Ethnographic: Teen Pregnancy

Teen pregnancy is when an adolescent male and female from the pubescent age to twenty years old, which are involved In sexual activity that results in the female becoming pregnant. Whether the pregnancy Is continued or terminated, the child Is keep with parents or given up for adoption and whether or not the parties Involved where married. Interviewer Targets: Teen Mothers Teen Fathers Open-Ended Questions: 1) At what age did you partake in sexual activities? And at what age did you get pregnant? 2) Why did you choose not to abstain? 3) What role did your self-esteem play in your decision to have sex? How did your social relationships with friends, family, and the opposite sex play in the determining fact of your choice to have sex? 5) Did your parents/guardians discuss sex, sexual activities, prevention and SST with you? Did those conversations have an effect on your decision to continue or to stop all sexual acuity? 6) In your relationship, who was the person concerned about preven tion and protection? 7) How did teen pregnancy affect your life? 8) Considering everything, what do you think are the disadvantages to having a baby now instead of waiting until you were older? How did being a teen parent impact your life goals before the pregnancy? 10) What are some steps you will take in the future to help your child prevent teen pregnancy? 1 1) How did your social relationships change? 12) How has the opinions and assumptions of others effect you? Ethnographic Style: The ethnographic style completed on this paper is done through theory and method. The theory Is addressing the concern of the specific social problem of teen pregnancy In the modern society versus the same problem In the united States past generations.The method Includes different research tools, open-ended question Interviews and participant observation, research design of community studies and data presentation the use of select quotes, fieldwork and statistical research found. Teen Pregnancy of â €Å"Epidemic Proportion† Teen pregnancy is an adolescent male and female, from the pubescent to twenty years old, who are involved in sexual activity that result in the female becoming pregnant. Whether the pregnancy is continued or terminated, the child is kept with parents or given up for adoption and whether or not the parties involved where married.The assumption that teen pregnancy is 100% preventable, adolescences re participating in sexual activity at younger ages than in past generations, and that the underline reason teens are choosing to participate in sexual activity is not addressed. These assumptions only initiate the need for purpose of this social problem to be address by understand the underline reason teen pregnancy is occurring, researching methods that will better prevent teen pregnancy and to better understand the reasons and the affects of teen pregnancy for both sexes. The assumption and purpose of this paper will be presented through the ethnographic st yle.The ethnographic style completed on this paper is done through theory and method. The theory is addressing the concern of the specific social problem of teen pregnancy in the modern society versus the same problem in the United States past generations. The method includes different research tools, open-ended question interviews and participant observation, research design of community studies and The ethnographic style is broken down through the assumption, purpose, target interviewees, open-ended question responses that were collected and the data research of statistical research documented and collected by past researchers.

Of Mice and Men †Friendship Essay

John Steinbeck shows how important a friendship is and how much two people can support each other to survive. Take this bond away and it will create a difficult and almost impossible journey for the two men in this novel. John Steinbeck portrays Lennie and George as having the greatest friendship in the world and while George claims to not need Lennie, he knows that he needs Lennie as much as Lennie needs him. The mutual relationship between George and Lennie is a genuine friendship between two very different men. Lennie, a mentally handicapped, big man with stand out features and George, the small little tough guy, with the brains and great leadership skills. As the two men are trying to escape from a mishap that Lennie is in fault for, George like always tries to back him up. George and Lennie met one day when George was talking to his friends and told Lennie to jump off of a bridge that they were both on. Since Lennie is mentally challenged he attempted this brainless act and almost drowned. George feeling great sympathy for Lennie thought of it as an obligation to be friends with Lennie to pay him back. As the two got to know each other they became great friends and didn’t stop. Knowing that Lennie was handicapped, George would always take care of him like a â€Å"cousin†. George proves that a good friendship is based on what someone’s personality is like, not how they look on the outside. George sticks around with Lennie even when Lennie does make many mistakes and almost puts George into danger. On page 34 George and Slim have a conversation. â€Å"You guys travel around together?† â€Å"Sure, we kinda look after each other† This quote shows that George isn’t afraid to say he and Lennie travel around together and isn’t embarrassed by his company. Throughout the whole novel, George always compliments Lennie on his work and his positive abilities. Good friends always stick by each other. They always back each other up and they always help out when one of them is in need. Even though Lennie never contributes to helping George, the reason isn’t because he will not. The reason for this is because George never gets into any type of trouble. Lennie is always the one who needs help, but I’m sure of it that Lennie would help George in any circumstance. When George and Lennie talk to the boss George says to Lennie, â€Å"Let me do all the talking†. George proves to help Lennie out because Lennie is not too good with his words. George and  Lennies friendship grows stronger and stronger and it grows so strong that even the part when George kills him is a sign of caring. I believe that George has always wanted the best for Lennie and he knew that Lennie would either be tortured in the end or get killed anyways. When George kills Lennie, it is in my belief that this is the biggest act of respect and love towards Lennie. George never wants to see Lennie get hurt, so this is the only way he can let Lennie live a happy life without getting hurt inside. If I were George I would do the exact same thing. It’s tough letting go of a friend, but sometimes it in the best interest of your friend. The last circumstance that showed a great friendship was when George said â€Å"We gonna get a little place (pg. 105). This showed that George wanted to settle down and live with Lennie for the rest of his life. George and Lennie had such a great friendship that they both wanted to live and know each other forever. George promised chickens, rabbits, and everything else that Lennie would ever want. He proposed to Lennie and to himself a great life with an amazing companionship. Lennie, only in the end realized how great their friendship was. He realized he took many things for granted and one of them was George. Lennie realized how much George had done for him and was soon relieved that George didn’t hate him. It’s too bad that it took Lennie that long to realize how good of a guy that George was and how much that he meant to George. I think that the most important part of this novel wasn’t who died, or the dream that they wanted. The most important thing was the closeness of the two main characters because it doesn’t happen often that a great mutual alliance is found. Usually a temporary friendship is established, like the one that almost everyone has at school. You don’t often find two students who are such great friends that they know each other until they die. Everyone is so obsessed with how expensive someone’s clothes or jewelry is that they don’t have time to look deeper into a person and find what’s inside them. The future generation is filled with a large percentage of shallow people who don’t focus enough on the person. Popularity is more important to some people for four years (high school), than a real comradeship that lasts a lifetime. That is why I think that a great relationship is close to being the most important thing in life and I think that it is the message that John Steinbeck tried to deliver to his readers.

Analysis of Research Methods, Client Relationship, Personal Evaluation Essay

Analysis of Research Methods, Client Relationship, Personal Evaluation - Essay Example The paper tells that with the advancement of technology and emergence of the concept of consumerism to the surface, customers have become ever more dominant and powerful in the marketplace. Nowadays all the companies shed off myopic ideas and try to incorporate consumer’s will in the decision making process. This is particularly important because customer satisfaction is the ultimate objective that leads to profitability and endurance in organizations. To attain stability, organizations spend millions of dollars today on their Research and Development departments to get the best and most accurate knowledge regarding consumer behaviour and expectations. This knowledge and information is utilized by organizations in improving their processes to meet the demands and requirements of the customers and thus deliver a â€Å"wow experience† every time the customer interacts with the offering. In other words, this shall not be exaggeration to state that, research is one of the k ey pillars to success of an organization, in the contemporary market dimensions. Any idea or tactic backed up by research findings is more durable and dependable then something that is implemented out of the blue. Research does not only assist organizations in deciding which route to success shall be adopted, in fact contingency measures and sporadic adjustments to deviations and evaluation of the implementation are some of the broad areas that are addressed at length by researches. (Thornton, 2010). Throughout the length of this paper various research methods will be analyzed through various perspectives and efforts will be made to develop an understanding of using research methods and findings in the most efficient manner possible. Analysis of Research Methods The above diagram is a representation of a general research process. Though 5 major steps are shown in the diagram in a systematic manner, but in real life scenario one stage may precede the other depending upon the requirem ents of the researchers and the nature of the research itself. While conducting our research we followed the above systematic flow of processes for data collection, analysis and reporting of its findings (Collis and Hussey, 2003). Research can be defined as a systematic investigative study conducted to discover answers to questions or solutions to prevalent or future dilemmas. In the commercial scenario, findings of a research may serve to make it or break it for the sponsors of the research. Bearing in mind the model provided in the figure then we see that the process initiates with the discovery of a problem or unanswered question. This is the phase of the research process that occurs voluntarily (Kumar, 2010). Any department of the company shall encounter a problem at any stage and this is completely unavoidable and inevitable (Collis, 2003). The stage that entails the discovery of a problem shall come to the surface unexpectedly and demand a solution on an immediate basis and th ings could be the other way round too. Therefore this can be said that moving on from one stage to another in the research process may vary from situation to situation (Blaxter et al, 2006). The stage proceeding Discover Stage is known as â€Å"Retrieve Stage†. Retrieve stage is a significant phase that shall be carried out with great care and technically sound staff. There are various methods utilizing which this phase can be surpassed. At this stage we were required to determine the sources from which data can be retrieved and the subsequent methodology to be adopted. There are two broad options that were available to the group to get the data from, Primary Resources and Secondary Resources (McBurney, 2009). Secondary resources are considered to be the best sources of information in case the problem that has to be resolved has occurred before in some other department of the company or may be in any other part of the world. Secondary data provides a sound basis to the resear chers to construct a framework based on the

Assignment 4 for CLS325 Coursework Example | Topics and Well Written Essays - 2000 words

Assignment 4 for CLS325 - Coursework Example The most common impression about independent films though is that such projects are not usually funded by the major motion picture producers. Because of this there have concepts that â€Å"films made by smaller studios or give a guarantee of distribution by one of the majors before production are classified as ‘semi-indie’.† (King 9) Limiting the definition of independence in film-making to questions of financing may result to inaccurate conclusions about indie movies though. What makes a film truly independent basically depends on the freedom of the film-makers themselves in expressing their ideas through their craft. With this concept, it is only clear that a major studio may create an independent arm which could produce films which contents and artistic directions are to be freed from intervention. However, it is true that that indie films produced by subsidiaries of major studios may not be as free as those that are made by non-corporate and non-business entit ies. Although these may have serious disadvantages in terms of budget, the producers, directors, writers, and all other artists involved relatively enjoy greater freedoms in expressing or in putting their creativity in film. With the shoestring budget though, independent film-makers certainly have problems in distribution. They may be able to innovate or to adapt their techniques to whatever logistical and equipment inadequacies that they experience but they may not be able to market the film as much as they would want to. This is the reason why most indie films are addressed only to a niche market. Only audiences to whom the subject of the film is relevant are able to see and understand the messages relayed by the film-makers and the artists. Conscious that their products are not meant to be enjoyed by a wider audience, after all, many indie film-makers also do not attempt to apply forms that are supposed to entice more people to watch. Indie films are considered as the alternative to the commercial fares often produced by Hollywood’s major studios. For both film critics and the audiences, this is cinema that provides more focus on the story and artistic expression rather than commercial success. Therefore, this may fall under the category of popular culture, one that may not be as attractive to the masses as Hollywood films are nevertheless interesting because these depict situations that may be reflective of the audiences’ real-life situations and because these are aesthetically delightful. However, it must be pointed out also that such productions, because of budgetary constraints, may not be packaged well when it comes to advertising. Hence, their advantages over Hollywood fares may not get full potential because of inadequate promotions. Hollywood film-making is obviously controlled by media and film-making moguls, people who have made and are still making huge fortunes out of producing films for commercial purposes. Since these are big ent ertainment business is essentially at the core of every film produced in Hollywood, it is only expected that profits are the objectives. Every movie produced could cost millions of dollars. However, the producers do not hesitate spending for these because they knew that with a star-studded cast, amazing visual effects, effective promotion, and widespread distribution, millions more could be earned from the box office. With profits as the objective, the importance of story and

Drug policy in Mexico and Colombia Research Paper - 1

Drug policy in Mexico and Colombia - Research Paper Example South America, in stark contrast to its other counterpart North America or U.S.A, the world of riches as we know it, has long being plagued with the curse of poverty and deprivation coupled with alarmingly low levels of overall development. It is known that poverty, chronic unemployment and underemployment and illiteracy often give birth to crimes and Latin America has been no different. In Mexico, unemployment is around 20% while underdevelopment is just the double of unemployment (Gilbert 22). Drug trafficking, with all its vices in this context has been alleged as the prime concern spreading its â€Å"wings† with each passing day not only in Latin American nations but also in the U.S and the whole world. Countries like Mexico and Colombia have been the main architects of drug trafficking throughout the American sub-continent. In the early’80s Colombia used to be the main exporter of drugs and narcotics throughout the world, but with the Colombian government policy ge tting more stringent, Colombian drug-lords started using Mexico, mainly due to its suitable geographic locations to export drugs through Mexico to the U.S. (Rosin, 2). Mexico One prime social policy taken by the Mexican government towards curtailing the drug trafficking is to decrease violence in the Mexican drug market and reduce increasing crime frequency to controllable levels (Venda Felbeb-Brown,1). The ongoing drug war in Mexico is mainly an armed conflict among the several drug cartels fighting each other for market control and also with the Government armed forces installed to fight drug trafficking. Mexico is the main supplier of heroin in U.S.

American Railroad or Baseball Americas sport Essay

American Railroad or Baseball Americas sport - Essay Example Goods could be shipped across long distances at a fraction of the cost and messages could be sent across country in a fraction of the time. The purpose of the present research is to discover how the advent of the railroad affected the daily lives of Americans, particularly in the American west. While the general impression has always been that the railroads did little more than destroy those who came to work on them, this investigation attempts to prove that for all the harm it caused, the railroad also created many new opportunities for minority groups seeking new beginnings in the modern world. By examining the words these individuals left behind and the effects that the railroad was having in a more general sense upon the landscape, economy and way of life of the average person, particularly within the less settled and less civilized lifestyles of the west, a better understanding can be obtained regarding the positive and negative aspects of the advent of the modern world upon the se open and wild places, uniting a country and expanding Americans’ worldview while changing the nature of possibilities once available in this rugged land. The railroad introduced significant changes to the previously wild and unknown western portions of the country. While there were already many individuals living out in the empty prairies, it remained a difficult and precarious lifestyle, frequently isolating individuals from families back east thanks to a slow and costly communications system and the difficulties and distances to be traveled. For this reason, change occurred relatively slowly within the western half of the nation except in those areas more easily accessible by boat. As the railroads were built, however, change was forced upon the land. Industries changed as the landscape was divided up into manageable parcels, economies shifted as efficiency replaced older traditional methods of business and

Why should we stop worrying and learn to love WK3 assignment Essay

Why should we stop worrying and learn to love WK3 assignment - Essay Example This devise help to monitor the vital strokes of the website. Most developed world has surveillance gadgets watching all principal streets and putting the streets under close watch. The panoptic gaze watches the public and the specialists watch every move made by the public from the comfort zone of television monitors (Mattelart, 2010). Many people view this technology revolution with horror. A monumental debate erupts on the topic public surveillance (Boris, 2013). This debate has led to the questioning of the ethical issues. It is evident that the government has surveillance cameras installed in every corner of the major cities. Many people have joined this discussion, and they insist that governments and leading corporations have access to the surveillance of the public. The public insist that the surveillance infringe on their private lives (Winston and Edelbach, 2013). Some people feel that the government and the surveillance corporations have no right to monitor their movements. They claim that they feel that it is unethical to monitor the public’s movements. Development of face recognition software has made the some people opposing the surveillance program detest the services. They feel that the surveillance monitors their conversation making it impossible to run away from the surveillance cameras and satellites (Mattelart, 2010). In his book, In Praise, society, ethics and Technology, Taylor argues that indeed the government should encourage the use of surveillance technology to monitor the movements and operations of people. Taylor affirms that the government ought to put all the citizens under surveillance. Offices, shops, and classrooms should have surveillance cameras. Taylor opposes the Orwellian nightmare (Mattelart, 2010). Orwellian nightmare is a situation, societal condition and an idea that Orwellian created that surveillance was destructive to the public’s open and free welfare. George Orwell claimed that

Explain how the MIS ( Management Information System) function area can Essay

Explain how the MIS ( Management Information System) function area can leverage , information, data and knowledge in terms of competitive advantage - Essay Example The system itself can be designed in such a way that it can control the information of the business so as to provide it with a competitive advantage. The system can be used differently and this essay would revolve around the particulars of this system as to how it can help the businesses flourish in a competitive world. Management Information System is defined as a set of technologies which include hardware and software along with human elements so that the decision making process of the respective business can be made easier (Bidgoli, 2010). This clearly tells us that the system is a way through which the businesses can integrate information and present accordingly to the relevant individuals. The system is designed to simplify decisions and carry out processes through which the decisions are made quickly and efficiently. In general the firms are given competition in the industry through different means. Porters Five Forces allow to understand these competitive forces as they tend to exist in the industries accordingly. These five forces revolve around products, bargaining power of customers and suppliers and the threat of new entrants. Management Information System takes a leap on these five forces to ease it on the business who will use the system in an efficient manner (Laudon & Laudon 2013). MIS should always be aligned with the objectives of the business so that it can be used efficiently to break down the threats of the competitive forces. Information Technology should always be constructed in a way so that the profitability of the company is increased with every step that the business takes. Information technology works by the methods of numbers and the business should always identify its goals and strategies with the help of the system. The progress of the businesses can be monitored with the help of information technology and this in turn would help the stakeholders decide in accordance to the

Direct government actions and effects related to public university Research Paper

Direct government actions and effects related to public university issues - Research Paper Example The federal government is estimated to contribute 10.8 percent of educational finances in elementary and secondary education (U.S Department of Education 1) Involvement of the government in public universities can be dated back to after the World War where they were viewed as an extension of the government. This is attributed to the fact that their teaching budgets were outsourced from the government. Additionally, their research efforts were financed by the federal government and the state. Within the recent time, this has changed, with a significant proportion of public universities receiving majority of their revenues from tuition fee. This has increased by 6 percent from 1993-1994 with allocations per student by the government being lower in 2004-2005 as compared to the former years. This is since the government has not increased the allocations, leading to public universities increasing their tuition fee in bid to account for the 38 percent growth of enrollment in public univers ities (Bublitz and Martin 56). ... Accreditation agencies are other institutions that serve as stakeholders in the public universities. These accreditation agencies are responsible for the development of policies, rules, and regulations that are to be followed by the public universities. These institutions are responsible for enhancing that the education requirements are met by the public universities so as to be in a position to offer courses they intend to offer. These accrediting institutions are also involved in examining, licensing and evaluating the public universities (Council for Higher Education Accreditation 1). The students in the public universities are other stakeholders as pertains to public universities. These students are enrolled from diverse capacities in bid of the government to ensure equal access to education for all. Students enrolled in these public universities are perceived as consumers of the education and the revenue channeled into their education by the government, with an expectation that they will repay in future. The families of the students and the community the students belong to are also stakeholders since they benefit from the expertise of the students upon graduation from public universities (Bublitz and Martin 56). Arguments In Support Of Government Continuing To Play a Direct Role The United States government acknowledges that public universities which serve as institutions of higher learning are of significant importance as national security, health care, and development of alternative energy. This is attributed to the fact that public universities serve as a hub for dreamers and doers; innovators and engineers; technicians and scientists, and theorists and

The Fax Machine Research Paper Example | Topics and Well Written Essays - 1750 words

The Fax Machine - Research Paper Example It first became an office workhorse in the 1980s and has continued to appear on business cards ever since! Although threatened by more advanced technologies like scanners, printers and email, the fax machine continues to dodge extinction and to remain attractive to businesses and individuals. Fax Machine’s Share in the History of Communications Alexander Bain, a Scottish mechanic, invented the fax machine or ‘facsimile’ in 1843 in Britain. Bain’s fax machine used a stylus attached to a pendulum that scanned an image or text on a metal surface. The machine used by Bain was a combination of several clock parts that worked in sync with a telegraph machine. It transferred encoded image data via telegraph lines. This machine however did not gain significant ground at the time of its inception, and people soon abandoned it due to its bulky size and limited utility. 1 The invention of the telephone in 1876 revived the use of fax machines, which then used telephone lines for data transmission. Later on, these machines could also transmit data via radio waves. By 1924, journalists faxed photographs to distant newspapers, and by 1955, radio fax enabled the transfer of data across continents. Newspapers and weather services were the earliest users of fax machines for transferring photographs and weather maps across the world.2 By 1980, telephone-based fax machines had gained immense popularity because of their reduced prices and fixed Grade 3 standards of operation. About a million fax machines were sold in 1988 alone, and they became the fastest selling machines adorning homes and office desktops word wide.3 Fax machines proved to be of immense utility to the Japanese. The Japanese alphabet has thousands of characters, and keypads can only afford a limited number of keys. Fax machines provided the Japanese an easy way of transferring their written documents. According to the American facsimile association, about 50% of all calls made in the 198 0s to the USA from Japan were to fax machines.4 Frank Vizard, a contributing editor of Popular Mechanics magazine, has suggested that the increasing popularity of fax machines blurred the line between the home and the office, as business documents could easily be faxed to homes within seconds. People dealt with work related documents from the comforts of their homes. Fax machines soon replaced postal mailboxes and reduced the time of delivery of documents. They became a convenient tool for telecommuting before the advent of the email. This was both a convenience as well as an inconvenience, as people felt increasing pressure to work from home.5, 6 Are Fax Machines Becoming Obsolete? – Not Yet! Fax machines, which were at risk of extinction right after their invention, were revived by the invention of the telephone and later by the invention of the radio. After the advent of email, hybrid printers and scanners, fax machines were again under threat of extinction. Yet again, the y adapted to changing times by incorporating advanced features like LAN connectivity, LCD displays, and Fax over IP capabilities. Fax machines also doubled up as copiers. Prominent scanner and printer manufactures have also incorporated faxing capabilities in some of their models. Fax machines can now convert paper copies into TIFF and PDF files that can be sent as email attachments. Fax machines today are fully equipped with broadband connection

Financial Accounting Exxon Shell Case Essay Example for Free

Financial Accounting Exxon Shell Case Essay Objective: Understanding the effect of inventory valuation assumptions on financial statements. Assignment summary: You are taking the role of a security analyst who recently started following the Oil and Gas industry. The analyst has a task to draw a comparison of several financial indicators for two industry leaders: Exxon Mobil and Royal Dutch Shell, based on their income statements and balance sheets (attached at the end of this document) as well as the information from the notes to the financial statements summarized below. The two companies appear to be quite similar and are similar in size based on total assets. A private investor notes, however, that some financial ratios appear to be different. Your task is to guide an investor through the basic steps that will help them understand the effect of inventory valuation assumptions on the financial ratios. The following information is based on Exxon’s and Shell’s 2011 Annual Reports. Exxon Mobil Background information. Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas, and petroleum products. NOTES TO FINANCIAL STATEMENTS Inventories. Crude oil, products, and merchandise inventories are carried at the lower of current market value or cost (generally determined under the last-in, first-out method – LIFO). Inventory costs include expenditures and other charges (including depreciation) directly and indirectly incurred in bringing the inventory to its existing condition and location. Selling expenses and general and administrative expenses are reported as period costs and excluded from inventory cost. Inventories of materials and supplies are valued at cost or less (i.e., lower of cost or market). The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by $25.6 billion and $21.3 billion at December 31, 2011, and 2010, respectively (Convert LIFO to FIFO).

Comparison of Corporate Governance in UK and US

Comparison of Corporate Governance in UK and US Corporate governance in theory and practice CHAPTER I INTRODUCTION Modern public industry crashes in the United States and the United Kingdom have left a destructive arouse. Regulators over the world are limiting reclaims to develop criteria of corporate governance in common traded industries with the intention of securing against a return of Enron, WorldCom, or Maxwell-style industry fails. While reclaims to corporate governance functionalities are necessary, members of the enterprise community should supervise suggested alterations and conceive their applicable effects to assure that the sound, flexible United Kingdom method to corporate governance isnt helpless. This paper will firstly talk about corporate governance broadly, outlining the trend of United Kingdom Corporate Governance development. Next, this study will enhance the important details of future United Kingdom corporate governance reforms, talking about the advantages, critiques, as well as implications of each. Promoting further, it will also deliberate the relative effects, analyzing similarities as well as dissimilarities in United Kingdom and United States techniques and how particular suggested patterns might affect enterprise. 1.1 Introduction to corporate governance Corporate governance has become an unknown piece of information for business students. Most often it is consolidated as well as mixed up with the substance of morality. Though moral behavior is awaited from all the â€Å"players† who will take part in the corporate governance procedure, and particularly from managers and administrators, corporate governance at its effect is regarding the features of a regulating procedure and not regarding a specified behavioral trait. The modern role of financial scandals taking place in the United States has motivated and regenerated concentration on the corporate governance. In this situation equivalence with UK and US corporate governance will be most informative. 1.2 Defining corporate governance There are a lot of dissimilar definitions when it comes to corporate governance. They all invariably direct the up coming fundamental concept. Corporate governance is the model of polices, patterns, and functionalities that order the communications and relationships with in the suppliers of capital (proprietors), the governing body (the administration or boards in the two-tier scheme), superior directors and different parties that take part to changing grades in the decision making method and are affected by the companys tendencies and enterprise activities. Corporate governance describes their individual characters as well as duties and their power in steering the trend of the industry. According to Calpers, â€Å"Corporate governance is the relationship among several participants in finding out the focus and functioning of industries† In its most limited sense, corporate governance is defined as a style in which a management is manipulated and addressed. To describe corporate governance, it might be essential to clear up what it is not. Corporate governance is distinguishable from the impression of corporate social duty, yet people frequently confuse the two techniques. Corporate sociable duty concerns to a corporations implicit, extrinsic responsibilities to society as altogether, which will include for instance public guard and environmental cares. Alternatively, corporate governance cares with the interior command and focusing of common traded industries only. In the wake of broad profile corporate break down, the modern commercialized corporate culture needs elaboration and clarification of these rules for industries that deal with a lot of trading and, possibly, more standard practices. Thus corporate governance over the world is in an operation of re-definition. Previous United Kingdom patterns of corporate governance have brought about universal rules to steer industries away from fraud, misdirection, as well as lax establishment. Reformed corporate governance patterns will embrace the heavier effects of rising stockholder issues when applying moral, transparent corporation patterns that encourage a great deal of accountability and fairness. To accomplish this objective, United Kingdom corporate governance political theory could shift towards a lot of reactions, rules-based method. Foreign minister Patricia Hewitt vehemently refuses that United Kingdom corporate governance will develop into working in packages. This estimate has converted the United Kingdom enterprise community into dissimilar camps; each have the target of better corporate governance yet all have dissimilar thoughts on choosing the better path. 1.3 EVOLUTION OF CORPORATE GOVERNANCE IN THE US AND UK The United Kingdom has initiated corporate governance reforms, making an episodical model that will build succeeding renewals. Prompted by the Maxwell pension scandal during the nineties, governance authorized investigators to enquire the corporate governance measures of the UK and to suggest directions that will reinforce the scheme. Initiations laid in the year 1992, the Cadbury study, the 1995 Green bury study, and the 1998 Hampel study ensued the Combined Code protocols which maintain superior governance. The Code, which enforces the United Kingdom industries, sets out the broadly recognized comply-or-explain philosophy of corporate governance encourages transparency, a good deal of responsibility, fairness. Industries named on the London Stock Exchange in the Alternative Investment Market also called the AIM are not demanded to follow with the Combined Code, yet they are promoted. The modern Higgs and Smith studies direct to improve the Combined Code which is still considered ad ditional, anticipating for non-executive managers to take on a lot of corporate leading responsibility and to supervise keenly the auditor actions. The DTI (Department of Trade and Industry) at first recommended both the Higgs as well as the Smith studies and, after yielding some recommendations, will probably endorse their internalization into the Combined Code. The Department of Trade and Industry has also declared projects beyond Higgs and Smith to reconstitute the United Kingdom accounting profession and to enforce a great service of United Kingdom regulative body patterns and duties, which will consider effect immediately. Heavy-handed amendments to the illegal attaching Combined Code are not the final stage of suggested United Kingdom reforms; legislative activity might also be on the view. The United Kingdom Law Commission has suggested outlining legal assumptions of managers duties as well as improving Part X of the industries Act to speculate stricter corporate governance c riteria. The section of Trade and Industrys Steering Group published the industry legal philosophy Review during 1999 which endorses the Law Commissions locating on corporate governance reforms. The industry legal philosophy reviews the formally titled Modern Company Law for the competing economic system: the strategic model, appraised core industry and their legal philosophy and recommended reinforcement and clarification of the legal philosophy with reference to managers responsibilities. EVOLUTION OF COPORATE GOVERNANCE IN UNITED STATES In the 19th century, state corporation laws increased the rights of corporate control boards to regulate without unanimous consent of shareowners in an interchange for legal advantages like estimation rights, to establish corporate governance in a more effective manner. In that period, most of the large publicly distributed corporations in the United States are incorporated with in the management favorable to the Delaware law, and because the United States wealth has been increasingly secured into several corporate entities and origins, the rights of independent proprietors and shareowners have to get more and more derived and dissipated. The concerns of shareowners over management stock closings periodically have guided to more regular demands for corporate governance reforms. In the middle of the 20th century during the immediate aftermath of the Wall St. crash of 1929 valid scholars such as Adolph Augustus Barley, Edwin Dodd, and Gardiner C. Denotes pondered on the modifying functions of the new corporate governance in society. Barley and Means monograph â€Å"The Modern Corporation as well as Private Property (1932, Macmillan) continues to own a fundamental power on the design of corporate governance in scholarly debates nowadays. United States expanding after the Second World War through the growth of multinational corporations found the organization of the managerial class. Accordingly, the next Harvard Business School management professors released the influential monographs analyzing their prominence: According to Lorsch as well as MacIver several major corporations have leading control for all over enterprise functions without sufficient accountability or supervision by their board of managing directors. Since the previous 1970s, corporate governance has been the issue of important argument in the United States. Around the world, bold and broad attempts to reclaim corporate governance have followed to be driven in a function, by the requirements as well as hopes of shareholders to use their rights of corporate ownership as well as to gain the prize of their shares as well as, therefore, wealth. Over the past three decades, corporate managing directors duties have built up greatly beyond their traditional legal duties of loyalty to the corporation as well as its shareholders. 4. THE COMBINED CODE In its present form, the Combined Code about industries demonstrates the rules of effective establishment presented under. The entire Combined Code also presents elaborated and crystal clear pattern guidelines. If common industries dont follow these codes, they should explain or clarify their position. Directors In the Board each and every industry must be headed by an effectual administration which must extend and control the industry. Chairman and chief executive officer There are 2 significant tasks at the top of each common industry the operation of the entire administration as well as the administrator duty in order to lead of the company. There must be a clean segmentation of the duties at the guide of the industry which will assure a good influence as well as authority, such that no one person has the power of breaking the rules pertaining to the corporation. Administration Balance The administration must include a balance of administrator as well as non-executive managers such that no independent or little group of persons can command the boards conclusion. Provision of details The administration must be furnished in a seasonable fashion with details in a form and of a quality suitable to enable it to dispatch its responsibilities. Engagements to the administration There must be a conventional and clear subroutine for the engagement of new managers to the administration. Re-election All managers must be expected to submit themselves for re-election at steady period of time and at least every 3 years. 4.1.2 Managers Remuneration The grade and Make-up of Remuneration Grades of remuneration must be enough to attract as well as continue the managers wanted to run the industry effectively, but industries must neglect paying more than is essential for this intention. A balance of executives remuneration must be organized so as to connect rewards to corporate and independent execution. Procedure Industries must build a conventional as well as clear process for building up policy on administrator salary as well as for fixing the salary packages of independent managers. No manager must be implied in choosing his or her personal salary. Disclosure The companys yearly report must include an assumption of salary policy and information of the salary of every manager. 4.1.3 Relations with stockholders Negotiation with Institutional stockholders Industries must be prepared, where practical, to get in to a negotiation with institutional stockholders depends upon the mutual agreement of aims. Constructive purpose of the annual general meeting Boards must exercise the annual general meeting to interact with individual investors as well as promote their involvement. 4.1.4 Answerability and inspect Financial accounting The administration must represent a stable as well as comprehendible appraisal of the companys status and aspects. Internal command The administration must preserve a healthy scheme of interior command to guard stockholders investing and the companys assets. Inspect commission as well as Auditors The administration must build conventional as well as clear agreements for believing how they must enforce the financial accounting as well as interior command rules and for asserting an appropriate association with the companys auditors. 4.2 Section 2 institutionalized stockholders 4.2.1 institutionalized Investors Stockholder Voting Institutionalized stockholders have a responsible ness to attain considered utilization of their voting. Negotiation with industries Institutionalized stockholders must be prepared, where practical, to enter into a dialog with industries depends upon the mutual affection of targets. Valuation of governing revelations When appraising industries establishment agreements, specifically those concerning to administration system as well as composition, institutionalized investors must give due weight to all crucial aspects drawn to their care. 5. THE INFLUENCE OF COMPLY-OR-EXPLAIN This philosophy could be a really efficient tool, if applied correctly. United Kingdom corporate governance patterns are built upon the assumption that one size doesnt suit all industries, like people, have different personalities which demand various techniques. Yet, for the philosophy of comply-or-explain to act as it was designated, both public industries as well as their stockholders should actively meet their portions. For instance, if a hard, well-performing industry selects to refuse Higgs recommendations and proceed, for example, with a joint chief executive officer or Chairman, it might do so with a complete explanation. Higgs promotes industries to take the path that is finest for them, if stockholders are sufficiently proposed. Stockholders must weigh the companys explanations as well as determine whether these differences from the Combined Code are rationalized. Yet some critics claim that major institutionalized stockholders striving for easiness as well as effectiveness wish to mark boxes as opposing to exploring the advantages of the road less traveled. They say institutionalized investors balance a deep range and continuing on peak of a lot of industries defluxions might be very heavy. This uninterested, time-driven stockholder attitude, if true, can effort struggles with the British pattern of organized establishment, which allows industries to attain their personal determinations, as opposing to sturdy them to compulsory rules. Comply-or explain permits industries the versatility to explain why defluxions from the named better exercise functionalities might be better for their specified context, resulting in broader benefits for their stockholders. To profit from this regardful scope, industries have to have the courageousness to change from the Combined Code as well as stockholders should take the valuable period to listen as well as sanction, where suitable. Multiple listed industries might be influenced to hurry into compliance with the altered Combined Code, after the internalization of the Higgs as well as Smith themes, to placate stockholders, regulators, and the mass mediums. One should firstly asses the company, the industry culture and functioning, and the stockholder mood when reflecting defluxion. There is a solid temptation to notify customers to follow. Yet, if industries select to comply very quickly as well as defluxions become progressively uncommon and therefore subject to deep examination, it will become little satisfactory to deflect in the future. So, we might successfully lose the right to deflect. Therefore, even though company observance is very much in development United Kingdom industries should not forget that they still have the influence of the comply-or-explain philosophy. On the other part of the Atlantic, Sarbanes-Oxley reforms havent yielded United States industries this respect or versatility. United States industries that deflect from corporate governance reforms are in break of protections regularizations. In the United Kingdom, we should utilize this right of versatility successfully to maintain it. 6. PROPOSED UK REFORMS Some of the key points present in 4 various sets of United Kingdom corporate governance suggested reforms set out through: (1) the Higgs theme, (2) the Smith study, (3) the desk of State for job and company, and (4) the Law Commission proposals. Numerous points present in each will possibly take effect earlier to the end at the year of 2003. A complete discussion of the advantages, critique as well as deductions of several of these suggestions is talked over in later. 6.1 Higgs Analysis Focus: Analysis of the function and efficiency of non-executive managers The Higgs analysis sets out better exercise for administration building as well as proposes mechanisms and behaviors to secure the correct people to fulfill non-executive places. Commonly, Higgs recommends that non-executive managers are a lot of actively involved in organized supervision through asking hard inquiries and requiring truthful replies. At beginning, Higgs recommendations experienced a warm invite in the United Kingdom, yet opposition to certain points has attained momentum. Key Higgs recommendations include: Administration Make-up: The most of the administration must be incorporated of non-executive individual managers (individual NEDs). Commission Make-up: All members of inspect as well as salary commissions must be individual, as must a most of the nomination commission. Further, an individual NED, not the president, must lead the nomination commission. Refined description of independency: Higgs commends advancing the measure to fulfill test of independency. The modern suggested definition expresses that a non-executive manager is assumed individual if he is individual in character as well as judgment and there are no relationships or conditions which may impact, or come out to affect, the managers opinion. Inhibition of joint chief executive officer or president: These characters should be different, isolated, and controlled by two various persons. The president should be individual at the period of engagement and a CEO must not later become president of the same industry after stepping down. Senior individual manager: The present Combined Code already proposes that Nominating a senior individual manager, yet Higgs plans to gain the senior individual managers duties. Higgs proposes that industries build up the character of the senior individual manager so that he is available to stockholders if concerns havent been directed via normal communications of interaction with the president or CEO. Separate NED meetings: Non-executive managers must fulfill without the president or the executives annually. These meetings are to be moderated by the senior individual manager. Nomination commission: The administration nomination commission must include across one-half individual NEDs as well as be moderated by an individual. Higgs also commends activities to extend the certified prospect pool of individual NEDs by tapping both individual industries and the common division and by actively attempting out qualified women and international nominees. Laura Tyson, of the London Business School, directs a governance commission directing to improve functionalities that will support industries recruit qualified individual non-executive manager nominees from the uncommercialized division. Research and generalization: preceding to engagement, modern non-executive managers must execute anticipated application of the administration and the industry to build their personal suitableness for the character. Following engagement, all fresh non-executive appointments must go through a conventional evocation procedure to familiarize themselves with the administration, the industry, and their modern functions. This procedure permits fresh non-executives to assess their own capableness in light of the task demands. Tenure: The default tenure for a non-executive manager must be two three-year conditions. Longer conditions will be acceptable sometimes, if for good cause. Boundaries on Directorships: A regular administrator shouldnt acquire extra non-executive directorship nor must he become president of a leading industry. Persons must not lead the administration of more than one leading industry simultaneously. Salary for Non-Executives: The remuneration commission must comprise All of the individual NEDs. Remuneration for non-executives must be enough to attract and overcompensate superiority persons; additional compensation for chairmanship of the administration or of commissions is satisfactory. Non-executive compensation might be in the form of a yearly fee or in the form of contributions. Exceptionally, if a part of recompense is paid in choices (1) the administration should look for preceding stockholder approval and (2) some shares received by exercising the alternatives must be applied until one year after the non-executive allows the administration. 6.2 Smith analysis Focus: independency of Audit commissions Higgs, like Smith has proposed competitive reforms. Under are certain spotlights from the Smith analysis proposals: Audit commission Make-up: Audit commissions must comprise all of individual members and the industry president must not be an inspect commission member. Expected Skills and Training: On the inspect commission, there should be at least one person having crucial financial experience. Quoting the Smith analysis: At least one person of the inspect commission must have important, recent and crucial financial experience, for instance as an auditor or a finance manager of a listed industry. Additionally, entire audit commission persons must receive a conventional evocation that contains initiation to certain industry staff, leading stockholders, and uniform, ongoing refresher training. Common responsibilities: The audit commission must supervise the unity of the industry statements, reexamine interior financial command schemes and if essential, risk control schemes, and supervise and reexamine the efficiency of the companys interior assessment task. This is still managements, not the inspect commissions, basic irresponsibleness to develop exact, compliant, statements. Responsibilities associated to extrinsic Auditors: The audit commission must make proposals to the administration about engagement of the extrinsic auditor and sanction interrelated remuneration and in terms of appointment, confirm that extrinsic auditors spread out in accordance with United Kingdom guidelines, assure the extrinsic auditor is individual, goal, as well as effectual, and improve and adopt policy about the extrinsic auditors issue of non-audit services. When appraising whether an auditor must offer non-audit services, Smith sets rules to direct audit commissions: An inspect firm must allow no non-audit services if (1) the extrinsic inspector audits its personal firms effort; (2) the extrinsic auditor makes control conclusions for the industry, (3) a mutuality of interest is generated; or (4) the extrinsic advocate considers the character of industry advocate. Meetings of the Audit commission: At minimal, there must be 3 meetings annually, yet almost audit commission presidents will call more. Only persons of the inspect commission are titled to attend the meetings; anyway, other people might be called for attending. It is anticipated that regular invitations will be reached the extrinsic audit guide cooperator and to the finance manager. At least annually, the Audit commission must meet with the extrinsic auditor, without control, to talk about effects rising from the audit. Inspect commissions seeking individual Counsel: the Smith analysis advocates that audit commissions obtain stocks to seek individual counsel when the commission fairly considers it to be essential. Conflict of Views: The inspect commission must analysis to the administration when it is displeased with any factor of the advised financial accounting. Whistle blowing: The audit commission must ascertain that strategies are in place by which staff might confidentially bring up crucial concerns. Secretary of State for operate and corporation observations During Jan 2003, Secretary of State Patricia Hewitt attained a statement to the British House of Commons supporting both the Higgs and the Smith reports. Secretary of State Hewitt denoted reforms to the accounting profession and a leading service of United Kingdom regulative body patterns and duties, to take issue instantly. Namely, the FRC (Financial Reporting Council) will consider the procedures of the accounting Foundation, making a unified, individual United Kingdom regulator with 3 crystallizes characters: Arranging accounting and inspect criteria; Pro-actively imposing and supervising them; and Supervising the self-regulatory specialized organizations. Secretary of State Hewitt as well declared these particular functional alterations: The inspecting Practices administration, not the professional bodies, will now arrange the criteria for independency, objectiveness, as well as unity. The morality criteria Boards will be wound up and a modern professional Supervising administration will be constituted to manage moral criteria. A new individual investigating unit, within the Financial Reporting Council (FRC), will inherit Duty from the professional bodies for supervising inspections of listed industries, leading charities, and pensions; and A research and discipline administration shall be constituted to allow an individual forum for listening common involvement disciplinary cases. Secretary of State Hewitt recognized that statutory alterations might be essential to attain these functional reforms work. 6.4 Law Commission In Sep of 1998, the Law Commission published a report titled corporate director flexible difference of benefit and formulates a report of responsibilities. Divided into 2 divisions, the analysis addressed first with suggested modification to Part X of the industries Act 1985 as well as 2nd with drafting legislating to clear up managers responsibilities. Governing differences of involvements by legal alteration: Summarizing the analysis, the Law Commission urges the holding of most of Part X of the industries Act 1985 yet suggests reversing some divisions. In particular, the Law Commission endorses the up coming alterations: Expanded revelation in a companys yearly accounts about compensation paid to independent managers for loss of office. Bounding the involvements (those which need disclosure) a manager might obtain and introducing civil relieves for non-disclosure. Cutting down from 5 to 3 years the period of a manager service declaration that involves stockholder commendation as well as broadening legal command to rolling declarations. Improving section 320 to grant an industry to harmonize a substantial functionality dealing with a manager by agreement which is dependent on the industry 1st getting stockholder commendation. Broadening loan inhibitions in sections 330-337 to all industries while Continuing the previous exemptions from restrictions; The revoke of some sections, The introduction of a combined code of civil relieves for Part X generally, when Part X gets a restriction or limitation, the Effects of that break must also be sketched in one combined section. 6.4.2 Drafting legislating for managers responsibilities: The analysis suggested developing a statutory assumption of responsibilities allocated by managers to industries. The legal description of a managers responsibility of accomplishment as well as attentions would mirror the double goal/subjective default formulated a section of the Insolvency Act 1986. The realities which a manager of a industry should experience or assure, the Decisions which he ought to accomplish and the steps which he should take are those which would be experienced or assured, or accomplished or adopted, by a moderately persevering individual accepting both the common awareness, skill and receive that may fairly be anticipated of a member accomplishing the equivalent occasions as are accomplished by that manager in relation to the industry, as well as the general awareness, skill and feel that the manager has. It must be note that the managers salary analysis regularizations 2002 came into force during Aug 2002 and improved Part VII (Accounts and inspect) of the Industries Act 1985 to preface two modern necessaries for quoted industries: A responsibility to develop a managers salary analysis for every crucial financial year that: Includes the details needed by the fresh Schedule 7A to the 1985 Act; and follows with the demands of the fresh Schedule 7A as to how that details is begin in the analysis a responsibility to hold a members vote on commendation of that analysis at the industrys common conference before which the industrys yearly accounts for that fiscal year are laid (Section 241A, 1985 Act). If the managers fail to follow with the fresh demands they will be guilty of an infraction under the 1985 Act and be responsible to fines. Schedule 7A states that the managers salary accounts should now include the up coming particulars: disclosures regarding salary policy; information of the earnings commission; the execution graph; information of managers service contracts; and information of managers remuneration. Information of every managers remuneration is subject to inspect whereas the additional issues are not capable to a same inspection. 7. Critical review of suggested REFORMS Of the suggested reforms, the Higgs analysis has drawn within the United Kingdom enterprise community, yet the Smith analysis also suggests altering radically the style in which industries control their interior and extrinsic inspects. This part will precise current advised reforms in the Higgs and Smith analysis and discuss their important. 7.1 The Higgs analysis: Discussion First, it is significant to mention that Derek Higgs has selected to propose alterations to the Combined Code only. He didnt recommend drafting polices, as the Law Commission, which would need complete attachment to his advisable corporate governance reforms. Yet, several in the enterprise community differs that Higgs recommendations will, actually, support corporate governance. A few believe his recommendations could indeed inflict damage on boardroom command and morale. At Least one-half the administration must be individual NEDs. Higgs main suggestion is sweeping. He suggests that the industry administration be constituted of at least half individual NEDs, excluding the Chairman. To fulfill this demand, industry bo Comparison of Corporate Governance in UK and US Comparison of Corporate Governance in UK and US Corporate governance in theory and practice CHAPTER I INTRODUCTION Modern public industry crashes in the United States and the United Kingdom have left a destructive arouse. Regulators over the world are limiting reclaims to develop criteria of corporate governance in common traded industries with the intention of securing against a return of Enron, WorldCom, or Maxwell-style industry fails. While reclaims to corporate governance functionalities are necessary, members of the enterprise community should supervise suggested alterations and conceive their applicable effects to assure that the sound, flexible United Kingdom method to corporate governance isnt helpless. This paper will firstly talk about corporate governance broadly, outlining the trend of United Kingdom Corporate Governance development. Next, this study will enhance the important details of future United Kingdom corporate governance reforms, talking about the advantages, critiques, as well as implications of each. Promoting further, it will also deliberate the relative effects, analyzing similarities as well as dissimilarities in United Kingdom and United States techniques and how particular suggested patterns might affect enterprise. 1.1 Introduction to corporate governance Corporate governance has become an unknown piece of information for business students. Most often it is consolidated as well as mixed up with the substance of morality. Though moral behavior is awaited from all the â€Å"players† who will take part in the corporate governance procedure, and particularly from managers and administrators, corporate governance at its effect is regarding the features of a regulating procedure and not regarding a specified behavioral trait. The modern role of financial scandals taking place in the United States has motivated and regenerated concentration on the corporate governance. In this situation equivalence with UK and US corporate governance will be most informative. 1.2 Defining corporate governance There are a lot of dissimilar definitions when it comes to corporate governance. They all invariably direct the up coming fundamental concept. Corporate governance is the model of polices, patterns, and functionalities that order the communications and relationships with in the suppliers of capital (proprietors), the governing body (the administration or boards in the two-tier scheme), superior directors and different parties that take part to changing grades in the decision making method and are affected by the companys tendencies and enterprise activities. Corporate governance describes their individual characters as well as duties and their power in steering the trend of the industry. According to Calpers, â€Å"Corporate governance is the relationship among several participants in finding out the focus and functioning of industries† In its most limited sense, corporate governance is defined as a style in which a management is manipulated and addressed. To describe corporate governance, it might be essential to clear up what it is not. Corporate governance is distinguishable from the impression of corporate social duty, yet people frequently confuse the two techniques. Corporate sociable duty concerns to a corporations implicit, extrinsic responsibilities to society as altogether, which will include for instance public guard and environmental cares. Alternatively, corporate governance cares with the interior command and focusing of common traded industries only. In the wake of broad profile corporate break down, the modern commercialized corporate culture needs elaboration and clarification of these rules for industries that deal with a lot of trading and, possibly, more standard practices. Thus corporate governance over the world is in an operation of re-definition. Previous United Kingdom patterns of corporate governance have brought about universal rules to steer industries away from fraud, misdirection, as well as lax establishment. Reformed corporate governance patterns will embrace the heavier effects of rising stockholder issues when applying moral, transparent corporation patterns that encourage a great deal of accountability and fairness. To accomplish this objective, United Kingdom corporate governance political theory could shift towards a lot of reactions, rules-based method. Foreign minister Patricia Hewitt vehemently refuses that United Kingdom corporate governance will develop into working in packages. This estimate has converted the United Kingdom enterprise community into dissimilar camps; each have the target of better corporate governance yet all have dissimilar thoughts on choosing the better path. 1.3 EVOLUTION OF CORPORATE GOVERNANCE IN THE US AND UK The United Kingdom has initiated corporate governance reforms, making an episodical model that will build succeeding renewals. Prompted by the Maxwell pension scandal during the nineties, governance authorized investigators to enquire the corporate governance measures of the UK and to suggest directions that will reinforce the scheme. Initiations laid in the year 1992, the Cadbury study, the 1995 Green bury study, and the 1998 Hampel study ensued the Combined Code protocols which maintain superior governance. The Code, which enforces the United Kingdom industries, sets out the broadly recognized comply-or-explain philosophy of corporate governance encourages transparency, a good deal of responsibility, fairness. Industries named on the London Stock Exchange in the Alternative Investment Market also called the AIM are not demanded to follow with the Combined Code, yet they are promoted. The modern Higgs and Smith studies direct to improve the Combined Code which is still considered ad ditional, anticipating for non-executive managers to take on a lot of corporate leading responsibility and to supervise keenly the auditor actions. The DTI (Department of Trade and Industry) at first recommended both the Higgs as well as the Smith studies and, after yielding some recommendations, will probably endorse their internalization into the Combined Code. The Department of Trade and Industry has also declared projects beyond Higgs and Smith to reconstitute the United Kingdom accounting profession and to enforce a great service of United Kingdom regulative body patterns and duties, which will consider effect immediately. Heavy-handed amendments to the illegal attaching Combined Code are not the final stage of suggested United Kingdom reforms; legislative activity might also be on the view. The United Kingdom Law Commission has suggested outlining legal assumptions of managers duties as well as improving Part X of the industries Act to speculate stricter corporate governance c riteria. The section of Trade and Industrys Steering Group published the industry legal philosophy Review during 1999 which endorses the Law Commissions locating on corporate governance reforms. The industry legal philosophy reviews the formally titled Modern Company Law for the competing economic system: the strategic model, appraised core industry and their legal philosophy and recommended reinforcement and clarification of the legal philosophy with reference to managers responsibilities. EVOLUTION OF COPORATE GOVERNANCE IN UNITED STATES In the 19th century, state corporation laws increased the rights of corporate control boards to regulate without unanimous consent of shareowners in an interchange for legal advantages like estimation rights, to establish corporate governance in a more effective manner. In that period, most of the large publicly distributed corporations in the United States are incorporated with in the management favorable to the Delaware law, and because the United States wealth has been increasingly secured into several corporate entities and origins, the rights of independent proprietors and shareowners have to get more and more derived and dissipated. The concerns of shareowners over management stock closings periodically have guided to more regular demands for corporate governance reforms. In the middle of the 20th century during the immediate aftermath of the Wall St. crash of 1929 valid scholars such as Adolph Augustus Barley, Edwin Dodd, and Gardiner C. Denotes pondered on the modifying functions of the new corporate governance in society. Barley and Means monograph â€Å"The Modern Corporation as well as Private Property (1932, Macmillan) continues to own a fundamental power on the design of corporate governance in scholarly debates nowadays. United States expanding after the Second World War through the growth of multinational corporations found the organization of the managerial class. Accordingly, the next Harvard Business School management professors released the influential monographs analyzing their prominence: According to Lorsch as well as MacIver several major corporations have leading control for all over enterprise functions without sufficient accountability or supervision by their board of managing directors. Since the previous 1970s, corporate governance has been the issue of important argument in the United States. Around the world, bold and broad attempts to reclaim corporate governance have followed to be driven in a function, by the requirements as well as hopes of shareholders to use their rights of corporate ownership as well as to gain the prize of their shares as well as, therefore, wealth. Over the past three decades, corporate managing directors duties have built up greatly beyond their traditional legal duties of loyalty to the corporation as well as its shareholders. 4. THE COMBINED CODE In its present form, the Combined Code about industries demonstrates the rules of effective establishment presented under. The entire Combined Code also presents elaborated and crystal clear pattern guidelines. If common industries dont follow these codes, they should explain or clarify their position. Directors In the Board each and every industry must be headed by an effectual administration which must extend and control the industry. Chairman and chief executive officer There are 2 significant tasks at the top of each common industry the operation of the entire administration as well as the administrator duty in order to lead of the company. There must be a clean segmentation of the duties at the guide of the industry which will assure a good influence as well as authority, such that no one person has the power of breaking the rules pertaining to the corporation. Administration Balance The administration must include a balance of administrator as well as non-executive managers such that no independent or little group of persons can command the boards conclusion. Provision of details The administration must be furnished in a seasonable fashion with details in a form and of a quality suitable to enable it to dispatch its responsibilities. Engagements to the administration There must be a conventional and clear subroutine for the engagement of new managers to the administration. Re-election All managers must be expected to submit themselves for re-election at steady period of time and at least every 3 years. 4.1.2 Managers Remuneration The grade and Make-up of Remuneration Grades of remuneration must be enough to attract as well as continue the managers wanted to run the industry effectively, but industries must neglect paying more than is essential for this intention. A balance of executives remuneration must be organized so as to connect rewards to corporate and independent execution. Procedure Industries must build a conventional as well as clear process for building up policy on administrator salary as well as for fixing the salary packages of independent managers. No manager must be implied in choosing his or her personal salary. Disclosure The companys yearly report must include an assumption of salary policy and information of the salary of every manager. 4.1.3 Relations with stockholders Negotiation with Institutional stockholders Industries must be prepared, where practical, to get in to a negotiation with institutional stockholders depends upon the mutual agreement of aims. Constructive purpose of the annual general meeting Boards must exercise the annual general meeting to interact with individual investors as well as promote their involvement. 4.1.4 Answerability and inspect Financial accounting The administration must represent a stable as well as comprehendible appraisal of the companys status and aspects. Internal command The administration must preserve a healthy scheme of interior command to guard stockholders investing and the companys assets. Inspect commission as well as Auditors The administration must build conventional as well as clear agreements for believing how they must enforce the financial accounting as well as interior command rules and for asserting an appropriate association with the companys auditors. 4.2 Section 2 institutionalized stockholders 4.2.1 institutionalized Investors Stockholder Voting Institutionalized stockholders have a responsible ness to attain considered utilization of their voting. Negotiation with industries Institutionalized stockholders must be prepared, where practical, to enter into a dialog with industries depends upon the mutual affection of targets. Valuation of governing revelations When appraising industries establishment agreements, specifically those concerning to administration system as well as composition, institutionalized investors must give due weight to all crucial aspects drawn to their care. 5. THE INFLUENCE OF COMPLY-OR-EXPLAIN This philosophy could be a really efficient tool, if applied correctly. United Kingdom corporate governance patterns are built upon the assumption that one size doesnt suit all industries, like people, have different personalities which demand various techniques. Yet, for the philosophy of comply-or-explain to act as it was designated, both public industries as well as their stockholders should actively meet their portions. For instance, if a hard, well-performing industry selects to refuse Higgs recommendations and proceed, for example, with a joint chief executive officer or Chairman, it might do so with a complete explanation. Higgs promotes industries to take the path that is finest for them, if stockholders are sufficiently proposed. Stockholders must weigh the companys explanations as well as determine whether these differences from the Combined Code are rationalized. Yet some critics claim that major institutionalized stockholders striving for easiness as well as effectiveness wish to mark boxes as opposing to exploring the advantages of the road less traveled. They say institutionalized investors balance a deep range and continuing on peak of a lot of industries defluxions might be very heavy. This uninterested, time-driven stockholder attitude, if true, can effort struggles with the British pattern of organized establishment, which allows industries to attain their personal determinations, as opposing to sturdy them to compulsory rules. Comply-or explain permits industries the versatility to explain why defluxions from the named better exercise functionalities might be better for their specified context, resulting in broader benefits for their stockholders. To profit from this regardful scope, industries have to have the courageousness to change from the Combined Code as well as stockholders should take the valuable period to listen as well as sanction, where suitable. Multiple listed industries might be influenced to hurry into compliance with the altered Combined Code, after the internalization of the Higgs as well as Smith themes, to placate stockholders, regulators, and the mass mediums. One should firstly asses the company, the industry culture and functioning, and the stockholder mood when reflecting defluxion. There is a solid temptation to notify customers to follow. Yet, if industries select to comply very quickly as well as defluxions become progressively uncommon and therefore subject to deep examination, it will become little satisfactory to deflect in the future. So, we might successfully lose the right to deflect. Therefore, even though company observance is very much in development United Kingdom industries should not forget that they still have the influence of the comply-or-explain philosophy. On the other part of the Atlantic, Sarbanes-Oxley reforms havent yielded United States industries this respect or versatility. United States industries that deflect from corporate governance reforms are in break of protections regularizations. In the United Kingdom, we should utilize this right of versatility successfully to maintain it. 6. PROPOSED UK REFORMS Some of the key points present in 4 various sets of United Kingdom corporate governance suggested reforms set out through: (1) the Higgs theme, (2) the Smith study, (3) the desk of State for job and company, and (4) the Law Commission proposals. Numerous points present in each will possibly take effect earlier to the end at the year of 2003. A complete discussion of the advantages, critique as well as deductions of several of these suggestions is talked over in later. 6.1 Higgs Analysis Focus: Analysis of the function and efficiency of non-executive managers The Higgs analysis sets out better exercise for administration building as well as proposes mechanisms and behaviors to secure the correct people to fulfill non-executive places. Commonly, Higgs recommends that non-executive managers are a lot of actively involved in organized supervision through asking hard inquiries and requiring truthful replies. At beginning, Higgs recommendations experienced a warm invite in the United Kingdom, yet opposition to certain points has attained momentum. Key Higgs recommendations include: Administration Make-up: The most of the administration must be incorporated of non-executive individual managers (individual NEDs). Commission Make-up: All members of inspect as well as salary commissions must be individual, as must a most of the nomination commission. Further, an individual NED, not the president, must lead the nomination commission. Refined description of independency: Higgs commends advancing the measure to fulfill test of independency. The modern suggested definition expresses that a non-executive manager is assumed individual if he is individual in character as well as judgment and there are no relationships or conditions which may impact, or come out to affect, the managers opinion. Inhibition of joint chief executive officer or president: These characters should be different, isolated, and controlled by two various persons. The president should be individual at the period of engagement and a CEO must not later become president of the same industry after stepping down. Senior individual manager: The present Combined Code already proposes that Nominating a senior individual manager, yet Higgs plans to gain the senior individual managers duties. Higgs proposes that industries build up the character of the senior individual manager so that he is available to stockholders if concerns havent been directed via normal communications of interaction with the president or CEO. Separate NED meetings: Non-executive managers must fulfill without the president or the executives annually. These meetings are to be moderated by the senior individual manager. Nomination commission: The administration nomination commission must include across one-half individual NEDs as well as be moderated by an individual. Higgs also commends activities to extend the certified prospect pool of individual NEDs by tapping both individual industries and the common division and by actively attempting out qualified women and international nominees. Laura Tyson, of the London Business School, directs a governance commission directing to improve functionalities that will support industries recruit qualified individual non-executive manager nominees from the uncommercialized division. Research and generalization: preceding to engagement, modern non-executive managers must execute anticipated application of the administration and the industry to build their personal suitableness for the character. Following engagement, all fresh non-executive appointments must go through a conventional evocation procedure to familiarize themselves with the administration, the industry, and their modern functions. This procedure permits fresh non-executives to assess their own capableness in light of the task demands. Tenure: The default tenure for a non-executive manager must be two three-year conditions. Longer conditions will be acceptable sometimes, if for good cause. Boundaries on Directorships: A regular administrator shouldnt acquire extra non-executive directorship nor must he become president of a leading industry. Persons must not lead the administration of more than one leading industry simultaneously. Salary for Non-Executives: The remuneration commission must comprise All of the individual NEDs. Remuneration for non-executives must be enough to attract and overcompensate superiority persons; additional compensation for chairmanship of the administration or of commissions is satisfactory. Non-executive compensation might be in the form of a yearly fee or in the form of contributions. Exceptionally, if a part of recompense is paid in choices (1) the administration should look for preceding stockholder approval and (2) some shares received by exercising the alternatives must be applied until one year after the non-executive allows the administration. 6.2 Smith analysis Focus: independency of Audit commissions Higgs, like Smith has proposed competitive reforms. Under are certain spotlights from the Smith analysis proposals: Audit commission Make-up: Audit commissions must comprise all of individual members and the industry president must not be an inspect commission member. Expected Skills and Training: On the inspect commission, there should be at least one person having crucial financial experience. Quoting the Smith analysis: At least one person of the inspect commission must have important, recent and crucial financial experience, for instance as an auditor or a finance manager of a listed industry. Additionally, entire audit commission persons must receive a conventional evocation that contains initiation to certain industry staff, leading stockholders, and uniform, ongoing refresher training. Common responsibilities: The audit commission must supervise the unity of the industry statements, reexamine interior financial command schemes and if essential, risk control schemes, and supervise and reexamine the efficiency of the companys interior assessment task. This is still managements, not the inspect commissions, basic irresponsibleness to develop exact, compliant, statements. Responsibilities associated to extrinsic Auditors: The audit commission must make proposals to the administration about engagement of the extrinsic auditor and sanction interrelated remuneration and in terms of appointment, confirm that extrinsic auditors spread out in accordance with United Kingdom guidelines, assure the extrinsic auditor is individual, goal, as well as effectual, and improve and adopt policy about the extrinsic auditors issue of non-audit services. When appraising whether an auditor must offer non-audit services, Smith sets rules to direct audit commissions: An inspect firm must allow no non-audit services if (1) the extrinsic inspector audits its personal firms effort; (2) the extrinsic auditor makes control conclusions for the industry, (3) a mutuality of interest is generated; or (4) the extrinsic advocate considers the character of industry advocate. Meetings of the Audit commission: At minimal, there must be 3 meetings annually, yet almost audit commission presidents will call more. Only persons of the inspect commission are titled to attend the meetings; anyway, other people might be called for attending. It is anticipated that regular invitations will be reached the extrinsic audit guide cooperator and to the finance manager. At least annually, the Audit commission must meet with the extrinsic auditor, without control, to talk about effects rising from the audit. Inspect commissions seeking individual Counsel: the Smith analysis advocates that audit commissions obtain stocks to seek individual counsel when the commission fairly considers it to be essential. Conflict of Views: The inspect commission must analysis to the administration when it is displeased with any factor of the advised financial accounting. Whistle blowing: The audit commission must ascertain that strategies are in place by which staff might confidentially bring up crucial concerns. Secretary of State for operate and corporation observations During Jan 2003, Secretary of State Patricia Hewitt attained a statement to the British House of Commons supporting both the Higgs and the Smith reports. Secretary of State Hewitt denoted reforms to the accounting profession and a leading service of United Kingdom regulative body patterns and duties, to take issue instantly. Namely, the FRC (Financial Reporting Council) will consider the procedures of the accounting Foundation, making a unified, individual United Kingdom regulator with 3 crystallizes characters: Arranging accounting and inspect criteria; Pro-actively imposing and supervising them; and Supervising the self-regulatory specialized organizations. Secretary of State Hewitt as well declared these particular functional alterations: The inspecting Practices administration, not the professional bodies, will now arrange the criteria for independency, objectiveness, as well as unity. The morality criteria Boards will be wound up and a modern professional Supervising administration will be constituted to manage moral criteria. A new individual investigating unit, within the Financial Reporting Council (FRC), will inherit Duty from the professional bodies for supervising inspections of listed industries, leading charities, and pensions; and A research and discipline administration shall be constituted to allow an individual forum for listening common involvement disciplinary cases. Secretary of State Hewitt recognized that statutory alterations might be essential to attain these functional reforms work. 6.4 Law Commission In Sep of 1998, the Law Commission published a report titled corporate director flexible difference of benefit and formulates a report of responsibilities. Divided into 2 divisions, the analysis addressed first with suggested modification to Part X of the industries Act 1985 as well as 2nd with drafting legislating to clear up managers responsibilities. Governing differences of involvements by legal alteration: Summarizing the analysis, the Law Commission urges the holding of most of Part X of the industries Act 1985 yet suggests reversing some divisions. In particular, the Law Commission endorses the up coming alterations: Expanded revelation in a companys yearly accounts about compensation paid to independent managers for loss of office. Bounding the involvements (those which need disclosure) a manager might obtain and introducing civil relieves for non-disclosure. Cutting down from 5 to 3 years the period of a manager service declaration that involves stockholder commendation as well as broadening legal command to rolling declarations. Improving section 320 to grant an industry to harmonize a substantial functionality dealing with a manager by agreement which is dependent on the industry 1st getting stockholder commendation. Broadening loan inhibitions in sections 330-337 to all industries while Continuing the previous exemptions from restrictions; The revoke of some sections, The introduction of a combined code of civil relieves for Part X generally, when Part X gets a restriction or limitation, the Effects of that break must also be sketched in one combined section. 6.4.2 Drafting legislating for managers responsibilities: The analysis suggested developing a statutory assumption of responsibilities allocated by managers to industries. The legal description of a managers responsibility of accomplishment as well as attentions would mirror the double goal/subjective default formulated a section of the Insolvency Act 1986. The realities which a manager of a industry should experience or assure, the Decisions which he ought to accomplish and the steps which he should take are those which would be experienced or assured, or accomplished or adopted, by a moderately persevering individual accepting both the common awareness, skill and receive that may fairly be anticipated of a member accomplishing the equivalent occasions as are accomplished by that manager in relation to the industry, as well as the general awareness, skill and feel that the manager has. It must be note that the managers salary analysis regularizations 2002 came into force during Aug 2002 and improved Part VII (Accounts and inspect) of the Industries Act 1985 to preface two modern necessaries for quoted industries: A responsibility to develop a managers salary analysis for every crucial financial year that: Includes the details needed by the fresh Schedule 7A to the 1985 Act; and follows with the demands of the fresh Schedule 7A as to how that details is begin in the analysis a responsibility to hold a members vote on commendation of that analysis at the industrys common conference before which the industrys yearly accounts for that fiscal year are laid (Section 241A, 1985 Act). If the managers fail to follow with the fresh demands they will be guilty of an infraction under the 1985 Act and be responsible to fines. Schedule 7A states that the managers salary accounts should now include the up coming particulars: disclosures regarding salary policy; information of the earnings commission; the execution graph; information of managers service contracts; and information of managers remuneration. Information of every managers remuneration is subject to inspect whereas the additional issues are not capable to a same inspection. 7. Critical review of suggested REFORMS Of the suggested reforms, the Higgs analysis has drawn within the United Kingdom enterprise community, yet the Smith analysis also suggests altering radically the style in which industries control their interior and extrinsic inspects. This part will precise current advised reforms in the Higgs and Smith analysis and discuss their important. 7.1 The Higgs analysis: Discussion First, it is significant to mention that Derek Higgs has selected to propose alterations to the Combined Code only. He didnt recommend drafting polices, as the Law Commission, which would need complete attachment to his advisable corporate governance reforms. Yet, several in the enterprise community differs that Higgs recommendations will, actually, support corporate governance. A few believe his recommendations could indeed inflict damage on boardroom command and morale. At Least one-half the administration must be individual NEDs. Higgs main suggestion is sweeping. He suggests that the industry administration be constituted of at least half individual NEDs, excluding the Chairman. To fulfill this demand, industry bo

The State And The Nation

The State And The Nation Although the two terms state and nation have different meanings they tend to be used interchangeably and identically bringing confusion to the use of the terms both in intellectual and popular discourse. The terms state means a legal and political entity while the term nation denotes a group of people that share common characteristics such as language, religion and ethnicityà ¢Ã¢â€š ¬Ã‚ ¦ In spite of the difference between the two concepts of nation and state, the two terms tend to overlap due to many reasons mainly the advent of nationalism, Wilson fourteenth point which made the nation-state an ideal form of government and the aspiration to be a nation-state. This research paper will analyze the difference between the two concepts and the reasons behind the confusion about the two terms. The first part is devoted to the difference between nation and state by giving their definitions and the second part deals with reasons behind the confusion between the two terms. Before analyzing the difference between the state and the nation, the two terms need to be defined. First, the state is a legal and political entity that has five geographical components: territory, population, government, organized economy and a circulation system in addition to two political components: sovereignty and recognition. (Glassner and Fahrer, 31-32). Second, The etymology of the word nation as a Latin word natio means birth or descent' (Schulze,99), foreigners that are inferior to Romans, it also means a group of university students. The modern use of the word nation started in the 16 century to mean a group of people that share unified characteristics. (Visvanathan, 533) According to Hagen Schulze, the nation is a state of mind, a community that exists as long as it is willed and lives in the hearts and minds of its members and which perishes when it no longer exists in their thoughts and aspirationsà ¢Ã¢â€š ¬Ã‚ ¦Nations come to know themselves through their common his toryà ¢Ã¢â€š ¬Ã‚ ¦ (99). According to those two definitions we can discern many differences between the nation and state. First, the state has many tangible components such as territory and population while the term nation is merely based on ideas and concepts that run the risk of disappearing if no one believes in them. In addition, unlike the nation, whereby the link between its nationals is a moral one: religious, linguistic, ethnicà ¢Ã¢â€š ¬Ã‚ ¦the relation between the state and its citizen is a legal one that is channeled through institutions. Second, the state is a legal entity that has authority, a government that represents its citizens and needs both the five geographical and the two political components to be recognized as a state. While the nation is rather an invention (Visvanathan, 533), that is based on history that is modified to serve the purpose of the nation even if it never existed as long as it serves the purpose of uniting people, this means usually turning such negative events in histo ry into positive ones. For instance, the state of Israel used the siege of Masada as a symbol for the glorification of the Jewish nation during their battle against the roman whereby many Jews preferred to commit suicide instead of succumbing to the Romans. Although historical and scientific research shows remains of pigs in the area, a fact which stains the event as it used to glorify people who adhere to Jewish law. Basically history is used selectively by any nation to advance its agenda (Gelvin ,6-9). Besides, it is not conditioned for a community to belong to a nation based on the entire cultural characteristics, sometimes one feature is enough. For instance, the concept of the Israel as a nation is based on religion while language and culture did not matter during its construction. While for the Kurds it is based language and ethnicity. Finally, since a nation needs only one common binding point between its community and the state needs rigid requirements, there are more natio ns than state to the extent that there are multinational states mostly administered through federal system such as Russia and India. Definition of the Nation State The term nation-state was invented to mark the homogeneity of a state in terms of having one unified nation. This term is going to meet problems as it A nation-state has been a mythical goal, often sought, but never fully achieved (Walby, 532) due to its impracticality. According to Saadia Toor The nation-state is a particular form of representative state, wherein it is assumed that the people who live within the territorial boundaries of a state are members of a unified community-a nation-whose corporate interests the state represents. (187) this term is popular among ruling elite and those who espouse to rule as it is The ideal composite of rule and its legitimacy in the contemporary world, (Saadia Toor, 187) For instance, the country of France needs legitimacy. This term brought a problem of making this type of state being sought by any nation in the world as term denotes that Each nation had a right to its own state (Saadia Toor, 188) The Reasons behind the Confusion between the Two Terms First, According to Weber since the nation means a community of sentiment which normally tends to produce a state of its own, (Reis, 252) therefore it is the nation (that) tends to create state (Reis, 252) the basis of this argument lies on the German nation building in which the state was built from the bottom. Even Marcel Maus defined the state as: society integrated in material and moral terms, with a stable and permanent central power, fixed frontiers, and a relatively stable moral, mental and cultural unity among the inhabitants who consciously respect the state and abide by its laws. (Reis, 253) The reasons behind this confusion between the state and the nation is due to the shared space which is regarded by the nation as a homeland and the state is a basis of territory upon it sovereignty lies. Another major source of perplexity in the use of the term lies in the concept of self determination which was brought by the fourteens point of Wilson to denote the right of any nation to have its state therefore the two terms became two faces of one coin. Furthermore, even the use of the word United Nations and league of nation before WWII creates confusion in the use of the term nation to mean a state. The use of the term nation in the UN is ironic because the organization is composed of states instead of nations. Nationalism brought together to be two faces of the same coin and an ideal form of government as it stated by Ernest Gellner Nationalism holds that they (nation and state) were destined for each other; that either without the other is incomplete, and constitutes a tragedy. But before they could become intended for each other, each of them had to emerge, and their emergence was independent and contingent. The state has certainly emerged without the help of the nation. Some nations have certainly emerged without the blessings, of their own state (6). Moreover, the emergence of nationalism after the American Revolution and French revolution brought an upheaval to the territorial state as it tightened the relation between state and society (Axtmann, 260). Before the two revolution, population used to pay allegiance to religious communities and dynastic realms but with the coming of the age of enlightenment people found nationalism to be a new way to be attached to their community and thi s brought the idea of the nation state as The ideal composite of rule and its legitimacy in the contemporary world (Toor, 187), which in its way brought confusion to the use of the two terms. Second, another important source of confusion is due to the fact that nation is becoming an important possession that any human being should have as it is stated by Ernest Gellner Having a nation is not an inherent attribute of humanity, but it has now come to appear as such (6). And regarding the date the state predates the nation even though the term exited for a long time because the modern meaning of the nation came into being only in the 16th century. In fact the A nation-state has been a mythical goal, often sought, but never fully achieved (Walby, 532), to the extent that even the countries currently hold to be nation-states are not homogenous for instance, one of the most insular country Japan has a minority of Ainu in Hokkaido as well as a different language spoken in Okinawa island, France has both ancient and new minorities and even Bangladesh which considered one of the most homogenous countries in earth in terms of religion has a Christian minority in Chittagong. Third, one of the reasons behind the confusion between the two terms has two with some shared characteristics between the two. For instance, as it is stated by Christopher Pierson: nations reflect claims of sovereignty at a particular level (not local, not cosmopolitan). They reflect the formalization of borders and the importance of a shared legal apparatus. They also evoke elements of the citizenship side of the modern state: rights shared within a particular community, authority deriving from the will of the sovereign people, the state as an expression of this collective will and so on (48). The example of Pakistan prior to the cessation of Bangladesh exemplifies states that regard themselves as nation-states in which the integrity-and indeed authenticity-of a nation-state were dependent on the existence of a bounded and unitary national culture, of which language was a crucial part (Toor, 186), which means complete disregard for the cultures of minorities that live in the country mainly the Bengalis, the same can be said regarding the Kurds in Turkey that were obliged to assimilate into the nation of Turkey Conclusion To conclude, the terms nation and state tend to be used interchangeably in spite of their different difference due to the belief in the right of each nation to have a state enforced by such concept as nationalism and self determinism.