Examining the Article Managers’ Business School Education...

Recently, the public take notice of corporate lawbreaking because of scandals on Wall Street in past years (Jaboub, 1995) and headline of prosecution to global organizations on the media, for instance, Exxon, Nippon, IBM and Samsung (Corporate Crime Reporter). These corporate criminal activities not only raised remarkable economic losses for stockholders (William et al., 2000) but also eliminated benefits of the public (Jaboub, 1995). Therefore, the researches of corporate crime are argued for many decades in different fields, such as criminology and sociology (McKendall and Wagner, 1997). What this essay attempts to illustrate is to briefly summarize the article stated by William et al. (2000) and examine the main argument within the†¦show more content†¦Similar correlation in military experience is that the more managerial staff with prior military service among TMT, the more corporate criminal act are committed in large firms. On the other hand, there is negative corr elation between return on assets (ROA) and citations. The result also commended a surprising finding that TMT tenure has a significant influence certainly on corporate misbehavior while some researchers suggest that managers with short tenure would commonly more involve in corporate wrongdoing. Further study focused on TMT tenure is carried out in research of William et al. (2005). Within this essay, the statistics design and main arguments of this article would be evaluated. To begin with, the sample quantity of firm is 184 (TMT data is reachable) Fortune 500 companies which is fewer compared with prior researches which were related to firm size (Lane, 1953: 275 firms; Cochran and Nigh, 1987: 485 firms; Dalton and Kesner, 1988: 384 firms). Only 202 (In fact, 184) of 500 companies which remain in Fortune 500 during period of year 1991 to 1994 as shown in this study probably promoted the increasing competitive environment at that time. In such a challengeable situation, corporation performance which is taken away from this study as a factor may by and large affectShow MoreRelatedSocial Media6807 Words   |  28 PagesAvailability, Confidentiality and Integrity Musa Ramadhani Davenport University IAAS 667 - Legal and Ethical Security Topics Deanne Cranford-Wesley Table of Contents Abstract3 Introduction4 Problem Statement7 Literature Review8 Findings11 Military Families12 Identifying your social media users16 Common myths about Social Media17 Data leakage and non-disclosure17 Social Media Squatting18 A new generation of hackers18 The high cost of inaction19 Harm to brand reputation19 Lost productivity19 Read MoreContemporary Issues in Management Accounting211377 Words   |  846 PagesManagement Accounting Edited by ALNOOR BHIMANI 1 Great Clarendon Street, Oxford ox2 6dp Oxford University Press is a department of the University of Oxford. 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Kaplan Higher Education and individual contributors expressly disclaim all and any liability to any person in respect of anything and of the consequencesRead MoreSources of Ethics20199 Words   |  81 PagesETHICS: 6 1- Religion: 6 2- Genetic Inheritance: 8 3- Philosophical Systems: 8 4- Cultural Experience: 8 5- The Legal System: 9 6- Codes of Conduct: 9 2.0- EXPLANATION OF THE SOURCES OF ETHICS: 10 2.1- RELIGION: 10 Teaching business ethics 12 2.11- Impact Of Religiosity: 13 2.12- Ethics Of Islam: 14 Nature of Islamic Ethics 17 The Human-Environment Relationship: 20 The Sustainable Care of Nature: 22 The Practice of Islamic Environmental Ethics: 22 2.14-Read MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesManagement Course: MBA−10 General Management California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell Leadership, Fifth EditionRead MoreAbstract: Strategic Contingency Planning23625 Words   |  95 PagesPLANNING By Karen Scott-Martinet Fall 2006 The objective of this study was to develop a strategic contingency planning model to be used to fully incorporate emergency management and business continuity into organization structures. 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The Efficiency Of Animal Testing - 1394 Words

Assignment There are 33 glaring errors in grammar and MLA format in the following essay. Identify each one. (Note that finding more than 33 does not give you extra, bonus points, though good for you for pointing out more than the obvious errors.) The Efficiency of Animal Testing For many years, the primary way to make advances in biomedical science was through experimentation on animals, also known as vivisection. This method involves using different species of animals in experiments and developmental procedures to determine toxicity, dosing, and effectiveness of test drugs before proceeding to human clinical trials. However; the use of animals in testing laboratories is becoming less common due to improved alternative options. Animal experimentation is unreliable and less efficient than the alternative options. Animals have been used in experimentation and testing as long as humans have been curious. Testing on animals’ dates back to second century Rome, when a physician named Galen began dissecting goats and pigs, a practice which later earned him the title â€Å"the father of vivisection.† The first observations of true significance to modern science are said to be made in the 1600s, when William Harvey used animals to observe and describe the blood circulatory system. Years Later, in the early nineteenth century, Louis Pasteur infected sheep with anthrax, thus proving the germ theory of medicine – an important advancement which proved that infections did not ariseShow MoreRelatedThe Cruelty of Animal Testing1644 Words   |  7 PagesAnimal testing is a completely unnecessary act of cruelty and should not be allowed for various reasons. It is superfluous for innocent animals to undergo chemical testing of any sort, not only do they suffer, but there are other more hu mane alternatives to test products. Many people who are in favor of animal testing do not know of these safer more humane alternatives. Many methods have been developed to help stop animal testing, and improve the health system of all human beings. A significantRead MoreInformative Speech : Product Testing On Animals785 Words   |  4 PagesTYPE OF SPEECH: Persuasive Speech Topic: Product testing on animals Purpose Statement: Keep from testing cosmetics on animals. Thesis Statement: Animals are forced to try products. From forced eating to wearing l oreal makeup. Organizational Pattern: Problem- Solution --------------------------------------------------------------------------------------------------------------------- Introduction Attention Getter (Capture): Have you ever wished for a rabbit or a guinea pig? Motivate: Most of theRead MoreShould Animals Be Used for Research in the Cosmetic Industry?533 Words   |  3 PagesShould animals be used for research in cosmetic industry? Animal testing is widely used to develop new medicines and to test the safety of other products. These experiments can cause pain to the animals involved or reduce their quality of life in other ways. Animal experimenters are aware of this problem and agree that the testing should be made as humane as possible. While this practice has been followed for years now, some people still strongly believe that it is a cruel act and should be permanentlyRead MoreThe Pros And Cons Of Animal Testing822 Words   |  4 PagesAnimal testing refers to procedures that take place in human clinical trials and it involves dosing, toxicity and efficiency of drugs. â€Å" Humans beings have long used animals as test subjects for a variety of purposes.† (â€Å"Animal†) which violates the living rights of animals. Animals and people are alike in many ways, as close relatives we both feel, think , behave and experience pain therefore animals should be treated with the same value and respec t as humans. Animal testing is inhumane and itRead More animal rights Essays835 Words   |  4 PagesThrough Animals For decades, mankind has used animals to progress efficiently in scientific research. Animal testing is important for medical science and other beneficial experiments. Many citizens criticize scientists for testing on animals for unnecessary means other than medical research. Many of today’s current vaccines and disease treatments would have been delayed without the use of animals. People across the globe have been saved through organ transplants by persistent research on animals. ManyRead MoreAnimal Testing Should Be Banned965 Words   |  4 PagesAnimals Have Feelings Too! In the world we live in today there is a pet present in over fifty-one percent of the families. Because we are talking about in the world the types of pets can ran range from a cat or dog to a giraffe or elephant. To the owners of these animals they are not just pets, but members of their family. Considering these animals are looked after as if they were children; would you like for your child to be a test dummy for products of cosmetic and military supply? Sensible beingsRead MoreAnimal Testing Is Cruel And Inhumane1229 Words   |  5 Pagesuse of animals to carry out the tests before implementing the solution for human beings. The idea has always served as a disadvantage for the animals citing the pains and strains that they undergo during such processes. After keen observation of the experience of the animals, individuals developed varying opinions of whether to be in support of the practice or against it. Animal testing is cruel and inhumane Animal testing serves in promoting cruelty and inhumanity among the animals. In theirRead MoreInhumane Treatment of Animals During Drug Testing1082 Words   |  4 Pages In today’s world the act of drug and medical testing on animals has become very common. It has also grown at a great rate over the last few decades â€Å"Dr Laura water, science festival 2012† accompanied with rising questions and arguments which include types of testing methods that are most likely to identify drugs that are unsafe for humans, demerits of drug and medical testing on animals and Lastly whether animal experiments are useful. This essay will discuss the arguments, questionsRead MoreShould Animal Welfare Laws Be Enforced?1332 Words   |  6 Pagesof whether or not you will ever get to go outside to run around again. This situation is the life of a laboratory animal. Experimenting on animals is like being in jail so the guards can figure out a human responds to the environm ent. Animal testing is defined as processes implemented on living creatures for the purpose of studying natural science and illnesses, measuring the efficiency of new medicines, and experimentation of human healthiness or environmental protection of business merchandise suchRead MoreThe Ethics Of Animal Research967 Words   |  4 Pageslegitimacy. Mylan Engle Jr.’s argument â€Å"The Commonsense Case against Animal Experimentation† in The Ethics of Animal Research attempts to answer the problems of animal research through use of common sense. He does this by trying to give and objective (middle ground) argument against animal research and points out what everyone would consider being inhumane treatment of animals. Engle says: My argument for the immorality of using animals as test subjects in biomedical research is predicated on several

Racial Discrimination The World Has More Than 6 Billion...

Hirenkumar Thummar Professor Ball HA 96F, Section 21 November 11, 2015 Title- Racial Discrimination in the workplace The world has more than 6 billion people with a diversity of human races and colors. Even Though, by means of nature, people used to see each other as white, black, Hispanic, Asian, American, African, etc. As humans spread throughout the globe, they adapted to one of a kind dwelling conditions while genetic mutations introduced precise traits to the people. Likewise, the concept of race, a group of people with genetic and physical features that different from another group of people, is a truth. Hence, racism is when the foundation of discrimination is race. This discrimination is most commonly the outcome of a perspective†¦show more content†¦A case in factor is that blacks have suffered from higher premiums of unemployment than whites. In January 2009, black unemployment rate used to be 12.7% compared to a 7.1% unemployment scale for whites. Reviews point out that, in reality, discrimination undoubtedly contributes to the black-white unemployment hole. The average unemploy ment rate for Blacks in 2011 was 16.7 percent, compared to 7.9 percent for Whites. It shows that almost double black didn’t get job because they belongs to other community. Compare to 2009, unemployment rate in 2011 for black is increased and for white is decreased. Crossroads Antiracism Organizing Training, The work of Crossroads is based upon a systemic analysis of racism and its personal, organized and ethnic manifestations. Crossroads seeks to be accountable in its work to those who share a common study of racialism, and especially to societies of color. Crossroads work for national and global movement for racial justice and social equality. Organization recognizes that resistance to racism also requires resistance to all other forms of social discrimination and injustice. The power analysis of racism makes clear the fundamental dynamic of institutional racism: that institutions are not, and have never been, accountable to People of Color. What are needed are new values that are outward oriented with an overarching bias toward effectiveness. The need for these values begins to emerge

The Ethics Of Medical And Biological Fields - 3307 Words

In this current day and age, science and technology are moving forward at a rapid pace. This can lead to great strides and benefits in the medical and biological fields but also gives rise to ethical and moral questioning. Scientist worry that their research will be stifled by new laws and restrictions, while society fears that these researchers will take advantage of them if not regulated properly. This is clearly seen in the debate over stem cell research and synthetic biology, like genetically modified organisms, on whether such topics are ethical or non ethical. The right education is needed in order to fully understand both sides of these issues and to debate what is ethical and what is not. This research paper will go into†¦show more content†¦(Stem Cell/Bone Marrow) Also, there are a few different types of stem cells that are important to know, such as adult stem cells and embryonic stem cells. Embryonic stem cells are gathered when a scientist removes the inne r cell mass of some blastocysts and cultures them in nutrient-rich liquid. (Understanding Stem Cells) These will then develop into the stem cells needed for research and end up being more flexible than adult stem cells since they can form any type of cell in the body. The adult stem cells are harder to find because they are found deep in organs with millions of other cells around them. (Understanding Stem Cells) These cells are already somewhat specialized. â€Å"For example, blood stem cells normally only give rise to the many types of blood cells.† (Understanding Stem Cells) These stem cells and embryonic stem cells are used to regenerate a few types of tissues to help treat diseases and to carry out blood and skin transplants. In order to understand genetically modified organisms, one must understand the nature of synthetic biology. Synthetic biology relies on synthesized DNA to be used in order to create new biochemical systems or to enhance a characteristic of a sp ecific organism. â€Å"Whereas standard biology treats the structure and chemistry of living things as natural phenomena to be

The influence of myths in the lives of man Free Essays

Introduction Man is a complex creature, as compared to other living organisms that has walked the earth. He is able to act and cooperate with other people in order to create or do something productive. He is gifted with a rational mind which enables him to make rational judgment and decisions in his everyday life. We will write a custom essay sample on The influence of myths in the lives of man or any similar topic only for you Order Now He was blessed with emotions that enable them to express what they feel, show their appreciation or disgust. Man is complex creature such that he is able to believe something that he doesn’t see or he has no proof of its reality. He believes in myths about how he should act or react about something, thus setting it as a standard or as a norm in life. Looking at man and woman, man is said to be the more myth-believer than the woman. Man, an egoistic creature believes and values a lot of things, including abstract principles like chivalry, his big ego and his responsibilities in his life. Males, which generally see themselves, stronger than the females, often take much of the responsibilities especially when it comes to his family. It is common to see fathers who choose to work away from the family so that they will be able to supply the needs of his families. Men may consider themselves as superior to women, yet they compensate this claim by shouldering the hard work not because they like to do so, but because they are compelled to do so, as dictated by their beliefs and personal myths. Men choose to take these responsibilities not because they feel superior, but because of the fact that they are men. Even though men think this way they don’t lack fear and respect for women. In Theodore Dreiser’s short story, he pictured the main character, Rufus Haymaker, as man who has it all when it comes to material things. He lives a wealthy lifestyle, a good job, a house, doesn’t go hungry, everything that a man would strive for in his life. But then, Rufus Haymaker is not a happy man. He may have every material thing that a man may wish, but he lacks happiness. He is not fulfilled, not having lived his life to the fullest. Rufus Haymaker can be considered just like any other person in this world, someone who lacks will power and strength to decide for themselves, thus oftentimes regretting the way things in his life are going. Rufus Haymaker’s life is a typical rags-to-riches story. Because of poverty, he was driven and forced to go out and face the world. In his own, he was able to return a different man, yet he still thinks that there was really no change that happened. This resulted to suffering and mental torment, leaving him with the dilemma between duty and desire. Rufus’ situation is a common myth in men. He would strive hard in order to prove something, in order to excel, yet, in the end; he doesn’t realize that he already has proven something. He gets so engrossed with work because of his goals, he tends to forget his real reason why is working hard. In the end, he would grow old not knowing that he already met his goal, thus continuing to work hard for it. He wasn’t able to live his life to the fullest, because of his sacrifice and obedience to conventions, duty and moral order; he has lived an unfulfilled life. Rufus Haymaker already had it all, but because of moral restraints, his moral choice, he has lived an empty life. Rufus Haymaker was held back by his moral choice, because he chose to stick with the norms. He followed obediently, without knowing that it cost him his freedom and happiness. In this story, Rufus Haymaker has a wife. This is another manifestation of his loyalty and obedience to the norms. At that time, the concept of â€Å"one life, one love† was the norm being followed (Vaz). This became a restraint to Rufus life. He is pretending to be enjoying his life with his wife, but the reality is that he hates every moment of it, that her illness gave him a spark of hope. Her possible death gave Rufus another chance to be free; the moment his wife is gone, his attachment to the norm would be gone also, because she will be dead. The concept of one love is already nullified with death. Rufus’ lived a life at a time when people are bound to conventions, thus keeping them attached to their duty as a person, their beliefs where in they believe that following it means living a healthy life. Because of that, these beliefs hindered them from enjoying the real meaning of life, of being free, of seizing the day while it lasts! For Rufus Haymaker, there was this feeling of satisfaction with the idea that she is going to die, because in his marriage, he was looking for love and happiness, but with his wife, he never had it. But because of the norm, he remained bounded to his wife, and suffered emotionally. To wrap it up, Rufus Haymaker achieved the freedom he longed for so many years. But ironically, he did achieve his freedom, yet it didn’t make him happy. He found out that he was to old for the life that he was craving, and it was too late for him to recover. His great attachment with the myths and norms made him forget about time, that he was already growing old while waiting for the moment he could be free. Rufus Haymaker, the man who wished that his wife never recover from her illness, will never be happy with the freedom that he was able to get with his wife’s death. It was to late for him, because he didn’t seize the opportunity when it came to him. Reference: Vaz, Teresa Moraes. â€Å"Irony and Naturalism In â€Å"Free†, by Theodore Dreiser†.   1996. February 3 2007. http://www.malhatlantica.pt/teresadeca/masters/ironyandnaturalisminfree.htm.       How to cite The influence of myths in the lives of man, Essay examples

Phar Mor Case free essay sample

Between 1985 and 1992, Phar-Mor grew from 15 stores to 310 stores in 32 states, posting sales of more than $3 bi11ion. By seemingly a11standards, Phar-Mor was a rising star touted by some retail experts as the next Wal-Mart. In fact, Sam Walton once announced that the only company he feared at a11in the expansion ofWal-Mart was Phar-Mor. Mickey Monus, Phar-Mors president, COO and founder, was a local hero in his hometown of Youngstown, Ohio. As demonstration of his loyalty, Monus put Phar-Mors headquarters in a deserted department store in downtown Youngstown. Monus-known as shy and introverted to friends, cold and aloof to others-became quite flashy as Phar-Mor grew. Before the fa11of his Phar-Mor empire, Monus was known for buying his friends expensive gifts and he was building an extravagant personal residence, complete with an indoor basketba11court. He was also an initial equity investor in the Colorado Rockies major league baseba11 franchise. We will write a custom essay sample on Phar Mor Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This affiliation with the Colorado Rockies and other high profile sporting events sponsored by Phar-Mor fed Monus love for the high life and fast action. He frequently flew to Las Vegas, where a suite was always available for him at Caesars Palace. Mickey would often impress his traveling companions by giving them thousands of do11arsto gamble. Phar-Mor was a deep-discount retail chain se11inga variety of household products and prescription drugs at substantia11ylower prices than other discount stores. The key to the low prices was power buying, the phrase Monus used to describe his strategy of loading up on products when suppliers were offering rockbottom prices. The strategy of deep-discount retailing is to beat the other guys prices, thereby attracting the cost-conscious consumers. Phar-Mors prices were so low that competitors wondered how Phar-Mor could do it. Monus strategy was to underse11Wal-Mart in each market where the two retailers directly competed. Unfortunately, Phar-Mors prices were so low that Phar-Mor began losing money. Unwi11ingto a11owthese shortfa11sto damage Phar-Mors appearance of success, Monus and his team began to engage in creative accounting so that PharMor never reported these losses in its financial statements. Federal fraud examiners discerned later that 1987 was the last year Phar-Mor actua11ymade a profit. Investors, relying upon these erroneous financial statements, saw Phar-Mor as an opportunity to cash in on the retailing craze. Among the big investors were Westinghouse Credit Corp. , Sears Roebuck Co. , ma11developer Edward J. de Bartolo, and the prestigious Lazard Freres Co. Corporate Partners Investment Fund. Prosecutors say banks and investors put $1. 14 biUion into Phar-Mor based on the phony records. The fraud was ultimately uncovered when a travel agent received a Phar-Mor check signed by Monus paying for expenses that were unrelated to Phar-Mor. The agent showed the check to her landlord, who happened to be a Phar-Mor investor, IUnless otherwise noted, the facts and statements included in this case are based on actual trial transcripts. Case 6 Phar-Mor, Inc. : Accounting Fraud, Litigation, and Auditor Liability and he contacted Phar-Mors chief executive officer (C~O), David Shapira. On August 4, 1992, David Shapira announced to the business community that Phar-Mor had discovered a massive fraud perpetrated primarily by Michael Monus, former president and COO, and Patrick Finn, former chief financial officer (CFO). In order to hide Phar-Mors cash flow problems, attract investors, and make the company look profitable, Monus and Finn altered the Phar-Mors accounting records to understate costs of goods sold and overstate inventory and income. In addition to the financial statement fraud, internal investigations by the company estimated an embezzlement in excess of$10 million. 2 Phar-Mors executives had cooked the books and the magnitude of the collusive management fraud was almost inconceivable. The fraud was carefully carried out over several years by persons at many organizational layers, including the president and COO, CFO, vice president of mark~ting, director of accounting, controller, and a host of others. Many factors facilitated the Phar-Mor fraud. The following list outlines seven key factors contributing to the fraud and the ability to cover it up for so long. 1. The lack of adequate management information systems (MIS). According to the federal fraud examiners report, Phar-Mors MIS was inadequate on many levels. At one point, a Phar-Mor vice president raised concerns about the companys MIS systems and organized a committee to address the problem. However, senior officials involved in the scheme to defraud Phar-Mor dismissed the vice presidents concerns and ordered the committee disbanded. 2. Poor internal controls. For example, Phar-Mors accounting department was able to bypass normal accounts payable controls by maintaining a supply of blank checks on two different bank accounts and using them to make disbursements. Only those involved in the fraud were authorized to approve use of these checks. 3. The hands-off management style of David Shapira, CEO. For example, in at least two instances Shapira was made away of potential problems with Monus behavior and Phar-Mor financial information. In both cases Shapira chose to distance himself from the knowledge. . Inadequate internal audit function. Ironically, Michael Monus was appointed a member of the audit cOIpmittee. When the internal auditor reported that he wanted to investigate certain payroll irregularities associated with some of the Phar-Mor related parties, the CFO forestalled these activities and then eliminated the internal audit function all together. 5. Collusion among upper management. At least six members ofPh ar-Mors upper management, as well as other employees in the accounting department, were involved in the fraud. 6. Phar-Mors knowledge of audit procedures and objectives. Phar-Mors fraud team was made up of several former auditors, including at least one 2Stem, Gabriella, Phar-Mor Vendors Halt Deliveries; More Layoffs Made, The Wall Street Journal, August 10, 1992. 27 Beasley / Buckless / Glover / Prawitt fonner auditor who had worked for Coopers on the Phar-Mor audit. The fraud team indicated that one reason they were successful in hiding the fraud from the auditors was because they knew what the auditors were looking for. 7. Related parties. Coopers Lybrand, in a countersuit, stated that Shapira and Monus set up a web of companies to do business with Phar-Mor. Coopers contended that the companies fonned by Shapira and Monus received millions in payments from Phar~Mor. The federal fraud examiners report confirms Coopers allegations. The complexity of the related parties involved with Phar-Mor made detection of improprieties and fraudulent activity difficult. During its investigation, the federal fraud examiner identified 91 related parties. Attorneys representing creditors and investors pointed out that every year from 1987 to 1992, Coopers Lybrand acted as Phar-Mors auditor and declared the retailers books in order. At the same time, Coopers repeatedly expressed concerns in its annual audit reports and letters to management that Phar-Mor was engaged in hardto-reconcile accounting practices and called for improvements. Coopers identified Phar-Mor in its audit planning documents as a high risk audit, and their auditors documented that Phar-Mor appeared to be systematically exaggerating its accounts receivables and inventory, its primary assets.

Law Of ASIC v NSG services Pty Ltd (2017) †MyAssignmenthelp.com

Question: Discuss about the Law Of ASIC v NSG services Pty Ltd (2017). Answer: Introduction The decision laid down by Federal court in the leading case of Australian Securities and Investment Commission v NSG services pty ltd[1] is a landmark case which was decided on 30th March 2017. The leading case establishes the civil penalty action that is taken by Australian Securities and Investment Commission for the violation of the best interest duty established under section 961 (B) of the Corporation Act 2001 and also in evaluating the nature of the best interest duty that is imposed under the Corporation Act 2001. The decision is very significant from the point of view that the duty to act in the best interest is imposed upon the advisor who is providing advice to their retail clients. Facts Prior understating the basis upon which the decisions of laid down by the federal court, it is first important to understand the background facts on the basis of which the preset case is raised. In 2012, there are two statutory changes that are brought in, that is, Corporations Amendment (Future of Financial Advice) Act 2012(Cth) and the Corporations Amendment (Further Future of Financial Advice) Act 2012(Cth) which are considered as the Future of Financial Advice reforms[2]. The Corporations Amendment (Further Future of Financial Advice) Act 2012(Cth) is the enactment that has established an obligation of best interest under Part 7.7A, Division 2 of theCorporations Act 2001(Cth).[3] Now, because of the said enactments, a duty of best interest is imposed upon the people who provide personal advice to its retail clients. The duty that is enshrined under Part 7.7A, Division 2 of theCorporations Act 2001(Cth) (section 961 (1) (2)), is not an exhaustive list and there are various statutory duties that are incorporated in the same, for instance[4]: Section 961-B-F establish duty to act in the best interest of the client; As per section 961G A duty to furnish advice to the clients is only imposed upon the advisers when the advisor would reasonably conclude that the advice so provided is appropriate to the clients; In the said case, the best interest of FoFA is under scanner and the obligations of the licensees and advisors are taken into account. The case laws establishes as how the licensees and the advisors are not able to comply with their duties to furnish best interest of their clients.[5] The facts submit that an Australian Financial Services Licensee (NSG) is under the tasks of providing advice regarding the life risk insurance and superannuation products. The advice is normally provided by the authorized representatives of the representatives of the NSG. NSG has provided personal advice to their client and it was alleged by the ASIC that when furnishing such personal advice, the NSG is in violation of section 961B and section 961G of the Corporation act 2001[6]. Thus, on the basis of these facts, there were few contentions that were raised by Australian Securities and Investment Commission. The main contentions of Australian Securities and Investment Commission Based on the said fact, the Australian Securities and Investment Commission has initiated pecuniary penalties, declaratory relief and costs proceedings against NSG. The proceedings were initiated by Australian Securities and Investment Commission in mid 2016. There are several contentions that are raised by the Australian Securities and Investment Commission against the NSG Services Pty Ltd and the same are submitted herein below: It is submitted that when NSG Services Pty Ltd representatives were providing advice to its retail clients, then, at that time, they fail to meet the statutory requirements that are mentioned under section 961B and 961 G of the Corporation Act 2001 because of which the retail clients entered into arrangements that were unsuitable. Costly and result in un-required financial arrangements. Violation of section 961L of the Act There are various instances where it was found that there is violation of section 61L of the Act. the same are: One of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person C, Person D on 15th July 2014. one of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person E, on 15th July 2013 and 20th August 2013 meetings respectively. Also, one of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person F, on 24th November 2014. Also, one of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person G, on 15 July 2014. Also, one of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person H, on 20 August 2013. Also, one of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person A, on 19July 2013. Also, one of the representative of NSG failed to take reasonable steps and violated section 961B (1) and section 961G of the Act when furnishing advice to Person B, on 20August 2015. Thus, it is submitted that when the representations were furnishing advice to their retail clients at that time they did not take reasonable steps to make sure that the best interest obligation towards their retail clients are met and thus they are in violation of section 916L of the Corporation Act 2001. That there is violation of section 961K (2) of the Act That the representatives (other than authorized representative of NSG) are in violation of section 961K (2) of the Act. It is submitted that one representative of NSG (Trinh) violated section 961B (1) and section 961G of the Act when furnishing advice to Pearson A (client of NSG) on 19th July 2013 meeting. Also, there is violation of section 961K (2) of the Act when the representatives (Ozak) violated section 961B (1) and section 961G of the Act when furnishing advice to Pearson A (client of NSG) on 20th August 2013 meeting. Thus, some of the representatives of NSG Services Pty Ltd who were not the authorized representatives of NSG Services Pty Ltd failed to comply with their best interest obligations and thus were in violation of section 961K (2) of the Corporation Act 2001. It is submitted that all the allegations that are raised by the Australian Securities and Investment Commission, that is, violation of section 61B, 961G, 961L and 961K of the corporation Act 2001 were accepted by NSG Services Pty Ltd[7]. Both NSG and Australian Securities and Investment Commission have applied to the court for declarations by consent[8]. It is now first important to analyze the provisions of section 961 of the Corporation Act 2001 that are applicable in the given scenario. Section 916 of the Corporation Act 2001 - Observations by the court Before analyzing the decision that laid down by the Federal court, there are two important observations that are made by MOSHINSKY J. The same are[9]: That the duty that is imposed under section 961 B (2) must be treated as a safe harbour for the advice providers. This implies that if the advisers are able to prove that all the statutory requirements that are mentioned under section 961 B (2) of the corporation Act 2001 is comply with then the advice providers has comply with his duty to look for the best interest of his retail clients. The court observed that the main concern of section 961B is that procedure or the process that is to be comply with by the adviser prior furnishing advice which must be in the best interest of the client. But, section 961G of the Corporation act contains the substance or content of the advice. On the basis of the above two observations, the court has tried to interpret the two meaning of section 961B of the Corporation Act 2001. It was submitted by the court that the functions that are attributed by section 961B (1) and section 961B 2) are different in nature. The core duty to serve best interest is served under section 961B (1) of the Corporation Act 2001 whereas the statutory defense is provided under section 961 B (2) of the Corporation Act 2001. Both the sections are affected in the manner and the process in which the advice is furnished by the advice provider. The court submitted that the correct and justified interpretation of section 961B of the Corporation Act 2001 is that it deals with the manner and the process in which the advice is furnished. The basic interpretation that is provided by the court to interpret section 961 of the Corporation Act 2001 is that: That the steps that are laid down in section 961B (2) mainly deals with the process within which the advice is furnished and is not concerned with the outcomes that results from such advice; That section 961G of the act is different from section 961B of the Act. Section 961B deals with the process within which the advice is furnished and is not concerned with the outcomes Decision by the Court The main reasons for the decision that are made by the court are[10]: That the client advice process that is adopted by NSG is complied very quickly. Because of the quickness the clients are not able to reflect on the advice so furnished proper its implementation. Because of this quick procedure the information that is provided to the clients was found to be insufficient in nature; There are various obligations that must be comply with by the representatives of the NSG prior providing advice to their retail clients however, the regulatory and the legal obligations that must be required to be followed are not provided to the advisors neither NSG has provided with proper training to their representatives which has ultimately has resulted in the violated of their statutory obligations. The advisors who are representing NSG while furnishing advice to the retail clients are representing NSG, but, NSG has not laid down any kind of review analysis of such representatives (substantial or regular). There were instances when few internal audits are conducted by NSG but whenever any advisor has been found to be in contravention of the statutory provisions of the Corporation Act, then, there were no disciplinary actions that were taken by NSG against such defaulting advisors. The external audits of NSG are carried out by third parties. These audits identify the issues relating to the provisions of advice. But, the advice which is so furnished by the external auditors were not comply with of followed by the NSG. Neither any changes that were addressed or implemented by the external auditors were ever given heed[11]. The court also observed that the compliance policies that are adopted by NSG were also not adequate as per the given circumstances. No regulator or legal duties that must be furnished by the representatives were quoted in the compliance policies of the NDG, if any. Even if complaints are received by the NSG regarding any irregularity, still, no action is ever taken up by NSG. Considering all the above acts that are carried out by the NSG and its representatives while catering advice to its retail client, it has been observed by the court that the duties to act in the best interest as enshrined under section 961B of the Act are not comply with resulting in violation of the duties. Thus, the federal court was right in imposing penalties over NSG for its violation of statutory obligations. References Case laws Avoca Consultants Pty Ltd v Millennium3 Financial Services Pty Ltd (2009) 179 FCR 46, ASIC v NSG services Pty ltd (2017); Australian Securities and Investments Commissionv Newcrest Mining Ltd(2014) 101 ACSR 46 Legislation Corporation Act 2001 Online Material ASIC (2017) ASIC v NSG services Pty ltd (2017) (online). Available at: https://download.asic.gov.au/media/4210761/17-100mr-asic-v-nsg-services.pdf. Accessed on 26th September 2017. Federal Court of Australia (2017) ASIC v NSG (online). Available at: https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2017/2017fca0345. Accessed on 27th September 2017. Soljo and Walsh (2017) UNRAVELLED: RECENT DECISION ON FOFA ADVICE PROVISIONS ASIC V NS (Online). Available at: https://www.allens.com.au/pubs/fsr/170505-unravelled-02.htm. Accessed on 27th September 2017. Turks Legal (2017) Federal Court finds first breach of best interests duty (online). Available at: https://www.turkslegal.com.au/sites/default/files/Case_ASIC%20v%20NSG_.pdf. Accessed on 27th September 2017. Vrisakisand Zhou (2017) The Best Interests Duty: Process Or Outcomes? (online). Available at: https://www.herbertsmithfreehills.com/latest-thinking/the-best-interests-duty-process-or-outcomes. Accessed on 26th September 2017.