Consumer Protection Law of Uae

Consumer Protection Law of UAE In United Arab Emirates; a new federal consumer protection law has been promulgated. Under which a consumer protection committee formed to monitor the prices of consumer goods. The provisions of the laws advocate the principle of healthy competition and fighting monopoly and commercial fraudulence. The new legislation is complementing other laws concerning civil procedures, commercial fraudulence, commercial agencies, industry organization and trading in precious gems and metals.Disregarding any provisions of these laws could lead to violation of other related laws and this itself is enough to ensure strict enforcements. The law No: 6 of 2006 covers and tackles issues relating to the rights of consumer, responsibilities and liabilities and specifying penalties to be imposed on people for selling substandard goods. Under the law, a consumer protection higher committee will be constituted under the chairmanship of the Minister of Economy. The Committee wi ll also comprise of representative of the Consumer Protection Societies.The Committee formation and determination of its powers will be decided by a resolution of the cabinet. In case of a crisis or extraordinary circumstances in the market leading to price hikes, the minister will recommend procedures to curb such price increases and protect consumer’s interests. A new Consumer Protection Department (CPD) will also established at the Ministry of Economy (MOE) with a mandate to supervise the execution of the general policy for the protection of consumer in cooperation with the authorities.The Key responsibilities of CPD includes; 1. To supervise the implementation of policies designed to protect Consumers in cooperation with the concerned authorities in the State. 2. To coordinate with the concerned authorities in the State in order to cope with the unlawful commercial practices detrimental to the Consumer. 3. To coordinate with the concerned authorities to heighten Consumer awareness in the State about the commodities and Services, along with having the Consumers acquainted with their rights and the methods of the claims thereof. 4.To monitor Price movements and curb Price increases. 5. To achieve the principle of the honest competition and fight monopoly. 6. To receive complaints from Consumers and refer them to the concerned authorities or otherwise take the necessary action(s) prescribed in the Department’s mandate. A Complaint may be filled directly by the Consumer or through the consumer protection association, when such acts as the representative of the particular Consumer. 7. To publish and distribute the decision and recommendations designed to raise Consumer awareness.The key responsibilities of the (CPD) includes increasing the consumer’s awareness, monitor the movement of prices and control their increase, combat monopoly, to receive consumers complaints and adopt appropriate action. The law states that the Provider shall upon offering any commodity to consumers shall prominently display in the cover of the commodity or on the packet a label the particulars of the product including date of production,or packing, net weight, country of origin, expiry date, compnents and specifications of product etc.The Provider shall also prominently display the price of the product either in the label or at the place where the commodity is displayed. The consumer shall also have the right to receive a dated bill for the product with paticlulars such as price, type etc. The laws warrants the conformity of the product or the service provided to the consumer with the declared and approved standardized specifications. As per the law, the supplier is prohibited to display or promote counterfeited commodities that would inflict damages or losses on consumers.According to the new law, a consumer will be entitled to be indemnified against personal or financial damages in accordance with the general rules in force. Any agreement in contravention therewith be null and void. Concerning commercial and trade agencies, the law says that each commercial agent or distributor shall honour all guidance provided by the manufacturer or the trade agent of the commodity. The law also obliges the provider to provide for repair, maintain or provide service to the product after sales and to replace a product if a defect is found in the product within a specific time period.The law also confer legal capcity to CPD to represent the Consumers before the Courts and any other body prescribed by law. Without prejudicing the rights of the parties to go to the Court, the department can also proceed with any settlement to protect the consumers’ interest. According to law, those found guilty of violating the provision will face a fine of not les than Dhs. 1,000/-. In case a supplier or a distributor fails to unequivocally warn against the hazards associated with use of the commodity or the service causing damages penalty will be not less than Dhs. 0,000/-. The new law is a milestone in serving the interests of the consumers in protecting their basic rights against unfair trade practices, unscrupulous exploitation etc and their right to seek redressal against such practices. The law guarantee the consumers right to be heard and to be assured that consumers interests will receive due consideration at the appropriate forum. Environmental Law in the UAE The body of Environmental Law in the UAE comprises Federal Laws and Local Orders issued at municipal level within certain of the Emirates.The UAE also recognises certain international conventions and protocols. A list of the Laws is provided in the appendix to this article. In this article we deal broadly with the provisions of Federal Law No. (24) of 1999 for the Protection and Development of the Environment (â€Å"Law No. 24†) which forms the backbone of the Environmental Law within the UAE. We also deal more specifically with Environmental Impact A ssessments, the procedure relating thereto and the institutions charged with the responsibility for implementing the Law. Law No. 24The objectives and general principles of this Law are the following: Protection and conservation of the quality and natural balance of the environment. Control of all forms of pollution and avoidance of any immediate or long-term harmful effects resulting from planning for economic, agricultural or industrial development or other programs aimed at improving life standards. Co-ordination among the FEA, competent authorities and parties concerned with the protection of the environment and conservation and consolidation of environmental awareness and principles of pollution control.Development of natural resources and conservation of biological diversity in the UAE and exploitation of such resources with consideration of present and future generations. Protection of society, the health of human beings and other living creatures from any activities and acts which are environmentally harmful or impede authorised use of the environmental setting. Protection of the UAE environment from the harmful effects of activities undertaken outside the region of the UAE.Compliance with international and regional conventions ratified or approved by the UAE regarding environmental protection, control of pollution and conservation of natural resources. Law No. 24 and the Executive Order published pursuant to Cabinet Resolution No. (37) of 2001 deals comprehensively with all aspects of environmental protection relating to projects; the marine environment and pollution thereof; liability and compensation for environmental damage; rotection of drinking and underground water; air pollution; disposal of hazardous waste; disposal of medical waste, pesticides, agricultural fixers and fertilisers; nature reserves; the protection of wildlife, as well as the penalties imposed for contravention of any provisions of the aforesaid. The Environmental Impact Assessm ent (EIA) According to Law No. 24, any entity that wishes to undertake a project within the UAE which may have an impact upon the environment must apply to the Federal Environmental Agency (FEA) or the relevant competent local authority for a license.The FEA in co-ordination with the competent authority undertake the evaluation of the environmental impact of projects. The procedure is as follows: The applicant shall attach with his application a complete statement on the project or activity intended to be undertaken including all information required in accordance with the Executive Order and forms included therein. The FEA in coordination with the competent authority shall decide on the application within a period not exceeding one month from the date of submission of the application.The applicant shall be notified of the decision and reasons for rejection of his application if rejected. The period stated above may be extended by one month if the need arises. Owners of projects or establishments approved by license shall undertake the regular analysis of waste and monitor the properties of discharge and pollutants generated from such projects, including degradable materials and keep monitoring records as well as send reports with the results to the FEA and the competent authorities. Federal Environmental Agency (FEA) The Federal Environmental Agency was established pursuant to Federal Law No. 7) of 1993 for the Establishment of the Federal Environmental Agency.The Law sets out the objectives of the FEA being inter alia: To protect and develop the environment: To determine the necessary plans and policies to safeguard it from damaging activities, particularly  Ã‚   Appendix The Environmental Laws in the UAE and International Protocols Federal Laws Federal Law No. 7 of 1993 for the Establishment of the Federal Environmental Agency (as amended by Federal Law No. 30 of 2001). Federal Law No. 24 of 1999 for the Protection and Development of the Environment and i ts Executive Order. Federal Law No. 3 of 1999 concerning Exploitation, Conservation and Development of Living Aquatic Resources. Federal Law No. 1 of 2002 for the Regulation and Control of the Use of Radiation Sources and Against Their Hazards Federal Law No. 11 of 2002 for Regulating and Controlling the International Trade in Species of Wild Fauna & Flora. Abu Dhabi Local Environmental Laws Law No. 16 of 2005 pertaining to the Reorganisation of the Abu Dhabi Environment Agency. Law No. 21 of 2005 for Waste Management in the Emirate of Abu Dhabi. Law No. 28 of 2005 which is a Law Establishing the Abu Dhabi Authority for Culture & Heritage.The above local laws, reference to the federal laws and the protocols can be found on http://www. ead. ae/en Dubai Environmental Laws Local Order No. 61 of 1991, a local order issued by the Municipal Council still governs environmental law at a local level. Federal Law will prevail in the event of conflict and contradiction. Local Order No. 11 of 2 003 regarding Public Health and Safety of Society has replaced the specific provisions in Local Order 61 of 1991 relating to public health. Local Order No. 11 of 2003 supersedes Local Order No. 1 of 1991 in parts only (with the exception of specific provisions relating to public health and safety). We were informed by the Head of the Environment section in Dubai Municipality that a new Local Order will be issued soon. This local order will complement Local Order No. 11 of 2003 and replace Local Order 61 of 1991 in its entirety. The above local orders can be found on the below link: http://vgn. dm. gov. ae/DMEGOV/dm-legislation-localorder-a; and http://vgn. dm. gov. ae/DMEGOV/dm-legislation-order2004-a There were also amendments issued in 2004 to the Local Order No. 11 of 2003.This Local Order and its amendments can be found on Dubai Municipality ‘s website in Arabic. Please see the above links. The Municipality is currently finalizing the Executive Regulations for Local Order No. 11 of 2003 as well as a separate Local Order to be drafted for Occupational Health and Safety in Dubai . Local Order No. 7 for the year 2002 on Management of Waste Disposal Sites in the Emirate of Dubai. Local Order No. 8 of 2002 regarding Sewerage, Irrigation and Water Drainage in the Emirate of Dubai. The DM's technical guidelines and circulars can be found on the DM's website.Sharjah Environmental Laws Sharjah has issued Environmental guidelines pursuant to Law No. 24 of 1999 relating to specific industries, which are as follows; Environmental Guidelines for the Paint and Varnishes Related Industries. Environmental Guidelines for the Aluminium Industry. Environmental Guidelines for the Plastic and Melamine Industry Environmental Guidelines for Laundries. Environmental Guidelines for the Jewellery Industry. Environmental Guidelines for the Electroplating Industry. Environmental Guidelines for Garages and Car Wash Facilities.

Disney Asia

Beyond Tokyo: Disney’s Expansion in Asia Beyond Tokyo: Disney’s Expansion in Asia 1) The cultural challenges are posed by Disney’s expansion into Asia are limited attractions based on size and local regulations, hot weather, and high ticket prices. Cultural barriers happened such as the decision to serve shark fin soup, a local favourite, greatly angered environmentalist. For example, the decision to serve shark fin soup, a local favourite, greatly angered environmentalists.It is different in Europe as they have more choices for food because there are more countries in European group. Disney guests in Europe faced problems getting too closed or pressing around those who left too much space between themselves and the person in front. But it’s quite normal in Asian countries due to their population Hong Kong Disneyland only has 16 attractions and one classic Disney thrill ride, Space Mountain, compared to 52 at Disneyland Resort Paris.Weather in Europe tends to be cooler and their currency is higher than Hong Kong currency so people probably find the ticket cheaper. 2) Cultural variables influence the location choice of theme parks around the world because they are important factors to determine whether the parks will become successful or not. To locate a theme park they have to think whether people in the country will like this kind of theme park and will go for them or is it suitable for this county to locate this theme park.People who built the theme park needs to account the factor that whether it is easy for people in that country to adapt new things. 3) I would recommend nowhere in Asia because there might be a lot of theme park already in Asia, thus it will be really competitive. Furthermore, the ticket price might be expensive for Asian citizens to go and visit. Especially the weather is very hot and humid in most of Asia countries; they probably will not find it comfortable to be out the whole day.

Government cut-backs

High youth unemployment and cutbacks in government funding for post-secondary education are the new realities confronting students. The implications for most working and middle class students are either to abandon education altogether and to accept a future of McJobs and unemployment, or to be saddled with a lifetime of debt. Since the end of WW II, science and technology have been playing a dramatically increased role in the process of capitalist production in Canada. As a result, there has been an increase in the demand for a more highly educated labour force. For example, between 1971 and 1986, jobs primarily concerned with the creation and utilization of data and technical knowledge have represented two-thirds of net job growth. This has led to a rapid expansion in school enrolment. Between 1951 and 1993, the number of full-time post-secondary students has increased over tenfold, growing from 91,000 to almost 1 million. However, accompanying the scientific and technological revolution, is a tremendous growth in productivity that has led to higher levels of unemployment. Between 1980 and 1993, youth unemployment increased from 12% to 17.5, leaving many with no other alternative but to remain in or return to school. Since 1984-85, tuition fees have more than doubled across Canada, pushing more students into the labour market in search of income. While in 1980, 31% of full-time students, aged 15-24, held jobs during the school year; by 1989, this number had reached 41%. This worsening economic situation has also seriously interfered with the studies of college and university full-time students, as almost a third of them were forced to work 20 or more hours per week during the school year. Another reflection of the economic hardship of students is their growing debt burden. In 1984, 114,000 Ontario students received around $4000 million in student aid, by 1993-94, as tuition continued to increase, about 180,000 students (representing almost half of full-time students) took out over $1 billion in loans. The average value of loans in 1994-95 was around $6800. By 1998, the federal government is scheduled to eliminate a total of $7 billion in transfer payments to the provinces for medicare, social assistance, and post-secondary education. The expected effect on Ontario university students is a doubling of their tuition. But this is only the tip of the iceberg. Ontario's education minister, John Snobelen, has already made clear his government's intention to move toward a â€Å"market-based tuition fee†. If both levels of government abandon their financial support for Ontario universities, tuition will reach minimum levels of $7500-$8000. To counter the danger of a dramatic growth in defaults as it increases tuition fees, the federal government has transferred liability for student loans to the private banks. While increasing the role of the private banks in the short term, these changes set the pace for the full privatization of the student loan system. Another plan, currently under discussion, proposes collecting the loan repayments through the taxation system, i.e., Revenue Canada, through an Income Contingent Loan Repayment Plan (ICLRP). If the direction of government â€Å"reforms† is not reversed, it is only a matter of time before students who are at a high risk of unemployment (disproportionately women) or who are expected to have a low income after graduation (again disproportionately women) are refused access to loans, while most of the rest are burdened with a lifetime of debt. But the class nature of the privatization process has already become apparent. For 1995-96, the demand for first-year places is down by 5% in Ontario–20% in some faculties–leading many schools to turn toward recruiting drives and to lowering their admission requirements. Evidently, higher tuition is an obstacle for better qualified, poorer students, while offering an opening to less qualified, richer students. Cut the deficit by taxing the big corporations By focusing attention on expenditure reduction, the big corporations and the right-wing aim to deflect attention from the cause of the national debt: the decreasing tax revenues from corporations, which have declined from 20% of total federal revenues to only 7% in the last 20 years. Canada continues to have one of the lowest corporate tax rates in the industrialized world. Even the same level of corporate taxation as in the U.S. would provide an additional $9 billion a year–more than enough to cover all the cuts in social spending scheduled by the federal government. The ongoing cutbacks to education follow more than a decade of political and financial pressures promoted by federal and provincial governments in relation to social spending in general. Indeed, the education crisis cannot be separated from the overall crisis of the capitalist economy in Canada. The critical challenge before us today is to bring together all the social elements that are hurt by the implementation of the big corporate agenda: to build wide coalitions of youth and students, workers, women, seniors, environmentalists, peace groups, farmers, aboriginal people, immigrants, and many others–in support of a genuine â€Å"People's Alternative† program. This program would provide for decent wages, stronger public health and child cares systems, job creation programs, while restoring and increasing public funding for education. Reversing the current cut-backs and building the people's alternative depend on escalating the student protests. As a first step, we must build strong grassroots organizations on campuses which can ensure wide student involvement in the mobilizations. Students and working people have fought a long battle to win the right to higher education, health care, UI, and other social programs. Today, we have to build the fightback against those who are bent on destroying our social programs and our right to a quality, accessible education.

Philosophy Rhetoric Essay

For those politicians who find themselves faced with a question whose answer may be distressing to their audience, there is no substitute for the power of rhetoric   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The light-as-air rhetoric politicians tend to give in response to any question regarding national identity is a fine example. Asked what it is to be an American, most politicians will appeal to emotion with reflexes so skilled and precise that a kung-fu master would be hard-pressed to imitate them. Where logic is concerned, the rhetorical replies to this sort of question often begs many others. The politician will surely answer using words such as â€Å"hope†, â€Å"values†, â€Å"family† and â€Å"faith† but are those words even useful as descriptions? Do they speak to the actual experience of being an American or do they speak to some of the notions in which many find great comfort? How much of any politicians answer to this question is ritual and how much actual response? And, most importantly, are those things really characteristic of Americans or are they things Americans like to think about themselves, reality notwithstanding?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Where a reasonable, logical answer to the question of   what it means to be American may be pages long and the subject of spirited debate–not to mention heavily influenced by the time in which the question was posed–a rhetorical answer provides an easy dodge that leaves the politician with a faint glow of patriotism, the great persuader who is so often summoned by way of such simple rhetoric.

Ministering to Mormons

Reflecting on I Love Mormons: A New Way to Share Christ with Latter-day Saints Most people associate the Mormon faith with the church that is based in Salt Lake City, Utah. However, Mormonism has its roots in New York State, where Joseph Smith founded the Church of Latter-Day Saints during the nineteenth century, when he was allegedly visited by an angel that he called â€Å"Moroni.† The principles upon which he based this church underwent many changes as the founders of the faith traveled westward, so many that people might question whether it is the same faith or not.   It is not unusual, however, for a young faith to undergo many changes: it can be argued that Christianity experienced many of the same dynamics in it beginnings as it moved from its country and culture of origin and spread across the world.   David Rowe’s text suggest that individuals who would preach Christianity to Mormons should approach Mormonism as less of a cult and more of a culture and will less zeal than love, Section 1: Overview of Mormon Theology According to its founders, the Mormon faith is based on the teachings of the descendents of ancient holy men and the faithful who came to this continent even before the birth of Christ.   The original teachings of the church were supposed to have been translated from golden plates that the angel Moroni, which were given to Joseph Smith. Some of those early teachings have fallen into disuse or have changed completely. For example, while Smith might have included polygamy and believed in a priesthood open to only a chosen few, polygamy is now discouraged, if not openly condemned by the church and the priesthood has been open to men of all races (Rowe 2005).   Other tenets have been added or subtracted from the faith or have altered in some way as the Mormon faith seeks to solidify itself. While the Mormons consider themselves to be a Christian faith, a number of beliefs and practices set them apart from other Christian denominations.   Some of these beliefs and practices include: Baptism of the dead Eternal marriage, known as a â€Å"celestial marriage† performed in the temple The belief in four sacred texts: the Holy Bible, the Doctrine and Covenants, the Pearl of Great Price, and The Book of Mormon, and Teaching that God, the Father and Jesus Christ, the son, are of separate earthly bodies (Rowe, 2005). The Mormon Church also places a lot of emphasis on the family and on gender roles.   The church emphasizes the woman’s role in staying home and caring for the children, while men typically take on leadership roles–although these things are not absolute.   In addition, church members are intended to follow the law of chastity and to abstain from certain food, drinks, and substances. Church members are expected to proselytize.   All male members of the church are expected to perform a mission, which begins at 19 years of age and lasts two years.   Although women are not forbidden from going on missions, the requirements for women are different in terms of serving during a mission.   Finally, the LDS Church tends to believe that the individual can receive revelations from God, particularly in personal matters.   There are many precepts of this complex faith that are not covered by this paper; however, the ones that are listed represent some of their more important beliefs. The Mormon faith does not have a single, monolithic form.   Rather, it is comprised of splinter groups.   Given the statement   in Rowe (2005) that Mormonism â€Å"may stand as an indictment to Protestants because they arose to compensate for some perceived failure in the Christian movement† that encouraged him to start â€Å"a single ‘true Church’ that he believed would unify all members and spell an end to denominational schism,† this fact is interesting and interesting one (pp. 18-19). In general, the term â€Å"Mormon† is most accurately applied to the individuals who followed Smith’s teachings and settled in Utah; however, the church elders prefer that it be known by the more accurate name of â€Å"Church of Jesus Christ of Latter-Day Saints† (Rowe, 2005). Section 2: â€Å"Wisely and Gently† Kraft (1998) reminds the reader that God apparently wants people to be respectful of other cultures and that He gave such directions through the Holy Bible.   In 1 Corinthians 9:19-22, Kraft states, God’s purpose is indicated through Paul’s words about living like a Jew when among the Jews and living like a Gentile when among the Gentiles, and so being â€Å"all things to all men, that [he might] save some of them by whatever means are possible† (p. 384). Kraft discusses the various levels of culture, which is the manner in which people live their lives.   People are products of their culture, which determines the manner in which they view the world and the pressure for the individual to conform within that worldview is strong (Kraft, 1998).   In addition, Kraft reminds the reader that Jesus worked not by attacking people or their cultures, but by working with people within their cultures to effect change. Overall, Mormonism has a number of good principles behind it and yet its worshipers have been widely persecuted for their faith.  Ã‚   Today’s Mormons tend to be â€Å"thin-skinned, hypersensitive, and virtually expecting to be attacked† for their beliefs (Rowe, 2005, p. 49).   Whether or not the individual talking with a Mormon agrees with the positions of that person’s faith, Rowe states that they are deserving of respect. This position is particularly important, since Mormons typically have a certainty in the truth as preached by their prophet and the awareness of their nature as what Rowe (2005) calls â€Å"an exodus community† (pp. 48-49), both of which cause them to close the doors to communication more readily than individuals in other faiths.   Despite the apparent wisdom behind this statement of affairs, however, it appears to contradict the author’s assertion that Utah’s admittance to the Union ended the â€Å"us against them† mentality that existed between Mormons and the United States government at the time (p. 47). Section 3: Proselytizing Rowe (2005) constantly reminds the reader that the Mormons have their own culture.   For this reason, Christians are to treat them as they might adherents to Islamic, Hindu, or Buddhist cultures, as well as any other non-Christian cultures.   Rowe (2005) describes the Mormon Church as being â€Å"Christianesque† in that it is â€Å"linked to statements and images from the Bible† (p. 42).   However, some of the teachings are not Christian in nature, such as Joseph Smith’s vision of separate beings for God the Father and Jesus Christ. Because this teaching is so different from that held by other Christians, it is important to be prepared with gentle teachings about its error, as well as other errors held by the Mormon Church.   It is doubly important because the worldview of Mormonism is compulsive in its teachings, just as is the case in many Muslim cultures (Duin, 2006, p. 2).   Because it is not possible for Mormons to examine their faith for themselves, other Christians should be able to help them do so. According to Coleman (1993) Jesus was able to start with a small group of disciples because â€Å"it did not matter how small the group was to start with so long as they reproduced and taught their disciples to reproduce (p. 102).   It was a strategy that, as stated earlier, depended on assimilation to achieve results.   One thing to share, then, would be that Christ died for everyone on the Cross, not just for a significant few.   He accepted and cared for all faiths and races (Coleman, 1993). Rowe (2005) suggests trying to bring the two value systems into perspectives by working with the person being instructed to put the message of the Gospel into words according to each faith and then using that as a basis for discussion (p. 65).   Final, it would seem important to understand the Mormon teaching of two Beings known as God in the Mormon Church, and how it relates to or differs from the traditional Christian teaching of monotheism.   By understanding these differences and by being able to speak in a learned and intelligent manner to another individual from a Mormon perspective. References Coleman, R. E. (1993).   The master’s plan.   Perspectives on the World Christian Movement (3rd ed.), Ralph D. Winter and Stephen C. Hawthorne (eds.).   Pasadena, CA: William Carey. Duin, J. (2003).   The Washington Times.   New World Communications, Inc. Kraft, C. H. (1998). Culture, worldview, and contextualization. Rowe, D. (2005). I Love Mormons: A New Way to Share Christ with Latter-day Saints. Grand Rapids, MI: Baker Books.

What are the distinctive features of Christian democracy Essay

What are the distinctive features of Christian democracy - Essay Example A Christian democratic government is therefore reform-minded on national economic and fiscal issues. The Christian democrats in Europe more or less follow their Christian leanings and try to apply this in their governmental policies when formulating these policies. But on the other hand, the Christian democrats in other parts of the world (such as in Latin America) are more inclined to the left-of-centre in their political views while their European counterparts can be said to be located towards the right-of-centre of the political spectrum. However, both type of Christian democrats can be said to favour using Christian teachings in their policies. This short paper discusses the distinctive features of a Christian democratic institution. Hopefully, it will enlighten the reader on the various shades of what constitutes the Christian democracy as it is being practised today and help understand how current world events often are shaped by the views of these Christian democratic governments in power. Conservatism and Christian democracy are almost the same in many respects, except for their perceived link to organised religion and the adoption of religious values (Hanley, 1996:32). Christian democracy is primarily an attempt to apply humanitarian principles in matter of political thought. However, because Christian democracy embraces a lot of different ideas, it is sometimes very difficult to categorize it into a single clear-cut ideology. In other words, a political ideology like Christian democracy can significantly evolve over a period of time and in their different political landscapes or context. It has elements in it that are sometimes more in common with conservatism, liberalism and even socialism. These features make it difficult to classify it as a specific ideology but these same features make it distinctive. Traditional Moral Values – the ideology of Christian democracy,

Agency costs and ownership structure Essay Example | Topics and Well Written Essays - 2750 words

Agency costs and ownership structure - Essay Example A firm is a team effort involving several players - the owners, managers, shareholders, and lenders - that should work together to maximise the value of the firm in terms of profitability, sustainability, and performance. Recent experience, however, in the wake of business bankruptcies and scandals show that this team effort is not achieved in several cases. This paper reviews the available literature on the effects of family ownership, public ownership, and the dispersal of ownership on firm performance and value and provides a summary of the status of our knowledge of these relationships. Agency theory explores the effects of ownership structure on the performance of the firm. The theory states that the value of a firm will depend on the extent to which the interests of principals (owners) and agents (managers) are aligned. However, the interests of the principals are not the same as the interests of the agents, so aligning the two sets of interests will incur so-called agency costs. In this paper, we review the available literature on the application of agency theory in two types of ownership structures. First, we looked at firms that are majority owned, managed, or controlled by a single family and explored whether the aligned interests resulted in lower agency costs and better firm performance. In general, research findings supported the predictions of agency theory: firms where the founder-CEO, or a CEO-heir after the second generation, plays an active management role performed better than firms that are not dominated by a single family. ... cy cost that researchers term as "expropriation" have a negative effect on firm value as the dominant owners "expropriate" perquisites and other benefits to the detriment of minority owners. Second, we compared the performance of public and private firms. Research studies that included firms from a wide range of industries supported the agency theory, but the probability that results were influenced by factors that are endogenous to specific industries affect their external validity, or general applicability, to other industries. By looking at the results of a focused study using sample firms from one industry, we were able to establish the validity of agency theory in explaining firm performance. We also looked at the literature on the effects of a diversified ownership base on firm performance as reflected by stock price, with mixed results due to the effects of increased liquidity, rather than minimisation of agency costs, on improved firm performance. Introduction One of the most discussed topics in finance and economics is the ideal ownership structure that will maximise the value of the firm. This issue touches the core of why firms exist in the first place -to maximise profit for its owners - and explains partially how and why previously successful firms fail. Economists used to assume that everyone - owners, managers, employees, and lenders - act together for the good of the firm. After all, each one is bound by formal and informal contracts to ensure that firm value is maximised (Brealey and Myers, 1996, p. 991). This however seldom happens as there are conflicts of interest that affect firm performance, a phenomenon that academics have attempted to investigate over the last seventy years under the conceptual lens of ownership structure. How and why do