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Multinationals: Why Don’t They "Just Do It?"

Business Ethics: Worth a thought?

The corporate world today faces rising ethical dilemmas in every day operations. Ethical issues, often confused with corporate scandals, are not necessarily as dramatic as that. Every department of every organization face moral and ethical dilemmas in their day to day functioning, and often enough corporations get away with unethical or immoral behaviour. Of course, reasons vary. Arguably, organizations cannot afford the risk of not investing their time or resources in developing a comprehensive approach to corporate ethics. This report looks at two multinational organizations, Unilever and Nike Inc. and draws a comparison on their discriminatory practices in the various countries or culture they operate in. Both the firms are identified with unethical behaviour, and although the circumstances and the firm’s ways of handling these issues are different, little seems to have changed.

Unilever Issue: Fair is Lovely!!

An Anglo-Dutch company, Unilever owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs more than 247,000 people and had a worldwide revenue of US$51.4 billion in 2004. (Unilever 2006). In India however the firm runs under its operations under the name of Hindustan lever. The company has a range of ‘home and personal care’ products in the Indian market. One of the most successful brands of the company is ‘Fair & Lovely’. The company websites claims to be using a patented technology for this fariness cream. The website claims ‘Fair & Lovely’ to be formulated with optimum levels of UV sunscreens and Niacinamide, which acts safely and gently with the natural renewal process of the skin, making complexion fairer over a period of six weeks.

A number of ethical concerns are however related to the product. Apart from the ill effects on the skin, as claimed by some doctors, the advertising and marketing of the product has been doing more harm than good for the society. Its frequently-aired ads typically show a depressed woman with few prospects, gaining a brighter future by having a boyfriend or attaining a job after becoming markedly fairer (emphasized by several silhouettes of her face lined up dark to light). On its Web site the company calls its product, “the miracle worker,” which is “proven to deliver one to three shades of change.” (Unilever 2006). To many it may seem or sound strange for all this to happen in a country where the majority of the people have a dark complexion of skin colour with variations in brownness. Ironically enough though, people from all walks of life, be it a would-be-mother in law, or a young or an old male, everyone seems to have a fascination for lighter skin. Women from all socio-economic backgrounds go to unbelievable lengths to become just a little whiter.

Although the advertising done by Unilever for ‘Fair & Lovely’ is not illegal but it certainly remains objectionable. In an era which is dawned by corporate scandals, such as Enron and the Australian Wheat Board (AWB), Unilever has been successfully running this product in over 38 countries. Ironically most of these countries are under-developed/ developing country, who can do away with such practices. In India, a country with a huge social and cultural divide, high unemployment and illiteracy levels, Unilever successfully deceives and manipulates people through its exaggerated claims. Even if the claims were to be true, and such a product was to make skin lighter, the company looks to gain market share and increase profitability by creating a mindset where lighter skin is superior to a darker complexion. In reality people are buying products that will cause more harm than good. The demand for such “skincare” products is part of an India-wide trend of women wanting to lighten their complexions in the belief that lighter is better. This desire has a long history, a hangover from India’s colonial past fuelled by contemporary global perceptions of beauty that give prominence to western marketing and fashion styles. The advertisements shown fail miserably at all levels of advertising ethics.

One of the concepts that can be used to explain the practices of Unilever advertising is Moral myophia, the failure of Unilever to see the moral dimension at all. The advertisements done by the firm have probably been successful. How else would you explain the never ending promotional campaigns all over the media; print, display or broadcast. Success in this case relates to the increasing profitability of the firm after a particular ad campaign. The social implications of this to the society are however conveniently ignored. Quite clearly, Unilever seems to be following the belief of the only bad advert is one that does not work.

The content of the product website makes things a little more complicated. The website claims to be helping women in India, often considered to be the weaker sex. The Fair and Lovely Foundation, an initiative of Hindustan Lever Limited seeks economic empowerment of Indian women through information and resources in the areas of education, career guidance and skills training. Comprising of an advisory body of leading individuals, this foundation aims to undertake various projects and initiatives in keeping with its vision of empowering women to a brighter future. Prominent women organizations and achievers partner initiative to promote economic empowerment of women. (Grace & Cohen 2005)

Noble thought?

It sure is, but at what expense. Isn’t it strange and ironic that this company, and others in the business, continue to sell fairness as a desirable quality, be it for success in marriage or career, and equate dark complexions with failure and undesirability? Where does a company draw the line between selling a product and being socially sensitive? What is even more disturbing is the fact that there is a constant attempt to disguise these socially unacceptable practices. As noble as the idea behind the Fair and Lovely Foundation might be, it still does not solve the root problem. Addressing one problem in the society can not come at the expense of exaggerating the other one. Women in India need to be empowered, and be told that they are no less than their male counterparts, however the people of India also need to be told that the mere colour of skin does not make one superior. The society needs to get over the colonial hangover, and the least that companies like Unilever can do is not spend millions of dollars on campaigns which do more social harm than good.

Nike Dilemma: Still waiting for them to “do it”!

Another corporate giant having its fare share of controversies over the years is Nike. Nike employs approximately 26,000 people worldwide. In addition, approximately 650,000 workers are employed in Nike contracted factories around the globe. More than 75% of these work in Asia, predominantly in China, Thailand, Indonesia, Vietnam, Korea and Malaysia (Nike 2006). In 1998 Nike came under fire for the sweatshop conditions of the workers in the Nike factories in China and other third world countries. The evidence showed that the workers were regularly subject to physical punishment and sexual abuse and exposed to dangerous chemicals. (Nike Accused of Lying About Asian Factories 1998). Sub standard working facilities, bare minimum wages and risks to health of labourers mark NIKE factories in Asia. The firm was also accused of practicing child labour in Pakistan.

So the question now is, why did it happen, and more importantly, has anything been done since to correct it.

So why did it happen?

Well that is quite clear. The reason why most firms outsource their activities to lesser developed countries is to exploit cheaper labour and production costs. Nike has a brand reputation worldwide, and in-fact is a market leader in the sales of athletic shoes. The constant focus is to formulate ways and strategies to reduce production costs, and one way of that is fewer wages to the workers. The high unemployment levels in the third world countries, as well as the desperation for people to be employed, in any kind of work, allows multinationals like Nike , the perfect platform to indulge in malpractices without getting into too much trouble. A look at some of the ethical issues concerned with Nike’s human (or inhuman!) right violations would give a better understanding of the concern.

Ethical Dilemma:

Any firm which expands its operations globally needs to follow the basic code of international ethics:

o Not to intentionally direct harm in the host country. By providing below standard and unsafe working conditions, and low wages, Nike was clearly intentionally doing harm.

o Benefit the host country. Although Nike was indeed expanding the number of jobs available in China, a desirable aspect, but the extremely low wages meant it was all beneficial for the corporation and not the people in China.

o Respect the human rights of employees. Reports of unsafe and hazardous working conditions proved that Nike did not care much about the human rights in China.

o Respect the values, culture and laws of the host country- as long as they are not morally wrong or against human rights. (Grace & Cohen 2005)

It would be a fair assumption to make, if a certain behaviour is unacceptable in the home country, it would most likely be morally wrong in a foreign environment as well. Managing stakeholder interests is also extremely important for any firm. However problems arise when businesses fail to prioritize the stakeholder interests. Nike prioritizes its stakeholders in terms of their importance to the firm, and quite clearly the workers in Asia, do not seem to be anywhere near top of this priority list. As a consequence, all the efforts of the firm are directed towards the consumers, who typically are in developed countries, with more money, and who can not care less about what might be happening in a Nike factory miles away from home.

So has Nike done anything about it?

Since the controversy first broke out in 1998, Nike has claimed to taken several steps to correct the mistakes. Or so is what the organisation claims. This section of the article focuses on Nike’s efforts, the truth, the lies and the myths about it.

After the controversy broke out in the international media, Nike’s founder and CEO Mr. Philip Knight made six commitments:

o All Nike shoe factories will meet the U.S. Occupational Safety and Health Administration’s (OSHA) standards in indoor air quality.

o The minimum age for Nike factory workers will be raised to 18 for footwear factories and 16 for apparel factories

o Nike will include non-government organizations in its factory monitoring, with summaries of that monitoring released to the public.

o Nike will expand its worker education program, making free high school equivalency courses available to all workers in Nike footwear factories.

o Nike will expand its micro-enterprise loan program to benefit four thousand families in Vietnam, Indonesia, Pakistan, and Thailand.

o Funding university research and open forums on responsible business practices, including programs at four universities in the 1998-99 academic year. (Connor 2001)

However there was still no mention of the human rights of workers, higher wages, more reasonable working hours, safer and healthier work places and respect for Workers’ Right to Freedom of Association. Later consumer activist Marc Kasky filed a lawsuit in California regarding newspaper advertisements and letters Nike distributed in response to criticisms of labour conditions in its factories. Kasky claimed that the company made representations that constituted false advertising. Nike responded the false advertising laws did not cover the company’s expression of its views on a public issue, and that these were entitled to First Amendment protection. The local court agreed with Nike’s lawyers, but the California Supreme Court overturned this ruling, claiming that the corporation’s communications were commercial speech and therefore subject to false advertising laws. (Kasky V. Nike 2002)

The parties subsequently settled out of court before any finding on the accuracy of Nike’s statements, for $1.5 million. Discovery in the Kasky case had the potential to open the Nike files to public scrutiny, to document the mistreatment of workers throughout the world, and the flow of money from Nike to public interest groups. However Kasky and his lawyers settled this potential historic case for a $1.5 million donation to a group controlled by the shoe and apparel industry. There hasn’t been a word about it since.

(Weissman & Mokhiber 2002)

In 2004 Nike announced that it would be developing a balanced scorecard to integrate corporate responsibility into its business. The sports goods manufacturer said it would introduce corporate responsibility as an integral part of its contract manufacturing business. Sourcing decisions were to be based not just on price, quality and delivery but also a contractor’s pledge towards labour management and environmental, health and safety programmes.

In 2005, seven years from the time when the controversy was first made public, an independent research conducted showed that although 60% of factories monitored achieved an A or B rating in terms of compliance with agreed standards, a quarter of factories were found to present more serious problems. These ranged from a lack of basic terms of employment and excessive hours of work to unauthorised sub-contracting, confirmed physical or sexual abuse and the existence of conditions which could lead to death or serious injury. The Guardian also reported some of the conditions that existed in the Chinese factories in 2005

o Between 25% and 50% of the factories in the region restrict access to toilets and drinking water during the workday.

o In more than half of Nike’s factories, the report said, employees worked more than 60 hours a week. In up to 25%, workers refusing to do overtime were punished.

o Wages were also below the legal minimum at up to 25% of factories

(What are factory conditions in China 2005)

Once again Nike said it would set up a taskforce to improve compliance with its code of conduct on working hours. It will also work with factories to help them address the most pressing problems as well as seeking to establish a set of common standards across the industry. (Nike opens up in Standards Drive 2005)

The question of course is, would anything still be done. There is a good chance it may never be. Nike sees business ethics as “no good at all”, and believes acting ethically would not be in the best of interests of the business. Not till the time, the sales of the business go down alarmingly, would there be any hope for any drastic improvements in these conditions. Nike has always had its share of controversies, and the firm seems to be thriving on it. The firm manages to use the controversies as a publicity tool. Thus far, Nike has treated allegations as an issue of public relations rather than human rights. Every allegation is followed by the release of public statements across various magazines and newspapers stating the efforts made by the firm to make the difference, but seven years down the road, the differences are yet to be seen. Meanwhile the efforts of Nike to manipulate and win even more customers go on. The corporate website of the firm talks heavily about their shifting approach to labour compliance.

(Evolution: Shifting Approach to labor compliance 2006)

Unlike Nike, Unilever has not quite been indulging itself in illegal activities, but does that make it any less harmful, or does that make Unilever any bit more ethical than Nike?

According to this writer, the answer to both the questions is NO. In fact what makes Unilever’s practices even scarier than those of Nike is the fact that they cause as much harm, but still there seems to be little concern over it. The firm has been in operation since 1978, and even 28 years after there seems to be little or no concern. There is little media coverage over the menace, possibly because of the advertising revenues being paid, or just the ignorant nature of the present day media, which seems to be more interested in scandals rather than some social concerns in a third world country.

The double standards practised by both Nike Inc, and Unilever are quite apparent as well. The majority of Nike clothing is produced in countries it hardly has any sales, but of course the factory conditions of a worker based in an American factory is strikingly different from that of a worker in a Chinese factory. Likewise Unilever manipulates the market by introducing fairness creams in cultures where beauty equates fairness. To boost the sales, the company goes a step further by trying to position the product by changing consumer perception of fairness as being successful, both socially and emotionally.

Social impacts? Did you ask?

Of course that’s hardly on the agenda. The interesting thing is, although Unilever operates in over 40 different counties, including Australia, the ‘Fair & Lovely’ product is only available in a handful of markets. The company does not have any ‘Dark & lovely’ brands in their western markets, possibly because they perceive this market to be more educated and therefore tougher to manipulate.

The firms of course have their reasons, and one of them is us, the consumers, who purchase these products. It is the age old formula of demand and supply. We demand the product, and the firm of course goes to any lengths to fulfil the gap. In Unilever’s case, there is an obvious need in the mind of the consumers in India to have fair skin. Similarly for Nike, the worldwide demand for their apparels compels the firm to go to unbelievable extent to produce lower cost products. The story unfortunately does not end here. We the consumers, then put the firm under even more pressure to maintain their profitability, only this time we take the role of investors. Investor’s of course are only concerned with the share return, and cannot care less about how the firm maintains its profitability.

Jennifer Abbott and Mark Achbar, in their documentary ‘The Corporation’, proved that corporations in the present time fit the definition of a ‘psychopath’. The concern is that this psychopath is being raised and bred by us, the consumers, and the investors. These are average times we are living in, with every day more issues, more scandals and more controversies breaking out. However reading the stories is nearly not enough. Something somehow somewhere needs to change and change sooner rather later, before it gets too late.

End of story?

Unfortunately, I don’t think so.

Buffett – Don’t Buy Stocks Just Because They Are Undervalued

Buffett, like many other great investors, tends to be very discriminating-he avoids the temptation of buying a stock that seems alluring at the moment. Any stock can potential be a value if the price is right, but Buffett doesn’t allow himself to be fooled into buying stocks just because they are undervalued.

Eventually, each of the 10,000 or so U.S.-list stocks, including the Qualcomms and Oracles of the world, will trade at undervalued price, but only a small fraction of the 10,000 companies offer compelling long-term growth prospects. Most have poor fundamentals or an erratic growth history and should be shunned. Many others will provide periodic trading gains and then languish when the investment community tires of their stock and seeks short-term profits elsewhere. As you hone your stock picking over time, you will eventually whittle down your short list of buy candidates to a few dozen. Then, you can zero in on this list and purchase them, one at a time, as their prices fall to favorable levels.

You should avoided the temptation of buying stocks simply because you have cash on hand, Buffett believes. More often than not, a havey wallet invites mistakes. At the beginning of 1999, Buffett was holding more than $35 billion in cash and bonds in Berkshire Hathaway’s investment portfolio. He was content to hold this great sum of money, which was equal to the total yearly output of dozens of smaller countries, indefinitely until he found suitably priced companies to purchase. In contrast, most investors feel a psychological need to put their loose change to work almost immediately. Rather than patiently wait for their favroite stocks to decline, they purchase shares of lower quality companies without spending time to study their fundamental properties.

Buffett avoids this trap by identifying all the stocks he wishes to own over the next several years and buys them one at a time, but only when they fall to an attractive price. If the stocks do not fall to his desired price immediately, he takes no action. He knows that the odds favor a decline in price sooner or later. In the interim, he will devote his attention to other desirable companies whose prices may already have fallen to appealing levels.

To help you practice the taking-strike method, you should keep a list of your prospective stock prices. The list should include the maximum price you would willingly pay for the company today. Post this list in a convenient place and check it periodically.

The obvious advantage to warehousing stocks is that it forces you to be vigilant. Before buying, you must determine a reasonable value of the company, which means studying the enterprise. Putting some time into the valuation proves will greatly decrease your chance of buying prematurely. Buying companies in this manner also allows you to build the portfolio you really want and prevents you from adding undesirable stocks simply because you have idle money. In addition, the method harnesses your impatience and – most important- ensures top performance because you will be overpay for any company.

You should update your checklist periodically to make sure your target prices are reasonable. If a company’s growth prospects dwindle, the original buying price you set may be too high. Conversely, if the company’s fundamentals improve, the stock may not retreat to your buying level again. In such cases, you must reappraise the company to determine whether it is truly worth a higher share price.

The point is, when you don’t have to invest, don’t feel you should invest. Once you attain confidence in your own stock picking, you’ll naturally make fewer and fewer buy-and-sell decisions. Being a successful investor gives you the same luxury as having a 20-game lead over the second place team in September. You can rest the bat on your shoulder and take strikes indefinitely because it won’t change the outcome of the season.

PUT YOUR FAVORITE STOCKS IN INVENTORY.

What You Don’t Know About Jalan Tuanku Abdul Rahman

Jalan Tuanku Abdul Rahman has some of the most fascinating buildings lined up all along the way.

Jalan Tuanku Abdul Rahman was the shopping hub of Kuala Lumpur before modern shopping malls took over the city. All along this road, one will see many pre-war buildings in Art Deco and Neo-Classic styles, whose beautiful exterior have been preserved to accommodate modern retail shops. Anyone walking down the road will be greeted by a riotous scene of people, bags and carpets.

Tourists dying to run away from touristy areas and are keen to see how ‘normal’ Malaysians live will find Jalan Tuanku Abdul Rahman fascinating in giving a glimpse of real Malaysian life.

Jalan Tuanku Abdul Rahman or as it was formerly known as Batu Road, was named after the first Yang di-Pertuan Agong or King of Malaysia. Oddly enough, many Malaysians confuse him with Malaysia’s first Prime Minister, Tunku Abdul Rahman. One is Tuanku, which means King, and the other is Tunku, an honorific for royalty. By simply knowing this, you’re ahead of many Malaysians!

The road itself is very prominent in KL, and one will find it crowded at most times of the day and even at night. Dataran Merdeka, or the independence square, is just a short distance away.

PH Hendry

The white and orange building at the beginning of the road is the former P.H. Hendry building, or what is left of it. P. H. Hendry was the oldest existing jeweller in Malaysia, appointed the Royal Jeweller to the states of Negeri Sembilan, Selangor and Kelantan in the 20s. In the early days, the craftsmen and stone-carvers came from Sri Lanka.

PH Dineshamy founded the Hendry dynasty. In the 1920s, his son PH Hendry opened a jewellery shop at Jalan Tuanku Abdul Rahman. In fact, the Hendry family business is still in existence.

The eye catching white and orange was only recently painted. Its style is Neo-Classic and its façade has three large pilasters, which are the slightly projected vertical columns. If you trace the columns all the way up, you will see that they are capped with Corinthian capitals, or the ‘heads’ of the columns. The pediment, which is the triangular structure on the top, is a feature of Neo-Classic architecture that gives the building an imposing feel. The windows on both floors are different; the first floor has a bay window while the second floor has a Venetian window consisting of a semicircle arch and four vertical pilasters. It is covered with plaster; and right on top at the triangular structure, see if you can spot the star and crescent, the Islamic symbol.

Shops Number 1-19

The buildings across the road from P. H Hendry are fine examples of Neo-Classic features. Painted in white and sharing similar architecture with the PH Hendry building, the buildings were constructed at different times and built by Malay and Chinese tycoon.

Tourists find the giant pilasters, which are the slightly protruding columns that support the pediments, or the triangular structure on the top, very fascinating. The beautiful bay windows adorn the first floor and the block is brought together by the typical cornice treatment of that time. You can also see the huge rectangular piers that form part of the covered five-foot way. The façade is embellished with plaster scrolls and emblems.

Art Deco and Neo-Classic buildings along Jalan Tuanku Abdul Rahman

The fascinating buildings along Jalan Tuanku Abdul Rahman are repainted with bright colours while some are left in their original colours, but all of them exhibit the theatrical qualities of Art Deco. Art Deco was an art movement that lasted from 1925 to the 1940s. It was seen as elegant, glamorous, functional and modern; and you will undoubtedly find these qualities in many of these buildings. The movement mixes many styles such as Neo-Classical, Constructivism, Cubism, Modernism, Art Nouveau and Futurism. It was most popular in Europe during the Roaring Twenties.

In the words of F. Scott Fitzgerald, Art Deco style was shaped ‘by all the nervous energy stored up and expended in the War’. The characteristics of Art Deco are very apparent here. Cubic forms, ziggurat shapes- a terraced pyramid where it gets smaller the higher you go, complex grouping of rectangles and squares, bands of bright and arresting colours, zigzag design, strong sense of line and an illusion of pillars.

Many have been restored and preserved to house retail shops and restaurants.

Coliseum Cinema

One of Malaysia’s famous landmarks, it is the oldest continuously running cinema in the country, save for a short break during the Japanese occupation. It was built by Chua Cheng Bok, a well-known Chinese businessman and property developer, who eventually leased it to a group of gentlemen who opened this cinema back in 1921. It was constructed with reinforced concrete, with a double roof. The building was then considered one of the coolest places in town quite literally, with its numerous fans and ventilation. There are wide verandahs upstairs, with balcony seats and private boxes tastefully fitted with separate fans and lights, to cater to well-off patrons’ comfort. The Coliseum had its own power plant, making it independent of the town’s system. Next to it one will see a square, usually with fairs or sales or exhibitions that are organised by the KL Tourism body every month or so. It was one of the first few buildings in Southeast Asia to have safety designs such as emergency lighting and fire prevention systems. Also, state of the art ventilation grills and exhaust fans enhance air circulation.

It was not uncommon to go over in the 30s to see bangsawan or Malay opera performed by local troupes. However, since the 1940s the cinema played Hindi and Malay films. Moviegoers of the old would load up on tit bits such as sunflower seeds and fried peanuts and drinks in plastic carriers before entering.

It was beautiful the way these movies were advertised, as they were not printed by a press, but instead were painted by hand on large billboards! This process continued well into the early nineties proving to be quite eye catching to passers-by. Of course, canvass painting has been discontinued with the dawn of computers and other graphic design tools, so it is rare to see hand-painted billboards anymore.

Coliseum Cafe

Next to the Coliseum Cinema, is the Coliseum Hotel and Restaurant, which also was built in 1921 as part of the same complex. It was a popular watering hole for Colonial planters, miners and traders, just like Selangor club down the road, but less exclusive. Tea dancing was a popular pastime among young people as a way of courting and dating in those days. It was a chance to waltz with a boy or girl you liked under the watchful eye of chaperones who sat with their tea and sandwiches surveying the room. Amongst Coliseum’s famous patrons was Somerset Maugham, the English author, who made it a point to visit the café and the Selangor Club when he was in Malaya.

The special atmosphere of yesteryear is retained with its unchanged décor and furnishings, and white linen-clad waiters. But the waiters are now much older, and some hard of hearing, and in less than white clothes. The table clothes and the walls look stained while the air inside smells like grease! The Café serves mainly English cuisine, and the menu has remained largely the same. Many of the dishes are still cooked over charcoal and firewood stoves. When you order the sizzling steak, it comes to the table sizzling and the waiter pours sauce on it in front of you. Since most of the wait staff is old, expect them to be slightly grumpy, but that’s part of the charm in the Coliseum Cafe.

Odeon Cinema

Along Jalan Tuanku Abdul Rahman is the popular cinema of many a baby boomer’s childhood, Odeon. It was built by the Cathay Organization in 1936, and became an expression of the links between cinematography and Art Deco. A.O Coltman was the architect.

‘Odeon’ is a Greek word for a building for musical competition. This building featured new safety designs such as emergency lighting and fire prevention systems for the projector room. There was also a then state-of-the-art ventilation grill and exhaust fans to enhance air circulation, while the foyers were laid with locally produced rubber flooring.

Above the entrance, a horizontal beam, embellished with a mosaic depicting drama, comedy and music, intersects the strong vertical window dividers. On the side façade, the “ribs” create a vertical rhythm.

Writing Your Business Plan? Don’t Forget Your Own Professional Development

This may seem obvious to more serious or experienced individuals who are climbing the ladder of success, but one must endeavor to stay current and invest in professional development. Many of the business plans that I review fall short in this area, and a lack of vision at the outset of the planning process can eventually be fatal to the enterprise.

When a prospective entrepreneur shows me a plan that cuts corners in important ways, I become concerned. Going “bare on health care”; family members working for free; no plans for time off; delayed or unpaid salaries; a statement that marketing will all be done by “word-of-mouth”; and no budget for professional development: one or more of these is a sure-fire tip-off that there’s trouble ahead on the entrepreneurial railway. You see, if a product or service which is to be offered is really viable, it stands to reason that the business would be profitable enough to support necessary business expenses, which include creating an environment that is suitable for human beings, as compared to machines.

In addressing the subject of “professional development,” we might divide it into two sub-topics: How does one “do it?” and “What are the benefits that cost-justify the investment?”

How exactly does one “do” professional development?

For the past couple of years, I have purchased an average of two or three books per month, which are related to a subject area that is of interest to me, either at a book store, or when a book club circular associated with this area of interest is delivered to my mail box. The reason I have not specified my area of interest is that it doesn’t really matter, relative to the overarching point, which is: You should buy books that address a topic of interest of your own, and read them. This practice (virtually made into a “habit” because of the book club) costs me about $50 dollars per month.

I also subscribe to about two dozen periodicals (journals and magazines). Some are industry specific, some are business magazines, and some are consumer magazines. Some are paid subscriptions, and some are complimentary subscriptions based on my ties with certain industries or subject areas (and some are included in membership fees). My paid subscriptions cost about $300 per year.

It is also very important to attend conferences and workshops. If one goes as a speaker, he or she can use the visibility of the conference platform as a means to network, create a reputation for having a certain type of expertise, learn from others who have different viewpoints or specialties, and justify travel expenses. If one goes as an attendee, he or she can accomplish many of the same objectives, sans the visibility of being on the official program. Conferences vary widely in price, but several hundred dollars for conference fees, and $1500 for food, lodging, and travel might be typical for a four-day national conference. Regional conferences are typically less expensive across the board, as they are held at less expensive facilities, have smaller conference fees, and may be within driving distance. I plan to attend a one-day workshop in Atlanta within the next month or so. That will cost $149 for the workshop fee, and mileage expenses (about a three-hour drive). Annually, one should probably budget at least a few thousand dollars for these activities (e.g., four or five), and of course, the “sky is the limit.”

Networking soirées are all over the place. These happen in any given community as social, cultural, and business events. Organizations such as a local chamber of commerce will often sponsor gatherings that allow people to mingle and meet over drinks and light fare. Many cities have bona fide networking clubs, which are operated to provide a free exchange ideas, resources, and contacts. The entry fee for most of these events is low: $30 may be typical. How often should one attend? Oh, I’d say about a hundred dollars-worth per month would prevent anyone from accusing you of being reclusive.

Professional memberships are also important. For any given discipline or area of specialization, there are probably three or four associations or similar organizations that one should join. (Hint: discounts on conference fees, publications, and other perks are usually available to members as an incentive to join). Being an active member is also important. Try to contribute in some way, besides paying membership dues. You can participate in the conferences and support the organization’s sponsors (which keeps the organization viable), serve on committees or in leadership positions, be responsive to other members, provide pro bono services, or the like. While fees and the availability of memberships varies widely, $1000 per year would be a good place to start.

Some training is covered above in the context of workshops and conferences, but you may want to also consider taking a formalized course from time-to-time, or even enrolling in a degree or certificate program. On a smaller scale, you could buy software, take courses, and stay current on the Internet (e-learning is predicted to be a major trend). If you are now convinced about implementing the suggestions that I have mentioned above, but still looking to cut costs, you can certainly spend time in the library, and online, conducting research and staying current. I would recommend that you do not attempt to cut all of the costs, because that would mean that I am back to square one, with regard to the purpose of this article. The issue is discipline, and creating positive habits. (Remember, I said that the book club circular ensures my own habitual behavior? Meeting announcements, membership and subscription renewals, and other regular reminders will help you make sure that you follow-through with action – if you are determined to do so in the first place, of course).

What are the benefits that cost-justify the investment?

Now, some people will say they can’t afford to invest in books, conferences, workshops, and the other tools that would aid their efforts to either stay current, or advance in their careers. I would reply that it’s a matter of attitude and planning, at least to a great extent.

Can you afford to pay for your own professional development?

Well, that’s up to you, and your own attitude, and the choices that you make about your career and your business pursuits.

One’s own professional development (and the development of employees, assuming that you are still working on your business plan) is a far better investment than just about anything else you can buy. Paying attention to your own professional development, and addressing the means by which you will grow the people in your organization within the pages of your business plan will assist you in proving that you are long-sighted, adaptable, and worthwhile investment, yourself (if you are seeking outside capital).

As for me, I figure the several thousand dollars per year that I keep investing will eventually be worth far more than what I have spent. I know what I won’t have if I don’t invest: No current knowledge; no contacts; no contracts; no industry knowledge; and no ability to demonstrate that I even have a clue about what’s going on, as a so-called professional, among my cohorts in academia or the business community.

That would be a very high price to pay, indeed.

Don’t Make The Following 3 Mistakes If You Want To Earn Money Online

There’s one born every minute… someone who hates their job, their boss doesn’t appreciate them and they know that their time is worth so much more! One night in a haze of online surfing they come upon a website promising them a fancy car and a house if they start an online business. But it’s just a scam… or is it? So many people now realise that the dream of earning money online, away from the morning and afternoon commutes, away from the boss and the office politics is not just a dream but also a reality for many people around the globe. However, many people make any one or all three of the following mistakes when they attempt to earn money online! Below are the three biggest mistakes you could be making in regards to earning money online and how to avoid them.

Mistake No.1 – Quitting Your Day Job Too Soon

Too many people make the mistake of immediately quitting their job after the euphoria of living their dream takes hold of them. Without building a solid foundation online it will most certainly lead you to a lot of wasted time, money and effort. The best thing you can do is to start doing your online venture in your spare time, preferably part time after you finish your day job. Many people want to feel the rush of having their backs against the wall and having no other way than to be a success. However, doing so will lead you to make desperate decisions and ultimately foolish mistakes. Use the next 6 -12 months as a learning phase to really figure out this whole ‘earning money online thing’. If it’s really a passion, if it’s really your dream, you will want to do it right and you will want to build it correctly.

Mistake No.2 – Venturing Into The Unknown

Starting a business online is already an unknown venture why make it doubly hard for yourself by starting in an area you know nothing about or worse you actually have no interest in! Many people make the deadly mistake of starting a business online because they’ve heard from someone that a particular thing such as Forex trading is where the money is. However they’ve never looked at a dividend statement much less traded any stock. Sure you could learn but why give yourself the hassle? The truth of the matter is that you probably have skills, and expertise in areas that would make you very valuable in the online marketplace. What if you’re a whiz at fixing computers? Well why not create a website where you answer people’s problems and fix their machines for them? You could also have complementary software and antivirus to sell as well. You can sell products much better, when you actually care about them and are knowledgeable in them.

Mistake No.3 – You Don’t Leverage Your Expertise

The amazing thing about the Internet is that it creates an almost equal footing between small entrepreneurs and big businesses. Everyone starts off as an equal, more or less, online. However in order to be successful online it’s a mistake to not leverage your current expertise. In the earlier example of being a computer whizz it’s a good idea to start building a good reputation with your past and current customers. Let them spread the word! You can start doing this by connecting with your customers in the places that they ‘hang out’ Look on Facebook, online discussion boards and forums where your customers are frequently visiting. Register online and start the process of letting yourself become known as an able and competent expert in your field by answering queries intelligently.

To successfully earn money online you need to ensure you don’t accidentally make one of these mistakes. Don’t quit your day job just yet and instead dedicate some real time over the next couple of weeks and months to learn the basic concepts and language of your online market. Don’t venture completely into the dark with your online business as you already have enough to worry about and learn. You probably have an interest, hobby or expertise you can leverage. And when you get online, leverage your expertise rather than staying silent on all the good you can do. Actively go out and create connections with past and future customers in the places they hang out and by giving them great service you will create raving fans that will do more for you than any expensive marketing package.

An Honest and Critical Primerica Review (Don’t Join Before Reading!)

An Objective Primerica Review From An Industry Expert

Primerica (formerly known as PFS/ALW) is a financial services company that uses a Multilevel Marketing model. For more than three decades, Primerica has been able to produce many, many 6-figure a year earners. In the 1st quarter of 2010, they officially parted ways with long-time parent company, Citigroup, and went public. Currently, the sales force is made up of 100,000 licensed reps. Primerica is a legitimate business opportunity and has maintained a good rating with the Better Business Bureau.

With that said, there are pros and cons to the Primerica Business Opportunity. In this objective review, I’ll go into the pros and cons of the Primerica Opportunity and give you details you probably don’t know about yet.

First, I’ll start with the Pros…

1. Primerica provides a unique opportunity for someone who has NO experience in financial services to come on-board and get licensed and trained on the basics of life insurance, mutual funds, variable annuities and mortgages.

2. Primerica allows people to come on-board part-time, which is RARE in the financial services field. This is a great feature because reps aren’t under the pressure to produce because they still have income from their full time jobs.

3. With the Primerica model, unlike other MLM opportunities, someone who just wants to market financial products can make a decent income via sales commissions.

4. Primerica offers a lot of support to it’s reps… mainly because reps have access to physical offices run by local RVPs.

5. As stated earlier, Primerica has one of the best track records the network marketing industry. Currently, there’s about 65 leaders in the US and Canada that make $1 million or more in income annually.

Now, let’s give you the Cons:

1. The product training is basic, which is sad for some clients that are being serviced by new reps. Personally speaking, I wouldn’t want my kid’s education funds, my retirement accounts and, especially, my life insurance accounts handled by someone that’s been licensed for 30 days and has no experience in truly offering financial advice.

2. Primerica pays a much LOWER commission to reps when compared to what they can make if they were an independent financial services rep.

3. You are a CAPTIVE agent at Primerica. This means you are able to sell Primerica products ONLY. While only offering Primerica products may not be a bad, as a financial rep, you have a responsibility to your clients to shop for the best possible products for them. While shopping around is a regular practice by independent reps, it is strictly forbidden at Primerica.

4. As a marketer, you’ll lose around eighty percent of your incoming recruits due to the licensing exams. The company stats indicate that ONLY about 20% of incoming reps pass their life insurance exams. So what happens to the left over 80%? Well, they basically end up quitting the business.Imagine working your butt off to build a team that was recruiting 100 new reps monthly. Now, think about this, 80 out of those 100 were people that you couldn’t even build a business with because they couldn’t pass the licensing process.

5. This is a important part of the comp plan that isn’t shown in the presentation – When you get promoted to RVP, you give your best one or two legs to your upline RVP. This is know as the “replacement or ownership exchange”. Imagine, busting your butt to hit the top position, then giving up your BEST leaders, and starting the building process over… Only this time around, as a Regional Vice President, you have office expenses to think about. By the way, Primerica requires it’s RVPs to be full-time and forbids them from making money elsewhere. This is extremely important to know if you are seriously considering the Primerica Business Opportunity.Why? Because if you wish to build multiple streams of income, you won’t be able to once you go RVP.

In closing, Primerica is a real business opportunity where someone can come on-board and learn financial services and how to build an MLM business. Just make sure you do your research on the products and compensation plan so you know exactly what you’re walking into.

So… Should You Join?

If you’re looking for a business that doesn’t require HOURS of financial product training, the probability that you’ll lose a ton of people during the licensing exams and the fact that you have to give your upline your best leaders, then Primerica is definitely not for you.

However, if you like the idea of recruiting agents (and you’re OK with a super-high attrition ratio) and building your agency with the opportunity to qualify to open up your own Primerica office, then Primerica may be an opportunity you should explore.

Knowledge Protection – Don’t Treat Your Company’s Intellectual Property As Renewable Resources

An idea, by definition, exists primarily in one’s mind, where it remains somewhat secure, but not terribly useful so long as no one else knows. To produce (commercial) value from that idea it must be expressed, and therein, often lies the starting points for many potential problems and challenges for the originators – developers of that idea.

Fundamentally, protecting ownership rights to the products of one’s mind represents a contract of sorts between society, the government, and the individual(s) who created/developed the idea.

But, the risks (threats, vulnerabilities) to ideas (information assets) today, e.g., compromise, theft, misappropriation, infringement, counterfeiting, etc., are asymmetric, change rapidly, and, when they occur, can instantaneously:

. stifle momentum for further development and/or (economic)

commercialization of the idea

. undermine projected transactions, investments, strategic (business) plans, or

competitive positioning, and

. erode (evaporate) the ideas’ value and projected (future) use, profitability, or

anticipated competitive advantages.

In the pre-Internet era, when company’s experienced compromises/losses to their proprietary-sensitive information, and/or trade secrets, etc., a common strategy/practice was to try to contain (compartmentalize) the damages and/or extent of the loss, usually in a business continuity/contingency planning context. Today, however, while such strategies may be viable in limited circumstances, they seldom reflect the reality of the ‘nanosecond speed’ in which valuable information assets can be acquired and disseminated globally to an ever growing array of adversaries, e.g., infringers, competitors, counterfeiters, etc. And, once the asset has been successfully compromised, reliance on containment, in the conventional sense, is seldom a viable option.

Elevating (exacerbating) the probability that a company’s proprietary know how, etc., will be compromised is the widespread availability of ultra-sophisticated and predatorial data mining, scanning, and analysis (competitor intelligence) tools (software programs) which can quickly discern and extract substantive advantages embedded in a company’s information assets and ultimately distribute same to a growing labyrinth of skilled and highly organized information brokers and state and corporate sponsored economic-competitive adversaries globally. This makes a company’s proprietary information assets at risk (vulnerable) 24/7, and at increasingly earlier stages of (their) development and without regard for conventional IP protections.

Thus, while conventional intellectual property enforcement mechanisms (i.e., patents, trademarks, copyrights) remain a much nuanced and country centric requisite for conveying ownership and providing legal standing to address potential disputes and challenges, the reality is they, particularly patents, are reactive, that is, they require consistent self-policing and monitoring by the owner/holder to be even reasonably effective.

Equally important, the assumed deterrent effects of intellectual property (e.g., filing – issuance of a patent, for example, will actually inhibit others from stealing, infringing, counterfeiting, and/or misappropriating) are (a.) conceptually and practically oversold, and (b.) readily/easily outpaced, circumvented, and utterly disregarded by a growing global cadre of ‘legacy free’ players and well organized information brokers, infringers, and counterfeiters.

Legacy free players, as characterized by Thomas Friedman (The World Is Flat) are individuals – organizations (globally) who generally have, for a variety of reasons, little or no cultural – national legacy for respecting private (tangible) property rights, let alone intellectual property rights. Therefore, legacy free players, may well unabashedly engage in theft, misappropriation, and industrial (economic) espionage to acquire others’ ideas, IP, and proprietary know how to advance their position (economically, competitively) and without incurring the upfront (tremendous) costs associated with ‘idea development’ (R&D).

Arguably then, in today’s increasingly predatorial, aggressive, and ‘winner take all’ global business (transaction) environment, conventional forms of intellectual property are rapidly becoming less relevant, perhaps even obsolete, as (a.) the primary ‘tool’ to safeguard a company’s most valuable assets, (b.) ensure the rightful owner receives the economic – competitive advantage benefits from the hard earned and expensive know how they have developed, or (c.) ensure control, use, ownership, and value of their intangible assets and intellectual property that are in play – part of a transaction.

That is, in many transactions (in which a company’s IP and intangible assets are in play – part of a deal) one can assume today, all, or a significant portion of those assets’ value and functional-commercial life cycle will be significantly abbreviated, if not lost altogether (irretrievable).

Unfortunately, the new business reality is that conventional intellectual property enforcements produce little benefit to an organization, other than providing (legal) standing for dispute resolution and/or bringing litigation when challenges arise, which do with growing frequency and consistency. That is not to imply conventional IP protections should not be used. But, any assumption that the issuance of a patent, standing alone, will be sufficient to absolutely deter (inhibit) infringement, product piracy, misappropriation, or theft and allow the rightful owner/holder to sustain unencumbered, unchallenged control, use, value, and ownership rights for the 20 years, is neither a credible, viable, or prudent course of action.

Thus, it’s imperative today that company decision makers (holders, owners of IP and intangible assets, proprietary know how, trade secrets, etc.) practice consistent and effective stewardship, oversight, and management of those assets which includes (a.) monitoring their status, stability, fragility, and sustainability, so that (b.) ownership – IP rights, when necessary, can be aggressively pursued in a timely (real time) manner.

Even in light of the economic fact – business reality that 65+% of the value, sources of revenue, and future wealth creation (sustainability) for most company’s lie in – are directly linked to intangible assets and IP a significant percentage of company’s intangible assets go unrecognized and undervalued. This is especially true when a company’s know how (intellectual capital) has been literally embedded in its products, services, and processes over the course of many years, much like a ‘company culture’ that often goes unnoticed and under-appreciated insofar how it contributes to quality, consistency, and sustainability.

Ultimately, the probability (likelihood) that a company will experience a compromise, breach, or loss to their IP, intangibles, and/or proprietary competitive advantages and know how should not be characterized as merely representing another ‘risk of doing business’. Rather, in the current global business environment, its more closely resembling an inevitability, which, if dismissed or left unchecked by company decision makers, c-suites, boards, and D&O’s, can constitute not only a breach of fiduciary responsibility, but bring about significant and unrecoverable losses.

Load Disadvantages – Don’t Take Any Kind of Extravagant Services Offered by a Salesperson

Load refers to the fee that has to be paid to the salesperson who has convinced investors to invest their money in a specific mutual fund. The fee you pay in form of a load to the salesperson that doesn’t reach to the financial advisory. Simply, it sprightly moves to the pocket of the salesman. If you want to know what are the loads disadvantages, then you need to take a look on these facts which can explain you more about it. These points are discussed below which are very essential to know before hiring a salesman services for your company.

Loads play no role in mutual funds

This is a kind of a fee that investor should pay to a salesperson to search the right place of their money. This is one of greatest disadvantages of the loads. So, when you are starting a mutual fund business, you don’t look for the loads services it can hamper your business goodwill and reputation. It is very complicated for the loaded mutual fund to pick with the load free amount for its some essential factors.

Higher expenses

If you are investing your money without loads expenses, then you will be charged less from the funds expenditure. Here, the term expenses that refers to the loads chargers which are generally spend for finding the assets. Higher expenses related to loads are the most effective disadvantages. Companies going through such phase can really come across huge expenses.

There is hardly any difference in the return value

There is hardly any difference in returns. For a long time it’s been watched that there is hardly any difference among the performance of the loads and the loaded ones. The only difference you will find is in terms of the commission that needs to be paid to the salesperson. As a result of which, the fund results will differ from one period to the other, however, the general pattern will remain the same. Debate about which of the funds are better, no load and loaded counterparts, is one that cannot end up very soon. Although differences between 2 kinds are numerous, lots of writers try and narrow them to case of who will win from deal: investor or broker. It is inappropriate to claim you are better off in case, you invest in the load free funds in place of parking money in the loaded counterpart.