The Concept Of Csr Business Essay

The Concept Of Csr Business Essay 2.2 The History of CSR through the Centuries. The Business Relations, Accountability, Sustainability and Society Centre, known as BRASS, in its report History of Corporate Social Responsibility and Sustainability (2007), states that The history of social and environmental concern about business is as old as trade and business itself. Commercial logging operations for example, together with laws to protect forests, can both be traced back almost 5,000 years. In Ancient Mesopotamia around 1700 BC, King Hammurabi introduced a code in which builders, innkeepers or farmers were put to death if their negligence caused the deaths of others, or major inconvenience to local citizens. In Ancient Rome senators grumbled about the failure of businesses to contribute sufficient taxes to fund their military campaigns, while in 1622 disgruntled shareholders in the Dutch East India Company started issuing pamphlets complaining about management secrecy and self-enrichment . Moving further, Eberstadt (1977) claims in his study that phenomena of social responsibility were already presented in the ancient Greece, while todays corporate responsibility movement is an attempt to restore a 2,000-year-old tradition of businesses being connected to the community (cited in Panwar, Rinne, Hansen Juslin, 2006). In the 18th century the businesses started to anticipate that having an efficient labour force was essential for the successful delivery of their activities. During that period Adam Smith, the great moral philosopher and pioneer in economics, present for the first time the traditional or classical economic model. The model suggested that the needs and the interests of the public would best be met if the individuals act in self-interest manner. Driven by their own self-interests, the individuals would produce and deliver goods and services which would earn them profit, but also meet the needs of the others (Fernando, 2009). According to Brown (2005), the companies in order to keep their employees satisfied, because of the negative effects that the lack of food, housing and healthcare had in the labour force efficiency, they started to invest in housing, healthcare and nourishment. Thus, the worker villages of the industrial revolution, company medical facilities and the subsidized wor ks canteen appeared. That action of social philanthropy by the companies can be considered as the forerunner of the modern day CSR. Sims (2003) claims that the contemporary CSR originated back to the beginning of the 20th century and is based upon two principles. The first, the principle of charity, is based on religious tradition and suggests that those who are well financially should give to those with difficulties. The second one, the principle of stewardship, says that the organisations have an obligation to serve the society and satisfy the publics needs since their wealth and the power that they have springs through their activities within the society. This second principle had an impact on affected how companies were faced by governments, press and other groups and led to the conduction of new more socially responsible laws. The turn of the businesses to the society and the development of a more societal thinking led the organisations to increase their responsibility and consideration for both social and environmental well-being. This response to environmental and social matters by the corporations is what it is known today as Corporate Social Responsibility (Panwar et al., 2006). 2.3 Definitions of Corporate Social Responsibility The rise of the concept of Corporate Social Responsibility during the past decades resulted to the continuous debate about the exact meaning of the term. The only generally accepted view about the term CSR is that is a concept which covers several aspects. Frankental (2001), comments that CSR is a vague and intangible term which can mean anything to anybody, and therefore is effectively without meaning. Castka, Bamber, Bamber and Sharp (2004) argue that there is no single authoritative definition of CSR. The CSR concept seems to be a loosely defined umbrella embracing a vast number of concepts traditionally framed as environmental concerns, sustainable development public relations, corporate philanthropy, human resource management and community relations. During the examination of various literatures it can be seen that there is not a single generally accepted definition, although many authors and worldwide institutions defined the term CSR in similar ways. The first academically accepted definition of CSR can be found in the book Social Responsibilities of the Businessman, written by Howard Bowen in 1953. Bowen defines CSR as an obligation to pursue those policies, to make those decisions, or to follow those lines of action that are desirable in terms of the objectives and values of our society (cited in Panwar et al., 2006). Carroll (2004) argues that the social responsibility of businesses encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time, while Buhmann (2006) simply defines CSR as doing more than what is required by law. Johnson, Scholes and Whittington (2005), define CSR as the ways in which an organisation exceeds its minimum obligations to stakeholders specified through regulation. The World Business Council for Sustainable Development (WBCSD) defines CSR as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large (cited in Castka et al., 2004). Finally, the internationally known law firm Freshfields Bruckhaus Deringer in the report The Development and Impact of CSR on the Construction Industry (2006), defines CSR as the voluntary integration of environmental, social and human rights considerations into business operations, over and above legal requirements and contractual obligations. To conclude, it can be clearly seen that the base line of the above definitions is the volunteering obligation that the organisations must have over their employees and their families, the environment and the general public which sometimes may go further their legal requirements. 2.4 Layers of Corporate Social Responsibility According to Sachs, Ruhli, and Mittnacht (2005) the probably best known economic paradigm that prepare the ground for further research on the concept of CSR is the Carroll Pyramid (Figure 1). FIGURE 1 Carroll (1991) suggests that there are four kind of social responsibilities that an organisation should take into account while conducting its activities and those responsibilities constitute total CSR. Those four social responsibilities of an organisation were presented into a four-layered pyramid model, called The Pyramid of Responsibilities. The four layers of responsibilities are economical, legal, ethical and philanthropic. The bottom layer and the foundation of the pyramid is the Economic Responsibilities. The business must be profitable in order to keep its shareholders satisfied, produce goods and services necessary to the consumers and be able to create new jobs and promote innovation. The second layer of responsibilities is the legal and is all about following the law. The businesses should not only be profit driven but at the same time they must respect the laws and regulations produced by government and it is expected that the businesses would keep their economic activities inside the framework of the law and pay by the rules of the game. The ethical responsibilities are related to fairness and morality. The peoples rights and beliefs must be respected, any kind of harm, physical or social, must be avoided and any harm caused by others must be prevented. The last layer is the philanthropic responsibilities which urge the businesses to be good corporate citizens. The businesses through their activities must contribute resources to the community and most importantly must be able to help to improvement of the quality of life. Carroll placed the four layers of responsibility in a pyramid in order to show the strong connection between the four kinds of responsibilities. If a kind of responsibility in the pyramid model is absent then the ones above cannot be achieved. Lantos (2001) characterises the Carrolls pyramid model of CSR as altruistic or humanitarian and argued that the firm will be good to use it as marketing too in order to promote its image. Following this view Lantos (2001) proposes a new model of responsibilities by reclassifying Carrolls pyramid from four to three layers. The first layer of Lantos model is the Ethical CSR and includes economic, legal and ethical responsibilities as one group. The second layer is the Altruistic CSR which is equal to Carrolls philanthropic layer and suggests that businesses must contribute to the community even if a part of the profits must be sacrificed. The last layer of Lantos model is the Strategic CSR where businesses are fulfilling their philanthropic responsibilities not only because of generosity but also because they expect financial returns from the positive publicity. 2.5 Business Ethics and Corporate Social Responsibility Business Ethics and Corporate Social Responsibility are two close related concepts but they are not identical. As it can be seen Business Ethics play a very important role in Carrolls Pyramid of responsibilities as Ethics Responsibilities are placed in the second highest layer. Both concepts refer to values, goals and decision making based on something more than just making a profit (Mullerat, 2010). In general terms the bottom line of ethics is individually doing the right thing while avoid evil and harmful actions for you and the others in your activities. On the other hand CSR is more about the obligations that an organisation must have over its stakeholders than just its shareholders. A socially responsible organisation must act ethically (Mullerat, 2010). Phatak, Bhagat and Kashlak (2005) define Business Ethics as the moral thinking and analysis by corporate decision-makers and other members regarding the motives and consequences of their decisions and actions. Furthermore, Ferrell and Fraedrich (1998) add that business ethics compromises moral principles and standards that guide behaviour in the world of business. The concept of Business Ethics is vital for every self-respected organisation and this is why many companies today develop codes of ethics and make commitments about their ethical behaviour to the public (Fisher, 2003). According to Seitel (2001), the organisations develop ethics codes in order to: Increase public confidence: Due to various scandals, mainly concerning corruption and briberies inside organisations, the publics trust for businesses has been declined. Thus, companies have decided to adopt the ethics code in order to improve their image. Stem the tight of regulation: Due to the declining trust and confidence of the public for businesses, the governments increased their legislations and regulations in order to reverse the situation. The companies adopted the ethics codes in order to show that they have ethical behaviour and can be trusted. Improve internal regulations: Due to the increase of the size of organisations and the development of multinational operations it is essential that some codes of conduct must be created in order to have the same behaviour standards among the employees. Business ethics depend on two main factors, culture and time (Svensson and Wood, 2003). The business environment culture is influenced by traditions, religion, ethical values and individuals and can be defined as what is accepted and what is unaccepted. The companys success can be affected if different opinions, that is to say different cultures, cannot be adopted satisfactory by the organisation. Additionally, what is accepted and what is unaccepted can be affected by the business time element. The business world is a fast changing environment and what is considered ethical today it can turn out to be unethical tomorrow. As it can be seen the success or the failure of a business is closely connected with ethics and that is why Business Ethics must be used as a corporate philosophy rather than a corporate code in every organisation. To conclude, Johnson et al. (2005) argue that the societys expectations, which have major influence on companies and organisations, are based on three levels of Business Ethics. The macro level is the first one and is related to the ethical posture of the company. Simply, the macro level is related to the extent in which the organisations are willing to do more than their legal requirements in order to satisfy their stakeholders. The second one is a part of the macro level and is the Corporate Social Responsibility level. This level is concerned the ability of organisations to surpass the minimum requirements needed in order to maintain the organisations ethical stance. The individual or managerial level is the last level of Business Ethics. This is a very important level since is connected with the behaviour and actions of individuals inside the organisation. 2.6 Drivers of Corporate Social Responsibility The current momentum behind Corporate Social Responsibility is being built based on a variety of very important factors. Ernst and Young (2002) mention that there are five key drivers which encourage the increasing business focus on CSR. These are: (1) greater stakeholder awareness of corporate ethical, social and environmental behaviour, (2) direct stakeholder pressures, (3) investor pressure, (4) peer pressure and (5) an increased sense of social responsibility (cited in Jones, Comfort and Hillier, 2006). Panwar et al. (2006), argue that there are diverse motivations that lead to the adoption of CSR by the organisations. For example a business is adopting CSR in order to meet mandatory legal requirements aimed at controlling destructive business practices while another business is using CSR in order to increase its productivity and improve its financial performance. It is also suggested that a company by using CSR in its practises can improve functional areas such as market positioning and risk management. According to Wood (1991), the concept of CSR is being driven by three major principles. Firstly, businesses are obliged to use their power responsibly since they are above all social institutions. Secondly, the responsibility for the outcomes of the involvement with the public is upon businesses. Lastly, discretion must be exercised in decision making processes by the individual managers who are also moral agents. Andriof and McIntosh (2001) believe that the driving force behind the concept of CSR is the consumers and employees. These two categories are holding the power in the market system nowadays. Consumers and employees are now well informed about the several challenges the world has to face and they do not really believe that the governments can change things. They accept that corporations are the most powerful social institutions of the present era and most importantly they are willing to reward those corporations who are responsive to their concerns. Finally, Girod and Bryane (2003) use a strategic marketing view arguing that CSR is a key tool to create, develop and sustain differentiated brand names. Furthermore, the Commission of the European Communities (2002) argues that the organisations in order to better respond to the fundamental changes in the overall business environment they adopted CSR and used it as an important element in new and emerging forms of governance. These changes include globalisation and the responsibilities companies feel the need to address, as they increasingly source products and services in developing countries; the issues of image and reputation, which have become increasingly important elements in corporate success; and the need for companies to recruit and retain highly skilled personnel (cited in Jones, et al., 2006). 2.7 Benefits of Corporate Social Responsibility Many organisations are using nowadays CSR as a marketing tool due to the fact that the implementation of CSR practices can bring to the organisation a wide range of potential benefits, both direct and indirect. The Department of Trade and Industry (DTI) has said that implementing a CSR policy, can bring real business benefits by reducing risk, by enhancing brand value, by opening doors and creating good will, and by improving staff efficiency and morale. It can also attract stable and ethical investment and add competitive edge (Chartered Institute of Building, Report) According to Mackey, Mackey Barney (2005) in the case that a company surpasses the minimum CSR requirements then the potential benefits can lead to a positive effect to the companys performance and value. Gildea (1994) and Zaman et al. (1991), stress out that research has shown that companies that care for the environment and exhibit good CSR practices experience increased consumer purchase preference in addition to increased investment appeal (cited in Panwar et al., 2006). Many consumers prefer to buy for ethical business. A survey conducted by Cone Inc. (2004) showed that 91% of the consumers have a more positive image of a product or a company when it supports a cause. The 90% of the consumers would consider switching to another companys product or services if they found out about a companys any unlawful or unethical practises. In addition, Muckiewicz (1993) supports that the reputation of an organisation plays a vital role as research studies show that 9 out of 10 consumers use it in order to decide which product or service they will buy from those that are similar in price and quality. According to Bernstein (2004), CSR benefits both the company and the community. Due to use of CSR the corporate culture and corporate name of the company can be improved significantly thus the best employees can be attracted and the motivation of the workforce will remain in high levels. The society benefits from CSR practices as well through a variety of services and action, though the company has to create some sort of societal benefit in order to be called socially responsible. Some of the potential benefits that a business can have from the use of CSR practices can include improved financial performance and profitability; reduced operating costs; long-term sustainability for companies and their employees; increased staff commitment and involvement; enhanced capacity to innovate; good relations with government and communities; better risk and crisis management; enhanced reputation and brand value; and the development of closer links with customers and greater awareness of their needs (cited in Jones et al., 2006) . Table 1 presents a summary of business benefits of CSR. TABLE 1 Concluding, it must be noted that the benefits from the adoption of CSR practises can never be predicted or be constant since each company operates in a different and always changing environment. Barnett (2007) adds that this unpredictability could lead to limited support for CSR initiatives from the board, in times of financial instability. Thus, the business case supporting CSR has to be specific for every company and based on Rowley and Berman (2000) CSR achievements of an organisation cannot be collated against some standards, since those does not exist. Furthermore, McWilliams and Siegel (2001) point out that the potential existence of those standards would allow CSR to be considered as part of the investment decisions, as the company would be able to make judgements for its business case in a more formal way. 2.8 Criticism against Corporate Social Responsibility The concept of CSR, as it can be seen from the various definitions presented on previous paragraphs, is based upon the principle that businesses do have another responsibility than just making profits. Every organisation has a responsibility towards the society, its people and the environment as well. At the same time, many are those who are opposed the idea of integrating CSR practices into their corporations and they believe that shareholders interest can be conflicted by operating a good business. Dr Milton Friedmann (1970), a renowned economist, in his article The Social Responsibility of Business is to Increase its Profits affirms that there is one and only one social responsibility of business is to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say engages in open and free competition without deception or fraud. According to his economic model the organisation is an economic institution which should only focus in the economic scope. Organisations are seen purely as legal entities incapable of value decisions. A manager who uses a firms resources for non-profit social purposes is thought to be diverting economic efficiency and levying an illegal tax on the organisation (Balabanis, Phillips and Lyall, 1998). Following this view Dr Robert Barrington (2008) states that the managers are concentrated on soft issues rather than hard issues of the bottom line and this is something that is costing money to the shareholders. Moving further Frankental (2001), conclude that CSR is simply a public relations invention and it will remain like this. He believes that CSR can only have real substance if it embraces all the stakeholders of a company, if it is reinforced by changes in company law relating to governance, if it is rewarded by financial markets, if its definition relates to the goals of social and ecological sustainability, if its implementation is benchmarked and audited, if it is open to public scrutiny, if the compliance mechanisms are in place, and if it is embedded across the organisation horizontally and vertically. Henderson (2001) after the examination of various issues related to the concept of CSR comments that à ¢Ã¢â€š ¬Ã‚ ¦the current widely-held doctrine of CSR is deeply flawed. It rests on a mistaken view of issues and events, and its general adoption by businesses would reduce welfare and undermine the market economy. In the same motion Moir (2001) suggests that those who adopt the neoclassical model of business would follow the view that the only social responsibilities that a corporation can have are to provide employment, pay taxes and mainly to maximise its profits; therefore, maximise its shareholders value. On the other extreme of the arguments above, Dave Packard, the co-founder of Hewlett Packard Company once said I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a companys existence, we have to go deeper and find the real reasons for our beingà ¢Ã¢â€š ¬Ã‚ ¦. We inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so that they are able to accomplish something collectively that they could not accomplish separately they make a contribution to society (cited in Handy, 2002). Concluding, Freeman (1984) argues that a corporation is wrong to be seen just as a private economic institution, as it was suggested by Friedman (1970), but it has to be also seen as a social institution. This way, corporations would be responsible for any of their actions against the people, the community and the environment. Based on his Stakeholder Theory, companies operations should not be based on the interests of their shareholders but they have to be based on the interested of their stakeholders. 2.9 Corporate Social Responsibility and Stakeholders The definition given about the concept of CSR from Johnson et al. (2005) includes the words obligations to stakeholders, which indicates that stakeholders have an important role to play in this extent. Freeman (1984), the father of the Stakeholder Theory of the firm, defines stakeholders as any group or individual who can affect or is affected by the achievement of the organizations objectives. The Stakeholder Theory of the firm is used as a basis to analyse those groups to whom the firm should be responsible (Moir, 2001). The identification of the different stakeholder groups of the organisation is extremely important during the implementation of CSR practices. Usually the stakeholder groups are separated into primary and secondary stakeholders. According to Clarkson (1995) a primary stakeholder group is one without whose continuing participation the corporation cannot survive as a going concern, while a secondary stakeholder group is those who influence or affect, or are influenced or affected by the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival. Based on those definitions a primary stakeholder group contains shareholders and investors, employees, customers, suppliers, governments and communities. The secondary stakeholder group includes the media and a wide range of special interest groups (Clarkson, 1995). According to Freemans (1984) definition of stakeholders the relation between the company and its stakeholders can be described as two-way. Castka et al. (2006) support the view that the implementation of CSR is all about the right choices and strategic decisions and comment that the dilemmas that an organisations stakeholders can have are which choices and decision must choose in order to satisfy. Berman, Wicks, Kotha and Jones (1999), in order to find a solution for those dilemmas, derived two distinct stakeholder management approaches; the instrumental and the normative approach. The first, instrumental approach, suggests that concern for stakeholders is motivated by the perception that financial performance can be improved. The second, intrinsic stakeholder commitment approach, assumes that organisations have a normative (moral) commitment to advance stakeholders interests (Castka et al. 2006). The instrumental approach was the one empirically supported in Berman et al. (1999) res earch while Harrison and Freeman (1999) mention that the conduction of more research is essential in order to clarify the model of the normative approach. Although further research is required it can be clearly anticipated, through the examination of various literature, that the instrumental approach is the most desirable among researchers. McWilliams and Siegel (2001) suggest that corporations need to carefully consider in which aspects of the CSR to invest in and they comment that by using cost-benefit analysis the managers can ideally determine the level of CSR. Additionally, Agle, Mitchell and Sonnenfeld (1999) argue that the decision to make a CSR investment is driven by the needs of the most powerful stakeholders within the organisation, such as top management staff and is usually connected with their desire to gain more profits and increase the shareholders value. Finally Castka et al (2004) believe that the purpose of CSR is an investment and it must be considered and treated like one. Moving further they suggest that the balance between the need for maximizing profit from CSR and the demand for CSR from multiple stakeholders is the key to a core return on investment in CSR (Figure 2). In order to achieve this balance stakeholders expectations should be assessed and examined through dialogues and must be translated and included into the companys strategy plan. FIGURE 2 2.10 Areas of Corporate Social Responsibility Andriof and McIntosh (2001) write that CSR is not chequebook philanthropy, nor a study based on business ethics. They argue that the concept of CSR can be described as a vision that corporate leaders have for their business which is beyond of just making profits. CSR has an impact on every activity of the company and can affect areas either inside or outside the company. According to Andriof and McIntosh (2001) the four distinct areas that CSR encompasses are: The Community The Environment The Marketplace The Workplace By operating within these four areas companies can conduct specific programmes and make the difference and can actively monitor, evaluate and change their effects of their activities. The implementation of CSR and the thinking behind becoming involved in these areas represents the new way of doing business. 2.11 Activities of Corporate Social Responsibility The concept of CSR can be divided into many and diverse domains. Sen and Bhattacharya (2001) provide six broad domains of CSR activities, based on a comprehensive summarisation of CSR domains contained in Socrates: The Corporate Social Ratings Monitor (Kinder, Lydenberg, Domini Co. Inc. 1999), a database that describes and rates more than 600 companies in terms of their CSR records. These domains of CSR activities are: Community Support: The company provides support to the community with the use of health and educational and housing programs for financially disadvantaged. The generous and innovative giving is promoted Diversity: The company provides initiatives for sex, race, family, sexual orientation and disability diversity Employee Support: The company promotes health and safety, ensures job security and profit sharing, develops relations with the labour unions and allows employees involvement. Environment: The company avoids the use of hazardous waste management techniques, uses and produces environmental friendly products, develops pollution control and recycling techniques. Non-domestic Operations: The company prevents operations in countries where human right violations occur or unhealthy labour practices take place. Product: The company produces safe product and promotes research and development and innovation. Following the same line Johnson et al (2005) present a checklist of the organisations responsibilities. Those responsibilities are divided into two categories, the internal and the external aspects of CSR, based on the areas that the organisations activities can affect. Internal aspects of the companys activities can include employee welfare, working conditions, job design and intellectual property. External aspects of activities can include environmental issues, products, markets and marketing, suppliers, employment, community activity and human rights. 2.12 Factors influencing Corporate Social Responsibility

A Study on the Effects and Treatment

Alcohol related mishaps and accidents remain the largest concern of society and in response to this more and more sectors of society have been implementing rules to curb the negative effects of teenage drinking.   There is no doubt that society has seen the negative consequences of teenage drinking.In a national probability sample of 4,023 adolescents between the ages of 12 and 17, it was found that 15% of the sample used alcohol, 10% used marijuana, and 2% reported hard drug use in the past year (Farrell, 2006, p 284)).   This means that the problem of underage or teenage drinking is even more prevalent than other substances.Although some alcohol consumption among adolescents is considered normative, there is great concern for the number of teens who are exhibiting signs of alcohol abuse or dependence with 7% of the above sample meeting diagnostic criteria for alcohol, marijuana, or hard drug abuse or dependence.Trends in alcohol use reported in the Youth Risk Behavior Survey in dicate that binge drinking (five or more drinks on one occasion during the 30 days prior to the survey) has shown little variation over the past several years, ranging from 31.3% in 1991 to 33.4% in 1997 to 31.5% in 1999 (Eaton, 2005, p. 79).Drinking continues to be a problem among youth and needs to be targeted specifically.   This drinking problem has led to a number of problems such school absenteeism and failure, depression, risky behaviors (especially driving under the influence), addiction, and death.This brief discourse, shall tackle the issue of alcohol abuse in teenagers as well as the possible treatments that can be done.   It shall also provide an etiological perspective of the problem in order to show the different factors that affect teenage alcoholism.Working as a school counselor for this age group, I agree with the American Academy of Child and Adolescents Psychiatry’s Report (2007) which states that the following groups are most at risk for alcohol abuse: 1) teenagers with a family history of addiction, 2) teenagers suffering from depression, 3) teenagers suffering with low self-esteem, and 4) teenagers that have academic problems.It has been shown that from the following groups the teenagers with a history of alcohol have higher rates of alcohol addiction with over 42% of the sample size coming from that background.The next group is that of those who were drinking because they were upset with a rate of 40% while the rest admitted that they usually drink because of low self-esteem and peer pressure which accounts for 25% of the teenagers (Farrell, 2006, p.284).   The number of teenagers that drink due to academic problems has steadily been on the rise since 1998 and is now at a rate of 25% of the teenagers.   From the list, one could argue that most teenagers have been in one or more of its categories at one time in their lives.Etiological Approach:The article, Etiology of Alcoholism Reconsidered, is an insightful article that p rovides a biophysical analysis of the problem.   Alcohol related mishaps and accidents remain the largest concern of society and in response to this more and more sectors of society have been taking steps to understand the nature of the problem.   One such approach is the biophysical approach conducted by Vailliant and Milofsky on the Etiological Approach to Alcoholism.It is theorized in the study conducted by Vailliant and Milofsky that there are other factors that must be considered when studying the problem of alcoholism.   According to the authors, there are personality and childhood influences that must be examined in order to arrive at a better understanding of the problem.In the study conducted, Vailliant and Milofsky studied many different factors and collected different types of date including ethnicity, heredity, psychological instability, childhood and adult personality variables, and family background (Vailliant and Milofsky, 1982, p43).   The data that was colle cted from all of this was then used to quantify the variance of each of the different etiological factors.It was from the data analytic strategy that Vailliant and Milofsky were able to draw the conclusion that whenever there are correlations that exist between alcoholism and certain behavioral patterns or symptoms, it is usually alcoholism that is the cause of such behavior or symptom rather than it being the result (Vailliant and Milofsky, 1982, p483).Alcoholism is, according to the authors, not so much a disorder whose etiological causes are personality and behavior but rather, it is a precedent for such behaviors.   It was also noted from the study that â€Å"premorbid antisocial behavior† is a major contributor to the etiology of alcoholism.Another important finding in the article is the fact that while Vailliant and Milofsky greatly downplayed the role of child antisocial behavior, it played a significant role in most of the categories.As with the other etiological fa ctors, it has been shown that there are correlations that have been overlooked or underrepresented in the study conducted by Vailliant and Milofsky.   As such, this has led to the theory of Zucker that in order for there to be an accurate etiological study, there must be a study that is conducted over â€Å"developmental time† and inclusive of â€Å"different levels of data† since it is only through this process that a proper understanding can be arrived at (Zucker 1986).There are, however, still certain researchers who argue that this study was not significant in that it failed to account for certain factors or relationships such as that of antisocial behavior and personality factors which was thought to be underestimated in the study.   This does not detract, however, that the study process used presented an angle that was quantifiable and perhaps accurate of the etiology of alcoholism.   

An Introduction To Psychology . The American Psychological

An introduction to psychology The American Psychological Association ( APA) defines Psychology as the study of the mind and behavior. It is a discipline embraces the human experience (APA). Psychology was founded in Germnay during the 1879 by Wilhelm Wundt who was conducting a research. There he was opened the first laboratory at the University of Leipzig. Wundt was joined in 1892 by G. Stanley Hall who founded the American Psychological Association. While he served as the president of APA, he contributed to the American Journal Association in 1887 and Journal applied Psychology in 1917 (Anderson 1929).Psycology was established separately from the General science like biology and philosophy. The different schools of psychology was to†¦show more content†¦In other words it takes humanity as a more dominant moral value. He argues that the term is used to describe is works is meaningless and identifies many Christians as being an existentialist. He seems quiet contradicting cause he also argues that thi s school is a form of atheism. Satre also identified Martin Heidegger who was a German and Albert Camus; a French philosopher as existentialist. According to Aristotle in his book Nicomachean Ethics 2002, he argues that ‘ we are essentially rational animals, so sees flourishing nature in terms of good exercise of our national faculties, and understands ethical virtue as the set of dispositions manifested’. Existentialism believes that individuals are entirely free and must take personal responsibility. It also reacts to philosophy. Existentialism is often established among culture in the way there are identified by the dress code, food and religion. Behaviorism influence and the application of treatment The second school and system identified is the behaviorism. Founded by John B. Watson ; an American Psychologist. It is considered one of the most influenced schools of psychology. It is identified as learning theory that reinforces behavior. There is one theory that the behavior is based on the environment. The term can be defined as a psychological approach that began in 1913 by John Watson. Watson wrote that behaviorism claims the consciousness. Based on his understanding and study of psychology he believedShow MoreRelatedThe Health Of Health Psychology999 Words   |  4 PagesHealth Psychology Introduction Health psychologists range from a wide area of careers and fields. They focus on how health and illnesses are effected by factors such as psychology, biology and social factors. Health psychologists also seek to answer, â€Å"how people cope with chronic illness (both their own and others’)† (Lyons, Chamberlain, 2006, p. 6). 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The introduction of eastern religion served exactly that purpose and lead to the boom of the western therapeutic culture starting in the 1950s with the emergence of humanistic psychology. Today, meditation, mindfulness, and yoga have detached themselves away from their original purpose in eastern religions and have become the solution for managing and succeeding in life. This coping mechanism, ho wever, becomes problematic when Americans cease to attemptRead MorePsychology and the Nature of Humanity1227 Words   |  5 PagesIntroduction. The American Psychologist Association (APA) defines psychology as ‘the study of the mind and behaviour . The discipline embraces all aspects of the human experience — from the functions of the brain to the actions of nations, from child development to care for the aged. ‘(Association, 2014). With such an extensive definition, it is not overly surprising that its scientific kudos has been used to propagate political dogma, including abominable beliefs such as the innate inferiorityRead MoreCrime and Forensic Psychology1117 Words   |  5 Pagesenvironmental, hereditary, or psychological causes of crime, modes of criminal investigation and conviction, and the efficacy of punishment or correction (see prison) as compared with forms of treatment or rehabilitation. Although it is generally considered a subdivision of sociology, criminology also draws on the findings of psychology, economics, and other disciplines that investigate humans and their environment. Forensic psychology involves application of psychological research, theory, and clinicalRead MoreLegal Aspects of Professional Psychology1650 Words   |  7 PagesLegal Aspects of Professional Psychology Terri Smith PSYCH/545 Survey of Professional Psychology Dr. Erica Wansel August 26, 2012 Introduction Professional psychology has simplicities that set it apart from other recognized branches of psychology. The twist and turns of professional psychology make it where legal has to be taken into consideration. In any type of medical field legal always play a major role. The patients and clinicians have an obligation to one another to abide by the guidelinesRead MoreThe Ethical Codes Of Human Research Ethics1035 Words   |  5 PagesAnother key development of Psychology as a science was the implementation of ethical codes of conduct in regards to both humans and animals. Milgram’s (1963) obedience experiment prompted various issues related to human research ethics. In Milgram’s initial experiment, participants were asked to electric shock others in order to test their level of obedience to an authority figure. According to the British Psychological Society (BPS) Code of Human Research Ethics (2010), Milgram put the studies

9 Ways to Say Goodbye in Italian

You’ve learned that there’s more than just ciao  when it comes to greeting others in Italian, and now you want to know how to say bye when you leave (the ice cream shop) or un negozio (a store). Here are 9 ways to say goodbye. 1.  Arrivederci! - Goodbye! At the end of a conversation, you can simply say â€Å"arrivederci† and give a wave. While you might see the form â€Å"arrivederla† in textbooks, it’s often too formal—even to use with strangers—so you can stick with this form. On its own, it’s still very polite. 2.  A presto! - See you soon/Talk to you soon You could say this at the end of a friendly meeting with an acquaintance that you bumped into on the street or use it to end an email that you’ve written to a friend. It’s more generic in nature, so it’s great to use when you’re not sure when the next meeting will be. A similar generic phrase would be, â€Å"Alla prossima! - To the next time we meet!† 3.  A domani! - See you tomorrow! This phrase speaks for itself. You use it when you plan on seeing the next person the next day. Feel free to say it to a  barista you plan on seeing again tomorrow for your morning caffà ¨. 4. Ci vediamo presto - We’ll see each other soon This phrase is often used between friends who you plan on seeing later on. You may also hear â€Å"Ci sentiamo presto,†Ã‚  which means, â€Å"We’ll hear from each other soon.† 5. A risentirci  - Until our next meeting This farewell phrase is very formal. It’s often used in office/work language and at the end of phone calls as a polite closing form. The formal form of this phrase is, â€Å"A risentirla.† 6. Torni presto! - Come again soon! This is something you might hear from a friend you made while on your trip. It will most likely be followed by a hearty â€Å"buon viaggio! - have a good trip!†Ã‚  In the informal, it would be â€Å"Torna presto,†Ã‚  and you may even hear â€Å"Torna presto a trovarci! - Come again to visit us soon!† 7.  Mi à ¨ piaciuto molto  - I enjoyed myself very much While this isnt a traditional phrase for saying goodbye, it is a great one to use if you want to start wrapping up a social event, like a friend showing you around his or her city. If you want to add something extra, you can also say: â€Å"È stata una bella giornata/serata. - It was a beautiful day/night.† 8.  Buonanotte! - Goodnight! The best time to say â€Å"buonanotte† to someone is right before they’re going to bed. If you’re leaving a social situation and you want to wish someone a good night, it’s best to stick with â€Å"Buona serata,† which means, â€Å"Have a good evening.† 9.  Buon viaggio! - Have a good trip! This is a great phrase to use when someone tells you that they’re going on a trip or are returning back home. If you’re visiting Italy, it’s one that you’ll hear often once you announce that you’re returning home. The â€Å"buon noun† structure is used very often in Italian, and other phrases you’ll hear that help end conversations are: Buon proseguimento! - Enjoy the rest of (whatever action you were doing before the conversation started)!Buono studio! - Enjoy studying!Buon lavoro! - Enjoy working!Buona giornata! - Enjoy your day!Buona serata! - Enjoy your evening!Buon divertimento! - Have fun!Buon rientro! - Have a safe trip back home!

New High School Graduation Requirements - 789 Words

Introduction In 2007 the Oregon Department of Education (ODE) adopted new high school graduation requirements. In addition to completing the state’s credit requirements and demonstrating proficiency on state standardized assessments, students must meet three personalized learning requirements (PLRs): 1) completion of an education plan and profile; 2) participation in career-related learning experiences; and 3) extended application of personalized learning knowledge and skills in activities relevant to postsecondary and career goals. This process is intended to begin in grade 7 and continue through a student’s senior year. See appendix A for more details on Oregon’s requirements. ODE and the Oregon Education Investment Board (OEIB) view the PLRs as critical to Oregon students’ postsecondary readiness and success. The two agencies are partnering with REL Northwest and the Oregon College and Career Readiness Research Alliance (OR CCR) to develop recommendations for increasing and improving PLR implementation at public schools across the state. This report provides a review of research on personalized learning and promising practices occurring across the country. In this brief, we use â€Å"personalized learning† to refer to the entire process of completing PLRs. The process is often documented in and/or referred to as a personalized learning plan and includes participation in a variety of learning activities and experiences. This brief is intended for policymakers andShow MoreRelatedThe Transition Between High School And College775 Words   |  4 Pagesbetween high school and college exemplifies this transition. Yet few of these students feel prepared for the challenge that is adult life. 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Mongolia’s Karakorum Free Essays

The ancient city of Karakorum in the 13th century according to history and archaeological records was the seat and the imperial capital of the Mongol Empire of Genghis (or Chinggis) Khan. It is located in the Ovohangai Mongolia, near the Orhon River and Mount Otuken according to Haw (2006, 32). The city was founded and erected by Genghis Khan himself in 1220 to serve as the seat of his vast Mongol Empire and not only served as the administrative center but a major cultural link between the East and the West. We will write a custom essay sample on Mongolia’s Karakorum or any similar topic only for you Order Now Before the 13th century, the area around Karakorum particularly Karabalghasun used to be the seat of the Uyghurs who needed a permanent fortified capital to store resources extorted from China in 750-757. Ideally, this place was the best choice because the Turks and the Mongols considered the surrounding lands as sacred. After the Uyghurs were destroyed in 840 by the Khirgiz; the region was transformed from a Turkish heartland to a Mongol land. The Khirgiz power was however centered on the Yenisei River to the North which was how the area around Mt. Outuken and Karakorum faded into oblivion according to Findley (2005, 49). Geographically Karakorum also lies in the northwestern corner of the Ãâ€"và ¶rkhangai Province of Mongolia, near today’s town of Kharkhorin. This region is surrounded by arable land making the soil generally soft and ideal for planting after the annual flooding according to Morgan (1986, 87). The land is also conducive to grazing which is highly acceptable and desirable to a nomadic tribe who relied on horses to travel faster to faraway lands. Present day Mongolia has discovered the ruins of the vast city of Karakorum in an area which was suitable for both crops and livestock and which possessed very old-established mining deposits Morgan(1986, 46). As a major geographic route in the Middle Ages, Karakorum is also a saddle between two mountains and a river and considered a relatively easy passage to the East which was how Genghis must have envisioned his central empire. When the Mongols reunited the steppe tribes, they created the largest land-based empire in history interlinking Europe and Asia under Genghis Khan in McCannon (2006, 143). However, prior to their expansion, the Mongols did not have a sophisticated society and proved adept at cultural borrowing as related in McCannon (2006, 144). History has related how the Mongols behaved like barbarians without any regard for personal care and clothing. As warriors, a nomadic life best suited them and anything that could slow their journey to the next city they could conquer is avoided. However Kwantes revealed that the Mongols massive journey and conquests into other lands awoke them to goods they had never seen (2005, 57). Khan and his men learned to appreciate the beautiful silk, delicious food and exotic items pillaged and gathered from other places (Kwantes, 57). They began to slowly learn about other people’s culture which changed their way of lives. Genghis Khan’s advisers told him once, â€Å"thou has conquered great empire in the saddle†¦ thou cannot govern it so,† (Kwantes 58). Clearly this advisor understood that Khan’s nomadic way of life could not continue when vast lands and goods were acquired without a central government devised to rule for such a grown empire. Understanding the need for continuity of the Mongol rule, Genghis Khan now growing older changed the Mongol’s nomadic life and decided to establish Karakorum as his headquarters because of its accessibility and spiritual history (Kwantes, 57). In its prime Karakorum served not only as the administrative centre of the Mongolian Empire, but also as a major trade and cultural link between East and West in Haw, (2006, 32). The Mongols soon imposed a single political authority, encouraged economic exchange and made travel conditions safer according to McCannon (2006, 144). They began to established cities around their territories and made crucial economic centers passable for merchants, missionaries and travelers of all profession (McCannon, 144). Genghis Khan desired for his people to learn which is why foreign visitors were encouraged and welcomed so the Mongols could gather knowledge from the foreigners about cultures uncommon to them. Morgan once said that the Mongols were unsophisticated and uncultured who did not know how to write (1986, 114). All this would change later on as Mongol conquest is contemporarily declared as the transfer of intellectual and scientific primacy of the Old World from Islamic societies to Western and Eastern societies in Saunders(2001, 82). At its height, Karakorum became a busy metropolis served by soldiers, merchants, and craftspeople, many of the latter imported from lands conquered by the Mongolian military in Morgan (1986, 114). The ancient city, with an area of 400 meters by 400 meters, was protected from attackers by a fortified wall, and near each of the wall’s four gates, four giant granite turtle sculptures were installed to protect the city from a potentially more dangerous threat: periodic floods from the Orhon River in Morgan (1986:115). Karakorum in the 13th century then became home to more than ten thousand people, including Khan’s family, noblemen, ministers, military leaders, craftsmen, traders, clergy, and foreign guests, in addition to nomads inhabiting the compounds in Morgan (1986, 114). The huge size of the city was ideal for the city’s diverse religions where twelve idol temples of different nations, two mosques in which is cried the and one church of Christians could be found within its walls(Kwantes, 59). In addition, a diverse population also inhabited the walls with resident Chinese, Alans, Ruthenians, Georgians, Hermenians and other non-Mongol peoples inside as provided in Saunders (2001, 19). Karakorum became a host to a stream of foreign emissaries and traders like Marco Polo and perhaps Ibn Battuta among others. Delegations as far away as India, Arabia, Armenia and Rome, as well as merchants from China, Persia, and other countries along the Silk Route were welcome to the Great Khan’s established city. Town life must have prospered a lot during Genghis reign as archaeological evidence supports how their existence was centered on metallurgy powered by the currents of the Orkhon River. Other findings include arrowheads; iron cauldrons; wheel bushings; evidence of ceramic tiles and sculpture production (Brittanica, 2005). Glass beads production and yarn spindles were also evident along with also Chinese silk and coins that could support the trading activity in the area (Brittanica, 2005). Recent excavations of the city ruins have indicated that the royal palace was likely burned down at the time of the Min invasion, but it is not clear how completely the city was demolished (McCannon, 144). Although there is no mention of Karakorum in known historical records of the following 87 years, it is quite possible that the city was never fully abandoned according to McCannon (2006, 144). Indeed the city is the cradle of many Central Asian civilizations with its advanced agriculture and crafts that were highly developed while trade flourished. Despite European claims that the Tartars (as how Europe called the Mongols) were highly uncivilized and unsophisticated; records would show that Karakorum was once an intellectual community. They honor and respect diverse cultures and religion which has been carried through centuries of repression until 1990’s when Mongolians were soon free to practice any religion of choice. Illiteracy has also been eliminated in this modern period as a legacy from its great leaders. Today the Mongols and their great leaders are remembered as valiant heroes who conquered vast lands against all odds to build a mighty empire or as ruthless conquerors that destroyed everything in their path. Genghis set a certain set of organization, discipline, equipment and mentality to fight for and with his men with a vast army organized into a decimal system, with a commander for every series of 10 units elected by the troops in Morgan (1986, 115). Military tactics were rehearsed well in preparation and each warrior was expected to know precisely what to do from the signals of the commanders, which took form in flaming arrows, drums, and banners (Morgan, 116). With extreme discipline they combined skill, discipline, and tactics without Western interference or teaching, learning such divisive techniques on their own. Sometime when the western knights fought with the Mongol horsemen during an invasion, the Europeans were utterly destroyed as the Mongols employed a wide array of tricks that contradicts claims of their uneducated and barbaric status. Nevertheless, the sheer extent of their conquests revealed how an ailing nation ravaged by poverty and conflict once united under a single cause could reach great heights of power and achievement. Division and greed for power disunited them into utter failure which serves as a lesson for the next generations. I therefore consider the Mongols as the significant players in history because their conquests surpass what any other country has done. Works   Cited Kwantes, Anne. She Has Done a Beautiful Thing for Me: Portraits of Christian Women in Asia PhilAm books, 2005. Haw, Stephen. Marco Polo in China: A Venetian in the Realm of Khubilal Khan. Routledge, 2006. McCannon, John. Barron’s How to Prepare for the AP World. Barrons   Educational Series, 2006. Findley, Carter Vaughn. The Turks in World History. United States: Oxford Press, 2005. Britannica. Karakorum. 2005. http://www.britannica.com/eb/article-9044690/Karakorum Accessed: 08 May, 2007. Morgan, David. The Mongols. Blackwell Publishing, 1986. Saunders, John Joseph. The History of the Mongol Conquests. Blackwell Publishing, 2001. How to cite Mongolia’s Karakorum, Essay examples

Concept Of Sensitivity Analysis Samples †MyAssignmenthelp.com

Question: Discuss about the Concept Of Sensitivity Analysis. Answer: Sensitivity Analysis Sensitivity Analysis can be thought of as a way to better the communication between the frame workers and the decision takers as it sets up a much more convincing, trustworthy, credible and comprehensible media of networks between the two. The sensitivity analysis also provides a medium to check the quantification and the details about a particular process so as to provide information of the relationship maintained between different input and output variables (Tian, 2013). This analysis is of great significance as its help in building a framework which can detect the loopholes in the project. Sensitivity analysis provides numerous ways for the management to detect and measure the flaws in the invested project. This analysis also proves to be boon to the management when a matter of a major variable deviation is concerned. In such cases, it helps the management in estimating the circumstances that would follow. This analysis is also useful in detecting the basics of a project which can be modified to get better results. The undertaking of a project always has some threats involved and no organization can guarantee of earning profits. But the company still tries its level; best to eliminate the threat as far as possible by keeping an eye on the procedures so as to earn some capital. It is largely seen that sensitivity analysis is always followed before owing to a new venture (Damodaran, 2012). This process helps to detect the flaws in the venture and thus eases the way to earn profits by altering the net profit amount of the undertaken project. It is the duty of the manager to highlight the threats involved in the venture taking into attention that the sensitivity analysis is thoroughly followed and the threats involved in the undertaken project are detected on time. Concept of sensitivity analysis in relation to capital budgeting Thus from the above explanation, it is proved that the sensitivity analysis is a keen way to get an estimate of the positivity that the project will achieve in the upcoming years. The present financial condition, interest rates, and inflation rates are some of the deciding factors that were followed while detecting or budgeting the cash inflows and outflows as per Graham Smart (2012) which thought that sensitivity analysis was a process to be followed while performing the above two operations. When it comes to capital budgeting then the sensitivity analysis can be used in association with NVP and IRR which yields better results. In a case let the IRR be recorded as 10% and the cost recorded as 5%. In such matters, the IRR is seen to be greater than the cost of the capital. These types of ventures are very much beneficial for the company as the rates of return from the projects are high which will also attract the investors (Pianosi et. al, 2015). If the above case is vice-versa then the company will be bound to suffer a loss and thus the company is advised not to undertake such a venture. Scenario analysis Sensitivity analysis can also be used in a way to measure interest rates so as to reinvest the return in any other beneficial project for gaining capital. This kind of analysis also provides a way to put an estimate of the values of the project on the basis of major situations. All the alteration in the values is based on the current situation known as the scenario that follows the principle of analysis. Scenario Analysis has proven to be a method that can be relied upon so as to detect the threat in the undertaken project which can be minor or massive fully depending on the situation that prevails during the project undertaking. The records presented after the analysis can be a boon to the investors in knowing the risks which prevail on their part. A whole lot of ways are open for grabbing a plot of scenario analysis. From many possible ways of seeking this analysis the way of collective analysis is explaining the standard of monthly or daily returns on security and then computing the expected value of every portfolio that create profits having their standard deviation lower or above than the average rate of return. By using this type of analysis the estimator can have a vision of the guarantee about the changes in the value of the portfolio during a fixed span of time. Scenario analysis provides a clear cut way to measure the successfulness of the investment so as to depict the circumstances that prevail due to the alteration in the value of certain variables and portfolios. If the respected person is an investor then he can make use of the scenario analysis in such a way so as to get an idea of the financial position of the company while claiming credit purchase which is different from storing funds in the form of cash purchases. Apart from the investors the company too can use the scenario analysis to find out the probability of the successful outputs arising from the decisions finalized over a matter (James, 2010). For example, selecting one out of the two storefronts and facilities from the organizational functions can be undertaken. All these processes may include discussions about alternation in fees, fees comprised with utilities and any kind of positivity or insurance that may be grabbed from one end but not from the other. Concept of scenario analysis in relation to capital budgeting The method of scenario analysis is a detecting process to check the success ratio of a particular project. It can be seen upon as a scanning method as per the circumstances that prevail during the moment. Berk and Van Binsbergen said that this analysis is the perfect way of finding all the probable outputs about the successfulness of the undertaken project. It is even remarked that this process is crucial in detecting the flaws and risks that prevail in the undertaken project. By using this process it is easy for the management to detect any of the serious situations that arise during the project undertaking (Brigham Daves, 2012). For example, the Woolworths Limited during the expansion of their business always follows to conduct the scenario analysis so as to detect any prevailing risk. It is always important to follow the scenario analysis so that the flaws in the particular project can be detected. The company can also be in a beneficial state if it keeps an eye on the rate of the NVP and also on the IRR which is recorded during work so as to gain much more capital than expected. It is also very much necessary for the company to keep a track of both NVP and IRR not just during the time of project undertaking but at different times like inflation and also during the depression (James, 2010). Overall discussion proves that the scenario analysis proves to be a boon which helps the organizat6ion to take faster and accurate decisions. Break Even Analysis Break even analysis is a potent tool as it helps in answering various questions that pertain to the companys profitability relating to the product or the service. It helps in answering several questions like the minimum sales that are needed so that the company does not face any loss or the sales do not decline. Before venturing into a new project, it is important that to conduct a break even analysis as it leads to answering questions that are critical in nature such as the sensitivity of the profit of the business in relation to the increase or decrease in the sales (Guerard, 2013). The break even analysis gives a strong knowledge of the variable and the fixed cost that is associated with the business. It supports the manager to research and segregate the cost of the company into the fixed and variable cost. The feasibility of the project can be done with the aid of capital budgeting and break even helps in making a critical decision so that the venture can be profitable (Vollmer, 2014). The break even analysis will help to know how the business will shape up in the upcoming scenario and if the venture should be selected. The manager must know the break even so that proper decision making can be done and is projected with the help of the formula: BEQ FC / (P-VC), Where BEQ = Break-even quantity FC = fixed costs P = Average price per unit, and VC = Variable costs per unit. When it comes to the aspect of break even in capital budgeting. It is vital to know at what point the revenue will exceed the cost. A hypothetical example has been set below Fixed Costs Variable Costs Labor $2,000 Flour $0.20 Rent $2,000 Yeast $0.05 Cost of insurance $800 Water $0.02 Advertisement $500 Butter $4.00 Technical Fees $400 Pepper $1.00 Total $5,700 Total $5.27 Going by the example above, the variable cost of the burger stands at $5.27 or more which means that the cost coverage can be done easily. However, if the charge of the burger peaks $10 for the finished goods than $4.73 will be received as an addition to the fixed cost and thereby the restaurant will have profit. Hence, the break even concept can be used to know the business performance. Simulation It can be defined as a process that dwells on statistics and observes the probability distribution, random numbers. Such is determined in advance so that the result that is risky in nature can be known or traced. In this scenario, the manager puts to practice the elements of the cash flow in a model based on mathematics and replicate the method various times (Wang et. al, 2016). Hence, it is an effective mechanism that results in enhancement of the probability distribution of returns that are highlighted. The method of development of random numbers and using the probability distribution for the inflow of cash and outflow enables the managers to know the value for each variable (Berk et.al, 2015). When the submission of the values happens then substitution of the values happens into the model and provides the NPV. When the same mechanism is repeated then the probability distribution of NVPB can be generated in an easy manner. Simulation can be defined as a strong spreadsheet tool that helps the managers to know the risk and the complexity that is involved in the discounted cash flow analysis. The main advantage of the simulation appears in the case that the mechanism covers the shortfalls that are seen in sensitivity and scenario analysis by assessing the effect of all variable combinations. The utilization is mainly seen in the case of traditional capital budgeting because it considers the form of sampling of repeated random from the distribution of probability that is based on the cash flow to come to the different profile that is linked to the cash flow in the NPV of a project for a specific plan (Brealey et. al, 2011) Simulation provides solidity to the real time decision making by using the model that is linked to equations or any identity so that a better view of the functioning can be gathered. This method is used by the managers as a mathematical equation that finds the variables that are primary in nature that contains a vivid elucidation of the freedom that finds the important primary variables and contains the description of the freedom that appears between the variables and various time scenarios. This method is well directed to the major variables and links to the data of the past. This is a vital aspect when it relates to the process of decision making (Northington, 2011). This helps the managers to understand the concept of risk return trade off rather depending on specific estimation. Therefore, simulation helps the managers to come up with a real life scene and the same can be utilized to know the project feasibility. If a project has a probability of 98% success and IRR stands more than the capital it will appear that the project is strong and contains minute chances of failure. On the other hand, when it is involved in projects that are high yielding they are subjected to high risk and nothing appears without a stake. Therefore, the probability of the NPV cannot reach 100% as a project that earns the capital cost is riskier in nature (Parrino et. al, 2012). Hence, simulation can be used by the managers to trace the prejudice of the project developer. References Berk, J., DeMarzo, P. Stangeland, D 2015, Corporate Finance, Canadian Toronto: Pearson Canada. Brealey, R, Myers, S. Allen, F 2011, Principles of corporate finance, New York: McGraw-Hill/Irwin. Brigham, E. Daves, P 2012, Intermediate Financial Management , USA: Cengage Damodaran, A 2012, Investment Valuation, New York: John Wiley Sons. Graham, J Smart, S 2012, Introduction to corporate finance, Australia: South-Western Cengage Learning. Guerard, J. 2013,Introduction to financial forecasting in investment analysis, New York, NY: Springer. James P. 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