Impact of BIM on Construction

Impact of BIM on Construction Building Information Modelling is certainly beginning to change the way the building looks and the way they function. This implementation of BIM has taken the construction industry into a new-era where all processes has fasten up, the benefits are not just time and cost savings but also reduction of risks and uncertain in construction process. From the through literature review of many researchers works published in various journals suggestions are being made as how this BIM approach is being carried out in construction industry, at the same time a critical literature review is also being conducted on the cost estimation within BIM technologies and whether this can benefit or harm the future role of the quantity surveyor. A questionnaire was designed to identify how the use of BIM will affect the future role quantity surveyor. The questionnaires were distributed to construction professionals within UK. From the analysis of the results obtained and comparing them with the literature review it is very clear that the construction industry is lagging in implementing e-procurement approach when compared to other industries and having realizing the potential benefits the BIM is being offering in various fields of construction industry the construction professionals are very much confident that BIM approach can enhance the procurement process and were also looking forward to implement this type of approach into their projects which makes room for bringing the whole project under a single platform Contents 1.0 Introduction The following research will investigate and analysis how the use of BIM will affect the future role of the quantity surveyor. According to the Royal Institute of British Architects RIBA (2012), almost a third of construction consultants are now using BIM .Thenbs (2011) provided information that in May 2011 UK Government Chief Construction Adviser Paul Morrell called for BIM adoption on UK government construction projects of  £5million and over. Thenbs (2012) provide information that Building Information Modelling covers geometry, spatial relationships, light analysis, geographic information, quantities and properties of building components. BIM data can be used to illustrate the entire building life cycle. quantities and properties of materials can be extracted easily and the scope of works can be easily defined. Furthermore systems, assemblies and sequences can be shown in a relative scale to each other and relative to the entire project. 1.2 Problem identification and purpose of study The main role of Quantity Surveyors is to estimate the building cost the modern quantity surveyor provides a service that covers all aspects of procurement, contractual and project cost management. The role of the quantity surveyor plays a very important role in all phases of any type of Construction Company  estimators have developed their computing skills in using estimating systems but mostly relying in adopting spread sheets and database ages(EstimatingTendering book) I believe there is still a market for large databases and standardized items (connections, assembly options) that can assist in the bill production phase. Repository (2012) stated that over the years the need for more cost effective, better quality and environmentally friendlier construction has grown, these factors are the main Influences on the development of technology in the construction industry. Building Information Modelling (BIM) is one of the technologies that have been creating a buzz in the construction industry over the last few years. Ukconstructionessays (2012) provided information that Building Information Modelling, or better known as BIM is not; strictly speaking a new technology as it has been developing and used by other industry sectors since 1950s i.e. the automotive and aero plane industries. As technology evolves, we are forced to evolve with it or run the risk of being left behind. The traditional way of utilising the services of a quantity surveyor has largely been at the stage of costing a design, and the production of procurement and construction documentation (Asworth and Hogg, 2002). With the development of technology like BIM, the responsibilities of professionals are starting to shift. BIM includes a series of cost management functions that could change the processes of cost management of construction projects. This forces the quantity surveyor to focus more on different parts of the cost management process, than what would have previously. Not only will BIM influence the cost management functions and responsibilities of the quantity surveyor, but also the technology and types of software that are currently used in quantity surveying offices. 1.5 structure of the dissertation The whole dissertation is primarily divided up into 6 chapters Chapter 1: Introduction Chapter 2: Literature review Chapter 3: Research Methodology Chapter 4: Analysis Discussions Chapter 5: Conclusion Recommendations Chapter 6: References 1.6 Aims Objectives Aim: The objective of this dissertation is to identify if the use of BIM in the construction industry is going to affect the future role of the quantity surveyor. Objectives: To understand what is BIM To Research into whether BIM will help aid the Quantity Surveyor To Research into whether BIM will affect the role of the Quantity surveyor To summarise, analyse and evaluate the data collected in order analyse how the use of BIM will affect the future role of the quantity surveyor. Critically analyse the data collected from these questionnaires by comparing theoretical conclusions with the empirical research findings to draw conclusions. To prepare a questionnaire to collect data from practitioners within the construction industry in the UK in regards to whether the use of BIM will affect the future role of quantity surveyor. Clear objectives are important to determine whether this study is achieving what it set out to do. It is also important to write program objectives as specifically as possible to provide program clarity and strong links to evaluation. It is much easier to evaluate a program when clear objectives have been developed my peer (2012). 1.7 Restraints Limitations The main restraint is the access and use of BIM software as a full time student I do not have access to BIM software within the construction industry or at the university. Archicad or Autodesk will need to be used to understand fully what BIM is and how it works; a student version can be downloaded online. The research will involve the use of academic materials such as textbooks, journals, published and unpublished documents and internet sites. The data analysis will be carried out by sending out questionnaires to a range of construction professionals working within a Birmingham consultancy, and the results presented in bar charts and analysed after. Another restraint is how many people answer and return the questionnaire, the more people that answer the questionnaire will be beneficial within the analysis as a greater number of people will give much more accurate results. Many of the potential individuals who will carry out the questionnaire may have busy schedules so research must be taken into ensuring that questions are suitable and are able to draw suitable responses from at the end. It will be hard to measure how many construction companies currently use BIM and whether It is having an effect on the role of quantity surveyors working within the construction industry as there isnt enough time to gather research from every construction around the UK .Throughout the study an open mind will be maintained whilst undertaking the research and analysis of the data collected. 1.8 Research Beneficiaries / Dissemination This research will be useful into identifying whether the use of BIM will affect the future role of the quantity surveyor or aid the future role of the quantity surveyor. And to also identify what specific ways the quantity surveyor may benefit from using BIM and in what specific ways the quantity surveyor may be affected by the use of BIM in the future. Other categories to benefit from this research include the researcher, students and academics. By undertaking this research companies and people working within the construction industry can have a better understanding on the use of BIM approach and how it can be implemented within the cost estimation stage of a project and also into different phases of a project and the views of other professionals working within the UK construction industry on this application can be found and thus can implement that application effectively for the success of the project. 2.0 Literature review 2.1 Introduction: In this chapter 2 of literature review, a critical literature has been conducted about how the use of BIM can aid the role of quantity surveyor and how BIM may be a threat to the future role of the quantity surveyor. 2.2 Building Information modelling Constructionbusinessowner (2012) provided information that BIM allows early collaboration and integration of the design information in a 3-D environment programs are widely used in the early stages to eliminate potential issues that would be costly to rectify in the field. All parties involved benefit. Designers can identify and correct design issues before they result in rework and schedule delays. Contractors have more reliable information and can better plan for equipment use and construction sequencing. Owners can walk the project in a 3-D environment during the design. And facility managers can pinpoint ergonomic issues and plan maintenance activities more efficiently by sharing the model with their vendors and contractors. BIM will only benefit users if it leads to improved design, faster delivery, reduced price or improved value. A combination of these factors will dictate how successful BIM implementation will be in the coming years. When all members of the construction team work on the same model, from early design through to completion, changes are automatically coordinated across the project and information generated is therefore of high quality. The construction industry is widely acknowledged as unique and conservative. Building Information Modelling (BIM) systems have the potential to revolutionize current practices and to automate the measurement of quantities from construction drawings. However, there are fears that such developments could threaten the future role of the quantity surveyor. 2.3 Advantages of BIM The application of BIM has the result of many advantages, such as: Greater speed The multi-dimensionality of BIM allows various deliverables and documentation to be prepared simultaneously to the design of the building. Furthermore, the use of object-oriented design and the re-use of information accelerate the creation of drawings (Ashcraft, 2007). Changes made to a certain aspect of the model or the design will be automatically updated through the rest of the project, which allows for major time savings. Lower costs Sabol (2012) provided information that BIM offers the capability to generate take-offs, counts and measurements directly from a model. This provides a process where information stays consistent throughout the project and changes can be readily accommodated. Building information modelling supports the full project lifecycle and offers the capability to integrate costing efforts throughout all project phases. According to chuck Eastman (2011) at any stage of the design, BIM technology can extract an accurate bill of quantities and spaces that can be used for cost estimation. Cost estimating is currently a time consuming process, requiring an entire team of estimators. Acebytes (2012) provided information that there are multiple factors hindering the transition to model-based estimating; however, the risks are justified by the benefits of estimating with BIM. Building Information Modelling has the capability to automate a quantity take-off, which will reduce the time and costs required to estimate a project. By using a building information model instead of drawings; the take offs, counts, and measurements can be generated directly from the underlying model and the information can be linked to generate bills of materials, size and area estimations along with other related estimating information. According to Hardin (2009) another strategy for leveraging BIM during a project is to use the BIM file for updating estimates very quickly, last minute design changes can be altered and updated much more quickly than typical take off methodologies can catch up with . Disadvantages of BIM Precisedraftunginc (2012) provided information that BIM requires more effort at the front end of a project to establish the initial framework. But the payoff is that you are able to extract a much higher quality and greater quantity of information from that model. BIM allows changes to happen easily, so clients may continue to make changes too late in the process, and that can impact construction and design costs. BIM results in much larger file sizes than traditional CAD systems, and requires higher performing computer hardware to operate it effectively. BIM requires more thoughtful design. We now have to do what all good designers have done in the past: Think in 3d and visualize the final product! 3.0 Research Methodology A Quantitative research methodology will be used. According to Shamil Naoum, (2006 p.g39) quantitative research is based on a hypothesis or a theory composed of a variable measured and analysed with statistical procedures. Quantitative research enables the author to measure and analyse data. Benefitof (2012) provided information that the relationship between an independent and dependent variable is studied in detail. The use of standard means in quantitative research means that any research may be replicated, analysed and also compared with other similar studies. Quantitative research allows for greater accuracy and objectivity of results gained .Quantitative research usually filters out all external factors and if well designed, it provides unbiased and real results. Quantitative research is a great method to finalise results and disprove or prove a hypothesis. It is useful for testing results gotten from doing various qualitative experiments, thereby leading to the final answer. Qu antitative Research will provide the advantage of finding a premeditated set of result from a range of professionals in the construction industry. The main strengths of quantitative data collection: Numeric estimates Opportunity for relatively uncomplicated data analysis Data which are verifiable Data which are comparable between different communities within different locations Data which do not require analytical judgement beyond consideration of how information will be presented in the dissemination process. The Weaknesses of quantitative data collection: Gaps in information issues which are not included in the questionnaire, or secondary data checklist, will not be included in the analysis A labour intensive data collection process Limited participation by affected persons in the content of the questions or direction of the information collection process. (Reliefweb 2012) A Questionnaire will be produced to obtain data. Statpac (2012) provided information that Questionnaires are very cost effective when compared to face-to-face interviews. Questionnaires are easy to analyse, they are familiar to most people. They are less are less intrusive than telephone or face-to-face surveys. The results from the questionnaires will then be produced into bar charts and analysed. The questionaries will be sent by letter to a construction consultancy in Birmingham Rider Levett Bucknall in which I gained work experience with in 2011. Questionnaires will also be sent out to a number of Contractors within the west midlands area this will aid within the analysis as the research will be gained by both contractor and consultants and a deeper and more accurate conclusion will be gained at the end of the study. The nature of the data required will be based on personal opinion from a range of construction professionals working within a construction consultancy and a construction contractor. 4.0 Results 4.1 Introduction This chapter is mainly intended to cover the results in detail from the questionnaire sent to the various construction professionals within the UK in a statistical format by making use of Excel and MS Word. The questionnaire data has been broke down critically by representing in graphs and tables. 4.2 Results Explanation The questionnaire has been distributed to 79 construction professionals through email. Out of these 79 questionnaires 37 complete responses have been obtained and 13 responses were incomplete responses. Sample Size originally distributed = 79 Response received (complete response) = 37 No: of incomplete Responses = 5.0 Discussion of Results 6.0 Conclusion and Recommendations The aim of this research report was to study the influence of BIM on the quantity surveying profession. One of the most apparent and vital consequences that will result from implementing BIM into the quantity surveying profession is the effect that it will have on the traditional roles and responsibilities of the quantity surveyor and the structure of quantity surveying firms. BIMs capabilities of automating the production of bills of quantities, which is one of the quantity surveyors fundamental tasks, will have both positive and negative effects on the quantity surveying industry. The automatic production of bills of quantities will enable quantity surveyors to get involved in the early design stages of a construction project and make designers aware of cost implications and manage costs from early on. This will enable designers to design to a cost instead of quantity surveyors costing to a design, which will satisfy the employers need for cost effective construction. In the past m easurement was usually undertaken by senior quantity surveyors, but over the years it has diminished into a task delegated to more junior personnel while professional quantity surveyors take up more strategic roles (Ashworth and Hogg, 2007). Although work is required initially to develop the skills and processes needed to integrate BIM and QS processes, the resulting benefits undoubtedly justify the investment. Recent years have witnessed the realization of many of the ideas of BIM visionaries, and the next five years will see increasing numbers of successful implementations, changes in the building industry, and new trial uses and extensions of what can be achieved with BIM, beyond its use today. This period will see the transition of BIM to accepted mainstream practice; and the transition will impact all building professionals and participants. But the greatest impact will be on the individual practitioner, who will need to learn to work, design, engineer, build, or manage with BIM. Estimators have to access the risks of the project and with BIM you can be more sure of the correct-ability of the drawn material and the demonetised possibility of errors under the build. The question is only how soon they will be liable to correct their ways of working with the same percent advised. It will only take one company to burst the bobble all of the sudden all eyes will be turned to the contractor who went 5-8% under all the other tenders. The companies left behind still stuck to the 2D system will never know what hit them and will very soon have to turn the key. In practice this is time-consuming both for contractors and sub-contractors, and the amount of paperwork had increased immensely. Nevertheless, contractors always need a bill of quantities, whether produced by the clients quantity surveyor, by an in-house commission or by sharing the services of an independent quantity surveyor. There will be a higher demand to the contractors to be able to build accordantly to drawings as a model can be pulled out and digitally measured. They will have to be more accurate in their tenders as the possibility of extra works cause of quality on the drawings will be higher. http://www.7star.dk/b-link/Dissertation_QuantityExtractingInBIM.pdf References [ONLINE] Available at: http://reliefweb.int/sites/reliefweb.int/files/resources/qualitative_and_quantitative_research_techniques.pdf. [Accessed 11 November 2012]. How to Benefit From Using BIM | Construction Business Owner Magazine. [ONLINE] Available at: http://www.constructionbusinessowner.com/topics/software/how-benefit-using-bim. [Accessed 13 November 2012]. Cost estimating. 2012. [ONLINE] Available at: http://www.dcstrategies.net/files/2_sabol_cost_estimating.pdf. [Accessed 13 November 2012]. Tiwari, S., Odelson, J., Watt, A., Khanzode, A.(2009). Model Based Estimating to Inform Target Value Design. AECbytes. [ONLINE] Available at :http://www.aecbytes.com/buildingthefuture/2009/ModelBasedEstimating.html.[Accessed 13 November 2012] Setting objectives. 2012. Setting objectives. [ONLINE] Available at: http://mypeer.org.au/planning/setting-objectives/. [Accessed 14 November 2012]. Advantages of Written Questionnaires. 2012. Advantages of Written Questionnaires. [ONLINE] Available at: http://www.statpac.com/surveys/advantages.htm. [Accessed 04 November 2012]. BIM in construction Building Information Modelling (BIM) article from NBS. 2012. [ONLINE] Available at: http://www.thenbs.com/topics/bim/articles/bimInConstruction.asp. [Accessed 04 November 2012]. BIM, What is Building Information Modeling?. 2012. BIM, What is Building Information Modeling?. [ONLINE] Available at: http://www.precisedraftinginc.com/bim.html. [Accessed 21 December 2012]. Benefits of Quantitative Research | Benefits Of. 2012. Benefits Of Quantitative Research | Benefits Of. [ONLINE] Available at: http://benefitof.net/benefits-of-quantitative-research/. [Accessed 04 November 2012] Definition of Quantity Surveyors . 2012. Definition of Quantity Surveyors . [ONLINE] Available at: http://www.surveyors.com/quantity-surveyors/definition-of-quantity-surveyors-/. [Accessed 19 December 2012]. Building information modelling. 2012. Building information modelling. [ONLINE] Available at: http://www.ukconstructionessays.com/essays/construction/building-information-modelling.php. [Accessed 19 December 2012]. NBS: BIM Roundtable Discussion. 2012. NBS: BIM Roundtable Discussion. [ONLINE] Available at: http://www.thenbs.com/roundtable/. [Accessed 07 November 2012]. 2012. . [ONLINE] Available at: http://repository.up.ac.za/bitstream/handle/2263/16349/Gee_Influence%282010%29.pdf?sequence=1. [Accessed 20 December 2012]. Bibliography Ashcraft, H. 2007. Building Information Modelling A Framework for Collaboration, Construction Lawyer, vol. 28, Number 3, accessed: February 2010, Ashworth, A., and Hogg, K. (2002). Williss Practice and Procedure for the Quantity Surveyor, 11th Edition, Blackwell Science, Oxford London Chuck Eastman, 2011. BIM Handbook: A Guide to Building Information Modelling for Owners, Managers, Designers, Engineers and Contractors. 2 Edition. Wiley.p.g 22 Shamil Naoum, 2006. Dissertation Research and Writing for Construction Students, Second Edition. 2 Edition. Butterworth-Heinemann.p.g 36 Brad Hardin, 2009. BIM and Construction Management: Proven Tools, Methods, and Workflows. 1 Edition. Sybex.p.g 152

The Elasticity of Business Ethics

Running head: The Elasticity of Business Ethics The Elasticity of Business Ethics Abstract Given the competitiveness in the world market, many are tempted to go outside of the rules and regulations of society in order to get ahead. Although many would like to think that qualities such as honesty and credibility are first and foremost in the minds of people, temptations have lured some to act irresponsibly to get more of the almighty dollar. Recent scandals have proven that good ethical and moral values are becoming more the exception rather than the rule. This paper will address the following ethical and moral questions: What is ethics and morality in business. How far have we come as a country in relation to business ethics? Why society is becoming more aware of corporate behavior? What measures are taken by businesses to become a better corporate citizen? Business practices came under fire when America's seventh largest firm, Enron, collapsed due to unethical accounting strategies. I feel this created a domino effect and was the beginning of our current crisis. Now there are companies folding one after the other, large organizations in the US collapsed or filed for bankruptcy cover and one case even implicated the famous home economist, Martha Stewart for insider trading. The various deceitful activities of some larger companies resulted in widespread public mistrust of business practices and principles. This paper will concentrate on some of the ethical and moral issues that must be addressed when trying to understand the state business ethics. 1. What is ethics and morality and how do they relate? 2. What happened in business ethics before the 1960s to the present time? . What are factors that could change ones views of a business’ ethical behavior? 4. What are interactions between business and society that alter societal expectations? What is ethics and morality and how they relate? When considering the difference between ethics and morals, consider what a criminal defense lawyer does for a client. Though the lawyer’s perso nal moral code likely finds murder immoral and reprehensible, ethics demand the accused be defended to the best of his ability even when the lawyer knows the party is guilty and that a freed defendant would potentially lead to more crime. Legal ethics must override personal morals for the greater good of upholding our justice system in which the accused are given a fair trial and the prosecution must prove the accused guilt. Ethics is the branch of philosophy that deals with morality. Ethics is concerned with distinguishing between the good and evil in the world, between right and wrong human actions, and between virtuous and nonvirtuous characteristics of people. Ethics means thinking critically about your actions and about their motives and their consequences (Dictionary. com, 2009). Do I want to be an honest, honorable, spiritual, respectful, or loving person? You might hold an ethical position that it's wrong to lie. A time may arise where it may be necessary to bend the truth or sometimes tell a â€Å"white lie†. For example, if you have plans to deploy to Iraq on a sensitive mission and you want to keep your trip a secret for obvious reasons. If someone asks you about those plans, you may need to lie to protect the integrity of the mission. When it comes to making ethical decisions, I take into account my very personal feeling that there is a principle greater than myself. With that said, morality is the subset of ethics dealing in the philosophical study of interpersonal relations and their ethical implications. It has to do with the critical analysis of our roles in society, our â€Å"duties† and â€Å"rights†. Morals are not personal decisions, except in whether you agree with them or not. Morals are rules that a group has decided are best for that group. (Borade, G, 2009). Americans have several versions of what is moral and immoral, Catholics have lists of sins, Christians have the Ten Commandments, Buddhists has a set and so forth. You may strongly agree with them, or trongly oppose them, but they still exist, and people will judge your conduct against them whether you agreed with them or not. Building on these definitions, we can begin to develop a concept of business ethics. Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company (Simpson, C, 2004). Business ethics boils down to knowing the difference between right and wrong and choosing to do what is right. The phrase ‘business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole (Lovetoknow. om, 2009). What happened in business ethics before the 1960s to the present time? Now that we have defined terms, we can now discuss the progression of business ethics in the United States over the years. The study of ethics in North America has evolved through five distinct stages: (1) Before 1960, (2) the 1960s, (3) the 1970s, (4) the 1980’s and 1990s to present (Ferrell, 2008). Business Ethics Prior to 1960 Prior to 1960, the United States questioned the concept of capitalism. The 1920s brought about the ‘living wage’ through the progressive movement. In the 1930s came the New Deal, which blamed business for the country’s economic woes and businesses where asked to work more closely with government to raise family income. By the 1950s, the New Deal evolved into the Fair Deal by President Truman which addressed civil rights and environmental responsibility as ethical issues that businesses had to address. Until 1960, ethical related issues were addressed in religious institutions of all faiths. Religious leaders raised questions about fair wages, labor practices, and the morality of capitalism. Religion applied its moral concepts to business as well as government, politics, the family, personal life, and all other aspects of life (Ferrell, 2008). Business Ethics in the 1960s During the 1960s, the antibusiness attitude emerged as critics attacked the vested interests that controlled the economic and political side of society, the so called military-industrial complex. The 1960 saw the crumbling of the inner cities and the growth of environmental problems such as toxic and nuclear pollution and waste disposal. A rise in consumerism by individuals, groups, and organizations began to protect their rights as consumers. In 1962, President John F. Kennedy delivered a â€Å"Special Message on Protecting the Consumer Interest† where he outlined the four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard. These four rights later came to be known as the Consumers’ Bill of Rights. After Kennedy came Lyndon Johnson and the Great Society, which extended national capitalism and let the business community know that the government would be responsible for providing the citizens with a degree of economic stability, equality, and social justice. Any business practice that could destabilize the economy or discriminate any class of citizen began to be viewed as unethical and unlawful (Ferrell, 2008). Business Ethics in the 1970s In the 1970, business ethics developed as a field of study. Business professors began to teach and write about corporate social responsibility. Companies became more concerned with their public images and realized that they had to address ethical issues more directly. The Nixon Administration’s Watergate scandal brought attention to the importance of an ethical government. The Foreign Corrupt Act was passed during the Carter administration, making it illegal to for U. S. businesses to bribe government officials of other countries. Numerous ethical issues emerged during the late 1970s such as bribery, deceptive advertising, product safety, and the environment issues. Business ethics became a common expression and researchers sought to identify ethical issues and describe how businesspeople might act in a situation (Ferrell, 2008). Business Ethics in the 1980s In the 1980s, business ethics is acknowledged as a field of study. Five hundred courses in business ethics were offered at colleges across the country. Leading companies such as General Electric, Chase Manhattan, General Motors, Atlantic Richfield, Caterpillar, and S. C. Johnson and Son, Inc viewed business ethics as a major concern. The Defense Industry Initiative on Business Ethics and Conduct (DII) was developed to guide corporate support for ethical conduct. The DII established a method for discussing best practices and tactics to link organizational practices and policy to successful ethical compliance. In the 1980s, the Reagan-Bush eras brought about the policy of self-regulation rather than regulation by government. Tariffs and trade barriers were lifted and businesses merged. Corporations that were once nationally bases began operating internationally. The rules of business were changing at an alarming rate due to fewer government regulation imposed during the Reagan-Bush era (Ferrell, 2008). Business Ethics in the 1990s In the 1990s, President Clinton continued to support self-regulation and free trade. However, it also took unprecedented government action to deal with health issues. These issues included restricting cigarette advertising, banning vending machine sales and banning the use cigarette logos during sporting events. The Federal Sentencing Guidelines for Organization (FSGO) was established by Congress and set the tone for organizational ethnical compliance programs in the 1990s. FSGO broke new ground by rewarding and penalizing companies for their ethical compliance programs. Even though the FSGO has made enormous strides it will not be enough to prevent serious penalties. Companies must develop cooperate values, enforce its own code of ethics, and strive to prevent ethical misconduct (Ferrell, 2008). Business Ethics in the 21st century Although business ethics in the 1990s appeared to be an institutionalized concept, evidence emerged in the 2000s that business executives and managers had not fully embraced the public desire for high ethical standards. One such executive, Dennis Kozlowski, former CEO of Tyco, was indicted on thirty-eight counts of embezzling $170 million of Tyco funds and netting $430 million from improper sales of stock. Author Anderson, a â€Å"Big Five† accounting firm, was convicted of obstruction-of-justice conviction for shredding documents related to its role as Enron’s auditor. The reputation of the firm was destroyed and lost all their clients and eventually went out of business. Author Anderson was also questioned for their involvement in audits involving Halliburton, WorldCom, Global Crossing, Dynegy, Qwest, and Sunbeam for their questionable accounting practices. These examples of misconduct increased public demand for improved standards in business. In 2002, Congress passed the Sarbanes-Oxley Act, which made securities fraud a criminal offense and strengthened penalties for corporate fraud. It created an accounting oversight board for greater transparency in financial reports to investors and other interested parties. Top executives are required to sign off on their firms’ financial reports. Company executives must now disclose stock sales immediately and prohibits companies from giving loans to top managers. The Sarbanes-Oxley Act and the FSGO have institutionalized the need for top manager to discover and address ethical and legal risk. Business leaders should view that ethical misconduct as the greatest danger to their companies. Ethical disasters can be damaging to company’s reputation and will significantly have an effect on their bottom line (Ferrell, 2008). What are factors that could change ones views of a business’ ethical behavior? In today’s uncertain business environment, traumatized by countless corporate scandals has brought a lot of attention to the social and ethical practices of business. The highly televised, Enron scandal was exposed when the company filed for bankruptcy. The degree of fraud impacting investors, employees, and others became known to the public. Business criticism is more prevalent than ever because people are more affluent, educated, and better inform because of the access to information. Twenty-four hour news coverage, investigative news programs, the internet, the revolution of rising entitlement mentality, the rights movement, and a philosophy of victimization. Businesses now, more than ever, must realize that there is a more informed society and businesses are being watched (Buchholtz, 2009). What interactions between business and society alter societal expectations? Business is increasingly held to greater standards of social performance, reflecting an imbalance between its traditional conduct and the expectations of society. A corporation commitment to its social responsibilities will go a long way to shape societal approval. There are four levels commitment in social responsibilities. First and foremost, economically, businesses strive to make a profit, maximize stakeholder wealth and value, create jobs for the community, and create goods and services to the economy. Legally abide by all laws and government regulations. Ethically, follow standards of ethical of acceptable behavior as judged by stakeholders or any one other interested party. Finally, philanthropic responsibilities refer to activities not required of business but promote human welfare or goodwill. In my opinion, this level of commitment has the greatest impact on society’s view of a company (Ferrell, 2008). The uses of these levels of responsibilities are attempts by businesses to meet societal expectations and become a better corporate citizen. In conclusion, understanding the meaning of ethics and morality and how they relate is important when trying to understand why people act or react in a given situation. Knowing how business ethics has evolved over the years and how far we still must go to create a happy median between business and society.. As technology becomes more available, society is more aware of corporate social responsibility. With this information, consumers are better able to make informed discussions on which companies to do businesses with. Finally, economic, legal, ethical, and philanthropic interactions between business and society will alter societal expectations of a business good or bad. References Buchholtz, C. (2009). Business and Society: Ethics and Stakeholder Management. (7th Edittion ed. , pp. 3-7). International: South-Western. Ferrell, F. F. (2008). Business Ethics: Ethical Decision Making and Cases. (7th Edition ed. , pp. 11-14). Boston, New York: Houghton Mifflin Company. Simpson, C. (2004, October). Should I or Shouldn’t I? An Ethical Conundrum. Retrieved September 23, 2009, from http://ebscohost. com: http://search. ebscohost. com/login. aspx? direct=true&db=lfh&AN=14597954&site=ehost-live Dictionary. com. (2009). Retrieved September 3, 2009, from Dictionary. com: http://dictionary. reference. com LoveToKnow. com. (2009). Retrieved September 3, 2009, from LoveToKnow. com: http://business. lovetoknow. com/wiki/A_Definition_for_Business_Ethics Borade, G. (2009, March 24). Difference between Ethics and Morality. Retrieved September 22, 2009, from buzzle. com: http://www. buzzle. com/articles/difference- ethics-and-morality. html

`` Reign Of Error Is American Education For The Lives Of...

Diane Ravitch, an â€Å"educational historian†, answers four questions in her book, Reign of Error. Is American education in crisis? Is American education failing or declining? What is the evidence for reform being promoted by the government and adopted by many states? What should we do to improve our schools and the lives of our children? According to Ravitch, the â€Å"crisis† concerning American education is actually a myth. In this book, she addresses myth after myth providing adequate clarity and information. She looks deep into the facts and brings to light what is actually happening in education in America in the following areas: test scores, achievement gaps, graduation rates, teachers and test scores, merit pay, charter schools, virtual school, government involvement of failing schools. In the latter chapters she offers specific solutions with detailed plans and recommendations to preserve and improve American education. Ravitch’s thesis is t hat American public education must be protected against government privatization and that we must work together to improve our schools. I couldn’t agree more with Ravitch. Government involvement in education has negatively impacted education since the passing of NCLB. Our focus has changed from being innovative teachers to cookie cutter teachers. Government officials should not make decisions without advice from educational professionals. We must all work together to make education work. Summary The first few chaptersShow MoreRelatedMy Reading Of Reign Of Error By Diane Ravitch861 Words   |  4 PagesIn my reading of Reign of Error by Diane Ravitch, I believe that she brings some great ideas to the table in an effort to improve American public schools. This book was interesting the whole way through. It’s a very thought provoking book to say the least. Ravitch is a wonderful writer as well as a passionate educator. 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Real insurance practices - Free Essay Example

Sample details Pages: 4 Words: 1305 Downloads: 7 Date added: 2017/06/26 Category Business Essay Type Argumentative essay Did you like this example? Introduction In this world, all the individuals, organizations and governments started to co-operate together to make the world more safe, and more cooperative. And that appears in the new financial methods that the business world started to do, just to cover any loose for any individual, organization and even the government, by making all the people share together the loose, not to make the one who lost that he/she is alone. And to insure the fair coverage for the loose, insurance companies appeared and started to act as social financial institutions to help all of the insured to keep their situation as they used to before any loss accrued. Don’t waste time! Our writers will create an original "Real insurance practices" essay for you Create order But in this small project, we wanted to look closely at the insurance company in real, and compare between their way of practices, and the theoretical part that we studied in RISK MANAGEMENT AND INSURANCE. And to do that, we took Abu Dhabi National insurance company, and Al Dhafra Insurance company, to make the required comparison. A small history about Al Dhafra Insurance Company. Al Dhafra Insurance Company, it is a company which registered in the federal Law in 1984 and started to perform in UAE, this company is owned by the UAE nationals, and their equity is about 186 million Derhams at the end of 2008. And this company is always growing in a consistent grown in both production and profitability. Al Dhafra insurance company is able now to cover all the country by serving all the areas in UAE, and now the company made a service network to serve more clients and to cover wider area. Al Dhafra successfully associated by the worlds top class reinsurers in such countries, like Germany, UK, Switzerland, Italy and more countries , and business with the reinsurance brokers all over the world, trying to reduce all the costs of their business, to make the premiums economically scaled and to stay suitable to all the clients. Al Dhafra Insurance Company insure a lot of major business in UAE, such as ADNOC, ETISALAT, Ministry of Finance and a lot of other businesses that all insured by Al Dhafra Insurance Company. Business Activities Al Dhafra underwrite both life and non life business, and the major business underwritten: Fire General Accident Contract Works and Contractors Plant Equipment Electronic Equipment Machinery Breakdown Workmens Compensation Employers Liability Public Liability, Medical Malpractice and other Professional Indemnity risks Marine Cargo, Marine Hull Pleasure Craft Oil Gas on and Offshore operations Aviation Personal Accident, Medical Life Motor A Small history about ADNIC (Abu Dhabi National Insurance company) This company started on 1972, with a high quality insurance products and services, and the company has a team of experienced professionals capable insurance requirements. The vision of the company is to be the number one insurance company in the middle east. And the mission of the company is to serve their clients internationally and locally. Business activities ADNIC has four three types of insurance policies, personal insurance, business insurance, and over seas insurance. Automobile insurance Al Dhafra insurce both comprehensive and third party policies according to the motor insurance, and the comprehensive policy covers the Accidental collision or overturning, Fire, External explosion, Self ignition, Lightning or thunderbolt, Burglary or theft, Malicious damage and Transit risks. Also the comprehensive policy can cover the automobile outside the country, under some conditions, but of course with extra premiums. In third party policy, the company will cover and respect the third party injury or death, also for any damage for the properties. The insurance can be provided for these kinds of vehicles: Private cars, Goods carrying vehicles, Agricultural vehicles, Buses and coaches, Rental or lease vehicles, Mobile shops and mobile food vans etc. Also Abu Dhabi National Insurance Company has both comprehensive and third party insurance policy. About the comprehensive insurance policy, the company covers the following: The loss and damage of the insured mo tor, by any of the following: accident, fire, elevator and others, also covers the third party liability, for any body injury or death, plus damages of properties or materials. Third party policy covers any body injury or death, or any property damages of the third party, and covers all the fees except the property owned by the insured while he/she was driving. In the theoretical part, the insurance companies Dont cover the vehicle which is used in ranching or faming, but Al Dhafra insures the cars used in Agriculture. In the theoretical part, we didnt study how do companies build up the price of the premium, but both companies depend on the age of the client, if under 25, they will ask for very high premiums because they say that they drive in a way that the risk of having a loss is much higher than drivers who are older than 25. Also they depend on the kind of the car, if the car is Salon, it has a law premium, but if it is Coupe and sporty, they ask for higher premium s. But these ways of deciding the premium is not connected to any kind of theoretical part that we studied. Life Insurance Al Dhafra insurance company stated : Our standard Group Life Policy provides cover to employees against death due to any causes. Cover can be selected on 24 hours basis applicable worldwide to cover employees during their vacation / business trips. Disability cover is also available for permanent total, partial and temporary disabilities arising out of accident / sickness. but the company doesnt provide more information because they said that it is classified according to the company! But Abu Dhabi National Insurance Company, according to the individual level term insurance, the client will choose the time period, which is between 5-20 years, and the premium rate is fixed and low, and the amount will be paid in case of death. In the theoretical part, according to the individual level term insurance, the premiums get paid during the term period are level. (Rejda, 2008) Homeowners Insurance Abu Dhabi National Insurance Company stated This policy covers loss or damage to the insured household properties in the dwellings caused by Fire, Theft, Water Damage, Earthquake and other Allied Perils. Also, Al Dhafra Insurance Company insures the building against the risk of fire, explosion, earthquake, theft, and others, and damages by any third party damage. Theoretical, homeowners insurance has many conditions, but the two companies didnt provide us with the enough information about the conditions, but in general, each condition has its own premium price. Health Insurance Both companies didnt provide any information, but both said that they provide health insurance for the employees and their families, but they didnt give us any more information, and we faced this problem to include it in the project. And also they said that they provide individual health insurance. Financial results Gross premium of Abu Dhabi National Insurance Company for all branches of insurance increased gross premium for all branches of insurance increased from AED 1,157,831,000 in 2007 to AED 1,356,895,000 in 2008 which is increase by 1.17 % also, claim increase from AED 425,621,000 for 2007 to AED 453,019,000 in 2008. Abu Dhabi National Insurance Company achieved net profit in 2007 AED 330,237,000 but in 2008 net profit decrease to AED 210,268,000 and that result company suffered losses in 2008. Gross premium of Al Dhafra Insurance Company for all branches of insurance increased by 10.9 % from AED 212,395,595 in 2007 to AED235,468,686 in 2008. Also, paid claims increase by 9.6% from AED 92,418,190 in 2007 to AED 101,299,112 in 2008. Also Al Dhafra Insurance Company suffered losses in 2008 and that effect on profit which decrease by 28.2% from AED 59,619,542 in 2007 to AED 42,778,076 in 2008. When we compare between two companies we found that Abu Dhabi National Insurance Company h as retained more than Al Dhafra Insurance Company through profit that gain annually. So Abu Dhabi National Insurance Company is biggest than Al Dhafra Insurance Company in insurance market in the United Arab Emirates. Reference https://www.aldhafrainsurance.ae https://www.adnic.ae