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Honoring Those Who Serve

Published November 9, 2015 by Mayrbear's Lair

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This week, as proud citizens of the United States, we will once again take the time to celebrate and reflect on the many services provided by our veterans as we honor all the great she-roes and heroes that have served this beautiful country. In honor of these heroic leaders, we decided to re-post our favorite blogs on the topic of leadership for the Veterans Day Holiday this week. In the meantime, we will continue the discussion we began on strategies for effective decision making next week.

Until then … we hope you enjoy this week’s blogs!

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Styles of Leadership
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(Original post, December 2012)

The nature of today’s business world produces constant change. Strong leadership expertise is required to handle potential problems with intelligence, diplomacy, and efficiency. Every leader exhibits talent in a different way and no one way of leading is better than another.  In fact, everyone can lead to a certain degree but not all leaders are effective (Glanz, 2002). Generally, visionary leaders that demonstrate a charismatic style tend to experience higher levels of success. This class of strong leader copes with change, delivers guidance, and institutes direction by communicating a vision that generates enthusiasm. These transformational leaders propagate trust, encourage development leadership skills in others, exhibit self-sacrifice and serve as moral representatives. They focus on objectives that transcend their own immediate needs (Baack, 2012).  In addition, they increase levels of fulfillment and performance in their organization by formulating and communicating a vision while building a bond with their staff. They are able to combine personal capability, group skills, managerial aptitudes and motivational proficiency with individual humility and professional determination.

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Many studies have been conducted to determine the best style of leadership. Most conclude that effective leaders exhibit varying degrees of the following virtues: (a) courage, (b) impartiality, (c) empathy, (d) judgment, (e) enthusiasm, (f) humility, and (g) imagination (Glanz, 2002).  The best leaders continue to re-examine outdated business paradigms to maintain smooth operations, high production rates, while diligently working to keep morale up. In his book, Leadership Aikido, John O’Neil (1999) introduced six concepts inspired by the martial arts tradition that stresses victory without harm. The six master practices he outlines that enable leaders to assess and develop their potential are:

  1.  Cultivating self-knowledge;
  2.  Practicing the paradoxical art of planning;
  3.  Speaking the language of mastery;
  4.  Letting values drive our decisions;
  5.  Turning failure into success; and
  6.  Heeding the law of unintended consequences (O’Neil, 1999).

He believes through the elements of aikido, leaders are able to identify and overcome five inner enemies that impede progress: (a) failure to grow emotionally; (b) failure to make creative decisions; (c) failure to empathize; (d) failure to manage ego; and (e) failure to overcome alienation and boredom (O’Neil, 1999).  This perspective embraces personal power and energy as vital traits to effective leadership.

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The bottom line is, individuals are not required to be well liked to become effective leaders. What is important, however, in an effective leader is their ability to garner high levels of trust and respect. The truth is, leaders are not always in a position to produce satisfaction in the workplace because not all policies and regulations enforced are popular. It is imperative, nonetheless, that leaders are accepted and command respect in their leadership role. To sum up, if a leader is not acknowledged or venerated on some level, it will be difficult to achieve objective goals and high levels of success in their position.

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“What each of us believes in is up to us, but life is impossible without believing in something.” ― Kentetsu Takamori

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Accelerated Learning Ebooks Aug 2015 3

For more information on Media Magic, our digital publications, or to purchase any of our accelerated learning Business Life titles, please visit:

Mayr’s Author Page.

References:

Baack, D. (2012). Organizational behaviorSan Diego: Bridgepoint Education, Inc.

Glanz, J. (2002). Finding your leadership styleAlexandria, VA: Association for Supervision and Curriculum Development (ASCD).

O’Neil, J. (1999). Leadership AikidoNew York, NY: Three Rivers Press.

Success and Failure

Published June 3, 2015 by Mayrbear's Lair

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Summer Break Edition

(Originally Posted Feb 2013)

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Success and Failure

There are many factors involved to discern the causes of success and failure in social movements and the efforts required for it to become a widely appealing endeavor that wields significant impact on social change.  Traditionally, movements, particularly the progressive type, have sought to redress social problems such as barriers to status, race and gender equality, as well as democratic practices, economic advancement and social justice.  According to research by Davis and McAdam (2005), theorists generally agree that social movements, if they are meant to have substantial effect and enjoy longevity, require (a) organization, (b) effective leadership, (c) administrative structure, (d) incentives for recruitment, and (e) a means to secure support and access to resources (Davis & McAdam, 2005).

The gathering of young academics in the mid-1960s began to produce more involved organizational and political debates to explain social unrest, transmuting earlier focus on collective behavior to that of collective action.  From this mindset, forward momentum and energy began to take shape in the form of social movements and social movement organizations, like that of Planned Parenthood and The Environment Protection Agency. Other movements, like the Disability Rights Movement, created organizations that have become stable enterprises that secure equal rights and opportunities for persons with disabilities that have minimum impact on social change.

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Another social movement in Europe began to organize in 1997, that called to support worker rights as the European Commission moved toward cuts in social spending. European activists continued their efforts and moved it to the realms of a continental scale. The formation of Jubilee 2000, a global network centered in Europe, campaigned for the eradication of Third World debt.  According to organizers, after only four years of campaigning, they produced successful campaigns of various influence, in 68 countries. The campaigns were autonomous, but shared common goals, information and symbols which gave them an abundant sense of solidarity.  Their ability to communicate, co-ordinate, and cooperate was achieved with the aid of the internet (Tilly, 2004).

Most experts agree that commonalities of social movements that succeed share some of the following group traits from participants:

  1. Worthiness – This also includes the demeanor and mindset of the group participants.
  2. Unity – The organizations ability to unify marketing strategies and materials such as badges, logos, banners, chants, and mission statement.
  3. Numbers – The headcounts, signatures of petitions, communication from constituents and incumbents, their ability to fill streets and large event gatherings.
  4. Commitment – Individuals that brave the bad times, visible participation, absence of social loafing among group members, a wide range of participants that includes elders and physically challenged individuals, subscriptions, varying degrees of sacrifice and last but not least, resistance to repression.

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The media also plays a magnanimous role in the success or failure of social movements. Media coverage of an event can shape public opinion in presidential campaigns, military actions and outbursts of mass protest, to name a few examples. Edward Morgan (2010) postulates that media-saturated bombardment for anniversaries of iconic events, such as presidential inaugurations (and assassinations), to riots at Kent State, offer little more than an endless stream of distracting imagery that has more to do with today’s politics and economics than the reality of yesterday’s social movements (Morgan, 2010). The media’s in-depth coverage provokes deep emotion and passions (both positive and negative) that continue to shape and effect consumer driven capitalism and neo-liberal politics, rather than the social movements themselves.

Morgan points to three fundamental issues with respect to media coverage influence on social movements that include (a) the distortion of historic events by the removal of significant evaluation in the conditions that generate democratic activism, which can reduce the potency of social movements that involve millions of individuals to a few iconic leaders or images; (b) media distortion that can undermine the abilities of a democratic system; and (c) the failure to address the elephant in the room – the systemic characteristics of the elite that contribute in a significant manner to the social ills in which the US and the rest of the globe struggle with (Morgan, 2010).

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Emblems and images for social movement organizations also play an important role in branding and establishing solidarity. This can be witnessed by the Disability Rights movement that initialized and established unified motifs to identify facilities that provide amenities like designated parking areas, wheel chair ramps and restrooms that accommodate the needs of individuals with disabilities. Their symbols and emblems have become a modern staple in contemporary living that we have all come to accept and embrace. Another example of immediate recognition in their emblems and advertisements can be witnessed by the marketing and promotional material derived from organizations that stand up for animal rights like PETA.

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The examples sited here, merely offer a few explanations that can lead to the success or failure of social movement organizations and the strategies employed that continue to aid in their efforts to maintain a strong presence.  These components include the implementation of devices like logos and other symbols identified with their brand. In conclusion, the continued efforts and marketing campaigns organized in social movements serve as reminders of these institutions success, longevity, and the enormous efforts implemented that continue to bring awareness to their causes in an effort to effect positive social change.

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“No pessimist ever discovered the secret of the stars or sailed an uncharted land, or opened a new doorway from the human spirit.” – Helen Keller

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Perfect for graduation

For more information on Media Magic, our digital publications, or to purchase any of our accelerated learning Business Life titles, please visit our website at:

Media Magic Publishing.

or amazon.com’s new feature called “Author Central” to view:

Mayr’s Author Page.

References:

Davis, G., & McAdam, D. (2005). Social Movements and Organization Theory. New York, NY: Cambridge University Press.

Morgan, E. (2010). What really happened to the 1960s: How mass media culture failed American democracy. Lawrence, KS: University Press of Kansas.

Tilly, C. (2004). Social Movements: 1768-2004. Boulder, CO: Paradigm Publishers, LLC.

The Quality of Financial Information

Published December 19, 2013 by Mayrbear's Lair

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The holidays are creeping up on us and I just realized, I neglected to post Wednesday’s blog. This post is significant to my research work in financial analysis because it helps us understand that in order to keep apprised of how well a company is doing, the quality of financial reporting is the key component that determines whether the statements paint an accurate portrait of the firm or not. For example, because of scandals that occurred from companies like ENRON, AEI, and WorldCom, a revolution occurred with respect to financial reporting. According to Bahnson and Miller (2002) old practices and habitual thought processes with respect to accounting principles were put aside and replaced with new strategies and systems. As a result, accountants and finance executives are expected to embark on a different path that embraces a new shift in the bookkeeping paradigm called quality financial reporting (QFR). For financial managers to consider investing in a company they are looking for accurate information about two significant components: (1) opportunities to receive future cash flows, and (2) information about those opportunities (Bahnson & Miller, 2002). QFR provides complete information to investors and creditors to give them confidence in a company’s performance abilities. Much of the information provided on financial statements can be intimidating to many managers and entrepreneurs. This is a typical response from those who lack the financial intelligence required that can help them make more effective decisions in running their firms. Berman and Knight (2008) explain that the figures on financial statements help strategists determine a variety of estimates and assumptions. Learning how to assess that information helps planners to identify the bias of the data provided, in one direction or another (Berman & Knight, 2008). In this context, where financial results are considered, bias merely suggests that the numbers may be skewed in a certain direction. In other words, bookkeepers and finance professionals are trained to use certain assumptions and estimates rather than others who view the reports for other purposes. QFR is essential because it provides sufficient information to identify not only the source of those gains, but whether there are any other events or circumstances that could have an effect out the outcome, like pending litigation.

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Much of the information provided on financial statements can be intimidating to many managers and entrepreneurs. This is a typical response from those who lack the financial intelligence required that can help them make more effective decisions in running their firms. QFR is effective at painting an accurate view of the company’s financial condition. For example, revenue should not be recognized until there is evidence that a sale has transpired. In other words, the recipient has received delivery of the product or completion of the services rendered and revenue is collected. Many companies, however, violate this policy and report revenue prematurely without all criteria being met. Analysts can look for clues of false revenue reporting in the financial reports. For instance, the notes can reveal the company’s position with respect to collecting revenue policies to ascertain whether any changes occurred and determine the reason for the changes as well as the impact they can have.  Another clue is an analysis of the financial statements to determine the pattern of movement from sales, inventory, and accounts payable. For example, spikes in revenue during the final quarter may be a sign of revenue reported prematurely unless there is a specified reason for the spike to generate sales (like an end of the year close-out sale to liquidate inventory). Companies do not commonly experience spikes from sales in the fourth-quarter so this immediately raises flags. Other methods companies use to raise revenue levels include keeping the account records open longer at the end of the allotted accounting period. Some corporations on the other hand, use deceptive tactics like reporting gross sales rather than net to show higher revenue. For example, a company that is acting as an agent for another organization may collect their revenue in the form of a commission. According to regulations set forth by the GAAP (generally accepted accounting practices), agents are not considered the owner of merchandise being moved. Fraser and Ormiston (2010) explain that the GAAP requires the reporting of Gross Revenue for Principal Owners and Net Revenue for those who act as a representative in the in the sale of a product or service.  In other words, because agents are not considered the owners or originators of the product who assume the risk of the merchandise, the company acting as the agency can use the net method for recording revenue. Therefore knowing that a company collects revenue as an agency analysts can scrutinize the data closely to determine whether they reported gross or net revenue.

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QFR is also important because it can help strategists understand the various inventory valuation methods. For instance, there are times when companies produce lower or higher earnings due to the fluctuation of inflation. Analysts again must look to the financial notes to determine the details of the company’s accounting policies to disclose whether the changes in revenue occurred due to LIFO (last in first out) or FIFO (first in first out) inventory cost flow accounting assumptions. If the value of the products sold, for example, falls under its original cost, the product is written down to reflect the market value and is determined by the cost to replace or produce an equivalent. This means that write downs can also play a part in the company’s profit margins which affects the comparability and quality of financial reporting. Accounting practices that do not provide details and incorporate misleading information is considered an unacceptable practice and any CEO that signs off on documentation that provides a misrepresentation of the truth is putting their career at risk and may face dire consequences as a result. That should be incentive enough to engage in QFR. To surmise, QFR provides investors the ratios that reveal whether companies are able to buy inventory and pay their bills. Furthermore, they provide profitability ratios that help creditors understand how much capital the company is generating while efficiency ratios reveal how well the company is managing their assets. The more complete these reports are the more likely they are to reduce shareholder uncertainty. In the eyes of investors and creditors, certainty reduces risk and reduced risk, provides shareholders with the satisfaction of a lower rate of return. In the long run, a lower rate of return means a lower cost for capital, which ultimately produces a higher stock price for the company. In conclusion, providing quality financial information is an essential component to management that contributes to a company’s long term success.  Tomorrow’s blog will post on schedule and will take a look at how different conflicts of interest can effect quality reporting.

References:

Bahnson, P., & Miller, P. (2002). Quality financial reporting. New York, NY: McGraw-Hill.

Berman, K., & Knight, J. (2008). Financial intelligence for entrepreneurs. Boston, MA: Harvard Business School Press.

Fraser, L., & Ormiston, A. (2010). Understanding financial statements. Pearson Education.

Brand Marketing Promotion Campaigns

Published October 23, 2013 by Mayrbear's Lair

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Brand Marketing promotions are considered one of the most valid tools for a company in the modern world, especially during times of hardship. Diamond (2011) suggests that retailers in today’s society face challenges they never experienced before. The impact from ventures like catalog only merchants and internet commerce have had a significant impact on a retailer’s ability to maintain successful sales levels. Because of this component, merchants are doing everything in their power to manage these challenges. One way to manage them is to offer exceptional services and develop creative advertising and promotional events that will gain the attention of not only existing clientele, but attract new ones as well (Diamond, 2011). Brand marketing promotions are utilized as a strategic tool to encourage purchasing and help reinforce a company’s conviction in trade development. In economies that fluctuate due to oil prices, unstable manufacturer supplies, and currency fluctuations, trade promotion strategies have become challenging to design, implement and assess. For example, a company that sells auto tires will develop a promotion that offers a free tire with the purchase of three new ones as an incentive to help consumers save money on a significant purchase in tough economic times. This gives them a good guy image and sends a message that they care about struggling consumers. However, before marketers can consider designing trade brand promotion programs, they must first define the parameters to help them determine the most efficient delivery systems.

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The biggest advantage of brand promotions is that they increase customer attraction. Borgeon and Cellich (2012) explain that the strategic goals of trade promotions should: (a) build brand awareness, (b) focus on needs versus demand, (c) reach the target audience, and (d) include a competitiveness response. Today’s trade is characterized by the continual escalation of competition among producer and suppliers, rapid innovation in products, short design and product life cycles, aggressive pricing, and knowledge base competition (Borgeon & Cellich, 2012). As a result of these trends, new approaches are continually developed to serve consumer needs that incorporate a capacity for competitiveness as part of a company’s promotional strategy. For example, a company that wants to sell a new product based on a consumer’s need to include healthier food choices, may set up an in-store promotion that gives out free samples to entice consumers to try them.

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Companies develop many different kinds of trade promotions to entice consumers to try their products. Baack and Clow (2012) purport, companies that design their campaigns with promotional incentives will generate interest and excitement that will stimulate more traffic for their company. These tactics include the use of: (a) coupons, (b) refunds and rebates, (c) contests, (d) sweepstakes, and (e) premiums (Baack & Clow, 2012). The biggest mistakes marketers make is not conducting the research required to create an effective campaign. For example, if a marketer fails to identify their target audience, they stand to lose thousands of dollars in promotional material that was intended to attract a specific consumer because it never reached the intended audience. Advertisers that do not promote their events to the right audience could also face embarrassment and bad publicity from sponsoring contests that no one shows up to. Companies who make the effort to conduct extensive research and implement measurable data collection systems, have a better chance of seeing a return on their investment and are more likely to create memorable trade promotion events that can have a positive long lasting effect on consumers as well as bring success to companies, even during hard economic times.

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References:

Baack, D., & Clow, K. (2012). Integrated advertising, promotion, and marketing communications (Fifth ed.). Upper Saddle River, NY: Pearson Education, Inc.

Borgeon, M., & Cellich, C. (2012). Trade promotion strategies best practices. New York, NY: Business Expert Press, LLC.

Diamond, J. (2011). Retail advertising and promotion. Ridge, NY: Fairchild Books.

Attitudes and Values

Published October 2, 2013 by Mayrbear's Lair

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To market a product or a company effectively, management teams must have a concept of how to promote and position themselves to stand apart from the competition. Morgan (2012) postulates that the number one asset any organization or individual has is their unique personality and their attitude. This is what makes them stand apart from the others. A successful image of a company, therefore, can increase the value of that business dramatically. When it comes to creating a corporate image or creating an organizational attitude, perception is one of the most significant components to consider. For instance, one way a company can create an attitude is by conveying that their brand is not merely a campaign that makes promises, but that their actions and behavior convey a commitment to keep those promises (Morgan, 2012). Business leaders that comprehend this concept are ahead of the game when it comes to creating value. In short, their attitude can also bring them added value.

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Leaders that distinguish the difference between attitude and values are more likely to develop a brand that will experience long lasting success as well as build solid relationships and a loyal customer following. Baack and Clow (2012) explain that attitudes also reflect individual values and that these perceived values and attitudes are key roles that influence consumer decisions. For example, typically, educated consumers incorporate two strategies in the decision making process that can influence their feeling or attitude: (a) the gathering of information and (b) the evaluation of alternate choices. Motivation also plays a role in swaying their attitude in the decision making process. This element determines the amount of enthusiasm they engage to support their needs and wants. Additionally, lower costs and higher benefits are factors that can influence consumer emotions and attitudes. These are a few components that help shape consumer feelings toward making decisions and remaining loyal (Baack & Clow, 2012). This means it is in the company’s best interest to develop strategies that provide consumers with substantial information about their products and services as well as a reason why they offer the best choices over any alternatives. These are factors that can help communicate a positive company image to consumers. This in turn affects their attitude and ultimately makes the company more valuable to them.

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There are many ways a company can create an image or present a company attitude that brings value to consumers. Vincent (2012) suggests that to achieve the most effective results to help shape a positive attitude, marketing strategists should address the following questions:

  • How indispensable is the brand to customers?
  • What is the rate of employee turnover?
  • What does the brand do that is better than any competitor and why is it significant?
  • How easy is it for competitors to replicate the brand experience?
  • How easy is it for customers to do business with the brand?
  • If the brand disappeared tomorrow would anyone care?

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By addressing these topics leaders can help create an experience that will shape a positive feeling or attitude in their consumers which in turn builds trust and confidence (Vincent, 2012). The Starbucks Corporation provides a good example of how a company’s attitude can influence their value. Prior to Starbucks’ genesis, people were used to paying under a dollar for coffee and expected free refills. Starbucks marketing strategists created an atmosphere that made people excited about paying more for coffee because of the feeling or experience the brand created. In other words, they built the success of their company on an attitude that communicated it was cool and hip to pay extra money for coffee to have a social front porch experience in an environment that allows internet access. This brilliant strategic move was the key that turned the Starbucks company into a mega empire. In conclusion, marketing teams that understand the distinction between attitude and value are more likely to experience long lasting success.

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References:

Baack, D., & Clow, K. (2012). Integrated advertising, promotion, and marketing communications (Fifth ed.). Upper Saddle River, NY: Pearson Education, Inc.

Morgan, J. (2012). Brand against the machine: How to build your brand, cut through the marketing noise, and stand out from the competition. Hoboken, NJ: John Wiley & Sons, Inc.

Vincent, L. (2012). Brand real: How smart companies live their brand promise and inspire fierce customer loyalty. New York, NY: AMACOM.

Securities Law

Published September 4, 2013 by Mayrbear's Lair

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The most common securities many individuals are familiar with are stocks and bonds. According to Gabaldon and Soderquist (2011) the courts, however, have acknowledged all types of investment schemes, including some that relate to earthworms, chinchillas, and warehouse receipts for Scotch whiskey, which can also involve a security. People that invest in securities learn to become familiar with security laws to avoid violating them. It can also help them determine whether a transaction is a legitimate security based on concepts that are completely foreign like those mentioned here (Gabaldon & Soderquist, 2011). In other words, understanding security laws may help them learn how to profit from them, plus, it can also serve to protect their investments. In addition, regulation allows for fair competition in the marketplace. For example, consider a private California university that wants to issue “shares in learning” certificates; are they required to register the stock they offer with the Securities and Exchange Commission (SEC)?

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Federal laws mandate that securities are registered before they go up for sale. Companies are expected to file the paperwork with the SEC and the Supreme Court determines what securities constitute an investment contract. In order to be considered an investment contract: (a) it must provide an investment opportunity, (b) establish a common enterprise, (c) provide an opportunity to make a profit, and (d) the returns are derived from the management of others. In addition, the registration process must include detailed information on the provisions of the security offered, including the corporation’s properties and business, the company’s management team and their compensation, security holdings and benefits, a certified financial statement by an independent accounting firm, and any pending lawsuits the company may be engaged in. There are, however, exceptions to registering securities before they go up for sale. For instance, the SEC exempts securities that are issued by banks prior to July 27, 1933 or any securities issued by the government. In addition, securities are exempt if they have been issued by nonprofit organizations including religious, charitable, educational, benevolent or fraternal organizations (Seaquist, 2012). Based on this information, the private university in California, therefore, would be considered exempt, and not required to register with the SEC because it falls under the category of a nonprofit educational organization.

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Regulating securities is an extremely complicated matter. Hazen (2009) contends that it is particularly perplexing because of the degree of detail and difficulty in elaborating both federal and state laws. Although originating is a matter of state law, the majority of regulation for securities falls under the jurisdiction of the federal law (Hazen, 2009). In other words, dealing with federal securities regulations is usually a difficult task that requires the consultation of several sources for efficient management because of the complexities involved. With respect to the stocks issued in from the private California university, according to Seaquist (2012) the Securities act of 1933, Rule 504 of Regulation D states that non-public issuers are permitted to sell up to one million dollars of securities in a twelve month period to any buyer. Under Rule 147, regulations also state that securities offered for sale by an organization that conducts 80% of their business in one state, are also exempt from filing (Seaquist, 2012). Given this information, one can conclude that the private university in California would be exempt from filing with proof the institution meets the following criteria: (a) it is a nonprofit educational organization; (b) the amount offered does not exceed the maximum value mandated in Rule 504 of Regulations A and D, and (c) they conduct most of their business in California where their facilities are located and students attend classes. In conclusion, because of the complexities involved with security laws, it is best to check with a legal consultant to determine exemption status.

References:

Gabaldon, T., & Soderquist, L. (2011). Securities Law (4th ed.). New York, NY: Thomson Reuters/Foundation Press.

Hazen, T. (2009). The Law of Securities Regulation (6th ed.). St. Paul, MN: West Publishing.

Seaquist, G. (2012). Business law for managers. San Diego, CA: Bridgepoint Education, Inc.

Crimes That Harm Business VS Crimes Committed by Business

Published August 19, 2013 by Mayrbear's Lair

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Images of crime in the US reveal an increase of illegal activity from business executives. According to Simpson (2002) business crime is not a new social problem. illicit drugs and violence, for example, have been an issue of concern for business leaders and policymakers for a while now. Historically, criminals involved with drugs and violence were believed to have been contained within certain populations of criminal ethnic groups and immigrants. In other words, society was under the impression that crime was only confined to the constitutionally inferior and morally lax (Simpson, 2002).  However, with the expansion of the newly emerging capitalist society and its large institutions, the environment was becoming fertile for corporate criminals.

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Corporate crime is considered a form of white collar crime that is committed by persons of respectability and high social status. Some people refer to it as a crime of the rich and affluent. Cavender and Cullen (2006) postulate that it can include such infractions as (a) crimes by politicians; (b) crimes by professionals like accountants, physicians, and attorneys; (c) cheating on taxes; (d) theft or embezzlement; and (e) crimes committed by corporate organizations themselves (Cavender & Cullen, 2006). The topic of this discussion asks us to consider which presents the greatest threat to civil society: a corporation that commits crimes or a person who commits crimes that harm businesses. On the one hand, a corporation that commits a crime can create a wide range of contamination that spans across the globe. Take for example, a multinational corporation (MNC) that markets a defective product, or worse a deadly one (like the tobacco companies that hid the harmful effects of their products). In other words, when a corporation commits a crime, millions of people may be at risk on a global level. A crime that is committed by an individual, however, who causes harm to a business, such as when a physician defrauds the government by billing for false medical payments, will have different consequences that influences a smaller region. For example, it could result with the physician’s termination and loss of that practitioner’s medical license or worst case scenario the dissolution of the medical facility and the employees. So in this instance, just the physician or facility could be affected because it does not have the same influence on a global level. However, in the long run, it may affect the policies that physicians follow if reforms are introduced to prevent physicians from further engaging in this form of criminal conduct.

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Individuals that engage in criminal activity, even though they believe they outsmarted the system and got away with a criminal act, are always focused on not getting caught. It takes a considerable amount of energy to  maintain an illusion, and as soon as they become relaxed, they get sloppy and eventually the truth surfaces. Seaquist (2012) defines criminal law as the branch of law that is focused on punishing illegal acts that are deemed harmful to others and society at large (Seaquist, 2012). In some situations, it can be difficult to discern which form of crime presents more of a civil threat because there are many facets to consider. For example, as I pointed out, a corporation, especially an MNC, has a great influence on a global scale. Take a fast food franchise for instance, many of these corporations promote unhealthy food ingredients that have been scientifically proven to contribute to life threatening diseases like obesity, diabetes, arteriosclerosis and other debilitating illnesses that affect millions worldwide. These companies sell inferior products for huge profit and use clever marketing strategies to make it appear ethical. However, with advances in communication technology an individual can now also make an impact on global scale that can bring harm to a business or institution. Take for example political figures with low moral values like those that have been recently exposed in the headlines. Public figures like them pose a threat to society and in fact, can create damage on many levels including: (a) shame and humiliation that extends beyond just their families, (b) ridicule to the government institution and the office they represent, (c) lowering the bar for standards in ethics and moral values, and (d) making a mockery of the US political system. In conclusion, current events and research reveal that with the expansion of the global market both a corporation and an individual can create harm and cause considerable damage on a worldwide scale because of the media and advances in technology and communication. It’s a whole new world that is taking shape. The moral is, those who embrace an ethical culture are the ones who will help lead society to a better future.

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References:

Cavender, G., & Cullen, F. (2006). Corporate crime under attack (2nd ed.). Cincinnati, OH: Anderson Publishing.

Seaquist, G. (2012). Business law for managers. San Diego, CA: Bridgepoint Education, Inc.

Simpson, S. (2002). Corporate crime, law, and social control. New York, NY: Cambridge University Press.