Tuesday, May 26, 2020
Sigmund Freuds Personal Life and Theories - Free Essay Example
Sample details Pages: 9 Words: 2649 Downloads: 1 Date added: 2018/11/16 Category Psychology Essay Type Analytical essay Level High school Tags: Sigmund Freud Essay Did you like this example? Abstract This paper is focused on the life of renowned psychologist Sigmund Freud and his contributions to Psychology. First, the paper is going to discuss his life, from early childhood in the streets of the Austrian Empire to his unfortunate death caused by cancer. Afterward, this paper will describe and analyze some of Freudââ¬â¢s different ideas and theories regarding his studies in Psychology. Donââ¬â¢t waste time! Our writers will create an original "Sigmund Freuds Personal Life and Theories" essay for you Create order This section will include experiments Freud performed with his patients with their respective theory. In addition, each segment will include a personal insight into the theory and perchance a personal experience if relatable. To finalize the paper, there would be a concluding section that analyzes the impact of Freud in the field, the frequency of his studies in Psychology nowadays, and a personal note. Sigmund Freud: An Analysis on His Personal Life, Theories, and Impact In The Field of Psychology Personal Life Sigmund Freud, also known as the father of psychoanalysis, was an Austrian neurologist who later became a well-known theorist in the field of Psychology. His ideas formed a cutting-edge mentality towards the human mind, personality, and not to mention the development of therapeutic skills on talk therapy like dream association, free association, and transference to name a few. Freud is considered one of the most influential, yet controversial, minds of the twentieth century. Early Life He was born on May 6th, 1856 under the name Sigismund (which he later on changed to Sigmund) in a town in the Czech Republic, formerly known as Freiberg, Morovia during the Austrian Empire. At a young age, his family initially moved to Leipzig, Germany but later transferred to Vienna, Austria, possibly because his father was a merchant. His family was Jewish but Freud himself wasnââ¬â¢t practicing the religion. He spent the majority of his life in Vienna and obtained his education in the city. Education Freud was initially homeschooled but later he was admitted at the Spurling Gymnasium, where he excelled in all of his classes and graduated with a Summa Cum Laude or the highest distinction. He later became a student at the University of Vienna in 1873. As a college student, his research was mostly concentrated on neurobiology, especially the nervous tissue of animals and humans, and the biology of the brain. In 1881, Freud obtained his degree in medicine giving him recognition as a talented physician. After his studies, Freud started working at the Vienna General Hospital. Early Career and Accomplishments His early career was influenced by his collaboration with Dr. Josef Breuer, in which they used hypnosis to help patients recall traumatizing experiences. Breuer was known for his discovery that stated when patients talked about their symptoms without any reservations, said symptoms will begin to diminish. In 1885, Freud went to Paris to study under famed French neurologist Jean-Martin Charcot. At the time under his mentorship, Freud was interested in the emotional disorder known as hysteria, or the exaggerated emotion of excitement. The following year, Freud decided to focus on nervous and brain disorders and with little delay, he set up a private practice. In addition, he married Martha Bernays, whom he fathered 6 children, one of them, Anna Freud, followed the footsteps of her father and became a famous psychoanalyst herself. With his former mentor Dr. Josef Breuer, they worked in the case study of Anna O, whose real name was Bertha Pappenheim. She was suffering from tactile a nesthesia, paralysis, and nervous coughs. Both neurologists hypothesized that the reason for her symptoms came from her recalling traumatic memories over the period of time they treated Pappenheim. Ultimately, they concluded there wasnââ¬â¢t any physical illness that made Bertha this way. However, they did discover that talking to her about her difficult experiences decreased her symptoms. Pappenheim coined this the ââ¬Å"talking cure.â⬠In 1895, Freud and Breuer published their work titled Studies in Hysteria. After working for a long time, Dr. Josef Breuer decided to part ways from Sigmund Freud due to the fact he felt that Freud was too concentrated on the sexual origin of a personââ¬â¢s mindset and wasnââ¬â¢t capable to exploring different perspectives on the matter. This didnââ¬â¢t stop Freud, however, and continued to develop his own theories. He developed a theory that expressed the constant conflict between the innate sexual and aggressive impulses an d the defenses against them in our unconscious. Throughout 1897, Freud began to examine himself in a thorough manner. By the year 1900, he published his most recognizable work under his name The Interpretation of Dreams. Such work explained how dreams serve as a method of communication from our unconscious mind to expose our desires and experiences. Formation of the International Psychoanalytic Association Freud received the title of Professor of Neuropathology in the University of Vienna from 1902 to 1938. Even though his theories werenââ¬â¢t agreed by many at the time, he still managed to influence pupils that eventually founded the International Psychoanalytic Association with Carl Jung as president in 1910. Jung was a close acquaintance of Freud but eventually decided to move on from him and began to propose his own theories. Final Accomplishments and Death Soon after the Great War, Freud shifted his focus to the application of his theories to literature, art, anthropology , and history. During 1923, he came up with a new published worked called The Ego and the Id. Freud proposes a new structure of the mind, which is divided into three parts: ââ¬Å"Id,â⬠Ego,â⬠and ââ¬Å"Superego.â⬠He was diagnosed with cancer of the jaw this same year. Around the time Nazism was becoming a forceful political power in Europe, They publicly burned Freudââ¬â¢s books. And, in 1938, Freud had to flee to England with his wife and daughter Anna due to the fact it was annexed to Nazi Germany and they would have been politically persecuted by the Nazis. After 30 painful surgeries during this stressful times, Freud passed away on September 23rd, 1939 in Hampstead, United Kingdom. Freudian Theories Freudââ¬â¢s career as a neurologist mostly consisted of finding ways to unpack what we call the unconscious due to the fact it was believed that it holds the hidden formation and precepts of human personality. The Case of Anna O. as previously referred, the case of Anna O (or Bertha Pappenheim) had an immense impact in Psychology and a turning point of Freudââ¬â¢s career. She was diagnosed with hysteria, a condition in which a patient shows physical symptoms when having a mental issue rather than an organic issue. Freud and former mentor, Dr. Josef Breuer realized that she had developed a fear of drinking when she witnessed a dog she wasnââ¬â¢t very fond of drink from her glass during their therapeutic sessions. In addition, the pair realized that her other symptoms were caused by Bertha taking care of her sick father. She wasnââ¬â¢t able to discuss her anxiety for her illness but later on, she was able to do so through the use of psychoanalysis. Her paralysis came to an end as soon as she was given the opportunity to express her unconscious thoughts. An important note to consider is the fact that even though Anna O. was considered one of Freudââ¬â¢s ââ¬Å"patients,â⬠the two never actually met in person. Ultim ately though, both neurologists published the book called Studies of Hysteria in 1895. Freud proposed that deeply repressed memories can be manifested in physical symptoms. However, he expressed his belief that the actual cause of Berthaââ¬â¢s hysteria was the result of the sexual abuse she experienced at a young age. Yet, this idea made Breuer part ways with Freud and end their personal and professional relationship. Still, Anna Oââ¬â¢s case study allowed Freud to obtain information that was beneficial for his future theories on therapy and psychoanalysis. In my personal opinion, I believe that if Freud was capable to look beyond his personal perspective on the case, both Breuer and he would have found even more in-depth characteristics to the human psyche and quite possibly a scientific evidence to support their claims (beyond recording their case study). The Unconscious Mind Even though Sigmund Freud wasnââ¬â¢t the first person to invent the idea of a conscious mind versus an unconscious one, He heavily popularized the idea and doing so placed him as one of the most famous theorists of his time. Between 1900 to 1905, Freud constructed a landscape of the mind. In this topographical model, he described the characteristics of the mindââ¬â¢s structure with their respective functions. He used his famous iceberg analogy to do so. The iceberg is divided into three: The conscious, the subconscious, and the unconscious. The Conscious On the tip of the iceberg, we can find this level of the human mind. Here lie all the thoughts that we perceive and are the focus of our attention throughout our lives. Freud expressed the fact that this part of the mind is small compared to the other two. The Subconscious This level serves as a border between the conscious mind and the unconscious mind. Freud stated that we can find the memories and stored knowledge in this barrier of the mind. In simple terms, this level would allow us to be aware of it if we chose to do so (by recalling memories and things of the sorts). The Unconscious The final level and most significant level based on Freud is the unconscious part of the mind. It serves as an archive of primitive impulses and wishes deep down in the mind and are controlled by the preconscious area. This includes but is not limited to sexual and aggressive instincts, fears, unacceptable sexual wishes, violent motives, irrational desires, immoral urges, selfish needs, shameful memories, traumatic experiences, etc. In 1915, Freud discovered that some desires and events from his patients were too painful for them to acknowledge them and therefore were placed in the unconscious mind. The process of that happening was coined repression (further discussed in Defense Mechanisms) Freudââ¬â¢s obsession with the unconscious lead to him hypothesizing that it controls behavior to a greater degree than originally thought by others. This allowed his methods of psychoanalysis to be beneficial for his theories. In retrospection, I can understand where Freud was coming fro m with his focus on the unconscious. It is difficult, if not impossible, to target one specific reason as to why one behaves a certain way. Because of that fact, Freud hypothesizes allowed us to look more in-depth to the psyche of human beings and formulate ideas that eventually became the standard in the field of Psychology. The Psyche In 1923, Sigmund Freud developed a more expansive model of the mind. This new model included the entities of Id, Ego, and Superego. The three arenââ¬â¢t any physical parts of the brain but rather conceptualizations that helped describe important mental functions and they are considered significant parts in the human personality scheme. Id The Id is the part of our personality that is in charge of instincts and primitive behavior. The Id consists of all the biological (or inherited) parts of our personality present when we are born, which include the life (sex) instinct, Eros (which has the libido), and the death (aggressive) instinct. Its function remains infantile throughout a personââ¬â¢s life and does not change no matter how much time has passed or experienced has been gained. It is not influenced by logic or reality due to the fact the Id is found in the unconscious part of the mind. Ego The ego works as a mediator between the external world and the Id. The ego is in charge of the decision-making processes found in oneââ¬â¢s personality. The way the ego operates is based on the principle of working out realistic and reachable methods to please the Idââ¬â¢s necessities. It functions on social realities, norms, rules, and etiquettes when it comes to deciding how to act. However, in comparison to the Id, the ego is relatively weaker and the best course of action is to point out the Id the best direction to take and making the Id think like it was its idea in the first place. Superego The superego uses the morals and values taught by oneââ¬â¢s parents that are implemented in society. The main function of the superego is to command the id. In addition, It tries to persuade the ego to achieve moralistic goals and try to reach perfection. The superego has two systems: the ideal self and the conscience. The ideal self is an imaginary depiction on an ideal self, which includes how you behave around people and society, and career aspirations. The conscience is the part of the mind that can punish the ego for doing something that isnââ¬â¢t in the ideal self by implementing feelings of guilt. On the other hand, if we behave appropriately then the superego will reward us with a sense of proudness. This new model of the mind in my opinion highly visualizes the events that have no explanation that happens in our brains. However, I do feel that this model is a stretch to the previous model and overall confusing with the interconnection of the three parts of the hum an psyche. Defense Mechanisms Defense mechanisms are psychological methods found in the unconscious that are used in order to protect a person from unacceptable thoughts or feelings that cause anxiety. Freud stated that defense mechanisms are put in motion by the ego of a person in order to deal with problems and conflicts in oneââ¬â¢s life. There are 6 defense mechanisms: Repression, Denial, Projection, Displacement, Regression, and Sublimation. Repression This defense mechanism puts a barrier between the conscious and the unconscious so the threatening thoughts do not escape into the conscious part of our brain. This is put in motion by our ego. Denial This involves a person refusing to have experienced a certain event when such a situation is too much to handle and thus blocks external events from reaching awareness. Projection In this defense mechanism, we can see an individual attributing their unacceptable feelings, thoughts, and emotions to another person. Displacement Displacement is put in motion when we try to satisfy an inherent impulse with something else. This could be an object, activity, etc. Regression This happens when one moves to a psychological stressful time in times of stress. We can see this in infants that used to suck on their thumb but do so again when they have to go to the hospital. Sublimation Similar to displacement, this serves to substitute a certain impulse with something else. However, such item of substitution is acceptable in society and that makes it differ from displacement. For instance, playing a sport is a perfect way to put our emotions in a productive way. I find interesting Freudââ¬â¢s defense mechanisms because it is something I have done in the past before. An example of me implementing one of the defense mechanisms would be sublimation. When I used to be depressed, I decided to start working out instead of drowning in my own thoughts, I pursued working out as an alternative that was socially acceptable. Conclusion and Evaluation Sigmund Freud has definitely been a mind to be recognized in the field of psychology due to his mayor influence in the field. Because of his research, we have open up discussions regarding mental health and accepting the fact that not all psychological problems have to come from a physical reason. Using talking as a door to open up major psychological breakthroughs caused an improvement in psychotherapy. However, we need to keep in mind that Freudââ¬â¢s theories are excellent at explaining but not necessarily predicting a behavior, which is the ultimate goal of scientific research. Therefore, his theories are unfalsifiable and highly scientific. Not to mention he was extremely biased in his interpretations. Yet, Sigmund Freud was ahead of his time and he helped ignite a spark that became the bonfire we call psychology.
Friday, May 15, 2020
Karl Marx and the Rule of Law - 3094 Words
PUBLIC LAW ASSIGNMENT WORD COUNT: 2964 The rule of law plays a big role in the development of the western democratic order. A vague concept of rule of law started evolving more than 2000 years ago, at the time of Aristotle . Later a strong assertion of rule of law was laid down by chief justice Coke, who was dismissed from the bench for asserting the Supremacy of Law above the King. However his views were later accepted by the parliament when it passed the Petition of Rights in 1688, and with the passage of time and rise of territorial states in the 16th century the Law of England manifested it self as a supreme entity. Since then the concept of rule of law has gained different interpretations over the years, especiallyâ⬠¦show more contentâ⬠¦This is because Marx believed that the bourgeois class maintains discrimination throughout the society as a vehicle to uphold division of classes. He further elaborates by reasoning that the bourgeois class does so to maintain a certain power and relevance. Collins agreed with Marxââ¬â¢s perception of law, saying that, ââ¬Å"Far from hastening the revolution, the welfare state undermines efforts to create working class solidarity. By preventing the fullest development of the material degradation of the working class and by providing a limited immunity from the vicissitudes of economic crises, a welfare state delays the formation of class consciousness and thus prevents a revolutionary situation from arisingâ⬠¦Ã¢â¬ [1] Just like other interpretations, Marxââ¬â¢s perception towards the Rule of Law is open to criticisms. He is under the impression that with this doctrine, the government is able to silently exercise the abuse of power. Referring to the question, Marx is of the opinion that the rule of law is inefficient, and rarely, if not at all exercised correctly. The question is, how true is Marxââ¬â¢s narrow interpretation towards the rule of law? The rule of law in its modern sense owes a great deal to Professor AV Dicey-The Father of modern English constitutional law. In his book, Introduction to the study of the Law of the Constitution, he states the three postulates of the rule of law: 1. ââ¬Å"No man is punishableShow MoreRelatedMarx Vs. Locke1476 Words à |à 6 Pagesï » ¿Marx vs. Locke Work is something we do on a regular basis, itââ¬â¢s what gets us through our day and makes us who we are. In class, we discussed two authors who had a viewpoint on the idea of work. Rousseau and Marx express their opinions of the theory of work in their own writings. In Karl Marxââ¬â¢s reading called The Communist Manifesto he explains the differences and similarities between the bourgeoisie and the proletariat people. In Rousseauââ¬â¢s reading called Discourse on the Origins of InequalityRead MoreWhy Is Karl Marx So Anti Semitic?805 Words à |à 4 PagesIf we were to read On the Jewish Question by Karl Marx for the first time we would probably ask Why is Karl Marx so anti-Semitic?â⬠. If you wanted to read Marx just for fun than yes it would see so, but if you were a serious reader than you would know this is not true. The questions any reader should ask him/or herself is what did nineteenth-century Germans mean by the Jewish question? What did the phrase mean to Marx ? What was Marx s own experience of Jews and Judaism outside his immediateRead MoreCompare and Contrast the Philosophies of John Locke, Thomas Hobbes, and Karl Marx843 Words à |à 4 PagesCompare and Contrast the Philosophies of John Locke, Thomas Hobbes, and Karl Marx In the idea of human nature; origin of state, the nature of government, the rights of regulation can be drawn as the reflection of insightful philosophies of John Locke, Thomas Hobbes and Karl Marx. By understanding this within the context of human nature, we can see their ideas play to how they perceive a modern philosophy. Karl Marxs Communist Manifesto illustrates the desire to build a society without economicRead MoreWhy Can Emile Durkheim and Karl Marx Be Regarded as Structuralists?1307 Words à |à 6 Pagessocieties think and behave differently because they have learned different rules about how to behave and think. In sociology we have three sociological perspectives: functionalism, structuralism and social interactionism but In this essay I would only be focusing on one perspective and that is structuralism, which analyses the way society as a whole fits together. I would also be explaining on how both Karl Marx and Emile Durkheim contributed to structuralis m and why they can be regardedRead MoreKarl Marx and Communism Essay1184 Words à |à 5 PagesKarl Marx and Communism Were Karl Marx ideas on communism moral? It is quite obvious that some societies do or did believe that communism was a good way of life. Even though there are many drawbacks to communism there are still some advantages. Karl Marx is a man of intrigue he only did what he wanted to and not what others wanted him to do. Upon completion of my research I feel that Marx was a very bright man. His ideas may not be all together but a man that can introduce communism to theRead MoreThe Conflict Perspective Views Society Less as a Cohesive System and More as an Arena of Conflict and Power Struggles. Compare and Contrast the Main Tenets of the Functionalist and Conflict Perspectives.1319 Words à |à 6 Pagesfocused on how various features of social structure function to maintain social order and equilibrium. In contrast to Durkheimââ¬â¢s views, conflict theorist Karl Marx (1818-1883) saw the society as being in a state of conflict which is as a result of social inequalities. Marx bas ed his work on inequality, focusing on inequality under capitalism. Marx argued that the production of goods and services within society is set up so that great benefits are produced for a minority dominant group, the BourgeoisieRead MoreKarl Marx And The German Political System1427 Words à |à 6 PagesKarl Marx was born on May 5th 1818 in Trier, Germany, which was then known as the Kingdom of Prussia. Karl was a philosopher, economist, sociologist, journalist, and revolutionary socialist. His work in economics laid the basis for much of the current understanding of labor and itââ¬â¢s relation to capital, and subsequent economic thought. He was born into a wealthy upper middle-class family. He attended school at the University of Bonn and later he studied law and philosophy at the University of BerlinRead MoreComparison between Two Political Thinkers and and their Understanding of Private Property1464 Words à |à 6 Pagesrationality and industry; the powers of government mus t be separated because virtue is always in short comings, but prerogative, which depends on virtue in judgment, it must be retained by the executive because of the necessary imperfections of the rule of law; and, the right of resistance to illegitimate government presupposes the exercise of restraint and rational judgment by the people. He believed that private property is a natural right, and one of the most significant ones at that. Which is whyRead MoreEmile Durkheim vs. Karl Marx1689 Words à |à 7 Pages------------------------------------------------- ------------------------------------------------- Emile Durkheim vs. Karl Marx Durkheim vs. Marx Introduction: For so many years, authorities from each field have deliberated normative theories to explain what holds the society together. Almost each specialist, from structural functionalism, positivism and conflict theory perspective, had contributed their works trying to illustrate main problematic to our society. In one way, one of the EmileRead MoreEssay about Karl Heinrich marx and Social-Conflict Analysis651 Words à |à 3 Pagessome people and disadvantages others. This analysis draws heavily on the ideas of the great Karl Marx. Karl Heinrich Marx was a German philosopher, social scientist, and revolutionist whose writings formed the beginning of the basic ideas known as Marxism. He was born on May 5, 1818, in a place called Trier in Prussia. Marx attended the University of Bonn and later the University at Berlin, where he studied law, while majoring in history and philosophy to follow in his fatherââ¬â¢s footsteps of becoming
Wednesday, May 6, 2020
The Crucible By Arthur Miller - 1316 Words
Hysteria is displayed all over the world and is a key component in either making or breaking relationships. It refers to the loss of control over a personââ¬â¢s outburst of emotion or fear. In a more deeper context, mass hysteria can be defined as exaggerated or uncontrollable excitement or anxiety among a group of people. Basically hysteria can make people believe that their neighbors, those who theyââ¬â¢ve always considered to be good people, are committing inane and absurd crimes. All of this takes the self interest in one person to start an irreversible chain of decay. In The Crucible by Arthur Miller, this is the dilemma that Salem faces. The people of the town act on their grudges and start to turn against one another making false claimsâ⬠¦show more contentâ⬠¦This shows how Abigail went to some level to try and get rid of Elizabeth. A little while later while talking to the rest of the girls in the group about not saying anything concerning what happened in the fo rest, Abigail tells them, ââ¬Å"â⬠¦let either of you breathe a word, or the edge of a word about the things, and I will come to you in the black of some terrible night and I will bring a point reckoning that will shudder youâ⬠¦Ã¢â¬ (20). This passage is proof of how cold-blooded Abigail is and how sheââ¬â¢s aware of the consequences of her actions but doesn t want to deal with them head on. She shows that sheââ¬â¢s willing to use a threat of harm on other people to save herself. The power she displays over the other girls in the group has her planting the first seeds of hysteria. When Abigail sees Marry Warren, Elizabeth and John Proctorââ¬â¢s servant, making a doll, she stabs herself and blames Elizabeth for doing it. However, in the end, Abigail wasnââ¬â¢t successful because John was hanged while Elizabeth was able to live due to her pregnancy. At the end of all this, it can be seen of fear being used as a weapon for revenge. Thomas Putnam uses fear for per sonal achievement. Putnam is a wealthy land owner who is known by that fact that ââ¬Å"many accusations against people are in the handwriting of [him]â⬠(15). He accuses others in the town of practicing witchcraft. Those condemned sell their land at a second-rate price adding more to Putnamââ¬â¢s wealth. However, all of Putnamââ¬â¢s games
Tuesday, May 5, 2020
Corporate Governance and Social Responsibility Smooth and Efficient
Question: Describe about the Corporate Governance and Social Responsibility for Smooth and Efficient Functioning. Answer: Introduction Corporate Governance and Social Responsibility goes side by side for smooth and efficient functioning of business activities in an organization. Corporate Governance means the mechanisms, relations and processes in which the organization is directed and controlled. It helps in identifying the rights and responsibilities of various participants in the corporation, such as board of directors, shareholders, managers, creditors, auditors and other stakeholders. The practices of corporate governance are often affected by attempts to align the stakeholders interests. Corporate Social Responsibility means the self regulated integration in a business model. This policy aims to ensure compliance with ethical standards and spirit of law (Horrigan, B, 2010). It mainly keeps its focus on increasing long term profits and building shareholders trust by making positive relation with the public and ethical standards to reduce business risk. It wants to get a positive impact from the stakeholders and other communities. Both Corporate Governance and CSR aim in maintaining ethical practices in business and responsiveness towards its stakeholders as it will result in better image of an organization. (Boubaker, S and Nguyen, D, 2014). Overriding goal: Profit or Shareholders Value Fantasy Products Inc. should not only focus on increasing its profit. In an organization it is necessary to maintain a balance between the shareholders value and profits. The discussion that occurred between Blanche and Stanley clearly leaves an impression of dissatisfaction in the ways that company has engaged itself in making profits. It is the CSR of an organization to make its corporate governance policies keeping in mind the rights and need of their shareholders and employees (Simpson, J and Taylor, J, 2013). The primary goal of Fantasy Products Inc. should be to increase the wealth of their shareholders by making payment of dividends and causing an increase in the price of the stock. We know that the executives of Fantasy Products are obligated to maximize the profit of the company and shareholder value maximization is not their obligation, still the rights of the shareholder should not be completed ignored as it may create a bad reputation for the company. A publically owned company raise its funds from investors. Therefore it is very essential to make a significant amount of return to their investors to attract more investments that can bring long term profitability for Fantacy. The shareholders have direct as well as indirect roles in the company. In the stock market they play an indirect role, as an investor will want to invest more only when the company is beating the expectations of the shareholders (Basu, C, 2016). Corporate Governance policies in this company are absolutely formal. The company should make timely disclosure of its profits to the shareholders. In Fantasy, if the management team continues to offer insufficient value of shares, the shareholders will unite to block such moves for their dissatisfaction towards the current management policies. Some other ways in which the company can achieve its overriding goals are Firstly it will be a wrong perception to say that making money should be the overriding goal of a company. Fantasy can achieve the determined goals of the company by increasing the employee efficiency, increase in productivity, customer trust and practicing social and ethical values (Dishman, L, 2012). The efficiency of employees can be increased by allowing the employees to participate in the decision making process hence opening gates for themselves; to become more productive and innovative. Agency Problem in Fantasy Products Inc Yes, it is very much true that there is some sort of Agency problem going on in the company. As Stanley has mentioned in the case study, that company is not taking the consideration of the shareholders while planning its profits and long term goals. Agency problem is the conflict that may arise between the companys stockholders and the management, where one party does not act in the best interest of another (Solomon, J, 2007). In Fantasy Products the agency problem is mainly between the Managers and the Owners. The goal of management is different from that of the shareholders (Kafi, A, 2014). And this is the reason why shareholders are not allowed to participate in the management process directly. In this company the managers are giving priority to their own interest without giving any consideration to the interest of the shareholders. And this results in a conflict between both the parties. In Fantasy it is the shareholders who appointed the managers to work for their interests, but the managers are working for their own benefits. This kind of conduct can be harmful for the company and the stockholders. Another reason that can cause agency problem is when the managers refuse to merger with another company although that would be in the best interest of the shareholders (Sarra, J, 2011). Therefore, to prevent such issues and challenges certain measures should be taken to control the position and power of the management of the company. The shareholders of Fantasy should use several mechanisms to control the activities of the managers. Internal measures include internal audit, change in the payments and salaries of the company managers and by concentrating ownerships (Boubaker, S, Nguyen, B and Nguyen, D, 2012). Good corporate Governance can also help in doing so. Measures should be taken to detect and prevent the inefficient operations of the company by protecting the assets and capital of the company. Internal audit should be conducted regularly to be aware about the financial position of the company and also to ensure that managers have maintained all the compliance as prescribed in the policies of corporate governance. For the availability of external financing and a better approach the company should form a good system of its corporate governance. Fantasy should properly define its priority goals and allocate tasks to the respective managers keeping in mind the benefits and rights of their shareholders. External audit and capital market also has some influence measuring the conflict arising between the management and shareholders. Fantasys Approach to Pollution Control From the information available in the case study of Fantasy Products Inc. we can relate that it is not being able to take effective control measures to control the pollution caused by the company. It is stated that the company is being investigated by the inspectors of State and Commonwealth environment as the company is engaged in polluting the storm water drains and also causing harm to the national park wildlife. This is not the present issue but it is being carried forward from many years. The company has a negative attitude towards the safety and social responsibility of the environment as it thinks that it is very costly and time consuming to take preventive measures to stop such pollution; and it will ultimately affect the profits of the company badly. Fantasy is totally irresponsible in taking pollution control measures as it is unaware about the facts relating to the benefits of controlling pollution while conducting business activities. In order to avoid criticism Fantasy should take suitable measures to prevent pollution. Some of the important reasons are as follows: Reduction on health hazards: There is clear evidence that pollution will bring health hazards such as cancer, lung complications and heart attacks. (Louche, C, Idowu, S and Filho, W, 2010). When pollution control techniques are adopted it not only checks the seriousness of the disease but also supports a healthy life in and around. Risk of liability is reduced: Fantasy is held to pay compensation to those people who are affected by the toxicity and wastes that it produces and releases in the environment. It will be a safe to install devices of pollution control to reduce the liability risk. Cost savings: The cost of operating business can be reduced by an effective pollution control procedure. Due to improper production technology it results in greater wastages that lead to a higher cost of waste disposal and increase the cost of cleaning the plants. Improved Public Image: The policies and practices of Fantasy is likely to influence the attitude of the people as we know that the society is becoming more conscious of environmental quality day by day. In order to earn a good reputation Fantasy has to promote the cause for environment and be socially responsible (Maximiano, J, 2003). Other social benefits: Pollution control can result into other advantages as well like clearer visibility, better quality of life, cleaner buildings and availability of natural products in a pure form (Peddle, R, 2004). Despite of the fact that pollution control techniques acquires a high cost to install various devices that controls pollution, Fantasy should take long term benefits into consideration so as to build trust among the customers and a good reputation to attract more investors to meet the funding that the company requires to carry out day to day activities. Corporate Governance Structure of Fantasy Products Inc The corporate governance structure of Fantasy Products Inc. is totally an ineffective one as it only focuses on profit maximization and neglecting the maximization of the benefits of its shareholders who are the actual owners of the company. The reason behind the poor corporate governance structure of Fantasy Products is its ownership structure, the structure of companys board and the financial structure. The institutional environment such as legal, political and regulatory environment in which a company operate also influences the structure of corporate governance (Urlacher, P, 2008). It is the outcome of political decisions that takes place in the firm. The right of control should be in the hands of shareholders as well to control the activities of the management that is truly for their own benefits (Davies, A, 2006). Fantasy Product should plan a new framework for deciding the goals and objectives of the company if it wants to solve the emerging problems amongst its employees and shareholders. It should realise the importance of corporate governance in a business improved reputation, fewer penalties, fines and lawsuits, and decreased conflicts and fraud. The practice of sharing information related to its profit will increase transparency that will allow people to feel more confident in making investments and maintaining business relations with the firm. Fantasy is not being able to maintain effective corporate governance and as a result it will have to suffer a heavy loss in the coming future. The company is being investigated by the respective authorities and soon will have to face a heavy fine and penalties for not conducting ethical practices and corporate governance. It is high time now, for understanding the importance of corporate governance by Fantasy; they can limit the bad behaviour of their employees by considering their value and the value of the shareholders. If Fantasy still continues to neglect the rights of its shareholders, the shareholders might file a suit against the conduct of the company for the non compliance of corporate governance. Conclusion From this case study we can say that the relation between various shareholders and management of the firm raises many questions related to the process of value creation. The shareholders have specific expectations from the firm and require a specific knowledge and information on this condition. We know that shareholders participate in the value creation and a lot of questions are raised to know the measurement of shareholders value. It should frame its policies according to the needs and wants of shareholders, customers and environment to maintain its goodwill and long term profitability; balancing CSR and Corporate Governance in the best possible manner. Thus, Fantasy Products Inc. should contribute some effective incentive methods to encourage shareholders to make efficient and responsible conduct in order to achieve the common objectives of the firm and that of the partners. Profit maximization is important for every firm but they should not ignore the maximization of shareholders value. Before the disclosure of investigation report, Fantasy should realise its responsibility towards the shareholders and environment protection, to avoid penalties and fines. There is also a chance of being ceased to carry out business activities. References Basu, C. (2016). [Online]. The Importance of Shareholders in Business. Viewed 5 October 2015 from https://smallbusiness.chron.com/importance-shareholders-business-20844.html Boubaker, S and Nguyen, D. (2014). Corporate Governance and Corporate Social Responsibility: Emerging Markets Focus. World Scientific. Boubaker, S, Nguyen, B and Nguyen, D. (2012). Corporate Governance: Recent Developments and New Trends. Springer Science Business Media. Davies, A. (2006). Best Practice in Corporate Governance: Building Reputation and Sustainable Success. Gower Publishing. Dishman, L. (2012). [Online]. 6 Achievable Business Goals Your Company Needs To Set Now For 2013. Viewed 5 October 2016 from https://www.fastcompany.com/3003820/6-achievable-business-goals-your-company-needs-set-now-2013 Horrigan, B. (2010). Corporate Social Responsibility in the 21st Century: Debates, Models and Practices Across Government, Law and Business. Edward Elgar Publishing. Kafi, A. (2014). [Online]. Types of Agency Problem. Viewed 5 October 2016 from https://educenterbd.com/types-of-agency-problem Louche, C, Idowu, S and Filho, W. (2010). Innovative CSR: From Risk Management to Value Creation. Greenleaf Publishing. Maximiano, J. (2003). Corporate Social Responsibility: basic principles and best practices: historic philosophical issues in international business. PLDT. Peddle, R. (2004). Implementing Effective Corporate Social Responsibility and Corporate Governance: A Guide. BSI British Standards Institution. Sarra, J. (2011). Corporate Governance in Global Capital Markets. UBC Press. Simpson, J and Taylor, J. (2013). Corporate Governance Ethics and CSR. Kogan Page Publishers. Solomon, J. (2007). Corporate Governance and Accountability. John Wiley Sons. Urlacher, P. (2008). New Issues in Corporate Governance. Nova Publishers.
Subscribe to:
Posts (Atom)