Negligence Of Social Contract And Its Breaching - 2467 Words

Introduction: BP oil spill which is also called the deep water horizon spill have become one of the largest oil spill in the history that began on 20 April 2014. There was discharged of 4.9 million barrels of oil i.e. in the floor of the gulf of Mexico which caused the death of 11 lives, 6104 birds and also the sea turtles as well as the 100 dolphin .likewise, it also affect several wildlife’s .This disaster have wiped nearly about $40 million from the market value of BP’s and also in may 2010, nearly about 130 lawsuits were being filed against BP. In this case, the main ethical issue is of the negligence of social contract and its breaching. A group of stakeholders consisting of board of management, shareholders and their directors were involved in this breaching which caused a disastrous loss in environment. BP poorly maintained their oil drilling and transporting equipment which contributed to the happening of this big disaster in the history (Marzolf, 2011).The another reason of Disaster is also due to the society have less information of Bp .If BP have done all the activities as they said or the information of the share price up is positive then the result will be positive. Because of the disaster the CEO has to go back as it’s lost its legitimacy. In BP case the CEO of BP have the self-interest in bonus. He wants to maximize his bonus and to maximize his bonus he needs to maximize the profit. He didn’t care for the welfare of the society. Background/history: BPShow MoreRelatedThe Importance Of Comprehensive Site Investigations And Getting The Right Report1351 Words   |  6 PagesEPA would sign off the completed decontamination. 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ETH 321 WEEK 4 Elements of a Contract Paper University of Phoenix Material: Elements of a Contract Scenario Read the Elements of a Contract Scenario. Write a 350- to 700-word paper answering the questions at the end of the scenario. your paper consistent with APA guidelines. ETH 321 WEEK 4 Business Entities, Laws, and RegulationsRead MoreCivil Liabilities Act 2002 (Nsw) Essay2120 Words   |  9 Pagesbreached and s 5R for contributory negligence. * Where both the parties seem to have been negligent, it is important to determine who is more at fault and for this purpose we need to use the ‘but for’ test as in the case of Cork v Kirby Maclean [1952] 2 ALL ER 402. * The application of s 5R of the Civil Liability Act 2002 (NSW) can be seen from the case Mak Woon King v Wong Chiu [2000] 2 HKLRD 295. Application Applying the three essentials of negligence to find out if Peter has been negligent:

Namcol online rgistration Free Essays

The purpose of this project Is to create and provide an online form of registration at Noncom – Mammalian College of Open Learning, an Institution which provides learning opportunities for adults and out-of-school youth; upgrading their grades for tertiary level. In this project, I will use a form for the learners to fill In and press the submit button and it will connect to the database and eventually feedback will be return to the user, be it the date, the point where the learner will need to go attend classes. This will all be possible and accurate if the learner submits all the information required from him or her. We will write a custom essay sample on Namcol online rgistration or any similar topic only for you Order Now Introduction For almost twenty years, Noncom has been enhancing the management capacity of learners around the country through traditional way of registration using filling in paper forms. I carefully selected this because I have reason to believe that some learners do not register, not because they are not willing to or do not have the money, but the other factors like lack of transport to reach to selected places where registration takes place. The aim Is to Improve In the provision of service. During my research, I thought such a system would be very effective and efficiency for both the institution and the learners. Gone are the days when one has to travel and fill in forms, standing in queues and waking up early to go secure your space, online registration can eliminate all these problems. And for the company, it will save time since opening and sorting out illegible or inaccurate forms can be very time consuming so Just by eliminating these processes off your duty you get less administrative work. How to cite Namcol online rgistration, Papers

Ethical and Legal Issues in Health Care free essay sample

Running Head: ETHICAL AND LEGAL ISSUES IN HEALTH CARE Ethical and Legal Issues in Health Care [Writer Name] [Institute Name] ? Ethical and Legal Issues in Health Care Pharmacists offer various intermediary and vital services in medicine. Throughout the twentieth century and into the twenty-first, their scope of practice, duties and responsibilities have shifted dramatically, as have the situations in which pharmacists practice (Pharmacists Defence Association, 2008, p. ). The laws pertaining to these shifting roles and increased responsibilities have failed to emerge in due time (Appelbe, 2002; Appelbe, 2009). Accordingly, they lag behind reality. For example, pharmacists provide care in case of emergencies but also suffer from lack of legal protection from malpractice in such situations, face ethical challenges relative to dispensing some forms of pharmaceuticals and providing consultations for patients (PDA, 2008, p. 2, 3). More importantly, perhaps, the rise of large-scale pharmacies has alternately shifted the role of pharmacists in the pharmaceutical sector from owner to employee (p. We will write a custom essay sample on Ethical and Legal Issues in Health Care or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 3). Even though this changed the insurance burdens for the pharmacists, it has not shielded them from civil suits (Appelbe, 2009). Rather, legal protections afforded physicians do not apply to pharmacists, in many cases (PDA, 2008, p. 2-4). This challenges pharmacists for numerous reasons especially since pharmacists find themselves in a legally marginal place while providing necessary care. Ethics, roles, and scope of practice understandably then exceed the legal recognition thereof and the protections that should be afforded pharmacists (p. 2-4). While pharmacists actively intervening within medical emergencies and providing care and/or pharmaceuticals to patients falls within the scope of duty given the ethics of the profession and their training, these interventions additionally place the pharmacists in a legally precarious place. As demonstrated by the rise in the pharmacists’ legal association, the rise in suits against pharmacists, ither employed by large stores or pharmacies and/or sole owners have illuminated the vulnerability of their intermediary role. After all, pharmacists are charged with care and dispensing medicines. They must know the differences between formulas including the emergent biologics, and â€Å"do no harm. † Given the alternatives in medical emergencies, one must wonder whether failure to act is conversely negligence, misconduct and/or malpractice, by extension. It would more likely reflect negligence. References Appelbe, F. R. (2002). Law and ethics and changing jobs. Pharmcist Defence Association. Retrieved from http://www. the-pda. org/advice_centre/category. html? ac_id=2. (2009). Legal test case affects employee pharmacist. Pharmcist Defence Association. Retrieved from http://www. the-pda. org/advice_centre/articletype. html? at_id=13ad_type=0 Pharmacist Defence Association. (2008 Fall). The launch of PDA. Insight Magazine. Retrieved From http://www. the-pda. org/pdf/insight/insight1. pdf

Modern Technology Essays - Economic Development, Development

Modern Technology In an era where human progress is soaring at a dizzying rate, society must adapt its technology to solve current world issues. In a world where the Internet, cell phones and notebook computers are becoming a necessity for everyday living, we often forget about those who still suffer attempting to meet their basic needs, including clean water, food and health care. It is time for the developed world to use their technology to help those who can not help themselves. By using these technologies there will be advances in medical services, a new economy based on the Internet, emerging information technologies and new methods for the farming and industrial sectors. More importantly, these technologies will provide the education and knowledge for these people to become prosperous nations that can fend for themselves and provide for their people. Transfers of technology from the developed world to the developing world will improve the standard of living, increase efficiency in production and become a base for economic growth, without this transfer these countries will fall further into poverty and economic ruin, with little hope for survival. For most people of the developed world, the developing world is not something they concern themselves with; they do not see it everyday and therefore it does not exist. This could not be farther from the truth. The developing world is in need of help but the developed world constantly turns a blind eye. Our current love affair with technology may provide the answer for underdeveloped nations problems. The standard of living is so low in these countries that our everyday conveniences are a struggle for the entire population to obtain. If the developed nations could meet these base needs, these countries may be able to overcome their current problems. The first issue that must be dealt with is the unsatisfactory health care and medical technology. If the developed world could send excess medical supplies along with the personnel to administer them, they might learn to take care of themselves. In time, the common diseases that kill thousands in these countries will be under control and people will start living longer, healthier lives. A second issue is the exchange of technology for agriculture and industry. As a result, new jobs will be created to provide income, while reducing child labor. As the people of these countries start to build income for themselves, the amount of crime will be reduced as people will be able to afford to meet their basic needs. As an example, instead of having to steal or beg for food or clothing, they would be able to purchase them; thus reducing crime and increase economic growth. The case study of China completed in class, showed that as people became educated and more career oriented, the size of families decreased thus reducing overpopulation. This occurs for two main reasons, people will not have time for a family and less children are required for the work force. With overpopulation and the rate of natural increase under control the standard of living in these countries will increase. With just a small jumpstart from the developing world, developing countries will experience a chain reaction that will increase their standard of living. This chain will start with improved medicine to increase life expectancy, followed by new jobs that will bring income and finally education that will reduce overpopulation and crime. All of these factors resulting from technological transfers will lead to an overall increase in living standard. In the corporate world of North America, it has never been easier to start a business or company. Using modern technology such and the Internet and a computer, an individual or group of individuals can become major players in today's ever increasing electronic economy. As the overall cost of doing business drops, it will make "the technology more rapidly available, at a decreased cost"(Freund, pg.2) and therefore level the economic playing field. As companies start cropping up, built around a new information based economy, there will be more and more demand for jobs. These jobs will give local workers a chance at making some money and providing a living for themselves and their families. With employment on the increase, people will start making decent wages, they will spend it locally, thus increasing the local economy and helping their own industry to grow. This economic growth will have multiple effects that include more health care and educational funding and allow the development of infrastructure. Once the countries have started to reach this level, they will be able to increase their initial technologies to

Frankenstein4 essays

Frankenstein4 essays Protagonist: The protagonist in the novel is Victor Frankenstein. He is the main character who contends with the conflict in the novel. His decision to create life provides a problem that he attempts to escape but eventually marks his death. Antagonist: The antagonist in the novel is also the protagonist, Victor Frankenstein. Victor may have directed all of his hate and blame towards the monster he created, but is worst enemy lay within himself and his refusal to accept responsibility for his actions. Conflict: The main conflict in the novel is based on the monster Victor Frankenstein created in his laboratory. He neglects his responsibility to the monster he created by ignoring its existence, and his cowardice leads to inner feelings of guilt and unhappiness that ultimately cause his life to unravel and the people he loves to perish. His refusal to be accountable for his action brings the misery and misfortune that constitute the foundation of the novel. Chronology: Robert Walton writes in his first letter to his sister Margaret Saville about his desire to explore the world. His second letter then tells about his preparations for a crew and more about how he desires to explore the unexplored. In this letter he also explains how he wishes he had a friend to share his life with. In his third letter, he tells how the voyage is underway and going well. His fourth letter tells how the ship became trapped between floating blocks of ice and, after being freed, the ship encounters and takes aboard a man who was stranded on floating ice. Walton tells how the man is in wretched condition and is very melancholy. He tells how he gradually befriends the man and, after talking for some time, the man agrees to tell Walton the story of his life and how he came to be where he is now. His name is told to be Victor Frankenstein. Walton, during the narration, takes notes in the form of a letter for Margaraet. Victor Frankenstein ...

Free Video Editing Programs for Journalists

Free Video Editing Programs for Journalists With more and more news outlets incorporating video onto their websites, learning how to shoot and edit digital video news reports is a must. But while a digital video can now be shot with something as simple and inexpensive as a cellphone, professional video editings software programs like Adobe Premiere Pro or Apples Final Cut can still be daunting for beginners, both in cost and complexity. The good news is that there are plenty of free alternatives. Some, like Windows Movie Maker, are probably already on your computer. Others can be downloaded from the web. And many of these free video editing programs are pretty easy to use. So if you want to add digital video news reports to your blog or website, here are some options that will allow you to do basic video editing quickly and cheaply. (The caveat here is that if you eventually want to produce professional-looking news videos, youre probably going to want to master Premiere Pro or Final Cut at some point. Those are the programs used by professional videographers at news websites, and are well worth learning.) Windows Movie Maker Windows Movie Maker is free, easy-to-use software that will let you do basic video editing, including the ability to add titles, music, and transitions. But beware: Many users say the program crashes frequently, so when youre editing a video save your work frequently. Otherwise, you may lose everything youve done and have to start again. YouTube Video Editor YouTube is the worlds most popular video upload site, so it makes sense that it offers a basic video editing program. But the emphasis here is on BASIC. You can trim your clips and add simple transitions and music, but thats about it. And you can only edit videos that youve already uploaded to YouTube. IMovie iMovie is Apples equivalent of Windows Movie Maker. It comes installed free on Macs. Users say its a good basic editing program, but if you dont have a Mac, youre out of luck. Wax Wax is free video editing software thats a bit more sophisticated than the other programs mentioned here. Its strength is in the array of special effects options offered. But its greater sophistication means a steeper learning curve. Some users say it can be tricky to learn. Lightworks This is a feature-rich editing program that comes in both free and paid versions, but people who have used it say even the free version offers lots of sophisticated features. Of course, as with any of the more versatile editing programs, Lightworks takes time to learn and may be intimidating for neophytes. WeVideo WeVideo is a cloud-based editing program that comes in both free and paid versions. Its both PC and Mac-compatible and offers users the ability to work on their videos anywhere or to share and collaborate on video editing projects.

Animal rights Assignment Example | Topics and Well Written Essays - 1000 words

Animal rights - Assignment Example Animals can talk as they talk to their like kind. Just because humans cannot understand them does not mean that an animal should not be able to defend themselves. This may be hard for someone believing animals have no rights to understand. It is important to consider that people who believe that animals have no rights are of a different mind frame then other who do. This can be further explained when discussing poachers. People who hunt an animal that is soon to be extinct obviously do not care about animal rights or the sustainability of humans. When an animal leaves the environment this creates a gap in the food chain. The gap in the food chain creates a problem for other animals. If an individual does not care about animal and human life why should they care about animal rights? It is important to consider the different types of individuals that are against animal rights. There whole outlook on life is different. It is likely that a disagreement with someone on animal’s rig hts is likely to cause a disagreement in other topics of conversation. Since this is likely it is important to bring facts when arguing a certain topic. Facts are important when discussing a topic such as animal rights. Animals Do Have Right Similar To the Rights of Humans There are many different factors to agree upon when discussing why animals have right. As mentioned in the paper by Tibor Machan, animals act in a way that humans do. Animals are able to love, show compassion, and protect. Since animals show feelings similar to humans, why should they deserve less? The answer to that is that they don’t deserve less. They have the right to the same rights as humans. Would this be different if animals were able to speak better and be understood by people? It may be human’s ignorance of animal speech that creates a communication boundary. It is possibly that a human own ignorance towards animals allows for the thought that humans are more superior. This is where I have the strongest argument. There are some people that are able to study animals and communicate with them. Being able to communicate with animals break the barrier and allows other to be shown that the animals have feelings. Animals are no less than a person. Animals are here to protect, provide food, love and obey. Since animals are owned by humans it is the humans right to take care of the animals. Taking care of the animals means sticking up for the rights of animals. Acting in humanly to animals should be punished just like any other wrong act. Animals are alive just like humans. Taking a life from animals for game reasons and testing should be punishable by law. Animals were put on this earth to enable human survival and not to be used in a game or testing. These acts are cruel and it takes a cruel person to perform such acts. It is not just the rights of animals that is important to focus on but the nature of what is right and wrong. As mentioned in the paper, parents teach their children to be kind to animals in some parts of the world and are honored in other parts for killing for fun. That said it is the parent responsibility to ensure that children are taught the correct morals and values that honor life. Being taught to respect animals can lead to the respect of other things in life. It is wrong to think that killing animals for pleasure is okay. This type of thinking is not okay and can lead to other wrong violent behavior. Killing is killing regardless if it is a human or animal. Since it

Brand Management Essay Example | Topics and Well Written Essays - 2000 words - 1

Brand Management - Essay Example The market shares of Toyota in Singapore are 27.8 percent and that of Honda are 15.68 percent (Ng 2010). Toyota Singapore has introduced a Festive Promotion Program as a new year delight for the customers of Toyota. Festive promotion is a component of online marketing strategy of Toyota Singapore. Through this program, company is offering an e-discount voucher on all Toyota accessories. These vouchers are available for free on the website of Toyota Singapore and through this voucher the customers of Toyota can save 5 percent on all Toyota accessories. This promotion of the company is available till 28 February 2011 (Borneomotors 2011). The consumers in Singapore consider after sales services very important. They like the new products however; they remain loyal to the brand names. Moreover, prices have to be very competitive for Singaporeans (SMEtookkit n.d.). As an after sales promotion strategy, company has introduced Borneo Motors-Mechelin & Yokohama Tyres Lucky Draw. Each winner of this draw in 2010 has won 4 days and 3 nights all expense paid, holiday with $4,000 package. Another lucky draw for the existing customers of Toyota is the Castrol Edge Football Fever Lucky Draw 2010 through which the winner gets 4 days 3 nights all expense paid holidays worth $8,000 (Borneomotors 2011). Another after-sales promotion is the Toyota Shield Infinity. The warranty gives the customers warranty coverage for 5 years. Company offers both the servicing and repair privileges to its customers through this after-sales promotion. To provide the Toyota Enthusiasts a causal and fun environment where they can gather, interact and discuss over their favourite Toyota cars, the company created a Toyota Club in Singapore in 2001. The club started its operations from 22 January 2001 and soon it drew the interest of all Toyota owners in Singapore (Streetdirectory n.d.). The club became a registered car club in 2004 managed by Car Enthusiasts’

Social Inequality Essay Example for Free

Social Inequality Essay Learning targets: †¢Functionalists have a consensus view of society. They believe that people in society work together for the common good of all, this is known as the organic analogy. †¢All societies are unequal. Inequality of whole groups in the social structure is known as stratification. †¢Functionalists believe stratification is good for society. †¢Functionalists say that the best people get the best jobs because they are more talented and work harder. Poor people are poor because they do not work hard enough for the best positions. Key questions (AO1) What is the functionalist view of society? (AO1) What causes inequality according to functionalists? (AO2) What are the strengths of the functionalist view? (AO2) What are the weaknesses of the functionalist view of inequality? Summary of Key Points What is the functionalist view of society? Many early writers and philosophers viewed society as being like an animal or human body. They shared the view that all the separate parts of the body worked together to create something whole. They claimed that everybody works together for the common good of us all, as do body parts for the organism. This shared view is known as consensus theory because it is based on social agreement. Durkheim argued strongly for the organic analogy because he said we share values and norms. He said that different people in different jobs equate in social terms to the differing organisms of the body. Society itself is more than the sum of the people who go to make up that society. The supporting evidence is that things which happen to society will affect you regardless of your actions or opinions (e.g. war). Society lives on when individuals within it die. Durkheim’s ideas became the basis of functionalism. Functionalists say that society is based on shared norms and values. They say that the job of the sociologist is to look at how parts of society work together for the good of the whole society. Social cohesion (sticking together like glue) is maintained through shared rituals and activities, for example state events such as Coronations and funerals, shared consciousness such as reading the same newspapers and watching the same TV programmes and major events such as sporting occasions which make people feel united with each other. How do functionalists explain inequality? The term social inequality describes a condition in which members of a society have different amounts of wealth, prestige, or power. Some degree of social inequality is found in every society. When a system of social inequality is based on a hierarchy of groups, sociologists refer to it as stratification: a structured ranking of entire groups of people that perpetuates unequal economic rewards and power in a society. Ascribed status is a social position assigned to a person without regard for that persons characteristics, for example, being a Queen is an ascribed status, as is being a female. By contrast, achieved status is a social position attained by a person largely through his or her own effort. This can be positive or negative so a person can be an ex-prisoner or a judge. These are achieved statuses. Functionalists claim that inequality and stratification is functional for society and a source of social order. Davis and Moore proposed this theory in 1945. It was heavily criticised, particularly in the 1970s for being an extremely conservative theory by Tumin, who remains their foremost critic. For Davis and Moore Stratification is a system of status positions and jobs. The key point of the theory is that Stratification is universal and necessary. This is argued because all society is stratified. They argue that society is therefore a functional necessity. The theory focuses on the following: †¢How do people get to their proper positions? †¢How do we motivate people to fill these positions? †¢Once in position, how do you get people to do what is required? Davis and Moore went on to claim that society needs to fill the most important and difficult jobs with the most talented and hardworking people. If people were all paid the same regardless of their work, they would take the easiest jobs and do as little training as possible. There would be no incentive to work hard and do difficult educational courses. Society ensures that the most pay and the best working conditions go to those who are prepared to put the time and effort into working hard for them. The high rewards act as motivation for the years of work and preparation required for the difficult and responsible careers that some people choose. There have been many critics of the viewpoint, for example Kendall et al. point out that the functionalist approach generally ignores questions of structural inequality because it does not consider the social factors such as racial discrimination, lack of job opportunities, and the inadequate funding of many schools that may contribute to the persistence of inequality in society. Nevertheless, this theoretical perspective is very powerful. It emphasises the view that the jobs of power and importance are given to those with the most talent. It is clear that this type of theory is very attractive to those who have positions of power and wealth in society. It suggests those who are poor and powerless lack effort, talent and determination. How has functionalism influenced politics? Many belief systems suggest that poor people brought their difficult situations upon themselves. This type of theory has a long history in Britain, for example the famous philosopher Herbert Spencer argued that poverty was good for society as it encouraged people to work in order to avoid being poor. He said that the poor themselves deserved to suffer poverty because of their lack of morality. Those living on benefits today are often seen as being lazy, and the term dole scrounger was frequently employed by the press to describe people dependent on benefits in the 1970s and 1980s. Even today, young single mothers are often demonised as becoming pregnant to gain housing, despite there being very little research evidence to support this claim. This type of popular thinking resulted in the election of Margaret Thatcher in 1979, and led to the subsequent dominance of the thinkers of the New Right. The political and philosophical perspective known as the New Right is associated with the politicians Margaret Thatcher in the UK, and Ronald Reagan in the USA. The principles of the New Right are based on the theoretical viewpoints that are very close to functionalism. The New Right believe that inequality is inevitable in society. They go further and argue that we should have economic freedom. We should buy and sell as we wish this is known as market liberalism. It assumes that all people are customers who are rational and make good choices. As a result, there is a philosophy of choice so that parents are encouraged to choose schools for their children or hospitals if they become ill. The subtext is that people also choose to be poor. In Britain, the New Right became associated with underclass theory, which is supported by writers such as Charles Murray and David Saunders. These writers both claim that in the UK, benefit systems mean that people make a rational choice to stay poor, because it is easier to stay at home on the dole than go to work. They claim that some people go on to develop a culture that is state dependent, against traditional values, criminal, irresponsible and destructive. They suggest that people are often lazy and selfish so they must be encouraged to work by making welfare payments low enough to make life uncomfortable. People who live in areas where few people have work will develop a culture that encourages laziness. People get used to relying on others if life is made easy for them and all their self will and self-reliance is lost. They must be encouraged to take control of their own lives and by punitive methods such as having their benefits cut, if necessary. Criticisms include the way that it ignores the way that some people have more access to wealth, status and power than others, so effectively it ignores social structure. It does not take inequalities of class, gender, ethnicity, age and ability into account. There are dual standards, rich people are expected to be rewarded for their work by the incentive of high pay, but poor people should be expected to work to avoid poverty. Businesses should have the freedom to sell what they like, but families should follow strict rules of behaviour. It ignores bad behaviour among the rich, poor people are controlled, but not the wealthy. In addition, it makes odd assumptions about people, for instance, that they are naturally selfish, and that they do things for rational rather than cultural reasons. From a sociological point of view one of the most damning criticisms is that there is very little research evidence to back up what is claimed by the New Right. What is trickle-down theory? Trickle-down theory is sometimes used in an insulting way to describe a theory that has been popular among politicians of the New Right and who have functionalist views of society. The basic belief is that by cutting taxes to the rich and to businesses, then the whole population will benefit as the rich people spend their money and boost the economy. This type of thinking formed the basis of economic policy in the USA under President Reagan and in the UK under Margaret Thatcher. There is support for this kind of thinking in the writing of the influential economist, Keynes who said that tax cuts for the rich promote investment. There are still regular and frequent calls by political parties to cut taxes in order that people can spend more of their money. The most recent and widely reported call for tax cuts came from David Cameron, the leader of the Conservative Party in May 2008. In the 1980s, taxes were cut in Britain in a way that benefitted the rich in the hopes that it would boost the economy. Many taxes were abolished, such as capital gains tax which applies only to the wealthier people in society. At the same time, some taxes that affected everyone and possibly the poor more than others increased. In 1981, Value Added Tax (VAT) rose from 8% to 15% to pay for the tax cuts to the rich. In 1991 it was raised again to 17.5% by the Conservative government of John Major government to pay for cuts in the poll tax. In practical terms, the very rich are often low tax payers in view of what they earn. The TUC suggests that tax avoidance by the super-rich costs the British taxpayer  £13bn a year. They point out that this is enough money to increase old-age pensions by 20 per cent. Tax planning loopholes mean that the super-rich put money into the names of their families or live abroad for large portions of the year to avoid tax. The government has policies which support the super-rich so capital gains tax at is set at 18% when the top rate of income tax is 40%. There is still debate as to the effectiveness of the tax cuts in supporting the economy. It is certain that the rate of inequality in British society has been growing so that a reduction in the growth of inequality is now seen as a government achievement! Trickle down theories are not supported by economic evidence but still hold considerable influence over public policy making. What is the Functionalist Perspective on class? Functionalists have a positive view about inequality, since it is seen to motivate the less well off to aspire to the income and status enjoyed by the rich and wealthy. Therefore, they applaud the existence of the class structure seeing it as promoting effort, motivation and success. Functionalists believe strongly in the existence of a meritocracy whereby there is equality of opportunity enabling the talented to rise up from any social class to occupy societys most important and demanding roles. Functionalists believe it is appropriate and right to highly reward those in the higher social classes since they believe they are there through merit. Rewarding those at the top only serves to motivate those at the bottom more, they argue. Inequality is therefore beneficial to society and the existence of a class structure becomes functional in providing that inequality. Functionalists like the competitive values that the class structure provides and genuinely believe society is open to social mobility thereby allowing the most talented to rise to the top of society. A fluid and flexible class structure rewards individual achievement by granting the glittering prize of income and status to those who work hard. Despite class inequalities of the class structure a meritocracy offers the opportunity for anyone to get to the top. The ideas of functionalism are probably best expressed through the culture of the USA where the American Dream is the widespread goal of almost every citizen. The argument that those at the bottom are held back by structural constraints such as poor housing, poor education and general poverty is dismissed my functionalists with the argument that they are simply not trying hard enough. The view that the lower classes are held back by their cultural values of laziness and fecklessness, rather than genuine structural disadvantages, is a functionalist theme adopted subsequently by the New Right. For example, the work of US New Right theorist Charles Murray portrays those at the bottom of society, whom he refers to as an underclass, as outside the cultural values of the rest of society. He sees them embracing an alternative subculture of deviant values centred around being workshy, living off welfare and having fatalistic attitudes, for example, taking life as it comes. Whilst influential, Murrays work has come in for sustained criticism for its refusal to recognise the significance of structural factors and his dogmatic obsession of scapegoating lone mother families for societys problems. In Britain, Murrays New Right contemporary, Peter Saunders shares a similar contemptuous view of those at the bottom of the class structure. However, adopting a view similar to postmodernism he sees society as divided less along lines of class and more in terms of consumption. He calls this consumption cleavage. He argues a process of social restratification has taken place, dividing those seeking to satisfy their consumption needs through private ownership of cars, housing, private education and health care, in contrast to those reliant upon social housing, public transport, state education and health care. Saunders argues that divisions of consumption and lifestyle cut across old class lines, with consumption now influencing and shaping identity and social attitudes to a far greater extent. However, Rosemary Crompton criticizes Saunders for claiming class is dead on the one hand; yet continuing to point to occupational class as a powerful influence on income, consumption and political attitudes on the other.

the civil War :: essays research papers

The civil war a war between the Northern states of our countryand the Southern states, started in April of 1861 and lasted until April of 1865, however the problems that started the war started amny years before that. The Northern part of the U.S became industrialized. That means built large factories and manufactured things like iron products and textiles or fabric. Northern states needed people to work in their factories and most of them came as immigrants from Europe. Nothern States were covered with forests, had very cold winters and rocky soil that was hard to farm so most farms there were small. In the North Many ppl lived in cities. The Southern states became agrarian. That means, that , beacuse the fertile soil in South and warm, mild climate there, people were able to grow grops on farms. Some farms people worked to do all teh jobs that took care of needs of people on the plantation. Most platations in teh South grew rice, indigo, sugarcae, tobacco, and cotton. There was conflict between the north and south because of slave labor. Both the north and the south wated the US government to spend money to imporve things like roads and build railroads in their states. Because the House of Rep. and the senate make the loaws of our country thast decide how maney from the government would be spent, it became very important whether the new states entering the union were slave states. Thats when he Missouri compromis came into effect. Southerners and notherners became more and mroe angry about slavery and how gov. maoney was being spent, ppl starting fighting int he states over these issues. Wehn Missouri wanted to join the union as a slave state, for example, the northern states insisted that a free state had to join at the same time. The state was maine and when the 2 states joined it was called the Missouri Compromise the Civil War Starts when a violent event took place t harper's Ferry, Virginia when a man named John Brown and his firneds took over a building full of guns that belonged to the US army. Jhohn Brown's plan was to give the rifles to slaes so they could start a revolution and win their freedom. Instead, the army surrounded the building where John Brown, 2 of his sons and 19 friends were and shot almost all of them.

Safeguarding Adults And Personalisation

This essay will focus on adult safeguarding and how law and policy applies to working with vulnerable adults, which in turn will recognise how this can protect or hinder their rights. In addition to this, it will also demonstrate my understanding of what the role and responsibilities of a social worker is in regards to safeguarding and personalisation. The adult safeguarding national policy agenda was set out in 2000 by the department of health called ‘No Secrets’; named such to outline that there can be no secrets or somewhere to hide when it comes to exposing the abuse of vulnerable adults.This guidance defined a vulnerable adult as ‘a person who is or may be in need of community care services by reason of mental or other disability, age or illness; and who is or may be unable to protect him or herself against significant harm or exploitation’. (Department of Health, 2013) However, safeguarding services have considerably developed since then and in the dra ft Care and Support Bill 2012, a new term, ‘adult at risk’ has now replaced ‘vulnerable adult’ as a more acceptable alternative and because the term ‘vulnerable adult’ may wrongly imply that some of the fault for the abuse lies with the adult abused.It was proposed by the Law Commission and it is now defined as: ‘anyone with social care needs who is or may be at risk of significant harm’. Although this is a much shorter definition it is still clear that no matter what your circumstances, anyone can be classed at risk and is entitled to be safeguarded and protected from abuse. (Department of Health, 2013) Many social workers feel frustrated by the fact that when dealing with adult abuse cases there is no statute that is equivalent to the Children Act 1989.However, there are several pieces of policy and legislation that social workers can draw upon to support their practice that will both empower and protect individuals who find them selves in vulnerable situations. (Pritchard, 2009) Legislation dating back from 1948 to the present day provides a range of duties and powers based on various definitions and criteria. In England and Wales there is not a statutory duty to investigate abuse, however, No Secrets clearly places a responsibility on social services as the key agency responsible for adult protection and this position is strengthened by the Human Rights Act 1998.(Wilson et al, 2008) The Human Rights Act didn’t come into force in the UK until October 2000 and it meant people could take cases regarding breaches of their human rights into a UK court. This would have provided a breakthrough to victims who thought that their perpetrators would always get away with abusing them. Although, without the help of a social worker encouraging them to seek help and support this would not be able to happen.  (Galpin&Bates, 2009)There are particular articles within the Act that are relevant to safeguarding adults such as; Article 2, everyone has a right to life; Article 3, the prohibition of torture, inhuman and degrading treatment and Article 5, everyone has the right to liberty and security. In addition to this, the right to respect a person’s home, private and family life under Article 8; investigating and responding to the risk of abuse will almost invariably involve this article; interventions must be lawful, justified and proportionate given the risk.  (Pritchard, 2009)The Mental Capacity Act 2005 provides a framework to support individual decision-making, allowing choice of appointing their own decision maker and to also promote decision-making in a person’s best interests should they lack capacity. The Act encourages forward planning, for example, people who have capacity but feel that they would lack capacity in the future they can nominate others to act for them under a Lasting Power of Attorney which would involve decisions about welfare, health and financial matt ers.Where decisions have to be made regarding serious medical treatment, long-term accommodation moves or an adult protection investigation, an Independent Mental Capacity Advocate (IMCA) may be appointed to support and represent the individual. (Wilson et al) The IMCA service started in 2007 when it provided a service for 5,266 people and has been providing a statutory service for five years. Although the IMCA service is a statutory service, it is provided by the voluntary sector and is a national service provided by 60 local providers which sets out to both empower and to safeguard people.It is accountable to local commissioners as well as local clients; it works with both the NHS and 152 local authorities and it is designed to support and represent people as well as challenge and change organisations and their practices. In 2009, IMCAs were given additional duties under the Deprivation of Liberty Safeguards (DOLS). Their focus was to safeguard some of the most vulnerable circumst ances that people can find themselves in.Therefore, where, for their own safety and in their best interests, people need to be accommodated under care and treatment regimes that have the effect of depriving them of their liberty, but where they lack capacity to consent to the regime. (Department of Health, 2013) Another act that is relevant to adult services is the NHS and Community Care Act 1990 which provides a framework for all assessments of vulnerable adults. It emphasises the importance of case monitoring and reviewing. (Pritchard, 2009) Prior to the act there had been criticism about the way in which community care services were organised.Therefore, when the Act was implemented, qualified social workers were given the task as care managers and many going into adult services for the first time. A key aspect of care management was that the assessment process should be based on an individual’s needs rather than the service they require which would enable user empowerment and choice; and in turn provide a personalised approach. (Parker&Bradley, 2010) Personalisation means starting with the person rather than the service and it reinforces the idea that the person should know best what their needs are and how they can be met.The social workers job working with adults at risk would be to ensure they had the right information and support to access the appropriate services. Personalisation is about giving people much more choice and control over their own lives and good social work practice is about putting the individual first. (SCIE, 2008) The personalisation agenda was outlined in three important documents. Firstly, Fair Access to Care Services (FACS) which called for local authorities to set eligibility criteria for providing services based on balancing resources against need.Secondly, Transforming Social Care which was introduced to develop a personalised approach to the delivery of adult social care through the use of direct payments and personal bu dgets. Finally, the document, Putting People First placed personalisation at the centre of social care policy, practice and performance. These policies were introduced to promote independent living and the funding for these initiatives took on two forms in the way of Direct Payments and Personal Budgets. (Trevithick, 2012) The legislation for direct payments is incorporated in the Community Care Act 1996.The Act gave local authorities the power to implement direct payments. However, it was not until 2000 that the service was extended to people over 65 which obviously led to them being more vulnerable and unable to access services. Direct payments is a way of enabling people to manage their own care and support services; it is seen as a right not a privilege. (Parker&Bradley, 2009) Although direct payments are seen as central to the government’s agenda for the modernisation and transformation of adult social care, it needs to be noted that there are concerns regarding risks an d possible reduction in rights for people who use direct payments.  (Galpin&Bates, 2009)The main concern is that people will use their direct payments to employ unregulated care workers or relatives or will not manage well which may leave them open to a greater risk of poor quality care or even abuse through neglect, exploitation, physical, etc. (CommunityCare, 2013) On the other hand, whom the service user employs is generally their choice and responsibility which would give them a sense of independence. However, regulation and training of personal assistants is not compulsory, therefore, evidence of qualifications or certificates is at the employer’s discretion.This in itself poses a risk to service users who take this route. (Galpin&Bates, 2009) Personal budgets or individual budgets refers to funding that is allocated by the local authority to enable service users to buy services in regards to their personal and social care needs which can include domestic, social leisu re and educational activities. Administration is viewed as less intrusive than direct payments, for example, receipts are not required for individual expenditure. It is the responsibility of a social worker to play a key role in delivering this personalised service.  (Parker&Bradley, 2010)In 2010, the UK Coalition Government confirmed its commitment to the principles which are embodied in the personalisation agenda and the target was for local councils to offer personal budgets to one million social care service users by 2013 as part of its social care provision. (Trevithick, 2012) However, a joint discussion document on the future of services for older people called ‘The Case for Tomorrow Facing the Beyond’ was produced in 2012. The document addressed that the opportunities of personal budgets and direct payments have not been a constant acceptance by all those who are entitled to them.Whilst people have usually been very positive about the impact of personal budgets on their lives, older adults report less satisfaction than other adult groups. More older people receive adult social care services than any other age groups but the amount that are actually receiving personal budgets or direct payments is small. In addition to this, the legal responsibilities of the personal budget holder are also presenting some challenges in the way of the holders acting as employers. When a service user directly employs someone to deliver a service, issues of employment law, quality and safeguarding still remain.There is a challenge for policy makers, local authorities and their partners to balance concerns about the impact of less well monitored systems on quality, reliability and safeguarding on one hand and the bureaucracy and cost of additional monitoring on the other. (Adass, 2013) As mentioned previously, FACS is a national eligibility framework which allocates social care resources to individuals, carers and communities based on four eligibility bands â €“ critical, substantial, moderate and low risk to independence.However, in 2010 it was said to have proved difficult to adhere to, especially in the economic climate with rising cost pressures and an increasing need to ration services. The BASW’s joint manager noted there was a need for a national framework and more should be left to the professional discretion of social workers, working with the personalisation agenda and a person-centred approach. However, this can only happen if councils are given enough resources to manage peoples care.  (CommunityCare, 2013)Putting People First; a shared vision and commitment to the transformation of adult social care was a key document from the government to outline the future of adult service provision. It sets out the government’s commitment to independent living for all adults. In addition to this, it seeks to develop a collaborative approach between local and central government, providers and regulators to facilitate t he development of a personalised system of adult social care. The first step in a personalised approach to social work practice is Person Centred Planning (PCP).PCP addresses issues of exclusion that can be overlooked in the assessment process because it focuses on the person’s capacities and not their impairments. The listening involved in PCP is good social work practice and can be used to understand a person’s choices and abilities. It also helps to ensure that the person is placed at the centre of the assessment and planning process. However, there is an issue of funding when it comes to PCP for all individuals with a learning disability and can rely heavily on the trust of the individuals informal or unpaid support network to make their aspirations and plans a reality.Although in my opinion I do think PCP is the way forward and should be used more frequently in social work practice. (Galpin&Bates, 2009) In conclusion to this essay and with the information gathered it can be noted that there are several policies and legislation that support the safeguarding of adults. Therefore, it seems unimaginable as to why vulnerable adults or adults at risk find themselves in a position of abuse or neglect. However, unfortunately due to the recent Winterbourne View scandal and others like it, abuse obviously still remains of individuals who are clearly too vulnerable to speak out.It does appear that although guidance and policies are in place to safeguard adults who may be at risk, it obviously doesn’t seem to be enough or it is simply that abusers are getting away with their crimes. The future of adult safeguarding must be improved and to do this, all agencies should work together in partnership and ensure the implementation of policies; procedures, etc. are in place. Outstanding social work practice is of the utmost importance. Safeguarding Adults and Personalisation This essay will focus on adult safeguarding and how law and policy applies to working with vulnerable adults, which in turn will recognise how this can protect or hinder their rights. In addition to this, it will also demonstrate my understanding of what the role and responsibilities of a social worker is in regards to safeguarding and personalisation. The adult safeguarding national policy agenda was set out in 2000 by the department of health called ‘No Secrets’; named such to outline that there can be no secrets or somewhere to hide when it comes to exposing the abuse of vulnerable adults.This guidance defined a vulnerable adult as ‘a person who is or may be in need of community care services by reason of mental or other disability, age or illness; and who is or may be unable to protect him or herself against significant harm or exploitation’. (Department of Health, 2013) However, safeguarding services have considerably developed since then and in the dra ft Care and Support Bill 2012, a new term, ‘adult at risk’ has now replaced ‘vulnerable adult’ as a more acceptable alternative and because the term ‘vulnerable adult’ may wrongly imply that some of the fault for the abuse lies with the adult abused.It was proposed by the Law Commission and it is now defined as: ‘anyone with social care needs who is or may be at risk of significant harm’. Although this is a much shorter definition it is still clear that no matter what your circumstances, anyone can be classed at risk and is entitled to be safeguarded and protected from abuse. (Department of Health, 2013) Many social workers feel frustrated by the fact that when dealing with adult abuse cases there is no statute that is equivalent to the Children Act 1989.However, there are several pieces of policy and legislation that social workers can draw upon to support their practice that will both empower and protect individuals who find them selves in vulnerable situations. (Pritchard, 2009) Legislation dating back from 1948 to the present day provides a range of duties and powers based on various definitions and criteria. In England and Wales there is not a statutory duty to investigate abuse, however, No Secrets clearly places a responsibility on social services as the key agency responsible for adult protection and this position is strengthened by the Human Rights Act 1998.  (Wilson et al, 2008)The Human Rights Act didn’t come into force in the UK until October 2000 and it meant people could take cases regarding breaches of their human rights into a UK court. This would have provided a breakthrough to victims who thought that their perpetrators would always get away with abusing them. Although, without the help of a social worker encouraging them to seek help and support this would not be able to happen.(Galpin&Bates, 2009)There are particular articles within the Act that are relevant to safeguarding adults such as; Article 2, everyone has a right to life; Article 3, the prohibition of torture, inhuman and degrading treatment and Article 5, everyone has the right to liberty and security. In addition to this, the right to respect a person’s home, private and family life under Article 8; investigating and responding to the risk of abuse will almost invariably involve this article; interventions must be lawful, justified and proportionate given the risk.(Pritchard, 2009)The Mental Capacity Act 2005 provides a framework to support individual decision-making, allowing choice of appointing their own decision maker and to also promote decision-making in a person’s best interests should they lack capacity. The Act encourages forward planning, for example, people who have capacity but feel that they would lack capacity in the future they can nominate others to act for them under a Lasting Power of Attorney which would involve decisions about welfare, health and financial matters.W here decisions have to be made regarding serious medical treatment, long-term accommodation moves or an adult protection investigation, an Independent Mental Capacity Advocate (IMCA) may be appointed to support and represent the individual. (Wilson et al) The IMCA service started in 2007 when it provided a service for 5,266 people and has been providing a statutory service for five years. Although the IMCA service is a statutory service, it is provided by the voluntary sector and is a national service provided by 60 local providers which sets out to both empower and to safeguard people.It is accountable to local commissioners as well as local clients; it works with both the NHS and 152 local authorities and it is designed to support and represent people as well as challenge and change organisations and their practices. In 2009, IMCAs were given additional duties under the Deprivation of Liberty Safeguards (DOLS). Their focus was to safeguard some of the most vulnerable circumstances that people can find themselves in.Therefore, where, for their own safety and in their best interests, people need to be accommodated under care and treatment regimes that have the effect of depriving them of their liberty, but where they lack capacity to consent to the regime. (Department of Health, 2013) Another act that is relevant to adult services is the NHS and Community Care Act 1990 which provides a framework for all assessments of vulnerable adults. It emphasises the importance of case monitoring and reviewing. (Pritchard, 2009) Prior to the act there had been criticism about the way in which community care services were organised.Therefore, when the Act was implemented, qualified social workers were given the task as care managers and many going into adult services for the first time. A key aspect of care management was that the assessment process should be based on an individual’s needs rather than the service they require which would enable user empowerment and c hoice; and in turn provide a personalised approach. (Parker&Bradley, 2010) Personalisation means starting with the person rather than the service and it reinforces the idea that the person should know best what their needs are and how they can be met.The social workers job working with adults at risk would be to ensure they had the right information and support to access the appropriate services. Personalisation is about giving people much more choice and control over their own lives and good social work practice is about putting the individual first. (SCIE, 2008) The personalisation agenda was outlined in three important documents. Firstly, Fair Access to Care Services (FACS) which called for local authorities to set eligibility criteria for providing services based on balancing resources against need.Secondly, Transforming Social Care which was introduced to develop a personalised approach to the delivery of adult social care through the use of direct payments and personal budgets . Finally, the document, Putting People First placed personalisation at the centre of social care policy, practice and performance. These policies were introduced to promote independent living and the funding for these initiatives took on two forms in the way of Direct Payments and Personal Budgets. (Trevithick, 2012) The legislation for direct payments is incorporated in the Community Care Act 1996.The Act gave local authorities the power to implement direct payments. However, it was not until 2000 that the service was extended to people over 65 which obviously led to them being more vulnerable and unable to access services. Direct payments is a way of enabling people to manage their own care and support services; it is seen as a right not a privilege. (Parker&Bradley, 2009) Although direct payments are seen as central to the government’s agenda for the modernisation and transformation of adult social care, it needs to be noted that there are concerns regarding risks and pos sible reduction in rights for people who use direct payments.(Galpin&Bates, 2009)The main concern is that people will use their direct payments to employ unregulated care workers or relatives or will not manage well which may leave them open to a greater risk of poor quality care or even abuse through neglect, exploitation, physical, etc. (CommunityCare, 2013) On the other hand, whom the service user employs is generally their choice and responsibility which would give them a sense of independence. However, regulation and training of personal assistants is not compulsory, therefore, evidence of qualifications or certificates is at the employer’s discretion.This in itself poses a risk to service users who take this route. (Galpin&Bates, 2009) Personal budgets or individual budgets refers to funding that is allocated by the local authority to enable service users to buy services in regards to their personal and social care needs which can include domestic, social leisure and ed ucational activities. Administration is viewed as less intrusive than direct payments, for example, receipts are not required for individual expenditure. It is the responsibility of a social worker to play a key role in delivering this personalised service.(Parker&Bradley, 2010)In 2010, the UK Coalition Government confirmed its commitment to the principles which are embodied in the personalisation agenda and the target was for local councils to offer personal budgets to one million social care service users by 2013 as part of its social care provision. (Trevithick, 2012) However, a joint discussion document on the future of services for older people called ‘The Case for Tomorrow Facing the Beyond’ was produced in 2012. The document addressed that the opportunities of personal budgets and direct payments have not been a constant acceptance by all those who are entitled to them.Whilst people have usually been very positive about the impact of personal budgets on their liv es, older adults report less satisfaction than other adult groups. More older people receive adult social care services than any other age groups but the amount that are actually receiving personal budgets or direct payments is small. In addition to this, the legal responsibilities of the personal budget holder are also presenting some challenges in the way of the holders acting as employers. When a service user directly employs someone to deliver a service, issues of employment law, quality and safeguarding still remain.There is a challenge for policy makers, local authorities and their partners to balance concerns about the impact of less well monitored systems on quality, reliability and safeguarding on one hand and the bureaucracy and cost of additional monitoring on the other. (Adass, 2013) As mentioned previously, FACS is a national eligibility framework which allocates social care resources to individuals, carers and communities based on four eligibility bands – critic al, substantial, moderate and low risk to independence.However, in 2010 it was said to have proved difficult to adhere to, especially in the economic climate with rising cost pressures and an increasing need to ration services. The BASW’s joint manager noted there was a need for a national framework and more should be left to the professional discretion of social workers, working with the personalisation agenda and a person-centred approach. However, this can only happen if councils are given enough resources to manage peoples care.(CommunityCare, 2013) Putting People First; a shared vision and commitment to the transformation of adult social care was a key document from the government to outline the future of adult service provision. It sets out the government’s commitment to independent living for all adults. In addition to this, it seeks to develop a collaborative approach between local and central government, providers and regulators to facilitate the development o f a personalised system of adult social care. The first step in a personalised approach to social work practice is Person Centred Planning (PCP).PCP addresses issues of exclusion that can be overlooked in the assessment process because it focuses on the person’s capacities and not their impairments. The listening involved in PCP is good social work practice and can be used to understand a person’s choices and abilities. It also helps to ensure that the person is placed at the centre of the assessment and planning process. However, there is an issue of funding when it comes to PCP for all individuals with a learning disability and can rely heavily on the trust of the individuals informal or unpaid support network to make their aspirations and plans a reality.Although in my opinion I do think PCP is the way forward and should be used more frequently in social work practice. (Galpin&Bates, 2009) In conclusion to this essay and with the information gathered it can be noted that there are several policies and legislation that support the safeguarding of adults. Therefore, it seems unimaginable as to why vulnerable adults or adults at risk find themselves in a position of abuse or neglect. However, unfortunately due to the recent Winterbourne View scandal and others like it, abuse obviously still remains of individuals who are clearly too vulnerable to speak out.It does appear that although guidance and policies are in place to safeguard adults who may be at risk, it obviously doesn’t seem to be enough or it is simply that abusers are getting away with their crimes. The future of adult safeguarding must be improved and to do this, all agencies should work together in partnership and ensure the implementation of policies; procedures, etc. are in place. Outstanding social work practice is of the utmost importance.

Defining Marketing Essay

Marketing is often misunderstood. Ask the average person how they would define marketing and a majority would reply with something along the lines of commercials, ads, brochures, and other items used to market a business. Marketing is complex. It is a process, a practice, and a philosophy. As a process, it moves goods and services from an idea all the way through to the customer. As a practice, it embodies the elements of product, price, place, and promotion. As a philosophy, it is the basis of how customers’ needs and satisfaction are met by the business’ product or service. According to Perreault, Cannon, and McCarthy (2011), â€Å"marketing is the performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client†. In 2007 the American Marketing Association (AMA) completed its periodic review of the definition of marketing. The new definition reflects marketing’s broader role in society as more of an activity, as opposed to a function, with a presence throughout the organization, not just a department. The â€Å"American Marketing Association Marketingpower† (2007) definition reads â€Å"marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large† (New Definition of Marketing). Importance of Marketing in Organizational Success Firms face many challenges and such challenges can affect the life span of the organization. Some of the most recognized and profitable businesses struggle to maintain their market share. Marketing is an essential component to ensure prosperity in an organization. Marketing strategies exist to encourage sales to obtain new and maintain current customers. Targeting specific populations is typical in marketing and the targeting  depends on the type of merchandise or service. For example, Coca-Cola soda beverage company is based in the United States and the global society is its target market. That market encompasses everyone. Alternately, Huggies diapers are specifically targeted for new parents and caregivers. Whether the marketing focus is on large or small groups, it is important to understand who the buyers are to create a successful marketing plan. If marketing focuses on customer needs and specific audiences, the product will sell itself. Another reason marketing is important for organizational success, is that marketing is a broad topic. It covers a wide variety of aspects from advertising, promotions, and sales to public relations. Marketing must not be confused with sales as is frequently done. Marketing involves putting products into their market, promoting the product, encouraging sales, and influencing consumer behaviors. Sales are actually the transaction that takes place when the purchase is made by the customer. Strategies in marketing have changed and are constantly changing. Because so many messages are in the face of consumers today it is increasingly difficult to get products and services noticed. That requires marketing professionals to be more creative. A marketing mindset will give companies the competitive edge required to succeed in their industry. Product-focused organizations are destined to fail. Customer-focused marketing plans are the best way to focus financial resources in a firm. Knowing and exceeding customer expectations will build the reputation that will lead repeat customers and greater success. Well-run marketing campaigns will lead to good profits and sustainability. Successes in Marketing Nike is a large, profitable company that has a reputation of success with marketing. Actually, Nike has sometimes been referred to as the â€Å"Goddess of Marketing† for its growth from humble beginnings to one of the most successful marketing stories in the world of business. Nike uses successful and famous sports figures to endorse their products. Consumers are willing to pay higher prices for items that they view to be superior in quality,  reliability, and style. Brand management is one of Nike’s greatest strengths. For example, basketball-great Michael Jordan’s success on the basketball court led to hundreds of millions of dollars’ worth of sales of Nike’s Air Jordan line of products. Tennis, golf, and soccer are other sports where the Nike brand has made a large impact on fashion, style, and sports equipment. McDonald’s is another company whose marketing success has made it the world’s largest food service retailer. It serves millions of customers around the world and has franchises in more than 100 countries. McDonald’s reaction to consumer trends and expectations is what has risen this empire to the top. The consistency of the restaurant’s product maintains its customer base and meeting social consumer needs by sharing nutritional information and providing healthy menu options continues to grow its customer base as well. Last but certainly not least, Apple is quite possibly the world’s best marketing company. Steve Chazin, former Apple marketing executive and consumer marketing expert currently maintains a blog and has published and eBook highlighting Apple’s five secrets of marketing to become the world’s most valuable company. He condensed the secrets from what he learned throughout his 10 years of employment with Apple. Chazin has discovered ways that a company can use consumers’ desire to share their passion for products and essentially sell the products for the organization. To highlight the five secrets from Marketing Apple: 5 Secrets of the World’s Best Marketing Machine (2007): â€Å"1. Don’t sell products. People buy what other people have. 2. Never be first to market. Make something good greater. 3. Empower early adopters. Help your customers help you. 4. Make your message memorable. 5. Go one step further. Surprise and delight your customers.† Apple’s company-wide understanding and adoption of its marketing strategy has allowed it to grow into the empire it is today. References American Marketing Association marketingpower. (2007). Retrieved from http://www.marketingpower.com/Community/ARC/Pages/Additional/Definition/default.aspx Chazin, S.M. (2007), Marketing Apple: 5 secrets of the world’s best marketing machine, Retreived from http://www.marketingapple.com/Marketing_Apple_eBook.pdf Perreault, W. D. Jr., Cannon, J. P., & McCarthy, E. J. (2011).Basic marketing: A marketing strategy planning approach (18th ed.). New York, NY: McGraw-Hill Irwin.

Honda Environmental Analysis Essays

Honda Environmental Analysis Essays Honda Environmental Analysis Paper Honda Environmental Analysis Paper The Company has grown to become the worlds largest motorcycle manufacturer and one of the leading automakers. With a lobar network of 466* subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products, ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide. 2. 0 : Environmental Analysis for Honda 2. : Mission Statement Definition : A mission statement is a formal short written statement of the purpose of the company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and tide decision-making. It provide the framework or context within which the company strategies are formulated. Mission statement often contain the following criteria : * Purpose and aim of the organization. * The organization primary stakeholders (Client, Stock holders and etc. * Responsibilities of the organization towards these stakeholders. * Product and Services offered, Honda Mission Statement Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. 2. 2 : Vision Statement A Vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It Concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria. Honda Vision Statement Focusing on satisfaction (Customers, associates and shareholders) with challenging spirit and flexibility, we are dedicated to supplying latest generation cars with advanced tech oenology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaining quality as core of all activities. . 3 : Goals After an organization has analyzed its external opportunities and threats as well as internal strength and weaknesses and has defined its mission and vision, they can now establish goals for further its mission. The purpose of setting such goals is to formalize statement about what organization hopes to achieve in the medium to long term period for example within the next three years. Honda Goals Hands primary goals are originality, innovation and efficiency, resulting in high quality products at affordable price, and environment friendly. 2. 4 : Strategies In order to achieve their mission and vision, Honda has developed several strategies in general which include of : 2. 4. 1 : Corporate Strategy Hands portfolio includes three businesses include Automobiles business, Motorcycles business and Power business. Even though stepping into Automobile industry rather late at 1963, Honda quickly leads the industry with characteristics like superior fuel economy, optimum safety, and driving pleasure. Hands sales and production in this industry prove successful steadily not just in U. S. But also in many regions worldwide. Meanwhile, tricycle business is the first business of Honda, from 1 963 with the event of the first overseas plant in Belgium, Honda has devoted in one basic rule which is build products close to the customer. Honda has operated successfully in 28 motorcycle plant in 21 countries, as well as Honda operations in the IS. S. , K, Italy, China, Germany, Thailand, and India. 2. 4. 2 : Business Strategy Research and Development is sharpening the business advantage of Honda, together with the fierce competition between Honda and competitors, and they all define the Business strategy of Honda. One of he proudest things about Honda is its R;D system. With the systematic way of approaching, focus on durability, reliability and basic performance to establish a creative and innovative technical foundation. With the wisely approach to the future, the Honda products do care about the economical, environmental, and social issues . This leads to a increase steady in American and Europe recently meanwhile the whole industry is going down by some external factors such as U. S. D. Depreciation, Oil price raising, political recession. Honda is keeping involving in the research and development that infinite people in the future through leading-edge technology and commitment to innovation that opens up new possibilities in mobility. 2. 3 : Operational Strategy Honda operates in the worldwide market with 134 production facilities in 28 countries and at 31 R;D facilities in 15 countries, about 167000 Honda employees and associates serve 23 million customers worldwide annually. Hands global operations are divided into 6 administrative regions responsible for operating. Hiring and engaging the people and philanthropic initiatives locally in the communities that Honda operates. Honda is pushing he in dependence of their local management and sales operations, at the same time with integrating and forward-looking plan for each region.

Analisis Bimbo

Grupo Bimbo: Growth and Social Responsibility The most important thing in a firm is its people, because investors give what they have, but people give what they are. — Lorenzo Servitje, Grupo Bimbo founding partner By 2008, Grupo Bimbo was the leading baking company in the Americas and one of the largest in the world. It had annual sales of over $7. 4 billion, more than 100 brands and more than 97,000 worldwide associates—as Bimbo liked to call its employees. It manufactured more than 5,000 SKUs (stock keeping units) from 83 plants located in Mexico, the United States, Central and South America, Europe and Asia. Bimbo distributed its products to more than 1 million sales outlets in 18 countries. Each of these points of sale was visited by more than 36,000 route salespersons. Its products ranged from sliced bread, buns, cookies, snack cakes, pastries, sweet baked goods, packaged food, tortillas, salted snacks, confectionary goods and goat milk sweet or â€Å"cajeta,† among other products. Bimbo was the largest Latin American-based food company and the second largest bread company in the world. For eight years in a row, Bimbo had been honored with the Socially Responsible Enterprise Award from CEMEFI, the Mexican Center for Philanthropy. Moreover, Grupo Bimbo was ranked in the 9th position of the Reputation Institute for best corporate reputation in the world. 1 The next Mexican ranked firms in the study were Grupo Modelo and Cemex in the 112th and 119th spot, respectively. Grupo Bimbo had set ambitious growth objectives beyond 2010. It wanted to become the world leader in the baking industry and one of the best food companies in the world. In order to achieve those objectives, it had embarked on an aggressive program of acquisitions in overseas markets, starting with the United States across the border, and going all the way to China. Even as we pursue an ambitious growth agenda, we cannot forget our core values and who we are as a company,† stated Don Lorenzo Servitje, the now retired 90 year old founder of the company. As Figure 1 shows, Bimbo captured its core values along the seven attributes of passion, profitability, effectiveness, team work, trust, quality, with the â€Å"person† coming at the ce nter. Under its second CEO, Roberto Servitje (now chairman of the board) and its current CEO, Daniel Servitje, the company had grown spectacularly and gained an international footprint. See Exhibit 1 for its revenue growth. â€Å"Yes, indeed we have grown ur business, not at the cost of our responsibility to society, but because of our investments in it. Going forward, however, we are a far more complex company than the one founded and 1to ensure that our values and strategy are in alignment,† asserted Daniel Servitje. Figure 1 Source: Grupo Bimbo. (In the figure above, the expression â€Å"efforts and illusions† under â€Å"profitability† is best interpreted as â€Å"efforts and aspirations. †) Mexico By 2008 Mexico was the second most populated country in Latin America (behind Brazil) with 105. 7 million inhabitants, 76% of them living in urban areas. In 2007 Mexico’s Gross Domestic Product (GDP) was $893. 4 billion –-the second largest in Latin America behind Brazil’s GDP of $1,286. 7 billion but ahead of Argentina’s $262. 3 billion, Venezuela’s $228. 1 billion and Colombia’s 2 Instituto Nacional de Estadistica, Geografia e Informatica, INEGI, www. inegi. gob, last viewed August 11, 2008. 2 Grupo Bimbo: Growth and Social Responsibility 509-025 $172 billion. Mexico was the 14th largest economy in the World. 3 Mexico’s GDP per head in 2007 was $8,219. However, Mexico was a country of contrasts: the lowest 20% of the population accounted for only 3. % of total income and the Gini coefficient was 0. 508. 4 Forty percent of Mexico’s population was considered poor, and 18% lived in extreme poverty. 5 Due to deficiencies in the public education system, the unskilled and low skilled labor pool was large and around 40% to 60% of the workforce worked in the informal sector. Mexico was ruled for 71 years by one single party, the Partido Revolucionario Insitucional, or PRI. The PRI led Mexico through a stabilizing development from 1958 to 1971 where the country industrialized and GDP grew at annual rates of 6%. From the 1970’s to the end of the 1980’s the PRI policies became very nationalistic and interventionist. This period was characterized by high inflation rates and frequent financial crises, where GDP plummeted, real incomes dropped, with high external debt and soaring interest rates. During this period, Mexico’s economy was heavily dependent on oil exports. In the 1990’s the PRI embraced free market and liberalization policies that included privatization of hundreds of state-owned firms, trade liberalization that culminated in the North American Free Trade Agreement, NAFTA, in 1994, and deregulation of various industries. After NAFTA, Mexico’s economy diversified and changed from being dependent on oil exports to manufactured goods exported mainly to the United States. After the Tequila crisis that started in 1994—where GDP plummeted 6. 2% in real terms and inflation rose above 52%—the PRI was historically defeated in the year 2000, and since then two presidents from the Partido Accion Nacional (PAN) had been in power: President Fox from year 2000 to 2006 and Felipe Calderon—who by 2008 was in his second year of presidency. Despite high hopes for President Fox’s administration, his political effectiveness was severely hindered by a divided congress, and economic reforms that were needed to improve the competitiveness of the country, such as fiscal and energy reforms, were not able to pass through Congress. Felipe Calderon, at his second year of term, faced similar obstacles. He proved to be a better negotiator than President Fox. His administration had been able to pass pension reform and a mild fiscal reform. However, one of the most important reforms needed for boosting Mexico’s competitiveness and growth—energy reform—had not been able to pass. High energy costs—along with high labor costs—were limiting Mexico’s ability to compete with other exporting countries such as China. Strengthening of fiscal and monetary policies since the end of the last century had translated into macroeconomic stability but growth was not catching up with the country’s needs. Average annual growth rates since year 2000 had been 3%, insufficient to alleviate poverty and reduce inequality. 6 Constraints for growth were high-cost labor and energy inputs, a weak non-oil tax base, continued dependence on US markets for exports, weak skill base and a shallow credit market. Calderon was struggling to pass the energy reform but it was hard to boost growth given high input costs and Mexico’s dependence on the slowing US economy. 3 World development indicators database, World Bank, July 2008, www. worldbank. org last viewed August 12, 2008. 4 Source: World development indicators, www. worldbank. org, last viewed 8/13/2008 and Mexico Country Profile, Economist Intelligence Unit. A high Gini coefficient indicates a high level of income inequality, 0 corresponds to perfect equality and 1 to perfect inequality with one person having all the income. Worldwide Gini coefficients range from 0. 49 in Japan to 0. 707 in Namibia (www. wikipidia. org last viewed 8/13/2008). 5 Mexico Country Brief, World Bank, www. worldbank. org, last viewed August 13, 2008. 6 Source: Banco de Mexico, www. banxico. gob, last viewed August 13, 2008. 3 509-025 Grupo Bimbo: Growth and Social Responsibility Grupo Bimbo: History The Servitje family started doing business in the baki ng industry early in the 20th century. When Lorenzo Servitje was 18 years old, his father—who had a well-known bakery called El Molino—died from a stroke. Lorenzo had to leave behind his accounting career in order to attend to his father’s bakery. On taking over, Lorenzo wanted to make the bakery something bigger and more ambitious. He wished to start a bread production and distribution business. On December 2, 1945, Bimbo was founded. It had five founding shareholders, all family members: Lorenzo Servitje and his younger brother Roberto Servitje among them. The logo, the Bimbo bear, was drawn by the wife of one of the founders. Bimbo started with only one brand, 38 workers, and 10 trucks to deliver the bread made in one plant in Mexico City. The first products were white boxed bread and toasted white bread. The production process was completely manual and rudimentary. Bimbo bread was quickly accepted by Mexico’s households because it was packed in transparent cellophane paper—instead of the traditional wax paper—which kept it fresh and also because its quality was easily seen. Another key to Bimbo’s success was its huge publicity campaign in newspapers, radio and the movies. Never before had so much been paid to publicize bread. 7 In the next few years, Bimbo quickly incorporated more products into its product line, such as whole wheat bread, sweet breads, cakes and sweet loafs. Its distribution network, however, only reached Mexico City and cities nearby. To reach other cities, Bimbo expanded its distribution system in a way similar to how newspapers were distributed at the time. By 1956, Bimbo had commissioned its first plant outside Mexico City. Having successfully built the company from scratch, in 1963, Don Lorenzo Servitje took on the role of CEO of Grupo Bimbo and his brother, Roberto Servitje, became CEO of Bimbo breads division. Over the next 15 years, the two brothers rapidly grew Bimbo’s sales to $425 million and 16,125 associates. At the beginning of the 1970’s, Bimbo opened the largest bread factory in Mexico and Latin America and one of the 10 largest factories in the world. In this factory, bread production was completely automatic. The factory produced one-and-half, big boxed bread, per second, which was completely unprecedented in Latin America. In 1979, Lorenzo Servitje handed over Grupo Bimbo’s presidency to his brother Roberto and he assumed the chairmanship of the board. In 1980, Bimbo went public with 15% of its stock in the Mexican stock exchange. The company was then valued at $12. 5 million dollars. The successful IPO gave the company confidence to expand into the United States. Bimbo sent its first trucks with bread to the U. S. to explore the possibility of catering to a burgeoning population of Hispanic consumers just north of its border. Satisfied with the existence of demand for its products, in 1987 Bimbo started to distribute products in Houston and Los Angeles. By the end of the decade, Bimbo had expanded to Central and Latin America as well. In 1997, Daniel Servitje, Lorenzo’s son, at the age of 39 with an MBA from Stanford University, became CEO of the group and continued to lead Bimbo’s internationalization effort through important acquisitions. Roberto Servitje took on the chairman’s position and Lorenzo stepped down from all formal positions. Daniel Servitje continued with the growth strategy of his predecessors, and in the year 2000, Grupo Bimbo expanded to Europe by acquiring two plants –one in Austria and the other in the Czech Republic- and in 2001 it expanded into Brazil. See Exhibits 2 and 3 for the company’s historical financial performance, and regional indicators. By 2007, the company had a sales turnover of Ps 72,294 million (or $6. 65 billion) and a net 7 â€Å"Bimbo: A 60-year History of Believe and Create† Source: www. rupobimbo. com. mx/admin/content/uploaded/Historia% 20Grupo%20Bimbo. pdf. Last viewed: July 8th, 2008. 4 Grupo Bimbo: Growth and Social Responsibility 509-025 profit of Ps 3,914 million (or $360 million). 8 Of its total sales, 67% were in Mexico, 22% in the U. S, and 11% from twelve Latin American countries. While Roberto Servitje at age 80 served as the chairman of t he board, Lorenzo Servitje at age 90 was still active in its social responsibility affairs. Products and Brands Through the years, Bimbo grew in its bread production and also added many new products and brands. With nearly 5,000 items in its portfolio, and the nearly 100 new products being added every year, the company offered something for every taste and every occasion. Many of these additions came through acquisitions of different firms and brands. Its Bimbo bread division was undoubtedly the flagship of the company, accounting for nearly 50% of all its revenues. Of its main brands, Marinela produced all sweet breads, buns and cakes. Its star product was the â€Å"gansito† or â€Å"little duck,† which was a cake filled with marmalade and covered with chocolate. By 1975, one million â€Å"gansitos† were sold daily. Barcel started off by producing candies, but by 1977 it had begun to produce a wide range of salted snacks. Production of candies was transferred to a new firm called Ricolino. By 2007, Bimbo dominated the market in the packaged bread segment in Mexico. In the salty snack category, Barcel was second to its main competitor Sabritas, owned by PepsiCo. Other important brands were Tia Rosa, which produced specialty sweet breads and flour tortillas, Milpa Real, which produced corn tortillas and Lonchibon, which made ready-to-eat food and snacks. Most of Bimbo’s internationalizations efforts were carried out through local acquisitions. Bimbo looked to acquire firms in regions and segments that provided a platform for growth. It also looked for strong brands that were complementary to its existing portfolio of products and brands, and also provided opportunities that could enable Bimbo to scale up and achieve cost savings. Exhibit 4 provides a summary overview of its various brands, the associated product lines, and their country of operation. Sales and Distribution System Bimbo had one of the largest and most complex distribution networks in the country—second only to Coca-Cola. With time, Bimbo’s distribution system had become more sophisticated and larger but qualitatively, it was essentially the same as when Bimbo started 63 years ago—products were delivered fresh directly from Bimbo depots to the retail store, there were no intermediaries in between. Bimbo products were distributed in to three different channels: supermarkets, convenience stores and through what was called the detail channel to mom pop stores (MPs). The importance of the detail channel was diminishing as MPs found it harder every day to compete with expanding supermarket chains and convenience stores that offered other services such as ready-to-eat food. In the last 10 years, the supermarket chains had grown considerably and the traditional MP channel was losing share (see Exhibit 5). Convenience stores especially, were showing strong growth as they expanded into suburban and rural areas. Moreover, large chain retailers such as Wal-Mart and Chedraui were offering banking services to their customers, thus making it harder for MPs to compete. The total grocery retail market in Mexico was estimated at $125 billion in 2007. 9 8 Foreign exchange as of December 28, 2007 was 10. 8662. Source: Diario Oficial de la Federacion. www. dof. gob. mx. Last viewed July 3rd 2008. 9 â€Å"Retailing Mexico: Country Market Insight,† Euromonitor International, May 2008 and â€Å"Top 5 Retailers in Mexico,† Planet Retail, September 2008. 5 509-025 Grupo Bimbo: Growth and Social Responsibility All Bimbo products—from all brands and from all plants—were taken to depots from where they were distributed to all channels. In Mexico, around 40% of Bimbo’s total workforce consisted of route-sales associates. Its flagship brand, Bimbo bread, was distributed in large trucks serving metropolitan cities and towns. The rest of the brands were distributed in smaller trucks by independent sales forces. The distribution system was highly programmed. A handheld computer contained all the information on customers, their average orders, product assortments, and their detail route. That information was synchronized with Bimbo’s server at the end of each day. Mexico has nearly 1 million sales outlets, of which Bimbo reached nearly 750,000. Salesmen arrived at the depot around 6:30a. m. to load their trucks. Thanks to the handheld, they knew which products to load depending on the routes they were assigned that day. Trucks were randomly inspected to cross-check the information in the handheld with the actual physical stock in the truck. Salesmen started their routes around 7:00a. m. At each sales point, salesmen delivered products that they booked and took back products before their â€Å"shelf life† had expired. This practice was necessary to insure that consumers had access to fresh product in the market at all times. All sales information was entered into the handheld for control of daily sales. At the end of their route, salespeople returned to their appropriate depots, where stocks were checked and the recalled products were readied to be sent to an â€Å"expendio† or discount store. Salespeople had sales’ goals that they could attain through increasing sales in each store or increasing the number of clients in their â€Å"route. † Daily wages to salesmen consisted of a base salary plus commission, which was a percentage of their daily sales. Commission, on average, was more than double the base salary. On average, a Bimbo salesperson earned slightly more salary than the one usually offered by food industry for similar positions. The traditional or detail channel was the most important channel for Bimbo because it represented its largest source of sales. Bimbo supervisors were always trying to encourage their team to expand their sales points to include nontraditional outlets such as gas stations, beauty parlors, internet cafes, among others. A large fraction of low-income people, who lived in rural areas or small towns, depended on the traditional MPs to buy their groceries. 0 See Exhibit 6 for a view of three semi-urban outlets. MPs usually sold at higher prices than supermarkets but lower than convenience stores. Most MPs had a very close relationship with their clients who often relied on the credit given by the store owner for their purchases. Most of the time customers cleared their accounts by pay day. Such credit was usually not offered by convenience stores or supermarkets. In spite of its service levels, the traditional channel was slowly disappearing. It was becoming increasingly difficult for the small MPs to compete with convenience stores and supermarkets. Their stores were smaller, the product range more limited, and the layout and management of the stores less professional. MPs had to pay for most of their inventory in cash. They received almost no credit from suppliers—some distributors such as Coca Cola, Sabritas (PepsiCo. ), had only recently started to offer credit to MPs. Moreover, because their purchase volumes were relatively smaller, they received no quantity-discounts such as those offered to convenience stores and supermarkets. As a response to the needs of the MPs but also as a way of maintaining Bimbo’s most important channel, in 2004 Bimbo initiated a bold new program called â€Å"Pesito. † 10 From field visits, the case writers estimated their size to be about 250 to 500 square feet. The owners reported average daily sales of between $200 and $450, of which sodas, juice and water accounted for 50%, food-30%, and tobacco-20%. Larger stores also carried cleaning and some health and beauty products. Some carried beer. Margins varied widely by product, averaging about 20%. 6 Grupo Bimbo: Growth and Social Responsibility 09-025 Pesito During the course of their daily route selling, salesmen offered credit on purchases of Bimbo products. Store owners wanting the credit paid a flat fee of 2 pesos (20 cents) regardless of the size of the order placed. The sales person entered the credit information on to his handheld so the record of each credit could be uploaded into Bimbo’s central system once the sales person ended his daily route. At the next visit to the store—which could be anytime between two days to one week, the store owner had to pay the credit to the sales person. The sales person would then give the store owner a receipt, which was printed from the handheld and the transaction was closed. If the store owner was unable to repay the credit, for a payment of 2 pesos the credit could be rolled over, but no new transactions would be made. Many Bimbo clients recognized that â€Å"Pesito† was a way to increase their income, without having to invest in inventory, helping them to grow their business. Consequently the default rate was very low. Bimbo had different sales forces for different brands, thus there were separate Pesito programs for each brand. For example, a store could have outstanding credit with Bimbo, Marinela, Tia Rosa and Barcel. The store would appear in the Pesito accounts under four different identifiers. There were limits to the amount of credit that a sales person could give per client, in most cases the equivalent of one week’s order; and then there were overall limits per route as well. Through steady efforts by Grupo Bimbo’s route sales people, approximately 350,000 of the small store owners participated in the Pesito program and paid on time, and Bimbo’s goal was to further increase that in the coming years. Microfinance for Store Owners Don Lorenzo Servitje had, among many other of his social concerns, the idea of helping the poor through micro credits. Don Lorenzo was particularly interested in the MPs store owners because, through Bimbo, he had noticed how they lived day by day solely with the income from their store. They had no health or life insurance and Don Lorenzo noticed how many times MPs had to close due to sickness or death in the family. Store owners also had no access to the formal financial system so they had to rely on money lenders, especially to make capital improvements in the store. They seldom had resources to invest in their store to make it more productive or more attractive to customers for example by installing new equipment, refrigerators, meat cutters, or a PC to access the internet. Thus in 1994, Bimbo started an alliance with Fincomun, a microcredit institution with the goal of providing further financial services to its MP clients. The loan process with Fincomun was simple. A Bimbo salesperson could recommend a client to Fincomun. Bimbo salespeople knew their clients quite well, their business model, their cash flow, and their credit reputation. If the client accepted the offered credit, Fincomun agents visited the store and gave them a check that could be cashed at a bank. If the Bimbo sales person assisted in the follow-on collection, they were paid a small fee for the effort. Only a very small proportion of Bimbo’s clients, however, were Fincomun customers (less than 5%). By June 2008, Fincomun also offered Life and Hospitalization insurance and had 400 clients in the pilot stage of the insurance program. History of Bimbo’s Corporate Social Responsibility From its very beginnings, Bimbo prided itself on its commitment to social causes and Mexico’s development. In 1954, not even 10 years after its founding, Bimbo opened a school for workers’ 7 509-025 Grupo Bimbo: Growth and Social Responsibility children. Since then, a percentage of Bimbo’s pre-tax profits were earmarked for social and educational causes. â€Å"I wanted to dedicate myself to something more than just making cakes and bread. I aspired to serve others,† Don Lorenzo was reputed to have said in a newspaper interview. 11 Even in hard times, Bimbo had avoided firing people and reducing the CSR budget. Roberto Servitje used to say, â€Å"Entrepreneurs are meant to create and grow, not to destroy. Over time, Bimbo’s portfolio of CSR programs had grown both in size and in sophistication. At the beginning, the programs were more geared internally, toward Bimbo’s associates. Over time, they expanded externally as well. Bimbo’s CSR programs were divided into a matrix (for a detailed description of programs see Exhibit 7). Daniel Servitje asser ted, â€Å"Our CSR programs are divided into six categories that overlap with each other. We have internal and external programs, and then we have economic, social and environmental programs. When Bimbo was founded, CSR was neither structured nor formal. It was something that we did because we believed in it; because the values of social awareness were embedded in all of us since we were children. † Martha Eugenia Hernandez, head of institutional relations and CSR and who had been at Bimbo since 1981, recalled â€Å"Don Lorenzo used to say, ‘Your left hand should never know what your right hand is giving. ’ And that was the philosophy behind CSR at that time; it was low key. † Roberto Perez Gomez, head of labor relations and a 20-year-old veteran of the company added, â€Å"With Don Lorenzo, Bimbo was a small and privately held firm; contact with associates was very personal. Even though Bimbo has grown rapidly and is now a public company, the social responsibility philosophy is still the same. Contact with associates is still personal. Daniel Servitje visits each plant every year and has annual meetings with associates of different areas. † The company’s CSR budget was determined as a percentage of its profits. This percentage was decided by a CSR committee comprised of five members of the board. The committee also decided which programs to support and to what amount. The profit percentage varied from year to year, and was determined independently for each country. Bimbo’s CSR programs were divided into four areas of commitment: Employees or Associates, Health, Environment, and the Community. Associates Since the beginning, one of our greatest concerns was our relationship with associates. We wanted people to work happily, we wanted them to identify with the company and we wanted them to be respected, having a non instrumental view of people; we wanted relations with personnel to be harmonious and cordial. With the years, the view of a highly productive firm that could also be a profoundly humane company consolidated. Profit sharing with our associates was higher than that required by law and many of our associates purchased shares with their monthly savings. 12 (Don Lorenzo Servitje13) 11 â€Å"Lorenzo Servitje: Sonar y Realizar,† Reforma, Club section, May 16, 2008. 12 Legal profit sharing in Mexico was 10%. Profit sharing in Bimbo was linked to productivity and could go from 11% to 13. 5% of profits depending on the results of the company. Source: Company information. 13 â€Å"Bimbo: A 60-Year History of Believe and Create. † Source: www. grupobimbo. com. mx/admin/content/uploaded/ Historia%20Grupo%20Bimbo. pdf. Last viewed: July 8th, 2008. 8 Grupo Bimbo: Growth and Social Responsibility 509-025 In 2005, Bimbo hired a Canadian company to analyze Bimbo’s competitive advantages. They concluded, â€Å"We have analyzed their technology. They have the best in the world. They are leaders in the markets where they are present and have a great distribution network. However, what strikes us the most is that people are committed far beyond what is normally seen in other companies. People identify with the company. We see all workers, at all levels, seeking to give the best in them. That is what truly makes them special. 14 Bimbo was rated one of Mexico’s best places to work during the last eight years. In September 2008, Grupo Bimbo as a whole had more than 97,000 associates, of which around 60,000 worked in the baking division in Mexico. Around 25% of them were international associates and 13% were women. Right from the beginning, Bimbo’s top management did not merely perceive t heir associates as a labor resource, but rather as people who were partners in Bimbo’s mission to create value. They were treated with care, and provided opportunities to grow and learn and advance their quality of life. Grow and innovate was the motto driving Bimbo’s relationship with its associates. Javier Millan, head of Human Relations, put it simply: â€Å"Our competitive advantage lies within our values, outstanding among which is the person. Viewing a person as an individual is the small difference that makes all the difference. Once they are treated that way people get involved, they become interested in the company’s objectives. † Bimbo’s programs for its associates were divided into two areas of support: economic or development. Within economic benefits, Bimbo had health assistance, support for home improvement, and help with wills and deeds. It strongly encouraged long-term retirement savings among its associates. Roberto Servitje said: â€Å"What you truly gain is what you save and invest. † Under personal development, Bimbo offered its associates various courses that covered much more than just training for the workplace. Many courses addressed personal development opportunities such as, improving communication skills, raising healthy families, and so on. There were also educational offerings that enabled associates to complete a high school program, online and on-site English proficiency courses, and a mandatory course on how businesses work and contribute to the economy (to see a description of Bimbo’s programs for its associates, see Exhibit 8). Roberto Servitje said, â€Å"The firm is what its people are, and the people are what their leaders are. † From among the many benefits provided to associates, the health and education offerings were highly valued. Mexico’s public health system was known to be inefficient. It often took long hours to be seen by a doctor and receive treatment, and many visits to the doctor before one could see a specialist. Moreover, few people had access to preventive medicine. Bimbo tried to bridge the gap by providing free complete medical exams to all associates over 40, once a year preventive medical exams for cardiovascular illnesses at Bimbo facilities and follow-up checkups for those identified as needing further monitoring and care. All Bimbo associates were covered by the Mexican government’s health plan, to which Bimbo made a contribution, as did the associates through payroll deduction. In order to enable its associates circumvent the poor system of public care, Bimbo made available its facilities for the government to operate its clinics. Because of their location most of these operated as exclusive clinics for Bimbo employees. Moreover because these clinics were on Bimbo premises, the company was able to offer better infrastructure than what would normally be available to such clinics. 14 â€Å"In Grupo Bimbo, People Make the Difference,† presentation given by Javier Millan, head of Human Relations, 2007. 9 509-025 Grupo Bimbo: Growth and Social Responsibility Health and Nutrition Within Organization for Economic Cooperation and Development countries (OECD), Mexico had the dubious reputation of being second in obesity rankings after the United States. 15 Recent studies16 showed that obesity in Mexico within the total population had increased during the last 60 years, but that this growth had accelerated at an alarming pace in the last 20 years. Obesity growth rates accelerated 10% to 20% in children, 30% to 40% in adolescents, and 60% to 70% in adults. The increase in obesity was most worrying in children (see Exhibit 9). The same study linked the reasons for the increase in childhood obesity to changes in eating habits, to diets high in calories, refined carbohydrates and sodas, and decrease in consumption of fruits and vegetables. This same study stated that the increase in obesity was also related to a decrease in physical activity. In Mexico, the obesity risk for children 9 to 16 years old increased 16% for each hour that they watched TV or played videogames. On average, Mexican children watched TV or played videogames 4. 1 to 6. 3 hours daily. 7 To counter the varied causes of obesity, in 2007 Bimbo launched a health program called Committed to Your Health. The program had many different components roughly divided into five areas: improving product healthiness, education in health and nutrition, promotion of physical activity, research, and being an exemplary firm in terms of health and nutrition (for details of the programs see Exhibit 10). The company published Nutrinotas, which reached 1 milli on print and online subscribers, and distributed sports and nutrition materials for 21,000 students. As part of its efforts to promote physical activity, the company staged a nationwide soccer tournament for children, Futbolito Bimbo Stars. In 2007, 46,000 children aged 9 to 12 participated in the program and the winning team travelled to Venezuela for the America’s Cup soccer tournament. In 2008, more than 50,000 children attended, winning a trip to Disney World. In its 2007 annual report, the company affirmed its commitment to health: The millions of people who enjoy our products each day count on them for quality, consistency and taste. The success lies in staying attuned to consumer tastes and trends. That means enhancing the nutritional value of our products and introducing new, healthy options. In this regard we follow the guidelines of the World Health Organization on reducing fat, salt and sugar content, and decreasing portion sizes†¦We are also innovating by adding functional ingredients to numerous products, for example, to lower cholesterol or enhance mineral absorption. We have created a range of products with less than 100 calories each; and just as importantly, we are investing in mass-market educational campaigns to encourage active, healthy lifestyles. In order to create the necessary research and development infrastructure, Grupo Bimbo had built four Innovation and Nutrition Institutes (‘Institutos de Investigacion y Nutricion de Grupo Bimbo’), two of them located in Mexico, one in the United States and one in South America. 15 World Health Organization, www. who. org last viewed July 8, 2008. 16 â€Å"Obesidad Infantil,† Instituto Nacional de Salud Publica, Nov. 2006. www. insp. mx/Portal/Centros/ciss/nls/boletines/ PME_14. pdf. Last viewed July 7, 2008. 17 â€Å"Obesidad Infantil,† Instituto Nacional de Salud Publica, Nov. 2006. www. insp. x/Portal/Centros/ciss/nls/boletines/ â€Å"PME_14. pdf. Last viewed July 7, 2008. 10 Grupo Bimbo: Growth and Social Responsibility 509-025 Environment Bimbo’s programs in terms of environment protection were divided into five areas: emission reduction, saving water, saving energy, solid waste management and CSR on environmental matters through an institution dedicated to forest conservation and reforestation called â€Å"Reforestamos Mexico. † In the words of Martha Eugenia Hernandez, â€Å"we want to be a Green Company, both inside and outside. † See Exhibit 11 for the impact of its natural resource conservation effort. In 1998, Mexico suffered extensive fires in its forests; Mexico lost 800,000 hectares of forests. The government invited companies to participate in recovering lost forests. Bimbo responded speedily. Its associates raised money, and each peso donated by them was matched by Bimbo. As a result of the company’s (and its associates’) efforts, 1 million trees were planted and 8 natural areas were targeted for improvement. After that impressive achievement Bimbo’s directors decided to extend their commitment to Mexico’s forests on a more permanent basis. As a result, in 2002 Bimbo created a non-profit organization dedicated to protecting the forests and trees of Mexico and named it â€Å"Reforestamos Mexico. † The administrative costs of Reforestamos Mexico was entirely borne by Bimbo, while the costs of the various projects were shared by Bimbo and other firms such as Wal-Mart, Banco Santander, Hewlett Packard, as well as individual donors. Twenty percent of Bimbo’s saving from energy conservation was used to fund Reforestamos Mexico. All Reforestamos’ employees, including the director, were independent. Its director, Ernesto Herrera, had worked for Bimbo prior to this appointment and was passionately committed to its mission. â€Å"I have worked for the environment for 10 years. For me, Reforestamos Mexico has been a dream-cometrue. I work in something that I passionately care about, and in one of the most committed companies in the world. I envision Reforestamos Mexico expanding into Latin America and working along with some of America’s most important environmental NGOs. † From the 27 people that constituted Reforestamos Mexico’s advisory board, only 3 worked for Bimbo. In addition to its Reforestamos Mexico activities, in August 2008, Grupo Bimbo announced that it had begun the use of degradable polyethylene packaging for its products, which made it the first Mexican company to use a 100% environment-friendly material. Ramon Rivera, Operations Director of Grupo Bimbo, commented, â€Å"the products packaged in degradable wrapping preserve their freshness and all of their characteristics exactly the same as those using traditional wrapping, and therefore consumers can have total confidence that the product will continue to be exactly the same. With the technology known as â€Å"d2w,† the degradation of the plastic began as soon as its useful life was over and the plastic discarded. The plastic was programmed to be consumed by bacteria and fungi in the soil, through an additive that reduced its molecular structure. This process of degradation would take a maximum period of 3-to-5 years, in comparison to the normal process that could take as lo ng as 100 to 400 years. 18 Community Bimbo was acutely aware of its close linkages to the community, and therefore had instituted various programs in support. It worked jointly with the National Development Bank for the small and micro enterprise (Nacional Financiera or NAFIN) to help its suppliers with working capital needs. Bimbo also supported many educational programs for both its suppliers and its store owners. For suppliers, Bimbo provided a course that helped them improve their business skills. The topics included cost reduction, quality improvement, and tracking operations online. For store owners, 18 Grupo Bimbo Incorporates Degradable Packaging 100% Environment Friendly, http://www. grupobimbo. com. mx/ salaprensa/index. php? fuseaction=home. oletinlangID=2bolID=212. 11 509-025 Grupo Bimbo: Growth and Social Responsibility Bimbo developed a course jointly with local universities called â€Å"the store-owner university† or â€Å"la Universidad del tendero. † This course covered basic management tools such as accounting, marketing, customer service, operations planning and control, and some basic computer skills among other things. By June 2008, Bimbo had delivered 38 classes to almost 1,000 store owners. In 2007 and 2008, through Televisa Foundation, an institution that sought the development of children and young people of Mexico, Grupo Bimbo istributed 550,000 copies of a Values Calendar and Teacher’s Support Guide, to almost all Mexican elementary schools. Each year the company invited 1 million children to visit its many plants and learn about the food industry. The company had long been a supporter of the Papalote Museo del Nino (children’s museum), providing the funding support for a school program for children from low-income communities to visit the museum. Over 4,500 children visited the museum every year as part of the program. In addition the company directly supported Crisol, an elementary school for low-income children. In addition, Grupo Bimbo supported the activities of the Mexican Foundation for Rural Development (â€Å"Fundacion Mexicana para el Desarrollo Rural†), an organization with more than 40 years of experience that promoted the development of the agricultural sector, and low-income rural families. The company also supported the Center for Integrated Development of the Countryside, A. C. , (â€Å"Centro para el Desarrollo Integral del Campo, A. C. †), which benefited one of the poorest populations of Mexico in the Nayar zone. In a similar vein, the company supported various development programs for indigenous communities in areas such as health, nutrition, and education, through workshops coordinated by Foundation Mazahua Region (â€Å"Patronato Pro Zona Mazahua†) benefiting more than 20,000 people from the Mazahua area of northwestern Mexico State. All-in-all, Bimbo supported many different projects and organizations (for a list of institutions supported by Bimbo, see Exhibit 12), leading Martha Eugenia Hernandez to conclude, â€Å"We have lots of requests for help and we would love to help everyone. We want to be Santa Claus but we just cannot! It is hard to say no, but it is hard to say yes to everything. † Going Forward There was no question in Daniel Servitje’s mind that the internationalization of Bimbo’s business was important for its growth strategy. In addition to increasing Bimbo’s presence in markets such as the United States or Latin America, he also wanted to penetrate markets where Bimbo was not present or where it was just entering, such as China. An important challenge was to improve international profitability, which was lagging behind Mexico’s operations. But the leadership position it had gained in the domestic market and indeed in many markets of Latin America was something that Daniel Servitje did not want to lose sight of. He recalled the passion and commitment with which his predecessors, his father Lorenzo Servitje, and then his uncle, Roberto Servitje, had led the company. They were able to blend the company’s strategy development and its mission and values. He wondered what he could do for an encore. Bimbo was undoubtedly one of the most respected companies in Mexico. How should he go about continuing the tradition in Mexico and rest of the markets it had entered? 2 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 1 Historical Bimbo Sales 800 700 600 500 400 300 200 100 0 1980 82 84 86 88 1990 92 94 96 98 2000 02 04 06 2008 Historical Bimbo Sales (1980 =100) Source: Company information. Exhibit 2 Consolidated Income Statement (million dollars) 1980 426 225 201 150 51 (4) 1 47 24 24 0. 4 23 12. 3% 9. 1% 1997 2,302 1,123 1,179 966 214 11 (14) 211 90 121 5 126 10. 3% 7. 3% 2000 3,279 1,435 1,844 1,506 338 (8) (13) 317 130 187 5 192 12. 0% 7. 5% 2006 5,851 2,724 3,127 2,588 539 (27) 12 524 194 330 3 333 15. 6% 8. % 2007 6,653 3,138 3,515 2,926 590 (22) (36) 537 177 366 6 360 14. 0% 8. 7% USD MM Net sales Cost of sales Gross profit Operating expenses Operating income Integral financial result Other income or expenses, net Income before income taxes Income tax expense Net income before participation in partner companies Equity in income of associated companies Net income ROE ROA Source: Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5th, 2008. 13 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 3 Financial Information by Region (million dollars) Mexico 1998 NET SALES OPERATING INCOME EBITDA 1,923 266 338 Mexico 2000 NET SALES OPERATING INCOME EBITDA 2,431 356 443 Mexico 2006 NET SALES OPERATING INCOME EBITDA 4,110 510 634 Mexico 2007 NET SALES OPERATING INCOME EBITDA 4,575 542 686 USA 364 11 23 USA 599 (9) 12 USA 1,399 21 52 USA 1,524 19 51 Latam 238 (32) (14) Latam 249 (9) 9 Latam 490 4 25 Latam 699 25 55 Total 2,524 245 348 Total 3,279 338 463 Total 5,851 539 714 Total 6,653 590 796 Source: Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5, 2008. 14 509-025 -15- Exhibit 4 Bimbo’s Products and Brands Division Bimbo Mexico Mexico United States Argentina, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela China Barcel Bimbo Bakeries USA Bimbo Latin America Bimbo Asia Country Mexico Brands Bimbo, Marinela, Tia Rosa, Wonder, Milpa Real, Suandy Lara, Lonchibon, Gaby, El Globo, among others Barcel, Ricolino, Coronado, La Corona, among others Oroweat, Mrs Baird’s, Bimbo, Entenmann’s*, Thomas*, Tia Rosa, Marinela, Francisco, Old Country, Boboli*, Weber’s*, among others Bimbo, Marinela, Plus Vita, Pullman, Ideal, Holsum, Trigoro, PyC, Bontrigo, Cena, Fuchs, among others. Bimbo Source: Grupo Bimbo 2007 Annual Report. www. grupobimbo. com, last viewed Sept. 9, 2008. * Under license. Example of products 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 5 Grocery Retailers Market Share 1999 Wal-Mart Safeway Soriana OXXO Comercial Mexicana Gigante Carrefour Chedraui Costco Casa Ley Comextra 7-Eleven HEB Comercial VH Almacenes Zaragoza Casa Chapa Controladora y administradora de pastelerias Grandes superficies de Mexico Others ( Mostly â€Å"Mom Pops†) Total 0. 8 1. 4 0. 5 0. 2 0. 2 0. 3 0. 2 0. 2 0. 1 0. 9 78. 8 100. 0 6. 6 1. 5 2 1 2 2. 4 0. 9 002 6. 1 3 1. 2 2. 6 3. 2 0. 9 2 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 78. 1 100. 0 2004 10. 2 4. 7 2. 6 3. 4 3 1 1. 9 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 70. 4 100. 0 2005 11. 5 4. 8 2. 9 3. 4 2. 6 1. 5 1. 8 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 69. 4 100. 0 2006 12. 7 5. 2 4 3. 5 2. 4 2. 1 1. 7 0. 8 0. 5 0. 3 0. 3 0. 2 0. 2 0. 1 66. 1 100. 0 2007 14. 6 5. 7 4. 5 3. 6 2. 4 2. 2 1. 8 1 0. 5 0 . 3 0. 3 0. 2 0. 2 0. 1 62. 7 100. 0 Source: Retailing Mexico, Country market insight, Euromonitor International, May 08 and Retail planet. 16 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 6 Views of Semi-Urban MPs Source: Casewriters. 17 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 7 Bimbo’s CSR Programs Source: Company information. 18 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 8 †¢ Bimbo’s Programs for its Associates †¢ Development benefits: ! Development courses for associates o Personal development course: 3 day course on meditation on oneself and life. The topics ranged from ones ideals, work as a means of personal development and community contribution, the company, health and spirituality, role in society, among others. Leadership course for bosses where the motto was: The firm is what its people are and the people are what its boss is. o What is a firm: one day course on the firm? Topics were savings, investment, work, CSR and profits. The firm was explored so that associates would learn the need to have profit and how in a successful firm everyone benefited. o Family integration workshops for associates and their spouses ! Education courses: o Open schooling to associates so that they could finish middle and high school. Online English proficiency courses and on-site English courses o Support for elementary to masters education for associates in Mexico and the United States o Intensive mandatory training course on driving for all sales personnel. o Many production associates wanted to become sales people because wages were higher. Bimbo offered training in sales and driving to production associates so that they could become sales people. o Bimbo offered, in some of its production facilities, summer camps for associates’ children during the summer vacations. ! Savings: Voluntary saving program where 1 to 2% of associates’ wages were kept for a long term etirement savings program. Economic assistance: ! Health: o Bimbo organized a health week where social security came to Bimbo to do preventive medicine tests on associates such as sugar level tests, cholester ol, blood pressure, among other things. o Associates that came out bad in any of the tests were given follow-up checks up throughout the year. o Bimbo had mandatory health checks for associates over 40. o In case of severe health problem, Bimbo helped by putting pressure into the social security system so that the associate got adequate treatment. Bimbo also got private labs to make specialized tests to associates at very low prices. ! Home improvement: o Bimbo organized a home improvement fair through the Mexican institute for home equipment, IMEVI, so that associates could get home improvement credits and better prices on home improvement materials. ! Wills and deeds: o Bimbo got associates special prices with public notaries so that they could regularize their land or home by making deeds as well as wills. Bimbo also helped associates by allowing them to pay for their will or deeds procedures in a monthly basis instead of in a lump sum. Nutritionist and doctor in Bimbo offices to help associates keeping a healthier diet. Company information. Source: 19 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 9 Obesity and Overweight Prevalence in Mexican Children 1999 5. 3% 5. 9% 1999 18. 6% 2006 9. 4% 8. 7% 2006 26. 0% % Change 77. 0% 47. 0% % Change 39. 7% Obesity in children 5 to 11 year olds Boys Girls Overweight and obesity in children 5 to 11 year olds Boys and girls Source: Compiled by casewriters using data from Encuesta Nacional de Salud y Nutricion 2006, Instituto Nacional para la Salud Publica, http://www. nsp. mx/ensanut/resultados_ensanut. pdf, last viewed July 7, 2008. Exhibit 10 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Health programs in Bimbo Social marketing campaign advocating 30 minutes of daily exercise through television commercials, billboards, radio announcements and packaging. Futbolito Bimbo Stars Tournament: Bimbo invited 46,000 children to a soccer tournament where they were given information on the need for physical activity and healthy diet. Mail and e-mail distribution of nutrinotas, an information brochure on health and nutrition, to more than 1 million people annually. Distribution of posters promoting good nutrition in 21,000 public and private schools. Distribution of the book â€Å"Living a Healthy Lifestyle† to all Bimbo’s associates throughout the world and to MPs owners. Elimination of transfats from its products. Reduced portion sizes and created products with only 100 calories Decreased fat, sugar and salt in 8% of all Bimbo’s product portfolio Fortified products with iron that was five times easier to absorb. The Public Health National Institute, in its Nutrition and Health 2006 census showed that children in Southern Mexico had an important iron deficiency. Bimbo developed products that appealed to children and met 20% of their daily iron needs Created a new bread that helped reduce cholesterol Participated in the Alliance of the Heart with Pfizer and Lala where 200,000 people were diagnosed and tested, at no cost, for cardiovascular diseases based on indicators such as cholesterol, glucose and blood pressure levels. Bimbo also made efforts to be an exemplary firm by giving talks to associates on health and nutrition, providing nutritionists for consults, having healthy menus in its cafeterias and recommendations to have physical activity in the workplace. Bimbo gave founding to many health organizations such as The Mexican Foundation for Health (FUNSALUD), The APAC foundation –providing rehabilitation for people with cerebral palsy, the Ronald McDonald Children’s Foundation –supporting programs that directly improve the health and well-being of children around the world, the Juvenile Diabetes Research Fund, the March of Dimes –health education for pregnant women and promotion of folic acid supplements in bread and the Mexican Red Cross. Company information. †¢ †¢ †¢ †¢ Source: 20 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 11 †¢ Impact of Natural Resource Conservation at Bimbo Since 2003, Bimbo decreased its vehicle fleet fuel by 3. 6 million litters and increased their average kilometer per liter by 15% by improved carburetion technology engines and fuel types Since year 2000, Bimbo decreased its energy index per ton produced by 13% and the thermal energy index per ton produced by 34%. Since year 2000 Bimbo had saved 194 million liters of water or 23% of its consumption by water treatment, installing water-treatment systems in plants, collecting water from rain, among other things. By 2008 Bimbo was recycling 85% of their solid wastes through recycling policies. †¢ †¢ †¢ Source: Company information. 21 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 12 Organizations and Institutions Supported by Bimbo, among others †¢ Educational Institutions: o Instituto Tecnologico de Estudios Superiores de Monterrey (ITESEM) o Escuela Bancaria y Comercial (EBC) o Universidad de Monterrey (UDEM) o Universidad Nacional Autonoma de Mexico (UNAM) o Instituto de Fomento e Investigacion Educativa (IFIE) Other foundations or institutions: o Televisa foundation o UNICEF o Junior League Mexico City o Papalote Children Museum: from the Support given to the museum, in 2007 4,500 children from public schools and 30,000 children from marginalized communities visited the museum o Fundacion Pro Empleo Productivo o Impulsa o Fundacion Mexicana para el Desarrollo Rural o Patronato Pro-zona Mazahua o Fundacion Tarahumara o Fundacion CIE o Amigos del Museo de Arte Popular: which benefits more than 8 million Mexican artisans Relief efforts: o After the 2007 floods, Bimbo made a campaign to help associates that were damaged by the flood. Over 33,000 associates donated and donations were matched by Bimbo. o In the United States, Bim bo contributed to food drives for the tornado victims in Texas and Kansas International foundations: o Project leaders of the 21st Century (Colombia) o National Park Foundation (United States) o Toys for tots (United States) o United Way (United States) o Junior Achievement (United States) o Institute of the Americas (United States) o Amigos de las Americas (United States) o Young Women Association (YWCA) †¢ †¢ †¢ Source: Social Responsibility Report 2007, Grupo Bimbo. 22