even at night. Some think it is simply the aroma and the taste that keep the religion alive. There has a lways been some disagreement between The Drinkers but never anything like this. Some Coffeehouses have split because of the separating beliefs; families have even been torn apart due to this widespread disagreement but one thing is certain, every Drinker, be it caffeine, or Decaff will fight for The Bean in its pure state and surrender their taste buds to the so bitter its sweet, black gold.

Limitatitons of the Accounting Code of Ethics

Professional values, ethics, and attitudes. (AC 423) Group Assignment QUESTION: With the advantage of hindsight, what advice would you have given the Enron Board to avoid the 2001 disaster? GROUP MEMBERS 1. Augustine KuparaR082559R 2. Tonderai NyamadzawoR082987G 3. Simbarashe ChakaR089613J 4 Brighton Nzvuvu R089824H 5. Walter DangerR082990X 6. Simon ChigwandaR075968L 7. Ashley MurisaR082991Y 8. Frank Garatsa R082988H 9. Presely NheweyembwaR076037L 10. Peter DonaldR055241G 11. Shingirayi GweteR089773H BACKGROUND Enron Corporation was formed in 1985 from a merger of Houston Natural Gas and Internorth, Enron Corp.By early 2001, Enron had grown into the 7th largest U. S. Company, and the largest U. S. buyer/seller of natural gas and electricity. It was heavily involved in energy brokering, electronic energy trading, global commodity and options trading, etc. in 2001 Enron started to show major signs of trouble by announcing a huge third-quarter loss of $618 million. On October 22, 2001, the Securities and Exchange Commission (SEC) began an inquiry into Enron’s accounting practices and later that year the company filed for Bankruptcy.Key investigations revealed many shortcomings which include the use of complex & dubious accounting schemes to reduce Enron’s tax payments; to inflate Enron’s income and profits; to inflate Enron’s stock price and credit rating; to hide losses in off-balance-sheet subsidiaries; to engineer off-balance-sheet schemes to funnel money to themselves, friends, and family; to fraudulently misrepresent Enron’s financial Enron also used complex dubious energy trading schemes for instance the â€Å"Death Star† Energy Trading Strategy which was aimed at taking advantage of a loophole in the market rules governing energy trading in California.This essay will attempt to advice the Enron Board to avoid the 2001 disaster with the advantage of hindsight by focusing on the major areas in the paragraphs which fol low RECOMMENDATIONS THE BOARD OF DIRECTORS AND ITS FIDUCIARY DUTIES The Board, as the head of the organization is supposed to execute its duties and roles professionally and make sure that the company is run efficiently and effectively. It’s supposed to exercise oversight over all the operations of the organization.These duties includes adopting of corporate strategy, annual budget and formal organisational structure, ensuring that risk management structures are in place, the company is complying with the relevant laws and regulations and that adequate controls are in place, to exercise oversight over management operations, to act as a communication channel between management and shareholders and to ensure that financial information of the organisation is reliable and credible. There is need to ensure that the board is properly structured so that t it adds value to the organization.This means that it was supposed to have a chair, at least one the members is financially litera te and some of its members are non-executive directors. This would ensure that an independent perspective is brought into the board’s operations that would bring experience and expertise to the board The board supposed to follow its code of conduct in carrying out their duties. This ensures that all the activities it undertakes are in the best interest of the shareholders not themselves.For example, in carrying out their duties, all the board members are supposed to exhibit due care and diligence, to be honest and loyal, to exercise confidentiality on the organizational information and to disclose any conflict of interest. Some of the board members had financial interests in the Special Purpose Entities (SPEs) making large profits but they did not disclose this conflict of interest to the board. This would compromise their objectivity and independence in carrying out their duties.Some of the members of the board were not exercising due care and diligence in their operations. They were aware of the unethical and risky business operations that were taking place within the organisation but they took no action and did not bring it to the attention of the board. These included transactions through SPEs and the paying of unauthorised bonuses to senior officials. They even connived with the auditors to structure and perform some of the illegal transactions that were aimed at falsifying the performance and position of the organisation.The board is also supposed to have other special subcommittees that are aimed at enhancing the operations of the board in areas that need special attention. These include the Audit Committee that is aimed at overseeing the internal and external audit functions and the Remuneration Committee that will be responsible for the salaries and allowances of managers and other senior officials. The role of a company’s board of directors is to oversee corporate management to interests of shareholders.However, in 1999 Enron’s b oard waived protect the conflict of interest rules to allow chief financial officer Andrew Fastow to create private partnerships to do business with the firm? Transactions involving these partnerships concealed debts and losses that would have had a significant impact on Enron’s reported profits. Enron’s collapse raises the issue of how to reinforce directors’ capability and will to challenge questionable dealings by corporate managers. Specific questions involve independent or â€Å"outside† directors. Stock exchange rules require that a certain percentage of board members be unaffiliated with the firm and its management. ) Should the way outside directors are selected be changed or regulated? Directors are elected by shareholders, but except in very unusual circumstances these are â€Å"Soviet-style† elections, where management’s slate of candidates receives nearly unanimous approval. Should there be restrictions on indirect compensation i n the form of, say, consulting contracts or donations to charities where independent board members serve?Should the personal liability of directors in cases of corporate fraud be increased? Do the rules requiring members of the board’s audit committee to be â€Å"financially literate† ensure that the board will grasp the innovative and complex financial and accounting strategies employed by companies like Enron. Several of the auditor reform bills cited above would require the audit committee of a corporation’s board of directors to take a more active role in the selection and supervision of audit work.Enron should have kept an element of professionalism; the board of directors should show independence in decision making. The company must not have any close relationship whatsoever with its auditors. A strict and good system of corporate governance should have been set out , which sets out a clear system of duties of each director. They should have set out a syst em of segregation of duties that sees each director have an independent duty. AUDIT COMMITTEE Any effective audit committee must have been in place at Enron comprising of purely independent non-executive directors.Members should have an understanding of internal control system and financial and sustainability reporting experience. This committee reviews the accounting practices and approve the financial statements as integrated reporting. Thus the financial reports of Enron would not have been allowed to be published before the approval of the Audit Committee. Review the effectiveness of the internal control environment as well as oversight over the internal and external audit.The Audit Committee recommend to the Board of Directors the engagement, removal and liaise the terms and remunerations with the external auditor. The issue of non-audit services, it is also the responsibility of the committee to define the policy and approve the contracts. Hence the pure independent audit comm ittee it would have not allow Arthur Andersen to exercise multiple roles at Enron. Reports Management are received and reviewed to check whether in line with the approved internal Audit plan and the quality and effectiveness of the external audit function.Risk management is also pivotal in this committee so as to champion the fraud awareness. As an internal auditor, Sherron Watkins should have not directed her anonymous letter to the chairman of the board, Kenneth Lay but to the committee which oversee the internal control system. The Chief Accounting Officer, Richard A Causey who was getting money through the Special Purpose Entities had been once an auditor at Arthur Andersen an issue which should have been closely examined. An effective Audit Committee consider confidential reporting to facilitate whistle blowing.Overall, Audit committee have a combined assurance role thus monitoring the relations between internal and external audit to reduce duplication efforts as well as enhanc es transparency. AUDITOR ROTATION. The Issue Of Auditor Rotation Is Of Significant To The Quality Of Financial Reports. Auditors Should Be Rotated Every Few Years To Prevent Long Term, Close Ties Between The Enron And The Arthur Andersen Firm. Arthur Andersen is the firm that audited Enron’s books from its inception in 1985 (it was also global crossing auditor).Also there was questionable movement of personnel from between the two companies Richard A Causey, the Chief Accounting Officer had come to Enron after working on Enron audits for Andersen this creates a strong relationship, Familiarity threats and it is easy to can collude with Andersen in perpetuating fraudulent activities. Time should be put at least three years before a member can join Enron from auditing firm. Long term audit client relationships significantly increase the like hood of an unqualified opinion or significantly reduce the auditor’s willingness to qualify the audit reports.Mandatory audit rotat ion is ideal in maintaining the value of an audit for both the internal and external users. Although recurring auditors have got an advantage to Enron of that they will be auditing the business they know very well its environment and internal controls thereby reducing the chances of the auditor making an audit risk which is the risk that the auditor will give a wrong opinion that the financial statements are not materially misstated when in actual fact they are materially misstated. , however the disadvantages seemingly outweigh the costs of retaining the audits.According to Wallace, 1980 and De Angelo (1981) audit quality is a market assessed joint probability that an auditor will both discover a breach in the client’s accounting system and report the breach. According to Shockley (1982) a long auditor client relationship can have the effect of complacency, lack of innovation, less rigorous audit procedures and a learned confidence in the client may arise after long associat ion with the client. It also gives auditor time to develop a close relationship with the client in this case Enron employees..After a number of years there is some kind of turning point in the auditor and client relationship which can be detrimental to the auditor’s independence. Before the decision to rotate there is need to assess the quality of the audit client and this can be done in the following ways according to Shockley and Holt 1983, firstly the perceptions of users should be analysed, the pricing of the audit services has to be analysed and in this case Andersen’s firm was receiving a greater percentage of its revenue from Enron hence there is dependent on the company.The nature of the audit opinion has to be analysed it has a greater impact on the reliance with which we can place to the auditing firm. COMPLIANCE TO ACCOUNTING STANDARDS AND REGULATIONS The Enron was involved several accounting issues, one concerns the creation of special purpose entities (SPE s), these were established for the special purpose of covering Enron`s losses and there were also being used to transfer debts outside of the company and would not show up on the balance sheet at year end . The SPEs were supposed to be independent companies however they were headed by Enron former employees, and backed, ultimately, by Enron stock.The second issue was that Enron was also involved in other accounting scandals for example Enron took advantage of the limitations in the standards governing the energy business therefore over valued assets and selling some of decreasing assets to the SPEs at huge mark-ups and there realising the profits in the financial statements. As a resulted of these accounting misappropriations, Enron produced favourable financial statements leading to unapproved bonuses being claimed by employees and directors also providing themselves with obscenely generous stock option grants.The Securities and Exchange Commission (SEC) governs the activities of c ompanies registered on the New York stock exchange. Enron`s management should follow the regulations stated by SEC and also to prepare its financial statement according to the generally accepted accounting principles (GAAP). The accounting information produced by Enron should have been restated to show a fair financial position of the company. The SPEs should be liquidated no further transactions should be carried out between Enron and its related parties. In correcting its transactions Enron should other external auditors other than Arthur Andersen.These investigations should be carried confidentially so as to protect the manage the situation and also to protect Enron`s reputation. COMPENSATION TO EXECUTIVES AND OTHER PERSONNEL Effects of over paying directors it is results in directors losing focus of their core business, that acting their stewardship and accountability functions . Through good corporate governance directors via the agency theory are responsible to the shareholder s. Directors are independent form management; they are responsible for making sure management are carrying out their fiduciary duties.However if they are over compensated they are more likely to be inclined to favour management over shareholders, as they is a rise of a self-interest threat With no proper monitoring of the board through a remuneration committee, overpaying results bad corporate governance which affect the companies risk management. It results in problems not been brought to light, allowing them not been addressed. As directors ignore their duties and focus on short term profits and rather than maximising company growth in the long term, this reduces their ability to focus on strategic issues and establishment of unrealistic standards of performance.Decision-making is greatly affected as they will be they will be destruction of the authority line by the two boards who will be responsible for the overall well being of the company. As decision making will have been affe cted corporate and accounting practises will greatly be affected, which will increase the chances of fraud and error. These might include recording profits earlier and recognising expenses late. Overpaying also results in changes in the ethical culture of the organisation, as the board can select bad managers to run the business because they will be sharing a common perception.Which is lack of concern for long run of the business? Rather the advice would be for Enron to have a director’s board which contains an equal mix of executive and non-executive directors. This would be to ensure independence and accountability at the highest level, this also reduces self-interest threats . It allows for a board which separates itself from the management of the business Rotation of members at frequent intervals to allow for reduction in familiarity threats if members of the board stay for too long ,e. . more than five years they might become familiar with the management Establishment of remuneration committee which monitors the payment of executives, this ensures that directors are paid according to the tasks performed and not for unnecessary duties INDEPENDENCE Independence is when one makes decisions honestly and truthfully both in fact and in appearance and avoids internal and external pressures which may influence the outcome of a decision under review.The Enron scandal showed a number of independency issues being overlooked by the management of the company and instead concentrated on fraudulent profit making strategies which should have been avoided. These fraudulent activities involved the management of the company and their external auditors (Arthur Andersen), the company’s lawyers, consultants and lenders. The advice that l would have given to the management of Enron concerning independent issues was that they should have at first allowed every employee to exercise his or her duties without influence from anyone either internally or external.The man agement of Enron should have exercised their duties of stewardship to their principles without paying much attention to their excessive and self-centred interest of maximising wealth at the expense of their shareholders. The actions by Mr Ken Lay of forcing all employees to book their corporate travel through his sister’s travel agency was nowhere near independency but only self-interest and greed to accumulate wealth. The board members should have critically analysed the source of the monies they were receiving so as to find facts to justify the revenues.Instead they were only concerned about their packages and approved every idea the management would put before them without taking into consideration the effects of such decisions. This was a clear threat to the board’s independency since they were to choose on whether to be ethical or satisfy their insatiable need for wealth. These high earnings were also received by most of the company’s executives, finance, l egal and accounting professionals and they made them to overlook the questionable accounting practices which were yielding these huge packages.The management also needed to take note of their auditor’s operations when carrying out his mandate, there was need to segregate duties between auditing and non-auditing services. Arthur Andersen should have been engaged to one assignment only of auditing and leave the non-auditing services to other so that independent decisions could be made. The board should have rotated their auditors after a reasonable period of time to avoid familiarity and some associated threats to independence.There was need for the board to also discuss the issues of their auditor’s remuneration and other packages they offered so that they could match with the current market trends this would reduce the auditor’s dependency and force them to report any anomalies within the operations of the company. Role of Sell-Side Analysts Sell-side analysts h ave received considerable criticism for failing to provide an earlier warning of problems at Enron.On October 31, 2001, just two months before the company filed for bankruptcy, the mean analyst recommendation listed on First Call (which compiles and distributes analyst recommendations) for Enron was 1. 9 out of 5, where 1 is a â€Å"strong buy† and 5 is a â€Å"sell. † Even after the accounting problems had been announced in October 2001, reputable institutions such as Lehman Brothers, UBS Warburg and Merrill Lynch issued â€Å"strong buy† or â€Å"buy† recommendations for Enron. Analysts should have not been slow to recognize the problems at Enron.The analysts should not have financial incentives to recommend Enron to their clients. Investment banks earned more than $125 million in underwriting fees from Enron in the period 1998 to 2000, and many of the financial analysts working at these banks received bonuses for their efforts in supporting investment banking. Sell-side analysts must be independent and avoid any self-interest threats which may arise. Corporate Culture Enron has been described as having a culture of arrogance that led people to believe that they could handle increasingly greater risk without encountering any danger.According to Sherron Watkins, â€Å"Enron’s unspoken message was, ‘Make the numbers, make the numbers, make the numbers—if you steal, if you cheat, just don’t get caught. If you do, beg for a second chance, and you’ll get one. ’† Enron’s corporate culture did little to promote the values of respect and integrity. These values were undermined through the company’s emphasis on decentralization, its employee performance appraisals, and its compensation program. Each Enron division and business unit was kept separate from the others, and as a result very few people in the organization had a â€Å"big picture† perspective of the companyâ₠¬â„¢s operations.Accompanying this emphasis on decentralization were insufficient operational and financial controls as well as â€Å"a distracted, hands-off chairman, a compliant board of directors, and an impotent staff of accountants, auditors, and lawyers. † Jeff Skilling implemented a very rigorous and threatening performance evaluation process for all Enron employees. Known as â€Å"rank and yank,† the annual process utilized peer evaluations, and each of the company’s divisions was arbitrarily forced to fire the lowest ranking one-fifth of its employees.Employees frequently ranked their peers lower in order to enhance their own positions in the company. Enron’s compensation plan â€Å"seemed oriented toward enriching executives rather than generating profits for shareholders† and encouraged people to break rules and inflate the value of contracts even though no actual cash was generated. Enron’s bonus program encouraged the use of non -standard accounting practices and the inflated valuation of deals on the company’s books. Indeed, deal inflation became widespread within the company as partnerships were created solely to hide losses and avoid the consequences of owning up to problems.Conclusion In conclusion, one can see that a variety of perspectives can be applied to the Enron scandal which could have averted the 2001 disaster. If those charged with the governance of the entity had taken necessary steps in line with what is outlined in this essay, the corporation would not have collapsed. However even if Enron and its outside accountants and lawyers had done nothing improper, the sudden collapse of such a large corporation would suggest basic problems with the U. S. ystem of securities regulation, which is based on the full and accurate disclosure of all financial information that market participants need to make informed investment decisions. The overarching issue raised by Enron is how to improve the q uality of information available about public corporations. References * Bob Lyke. CRS Report RS21120, Auditing and its Regulators: Proposals for Reform After Enron. * JOINT COMMITTEE ON TAXATION, 2003 Report of investigation of Enron corporation and related entities regarding federal tax and compensation issues, and policy recommendations McLean, Bethany. 2001. â€Å"Is Enron Overpriced? † Fortune. * Paul D. Miller, Brief History of Enron (accessed 27 November 2012) http://www. freegrab. net/enronhist. htm * Paul M. Healy and Krishna G. Palepu, (2003) The Fall of Enron * Powers, William C. , Raymond S. Troubh and Herbert S. Winokur. 2002. â€Å"Report of Investigation by the Special Investigative Committee of the Board of Directors of Enron Corp. † * Steven C. Currall Marc J. Epstein 2003. Lessons From the Rise and Fall of Enron * Watkins, S. , 2002. Email to Eron Chairman Kenneth Lay,