Does Corporate Social Responsibility Make a Difference on Labor Conditions? a Case Study in Southern China

Does Corporate Social Responsibility make a difference on labor conditions? A Case Study in Southern China Yiu Por Chen Assistant Professor Public Services Graduate Program DePaul University & IZA e-mail: [email  protected] edu Phone: 312/362-8441 Fax: 312/362-5506 1 Abstract The corporate social responsibility code of conduct (CSRC) has been the model of corporate governance (CG) used by multinational corporations (MNCs) for their suppliers.Using the transaction cost perspective, this study argues the CSRC system may reduce some transaction costs for MNCs in planning and implementing corporate social responsibility (CSR). However, the CSRC may suffer from opportunism at the supplier level, which may undermine CSRC outcomes. By utilizing a unidimensional item response model with a randomized survey of factory workers of 12 toy manufacturers in Southern China, this study provides a unified measure to evaluate the effects of CSRCs on labor conditions from workers’ voices.Furth ermore, this study offers fresh empirical evidence to show the ways opportunism may undermine CSRC effects on labor relations. JEL code: M14, M23, J28, J50, J81, J83, J88 Keywords: Corporate Social Responsibility, Multinational Corporations, Outsourcing, Safety, LaborManagement Relations, Working Conditions, Workers’ Rights, Labor Market Policy 2 â€Å"There are lots of firms and lots of changes in labor practices among them, so there is no lack of data.To judge whether formal labor market rules produce worse employment outcomes, as claimed by orthodox analysts, one could contrast employment between firms with more or less rigid internal rules. † ? Richard Freeman (2005: 19-20), suggesting that a microanalysis of workers and firms will be a path forward to understanding the effect of labor institutions. 1. Introduction Corporate social responsibility (CSR) has been rapidly institutionalized and now covers the vast majority of industrial sectors around the globe.Donalds on (1996) highlights that 90% of all Fortune 500 companies have established codes of conduct, which are by far the most common mode of CSR used by corporations today. Furthermore, 51% of German firms claim to have codes of conduct, compared to 41% in the UK, and 30% in France (Schneider and Barsoux, 1997). Brytting (1997) also found that 52% of the larger Swedish companies had codes of conduct. In fact, CSR is largely the response of multinational corporations (MNCs) to the accusation of being the major actors in â€Å"new exploitations† of less developed countries (LDCs) (Chan, 2001). For the outsourcing MNCs, one of the important aspects of CSR is to ensure that workplaces and labor conditions in poor nations are not â€Å"too† terrible (even if it is worse than in the workplaces of developed countries). Theoretically speaking, the original approach to CSR suggested in the literature is a stakeholder approach. The stakeholder approach advocates that firms should not only maximize profit but also behave as good citizens of the community and take account of the needs of other stakeholders that may be affected by the firms’ production.This approach to CSR involves all related stakeholders in the development and implementation of the CSR (Freeman, 1984). In reality, the corporate governance 1 CSR in general is closely linked with principles of â€Å"sustainable development†, that is, enterprises should be obliged to make decisions based not only on the financial/economic factors but also on the social and environmental consequences of their activities. In terms of labor condition issues related to the outsourcing process, there are numerous reports and news about the exploitation of labor.The interested reader can visit some labor NGOs’ websites, for example, www. AMRC. org, China Labor Watch, ILO, etc. 3 (CG) approach (or firm-centered approach), which uses corporate social responsibility codes of conduct (CSRC) to regulate th e suppliers’ operations in LDCs, is more prevalent. 2 From an institutional theoretical perspective, this article argues that the high transaction cost incurred prevents the stakeholder approach from bringing all stakeholders together and developing strategies to deal with the externality produced by the outsourcing of production.Instead, the current CSR practice has reduced the original stakeholder approach from the CG approach to CSR, the CSRC. In practice, while the CSRC may get around the transaction cost of getting all stakeholders together and reduce potential conflicts that may arise during the CSRC planning and implementation process, this CSRC may be vulnerable to opportunism (or agency problem) at the supplier levels (Jiang, 2009). As the codes are externally imposed on the suppliers, they can exploit the information asymmetry to disregard some of the codes.Because factory interviews and surveys for suppliers’ management could hardly reveal the true faces of labor conditions, an effective measure to reveal workers’ voices at suppliers’ level is called for. However, systematic survey data are needed to verify the validity of CSRC to labor conditions. In addition, there is no unified method to understand the effect of CSRC on labor conditions. 3 This article provides a theoretical argument and a unified empirical approach to analyze labor conditions under the CSRC and the opportunism effect at the supplier side.Utilizing a unidimensional item response theory (UIRT) model, this study looks at the CSRC effect on 16 labor conditions in three dimensions: labor bargaining and association rights, violation of law, and safety and living environment. These labor conditions data are generated from a randomized survey of 12 toy factories in Southern China, including 10 CSRC suppliers for McDonald’s, Mattel, Disney, and Wal-Mart, and 2 non-CSRC factories as a comparison group. 2In particular, some MNCs and business associations would use Corporate Social Responsibility Codes Certifications (CSRCC) as measures to regulate suppliers’ conduct, such as Nike and the like. 3 For example, the Office of Child Labor, Forced Labor, and Human Trafficking at the Bureau of International Labor Affairs, U. S. Department of Labor mentioned in the China’s country report that â€Å"Because of China's repressive political system, it was not possible to obtain any information directly from China.There are no Chinese non-governmental organizations (NGOs) active in this area, and foreign NGOs do not have access. Accordingly, it was impossible to corroborate or reject allegations by various labor and human rights organizations that children are working in export industries which produce for the United States market† (Office of Child Labor, Forced Labor, and Human Trafficking, Bureau of International Labor Affairs). 4 The UIRT model effectively compares the relative seriousness of a labor problem with the lab or union problem, which is the most serious labor problem found in this study.It shows that, first, the CSRC may have a positive effect on labor conditions. CSRC suppliers have less serious labor condition problems than factories with no CSRC. Second, because different CSRCs may have different coverage and monitoring intensity, different CSRCs may result in different labor condition issues. Non-CSRC factories are found to have six serious labor problems; McDonald’s, Mattel, Disney, and Wal-Mart have four, two, one, and zero serious problems, respectively.Third, suppliers working with more than one CSRC may reduce the possibility of opportunism at the supplier level. While suppliers with 1 CSRC would have 2 problems as serious as the labor union problem, suppliers with 2 CSRCs would have no such problem. However, the CG approach to CSRC may suffer from opportunism. This study documented some typical suppliers’ measures to circumvent CSRC auditing: fire drill, trained qu estion, giving a holiday, cleaning the factory, and safety drill.In addition, the subsequent analysis shows that different suppliers’ measures to circumvent the CSRC may represent a diverse level of opportunism. The subsequent sections are organized as follows: the second section explores the effect of the stakeholder approach and CG approach to CSRC and their effects on labor conditions; the third section describes the survey, basic observation from the data, and the methodology; the fourth section provides the estimation results; the last section discusses the results and draws some conclusions. 2.Stakeholder versus corporate governance approaches to CSR and labor conditions: A transaction cost perspective With the globalization of production in recent years, MNCs from developed countries migrated their manufacturing (high labor cost) operation to LDCs for the sake of cost minimization or to be closer to the consumer market. Due to the regulations of the host government, th eir production is usually outsourced to local suppliers. The intense competition among suppliers may induce lower bidding price for outsourcing deals from MNCs.This low bidding price might, in turn, result in the downward pressure of labor cost, safety equipments (Jiang, 2009; Pun, 2005a ; b). As a result, the globalization of production may even make working conditions weaker than it was before the market opened (Lee, 5 1995; Chan, 2003). Such worker conditions have been reported in mass media, generating concern from consumers, NGOs, policymakers, and academics. For example, in China, labor relations have been changing since the market reform began (Zhu and Warner 2004 a ; b). Workers usually suffered from â€Å"new exploitations† (Chan, 2001). In response to the recent surge of complaints from NGOs, media, and consumer movements, outsourcing MNCs’ corporate social responsibility (CSR) has been designed to meet the consumer demand for a â€Å"clearer† product with fewer exploitations and/or a better working environment and safety for the LDC worker. 5 In fact, the original stakeholder theory was mapped out by Freeman (1984). The theory attempts to ascertain which groups are stakeholders in a corporation and thus deserve management attention. A company’s stakeholders are therefore all those who are influenced by, or can influence, a company’s decisions and actions.This theory intends to address the â€Å"Principle of Who or What Really Counts. † A firm, as a member of the stakeholder, cannot survive without taking into account the needs of the other stakeholders (Freeman, 1984). Figure 1: Original stakeholder model (Freeman, 1984) 4 Richard B. Freeman (1994) conducted one of the earliest surveys on labor standards under globalization of production. For further CSR code description, please go to http://www. csreurope. org/ 5 Bjorner (2004) shows that consumers would prefer to pay more for a â€Å"clean† product in the market.See also Harrison and Scorse’s (2003) study on how globalization impacts compliance with labor standards. 6 The CSR problem may be viewed from the institutional perspective: when a firm’s operations create externality, the stakeholders, those who have been affected by the externality, could bargain with the firm and achieve welfare improvement as long as the property rights of each party are well defined and the information cost for bargaining is low (Coase, 1960). Under these conditions, an agreement that guarantees the interests of stakeholders could be made.In the case where the externality is produced by MNCs’ outsourcing, the CSR is therefore an institution (or the rule of game) that may help to remedy past and potential conflicts of interest among stakeholders and produce a more sustainable future development. However, the stakeholder approach of CSR may not be sustainable due to the complexity of the agreement, the high cost of property righ ts’ identification, and the high information cost of bargaining. First, there is doubt about the willingness of MNCs to design a valid CSR practice that would help alleviate workers’ conditions at the supplier level (AMRC, 2004:10).Second, it is sometimes difficult to identify all the stakeholders because they are often locally determined. The transaction cost may be significant as stakeholders who can work together are needed to conceptualize and implement CSR. 6 Third, even when one can draw a rough picture about potential stakeholders, the question is how these very different – usually polarized – stakeholder views can successfully collaborate from the drafting the CSR to its implementation and monitoring (Dubinsky, 2002).The stakeholder approach to CSR is thus considered to have a higher transaction cost than the CG approach because it has to define all stakeholders and bring them together to develop the CSR design. In general, the CG approach to CSR is an expression used to describe what some see as a company’s obligation to be sensitive to the needs of all stakeholders in its business operations (Hill and Jones, 1992). 7 This is a top-down approach that aligns with the MNCs’ board (Husted, 2003).However, in the case of outsourcing decision, according to Williamson (2008), the choice of form of governance is subject to transaction costs due to asset specificity, uncertainty, frequency and their transaction costs, among others. These transaction costs would then determine the form of outsourcing (market or vertical integration). 8 The CG approach to CSR thus coincides with the outsourcing form and uses external social auditors instead of relying on stakeholders to monitor the behaviors of suppliers. 6 Murray (2002) suggests that even when companies have elegant statements of principle, the complexity is the accountability.Local-level involvement is needed and involves a complex regime of stakeholders (Murray, 2002: 41). 7 Most of the CSR has similar objectives. See, for example, Leipziger (2001) for SA8000, one of the guides to the new CSR code. 7 Figure 2: Corporate governance approach: the firm is at the center. Source: Fassin (2008) Figure 5. In practice, the CG approach to CSR usually employs the CSRC as a means to control the behavior of suppliers. 9 From the MNCs’ point of view, the CSRC may have less uncertainty and may be a more cost-effective market solution. First, MNCs can use their existing internal system to monitor the suppliers.Second, MNCs can employ â€Å"external specialists† such as auditing firms instead of the stakeholders to â€Å"plan† and â€Å"monitor† the implementation of CSRC at the supplier level. 10 One of the potential pitfalls of the CG approach to CSR is that even when the MNCs aim to implement the CSRC for these suppliers/suppliers, monitoring issues prevail and are subject to opportunism (Brown, 2002). 11 In some cases, the CG app roach to CSRC has been criticized as a â€Å"lame duck† by labor NGOs, even if the MNCs are indeed willing to safeguard better working conditions for 8Williamson (2008) has extended the transaction cost economics approach to outsourcing decision of a firm. The contractual schema suggested that key attributes of transactions such as asset specificity, uncertainty, and frequency and their transaction costs will determine the form of outsourcing (market or vertical integration) (Williamson, 2008: 8). The schema assumed the outsourcing form would be determined and stabilized as long as the property rights are well defined and reliably enforced by courts. 9 See Kotler and Lee (2005) for their suggestions on using CSR from a corporate governance point of view and from a marketing perspective. 0 See, for example, the social auditing of Pricewaterhouse. Also see the establishment of SA 8000 by Social Accountability International (SAI) as a newly formed labor standard that responds to the need of MNC’s code of conduct. Their website: http://www. sa-intl. org/index. cfm? fuseaction=Page. viewPage=473 11 Dara O’Rourke (2001, 2004), an urban planning professor at U C Berkeley, has shown that there has been a problem in implementing the CSR code to the workshop level and the code’s impacts on workshops’ working condition and safety may be not as expected. 8 uppliers’ workers. This is because of the existing monitoring problems at the implementation level . 12 There may be two basic problems at the supplier level. First, the suppliers may not want to comply with the procedure that the MNCs require (AMRC, 2004, 65; Jiang, 2009). There are many measures from suppliers to MNCs’ CSRCs. Second, the â€Å"social auditing† monitoring procedures may be biased and possibly diluted by suppliers’ measures (O’Rourke, 2002). 13 Auditors sometimes leave out some important factors during their investigations (See O†™Rourke, 2000, 2001, 2002). 4 This leads to agency problems associated with CG approach to the CSRC (Goodpaster, 1991; Winn, 2001). In the CG approach, there is high monitoring cost and information asymmetry among stakeholders, especially between local suppliers and the MNCs. 15 In this regard, the CSR movement also encountered challenges about its validity at the theoretical and implementation levels. 16 To validate the theoretical discussion, the testable hypotheses are as follows: H1: If the CSRC is â€Å"good† for workplace conditions, then we should see suppliers with CSRC that have better labor conditions than â€Å"no CSRC† factories.H2: In addition, if a different CSRC content has a different effect, we should expect a systematic difference among CSRC firms. H3: Moreover, if the CSRC suffers from opportunism, different measures to get around the CSRC at the subcontract level may affect CSRC effects. 12 In fact, a number of â€Å"social auditors† have b een created in response to the new â€Å"demand† from MNC. However, the incentive for these auditors to reveal the true situation at the workshop level is in doubt (O'Rourke, 2000). 13 The Designs of Codes vary greatly across companies and industries.For example, the World Worldwide Responsible Apparel Production (WRAP) certification requested that the independent monitors be paid by the company under investigation. That causes serious doubt of the independency of auditor. Also, there is no requirement to interview workers during the factory investigation (Jenkins, 2002: 26). 14 O’Rourke (2002) investigates the social auditing process of Pricewaterhouse Coopers in a garment factory in Shanghai. Pricewaterhouse Coopers used a standard factory monitor process for factory management, but not for workers.He also shows that there may be management bias and flaw reporting on the auditing process. The management bias includes failures to collect information from workers and f ailures to access restraints on freedom of association. 15 Dubinsky (2002) documented the garment worker of suppliers in L. A. for GUESS. While the CSRC in GUESS was intended to enhance workers’ condition, the workers interviewed reveal no material improvement in their working conditions and were threatened and penalized when they speak out. 6 For more information of the consultants for CSR code, please visit: http://www. thecsrgroup. com/ 9 H4: Finally, if CSRC can increase transaction cost of opportunism at the supplier side, more CSRC would reduce the effect of opportunism. To assess the validity of these hypotheses, this study employs data generated from a random survey of workers from 12 suppliers of branded toy MNCs in Shenzhen and evaluates the CSRC effect using a unidimensional item response theory model. The following section describes the survey and the methodology of this study. . Survey and Methodology This section will discuss the survey and the methodology used this study. Section 3. 1 provides details on the survey design and the sample frame. Section 3. 2 compares the CSR code of conduct of branded companies with the mandate of the International Council of Toy Industries (ICTI) and International Labor Organization (ILO) conventions. Section 3. 3 provides a ranking of CSRC tasks in terms of level of difficulty. Section 3. 4 demonstrates the methodology used in this study. 3. The survey The survey was conducted at the Shenzhen and Dongguan areas in Southern China, both highly concentrated with labor-intensive industries, in particular, toy factories. 17 The survey, which took place from June 2006 to March 2007, focused on the toy industry’s CSRC. To systematically examine the impact of CSRC on labor conditions, this survey first used the industrial phone book and identified a sampling frame before the randomized selection of 12 toy factories in Shenzhen and Dongguan areas at Southern China.The selection of the sample is as follows: Their size should be comparable (usually around 1000 workers in each factory). This study identified 10 code factories within which there were eight suppliers with single CSR (Mattel, McDonald’s, Disney, Wal-Mart) and two suppliers with two CSRCs (Disney & Wal-Mart, Mattel, and Wal-Mart). The survey also included two suppliers with similar technologies that produce only for the domestic market as a comparison group. Twenty 17 Please see Appendix 1 for the background of the setting, toy industry in China, and the reasons for choosing the sites in this study. 0 workers at the entry level were interviewed in each factory, and all the workers were interviewed anonymously. 18 A total of 240 workers were surveyed in this study. 19 3. 2 A Comparison of Corporate Social Responsibility Codes of Conduct Table 1 shows a comparison between the statements of the study firms’ CSRC, the International Council of Toy Industries (ICTI) and the International Labor Organization’s c onventions according to publicly available information. The first column shows ILO conventions that are very detailed and cover the labor conditions mentioned.However, the ILO conventions operate at the state level. That is, unless a state signed the conventions, ILO convention restrictions would not be imposed at the local level. The ICTI codes at the association level and other firms’ CSRC followed the ILO conventions, but with less detail. 20 Table 1 is divided into the following sections: violation of law, bargaining rights and freedom of association, workshop safety and living environment, and monitoring procedures. In terms of violation of law, all the codes indicated that there should no child labor under 14 years of age and no forced labor.However, with the exception of the ICTI code, no individual CSRC mentions maternity leave. As for the section on labor bargaining rights and freedom of association, Disney shows its respect for rights for association and collective bargaining, while the ICTI and Wal-Mart show respect for rights of association only. With regard to safety and living environment, Mattel’s CSRC shows the most detailed description, followed by the ICTI; Disney and McDonald’s CSRCs show similar content and are less detailed than those of Mattel and ICTI. Wal-Mart’s CSRC shows the least detail in this aspect.For the monitoring mechanism, the ICTI CSRC mentioned auditing at the initial stage and in production, as well as a follow-up auditing during the production cycle. The ICTI also mentioned that the factory audit could review the employment record, books, and interview worker privately and the audit could be unannounced to reduce the opportunism. While no individual CSRC gives such detailed monitoring mechanism description, Disney makes it clear that they can review records and books, and suppliers cannot subcontract their work further. McDonald’s mentions that the supplier’s management 18Understa nding that suppliers may have pressure to workers not to reveal the true factory information to strangers, I have instructed the surveyors to talk to perspective workers and develop trust between each other. Surveyors would explain the survey purpose and ask the agreement of perspective respondents. The survey is conducted outside of the factory areas, usually at local restaurant during workers’ lunch time, to eliminate influence from suppliers. 19 The survey questionnaire can be provided upon request. 20 More detailed descriptions of the CSRC for ICTI can be found in its website: http://www. toyicti. rg/info/codeofbusinesspractices. html. 11 should put an effort to monitor the CSRC standard, and show that the auditor can enter workers’ dormitory and interview the workers. Among other CSRCs, only Wal-Mart shows that it has increased efforts to monitor the suppliers in both announced and unannounced factory audits. Mattel, however, does not show any monitoring informati on to public. In a nutshell, individual firms’ CSRC could be very different and their monitoring efforts may differ from earlier observations. The next section offers basic observations about the ranking of the difficulty CSRC tasks from a survey of 12 factories. 12Table 1: A comparision of Toy Industries' Corporate Social Responsibility Code of Codes with ILO convent International Labor Organization (ILO) convent International Council of Toy Industries (ICTI) Violation of Law child labor (;15 yrs) (C59) minimum age of 14 * under age labor (;16 yrs) No Maternity leave (C3) maternity benefits as provided by law Illegal Over Time work (C1) (C6) ( C41) (171) by law Forced Labor (C29, C105) Labor Bargaining Rights and Freedom of Association Bargaining Rights (C98) Bargaining Channel Employee Association (C87) Compliant to Client Labor Union (C87) Labor department Use Collective Bargain (C154) Strike Use Safety nd Living Environment Fire Safety (C155) Workshop Safety (C155) Food p roblem Live environment problem other problem no discrimination (C111) compensation Coercion and Harassment notification to employee monitor and inspection: Unannouned Factory Audit no forced or prison labor is employed Disney 15 yrs (but 14 yrs if law allowed) Mattel specified by country's law McDonald 15 yrs (but 14 yrs if law allowed) yes, only if no schooling 60hr/week, 1 day/week off no forced labor Wal-Mart not allow >14 yrs old 48/week +12 hr OT, 1/week day off except special business circumstances no forced labor overtime must be voluntary and documented, rest days with local law payroll deductions must comply with law and mattel requirment 72hr/6days, 14/24hrs no forced labor freel employee representation by local law upplier need to respect right for association lawful union activities supplier need to respect right for Collective Bargain lawful collective bargain in lawful and peasceful manner, without penalty, interference supplier need to respect right for association e mergency exits, trained emergency evacuation; machinery safeguards >= local laws and employees trained facilities or appropriate provisions for meals and other breaks housing, rooms, sanitary facilities meet basic needs; ventilated, fire safety by local laws toilet facilities meet local hygiene requirements , and are properly maintained standards set by law fire safety adequate lighting and ventilation potable drinkng water, sanitary facilites, health and safety housing envriomental friendly race, color, gender, religion, disability with the local law or local standard, choose the higher one rogram and system for fires, spills and natural disasters, emergency exit unlocked have programs to address health and safety, first aid, medical treatment canteens must be safe, sanitary, meet basic needs dormitories must be safe, sanitary, meet basic needs minimize environmental impact fire exit esential safety equipment, first aid kit, emergency care potable drinkng water, adequate, clean res trooms, appropriately-lit work station race, color, gender, religion, disability with the local law no unhealth and hazardous enviroment nontoxic material, envrionmental friendly race, color, gender, religion, disability with the local law legally mandated rates eed to have local lanuage post the CSR terms to employee 1 to 2 factory manager shall be monitor the compliance of standard yes yes, review employment record and books, yes, but no number specified, 26% of 16000 in 2006 (6% increase) can go to housing accommodations can go to housing accommodations others Audit inculdes: Initial , Follow-up, In-Production. no further subcontractor can be used. can private interviews with employees >16000 audit for 8873 suppliers in 2006 Source: International Labor Organization (ILO) conventions, International Council of Toy Industries (ICTI), The Walt Disney Company Code of Conduct for Manufactures, Mattel, Inc. Global Manufacturing Principles, McDonald's Code of Coduct for Suppliers, Wal-Ma rt Stores, Inc.Standard for Suppliers *but notwithstanding the foregoing, that C138 Minimum Age Convention (1973) and C182 Worst Forms of Child Labor Convention (1999) of the International Labor Organization apply Code posted or available for all employees in local language. need to have local lanuage post the CSR terms to employee 13 3. 3 Ranking the difficulty of CSRC tasks Before going into the methodological analysis, let us examine the level of the labor problem from the survey data. This survey considers each labor problem as a task for the supplier to accomplish. The seriousness of each labor problem can be considered as the level of difficulty to accomplish the task. Table 2 shows the percentage of all respondents saying â€Å"the task is a problem† = â€Å"1† and â€Å"the task is not a problem† = â€Å"0. 21 The larger the mean in the variable, the greater the number of respondents who answered â€Å"1,† and the more problem is perceived in tha t task. The variations in these variable means are large. All the respondents cited â€Å"1† in response to â€Å"Union,† which had a mean of â€Å"1†. This is considered to be the â€Å"most difficult problem. † The two other â€Å"most difficult problems† are â€Å"complaint to client† and â€Å"labor association,† with 99% and 98%, respectively, with â€Å"1† on average. As only few respondents raise â€Å"other problems†, its mean is the lowest at 2% on average, which indicates that suppliers consider this the â€Å"easiest problem†. Table 2: Corporate Social Responsibility Tasks' Diffculty level Item Obs Mean Std. Dev.Min Labor Bargaining and Association Rights Labor Union 240 1. 00 0. 00 1 0. 99 Complaint to Client 240 0. 11 0 Employee Association 240 0. 98 0. 14 0 Bargaining Rights 238 0. 45 0. 50 0 Bargaining Channel 240 0. 73 0. 45 0 Labor department Use 240 0. 48 0. 50 0 Collective Bargain 240 0. 96 0. 1 9 0 Strike Use 240 0. 62 0. 49 0 Violation of Law child labor (>14 yrs) 238 0. 11 0. 31 0 under age labor (>16 yrs) 238 0. 34 0. 47 0 No Maternity leave 238 0. 82 0. 39 0 Illegal Over Time work 238 0. 85 0. 36 0 Safety and Living Environment Fire Safety 235 0. 03 0. 18 0 Workshop Safety 235 0. 26 0. 44 0 Food problem 235 0. 83 0. 38 0 Live environment problem 235 0. 29 0. 46 0 0. 02 other problem 235 0. 3 0 Note: the respond â€Å"1† means â€Å"the task is a problem,† while â€Å"0† means â€Å"the task is not a problem† in respondent's factory. â€Å"labor union† has 100% respond â€Å"1† and that mean it is the â€Å"hardest problem† for suppliers. â€Å"other problem† has 2% respond with â€Å"0† and is considered to be the most â€Å"easiest problem† for suppliers. Max 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 21 Please see Appendix 2 for a detailed breakdown of the labor condition distribution. 14 3. 4 Methodology T able 2 presents the distribution of the CSRC task and the problem perceived. However, both the respondents’ knowledge of the problem and the suppliers’ characteristics may bias the analysis of CSRC effect on labor conditions.The respondents’ knowledge and the suppliers’ effort to implement CSRC are, however, unobservable. To correct these unobservable biases and obtain a consistent estimate of the likelihood of suppliers’ problem, this methodology section proposes to use the unidimensional item response theory (UIRT) (or the Rasch) model. In general, the item response theory (IRT) is a body of theories describing the application of mathematical models to data from questionnaires and tests as a basis for measuring abilities, attitudes, or other variables. 22 The IRT model is based on the idea that the probability of getting an item correct is a function of a latent trait or ability. The UIRT model is a member of IRT family which applies to dichotomo us data. 3 The UIRT model is usually used in test analysis, which can analyze the relative difficulty level of an examination question by removing the individual (the examinee’s) unobservable influence on the answer of the question. It is used for statistical analysis and development of assessments, often for high-stake tests such as the Graduate Record Examination (GRE). 24 Using the GRE as example, a person with higher intelligence would more likely be able to correctly respond to a question in an intelligence test. This study introduces UIRT model to evaluate the impacts of CSRC on labor conditions. The UIRT model in this study estimates the probability of a worker getting a positive response in a list of the ifferent tasks by taking into account each task’s difficulty level and the different abilities, knowledge, 22 IRT models apply mathematical functions that specify the probability of a discrete outcome, such as a correct response to an item, in terms of person a nd item parameters. Person parameters may, for example, represent the ability of a student or the strength of a person's attitude. Item parameters include difficulty (location), discrimination (slope or correlation), and pseudoguessing (lower asymptote). Items may be questions that have incorrect or correct responses, as well as statements that allow respondents to indicate the level of agreement. 3 In general, the UIRT model estimates these outcomes using two types of predictors – a person’s ability and the test item’s difficulty level. A person’s ability and the test item’s difficulty level are given as â€Å"X† in the right side of the equation. â€Å"Y† is a person’s response to a test item (or a survey item) and is given on the left side of the equation. 24 Among other methods, IRT provides a basis for evaluating how well assessments and individual questions on assessment work. In education, psychometricians apply IRT to a chieve tasks as developing and refining exams, maintaining banks of items for exams, and equating the difficulties of successive versions of exams (for example, to allow comparisons between results over time). 15 nd willingness level of each respondent and individual supplier. The UIRT model is particularly useful in this study because this model can effectively take into account an individual’s knowledge of the problem and each supplier’s willingness to carry out the task. With the estimated outcomes on hand, one can compare the relative difficulty level of any task by using the easiest task (or the hardest task) that suppliers could fulfill. The last section shows that the â€Å"other problem† is the easiest problem among others; this study will therefore use the â€Å"other problem† as the basis for the relative difficulty in ranking problems in the statistical analysis. 25In our context, the UIRT model is defined as follows: Let us consider a sample o f individuals who answer the survey as if taking a test, and assume the probability, Pij , that worker i’s answer â€Å"yes† (or â€Å"1†) responds to task j and depends only on a parameter, ai , representing the respondent’s ability (which can represent the joint outcome of a worker level understanding of the firm and other factors such as suppliers’ characteristics) and another parameter, b j , representing the difficulty level of the task attempted. Assume further that for some monotone transformation, M. M ( P ) = ai ? b j ij (1) for all i and j. The odds of getting a task right decreases with task’s difficulty (and thus the minus sign before b j ). That is, an additive representation is postulated for the suitably transformed probabilities, Pij . When M is the inverse logistic transformation,M ( Pij ) = ln( Pij ) = ai ? b j 1 ? Pij (2) (ln is the natural logarithm), we have UIRT model. 25 We can also use â€Å"union† as a base to obtain a more precise estimation of the probability of getting a task â€Å"right† as the responses are all zeros. As this article focuses on the relative difficulty level of tasks, it is reasonable to use the easiest task as the base. 16 The UIRT model has certain very desirable statistical properties for the estimation of these parameters. With the UIRT model, this grouping method can be approximated to estimate parameters. 26 We can then compare the estimated M ( Pij ) to determine the relative difficulty level of each task. robability of getting a particular task with â€Å"1† can also be calculated The as: exp( M ( Pij )) /(1 + exp( M ( Pij ))) . 27 With these desirable properties of the UIRT model, this study can allow different groupings of CSRC and evaluate their effects on labor conditions by comparing the parameters. 4. Results 4. 1 Basic Result Table 3 shows the benchmark model that pooled all the factories together to investigate the overall picture of lab or conditions using the UIRT model and the â€Å"other problem† as the basis of comparisons. As shown in Table 2, response â€Å"0† means the worker thinks that there is â€Å"no problem† with a particular task, while â€Å"1† means the task â€Å"has problem†.Therefore, using the estimated coefficients, the â€Å"union† coefficients serve as the upper bound and the â€Å"other problem† as the lowest bound; the interpretation of the coefficient is therefore an assessment of the relative significance of the problem against â€Å"union† and â€Å"other problem. † That is, when a task has similar significance as the â€Å"union,† it means that the task is â€Å"very difficult† for suppliers, while a task that is not significantly different from the â€Å"other problem†, it means that the task is also an â€Å"easy problem† for suppliers. Table 3 shows (from left), the fixed effect model, the fixe d effect with probability weighted, and the random effect model, respectively. All the models have passed their test of specification. Comparing 26Specifically, it can be shown (Lord & Novick, 1968, p. 429) that a respondent’s raw score (number of tasks correct) is a minimal sufficient statistic for his/her ability. This leads to a practical implementation of the model in that statistical estimates of abilities and item parameters can be obtained by proceeding as if everyone with the same raw score has exactly the same ability. The parameter estimates are commonly computed using conditional maximum likelihood CMLE and yield consistent estimates of item parameters (Andersen, 1973). 27 Obviously, the Pij is unobservable, as are ability and item parameters. Estimates of the Pij (and, hence, the ai and b j could be obtained if it were possible to give a respondent the same question about a task on repeated occasions, and his/her responses were independent over trials. Clearly, th is is not possible. Alternatively, the probabilities could be estimated if a worker with similar ability could be identified. Assuming a group of people with the same ability, as individuals respond to items independently, the observed proportion of individuals within the group who respond positively to task j is an estimate of the probability that any given person from that group passes the task. 17 the fixed effect model and the model with probability weighted, the ranking of variables’ coefficients is in the same order. There is no qualitative difference between the two models.In fact, the coefficient value and the ranking are identical between the fixed effect model in the first column and the random effect model in the third column, suggesting that heterogeneity is not a problem and the random effect model is not necessary. 28 Therefore, this study will be based on the fixed effect model for extended models in the subsequent sections. â€Å"Union,† â€Å"complain t to client,† and â€Å"employee association† are the top three difficult tasks for suppliers. The estimated probability of union, complaint to client, and employee association in the fixed effect model is 1, 0. 9998, and 0. 9996, respectively, suggesting a 100%, 99. 98%, and 99. 96% chance of getting these tasks with a problem. These estimated probabilities are very consistent with the statistics in Table 2. This reflects that CSRC may not be very helpful for labor union and freedom of association activities.All the tasks in the model are positively and significantly different from the â€Å"other problem,† suggesting that these problems warrant our attention, except the fire safety problem. The reason why the fire safety problem is not frequently cited as a problem may be attributed to the fact that after a fatal factory fire in Shenzhen area in the early 1990s, a workshop-level fire safety law has been introduced. Since then, labor NGOs and the local governmen t have paid attention to fire safety in workplaces. 29 After a brief overview about the problem with the pooled data, the next section tests hypotheses about the effectiveness of the different CSRCs and the problem of opportunism at the supplier level. 28When reading across the columns, one should avoid directly comparing the coefficients among different models as the assumptions are different. However, we can focus on the relative importance of variables in each model. 29 For a detailed discussion about the labor movement and the history about the event, read AMRC (2004: 41-82). 18 Table 3: Unidimensional Item Response Model for Labor Conditions Fixed Effect Item Coef. Labor Bargaining and Association Rights Union 22. 71 (1. 82) Complaint to Client 8. 37 (0. 9) Employee Association 7. 85 (0. 76) Bargaining Rights 3. 87 (0. 61) Bargaining Channel 5. 03 (0. 59) Labor department Use 3. 99 (0. 58) Collective Bargain 7. 25 (0. 73) Strike Use 4. 54 (0. ) Violation of Law Child labor (>14 yrs) 1. 96 (0. 6) Under age labor (>16 yrs) 3. 38 (0. 61) Maternity leave 5. 51 (0. 62) Illegal Over Time work 5. 74 (0. 63) Safety and Living Environment Fire Safety 0. 71 (0. 7) Workshop Safety 3. 01 (0. 61) Food problem 5. 58 (0. 65) Live environment problem 3. 18 (0. 61) constent Number of obs F( 16, 239) Prob > F Pseudo R2 Linktest: _hat 4045. 00 10551. 86 0. 00 0. 49 0. 00 1. 00 P>|z| 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 Fixed Effect with p-weighted Coef. P>|z| 28. 30 (0. 59) 10. 70 (0. 92) 10. 52 (0. 78) 4. 72 (0. 61) 6. 14 (0. 61) 5. 09 (0. 6) 9. 39 (0. 75) 5. 33 (0. 61) 2. 56 (0. 66) 4. 03 (0. 61) 6. 2 (0. 62) 7. 99 (0. 67) 1. 58 (0. 78) 4. 47 (0. 61) 7. 28 (0. 65) 4. 74 (0. 62) 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 Random Effect Coef. 29. 19 (9. 73) 8. 44 (0. 9) 7. 92 (0. 76) 3. 88 (0. 61) 5. 05 (0. 6) 3. 99 (0. 58) 7. 31 (0. 72) 4. 56 (0. 6) 1. 96 (0. 6) 3. 38 (0. 61) 5. 55 (0. 62) 5. 79 (0. 63) 0. 71 (0. 7) 3. 01 (0. 61) 5. 62 (0. 65) 3. 18 (0. 61) 4. 06 (0. 58) 4045. 00 F( 16, 239) Prob > F /lnsig2u P>|z| 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 31 0. 00 0. 00 0. 00 0. 04 0. 00 0. 00 0. 00 0. 31 0. 00 0. 00 0. 00 0. 00 4045. 00 88251. 79 0. 0 0. 55 1. 00 (0. 13) 0. 00 (0. 01) 0. 00 1. 00 1. 00 (0. 13) _hatsq 0. 00 (0. 01) Other Problem is the basis for the comparison Jacknife standard error in parenthesis 60. 68 0. 00 -4. 55 (0. 29) sigma_u 0. 10 (0. 02) Prob >= chibar2 0. 40 Likelihood-ratio test 0. 08 19 4. 2 Which CSR code is better? As shown in Table 1, different branded companies may have differences in the CSRC statement. This section aims to evaluate the effect of an individual brand company’s CSRC on labor conditions and to understand the relationships between company’s CSRC statement and CSRC outcomes. Table 4 shows the UIRT model for labor conditions by different CSRCs.As there are suppliers with more than one CSRC, this study will pool suppliers with same CSRC to estimate the difficulty level of relative tasks. For example, as the survey has one supplier with Disney only but two suppliers with Disney & Wal-Mart, this study combines these three supplier data into the UIRT model. As discussed in the methodology section, the UIRT model can then essentially extract the common information from these Disney suppliers and investigate the aggregated â€Å"Disney CSRC effect. † Table 4 ranks the CSRC according to the number of tasks similar to the difficulty level of â€Å"union,† descending from left (the easiest task) to right (the most difficult task).In Table 4, columns 1 to 5 show suppliers with a larger number of problems and the lowest number of problems similar to the difficulty level of the problem â€Å"union. † They are non-CSRC suppliers (with 6 problems), McDonald’s (5 problems), Mattel (2 problems), Disney (2 problems), and Wal-Mart (with 0 problem). The first obser vation is that the most serious problems are concentrated on â€Å"labor bargaining and association rights†. When focusing on individual CSRC in this section, the â€Å"non-CSRC† suppliers in cited in the first column show that five tasks have the same difficulty level as union. In contrast, there are no such tasks for the Wal-Mart suppliers, suggesting that they may commit less serious labor bargaining and association rights problems.While we focus on the tasks with the lowest bound of difficulty, Disney suppliers may have more (6 tasks) tasks that are insignificantly different from the â€Å"other problem. † This means that Disney’s suppliers may be less likely to have labor bargaining and association problems. Why so? Can the mission statements of CSRC give some useful information? As Table 1 shows, Disney’s mission statement provides a more detailed description than other CSRCs with respect to the labor bargaining and association problems. Howe ver, while there is no explicit statement about labor bargaining and association problems in the McDonald’s CSRC, its suppliers are more likely to commit violations over other CSRCs, as shown in the second column of Table 4. On 20 he whole, it seems that the CSRC could have some positive impacts on labor bargaining and association problems, and the effects would be dependent on the details of the CSRC statements. 30 Let us now discuss the violation of laws. While the non-CSRC suppliers may have serious problems regarding maternity leave, McDonald’s suppliers may have serious problems with illegal overtime work when compared with the labor union problem. This is consistent with McDonald’s CSRC statement – the most concise among other CSRCs – on illegal overtime work. When focusing on the insignificant problem, an interesting pattern emerged: the tasks that are not as serious as â€Å"other problems† are inversely distributed along the columns , except for Wal-Mart suppliers.Disney suppliers continually outperform other CSRCs with no tasks considered significant, while Wal-Mart suppliers show significance in all the tasks. While Table 1 does not show any significant difference between Wal-Mart’s CSRC compared to the other CSRC in this issue, the results may be affected by the fact that these suppliers do not produce goods only for Wal-Mart. The next subsection analyzes the number of CSRCs and its the impact on labor conditions. In terms of safety and living environment issues, all suppliers under this study do not indicate significant problems on fire safety. However, the non-CSRC suppliers are consistently worse than other suppliers in terms of workshop safety and food problem.Indeed, food seems to be a common problem among suppliers, except for Disney suppliers. Consistent with results in labor bargaining and association rights, Disney suppliers outperform other CSRC suppliers because no task is significantly dif ferent from the â€Å"other problem. † In all the three sections, Disney suppliers continually outperform other CSRCs. This result seems to be consistent with Disney’s CSRC statement, shown in Table 1. Some suppliers work for more than one CSRC, which may mean more transaction costs in avoiding the CSRC. It is interesting to explore how the number of CSRCs affect firms. 30 Certainly, we can just observe the CSRC statement, but efforts to enforce the statement terms are unobservable.As discussed in the methodology section, the UIRT model is a tool to remove unobservable influences and obtain consistent estimates of the difficulty level of tasks. 21 Table 4: Unidimensional Item Response Model for Labor Conditions by different CSR code No CSR code McDonald's Mattel Item Coef. P;|t| Coef. P;|t| Coef. P;|t| Labor Bargaining and Association Rights Union 42. 38 0. 00 41. 63 0. 00 19. 98 0. 00 (4. 33) (4. 15) (3. 01) Complaint to Client 42. 38 0. 00 41. 63 0. 00 5. 53 0. 00 (4 . 33) (4. 15) (0. 94) 42. 38 41. 63 19. 98 Employee Association 0. 00 0. 00 0. 00 (4. 33) (4. 15) (3. 01) Bargaining Rights 42. 38 0. 00 -0. 03 0. 26 0. 28 0. 77 (4. 33) (0. 03) (0. 3) Bargaining Channel 42. 38 0. 00 21. 30 0. 00 19. 98 0. 00 (4. 33) (2. 27) (3. 01) Labor department Use 0. 00 0. 87 20. 67 0. 00 2. 69 0. 00 (0. 00) (2. 01) (0. 68) Collective Bargain 42. 38 0. 00 41. 63 0. 00 4. 80 0. 00 (4. 33) (4. 15) (0. 89) Strike Use 20. 77 0. 00 41. 63 0. 00 1. 48 0. 05 (2. 30) (4. 15) (0. 74) Violation of Law Child labor (;14 yrs) Under age labor (;16 yrs) Maternity leave Illegal Over Time work 0. 00 (0. 00) 19. 92 (1. 77) 42. 38 (4. 33) 0. 87 0. 00 0. 00 0. 00 -0. 03 (0. 03) -0. 03 (0. 03) 21. 92 (2. 44) 41. 63 (4. 15) 0. 00 (0. 00) 0. 00 (0. 00) 21. 84 (2. 43) 0. 26 0. 26 0. 00 0. 00 0. 28 (0. 93) 0. 51 (0. 9) 3. 83 (0. 77) 5. 23 (0. 99) 0. 30 (0. 93) 2. 29 (0. 78) 4. 01 (0. 88) 0. 77 0. 57 0. 00 0. 00 Disney Coef. 23. 12 (13. 27) 23. 12 (13. 27) 6. 32 (13. 94) 4. 63 (14. 02) 3. 24 (14. 00) 4. 87 (13. 94) 8. 00 (19. 73) 23. 12 (13. 27) 2. 94 (13. 92) 4. 48 (14. 02) 6. 49 (14. 24) 5. 35 (14. 05) 1. 13 (14. 02) 3. 27 (14. 01) 7. 97 (28. 15) P;|t| 0. 09 0. 09 0. 65 0. 74 0. 82 0. 73 0. 69 0. 09 0. 83 0. 75 0. 65 0. 71 21. 01 (1. 94) Safety and Living Environment Fire Safety Workshop Safety Food problem 0. 00 (0. 00) 21. 01 (1. 94) 20. 89 (1. 91) 0. 87 0. 00 0. 00 0. 34 0. 31 0. 00 0. 75 0. 01 0. 00 0. 94 0. 82 22 0. 78 4. 3 Is more CSRC better?This section focuses on the number of CSRCs: if more CSRCs increase transaction costs for suppliers, which in turn results in violations of the CSRC, then there should be less violation with regard to labor conditions as the number of CSRCs increases. Table 5 shows the UIRT model for labor conditions according to the number of CSR code. The nonCSRC supplier column is the same as in Table 4, while the â€Å"1 CSRC† column has a pool of suppliers with a single CSRC and â€Å"2 CSRC† suppliers include Matt el ; Wal-Mart and Disney ; Wal-Mart. The pattern of violations in labor conditions in Table 8 is consistent with the hypothesis that more CSRCs is better to control opportunism at the suppliers’ level; the suppliers of 2 CSRCs constantly outperform the 1 CSRC suppliers and the non-CSRC suppliers on the control of labor conditions.For example, in terms of labor bargaining and association rights, the number of tasks with a similar significant coefficient as union is 5 in â€Å"No CSRC† suppliers, 2 in â€Å"1 CSRC† supplier, and none in â€Å"2 CSRC† suppliers. All the estimation results in â€Å"violation of law† and â€Å"safety and living environment† show that the tasks relative to coefficients are reduced as the number of CSRC increases. These results are consistent with the perspective that an increase in the number of CSRCs may increase the transaction costs of opportunism at the suppliers’ level. However, suppliers may also have measures to reduce governance effects from CSRC. The effects of different measures of opportunism are investigated in the next section. 23 24Table 5: Unidimensional Item Response Model for Labor Conditions by number of CSR code No CSR code 1 CSR code 2 CSR codes Item Coef. P;|t| Coef. P;|t| Coef. Labor Bargaining and Association Rights Union 42. 38 0. 00 39. 19 0. 00 19. 40 (4. 33) (0. 31) (3. 12) Complaint to Client 42. 38 0. 00 39. 19 0. 00 6. 11 (4. 33) (0. 31) (0. 89) Employee Association 42. 38 0. 00 39. 19 0. 00 5. 57 (4. 33) (0. 31) (0. 76) Bargaining Rights 42. 38 0. 00 19. 10 0. 00 2. 02 (4. 33) (0. 26) (0. 67) Bargaining Channel 42. 38 0. 00 20. 14 0. 00 3. 92 (4. 33) (0. 20) (0. 64) Labor department Use 0. 00 0. 87 19. 73 0. 00 3. 51 (0. 00) (0. 25) (0. 58) Collective Bargain 42. 38 0. 00 23. 61 0. 00 5. 21 (4. 33) (0. 98) (0. 6) Strike Use 20. 77 0. 00 20. 24 0. 00 3. 51 (2. 30) (0. 26) (0. 64) Violation of Law Child labor (;14 yrs) Under age labor (;16 yrs) Maternity l eave Illegal Over Time work Safety and Living Environment Fire Safety Workshop Safety Food problem Live environment problem 0. 00 (0. 00) 21. 01 (1. 94) 20. 89 (1. 91) 0. 87 0. 00 0. 00 0. 87 15. 47 (0. 87) 14. 77 (14. 65) 22. 30 (0. 42) 18. 70 (0. 23) 2030. 00 0. 64 0. 00 0. 32 0. 00 0. 00 0. 43 (0. 76) 2. 98 (0. 68) 4. 48 (0. 79) 2. 72 (0. 67) 1335. 00 0. 40 0. 00 (0. 00) 19. 92 (1. 77) 42. 38 (4. 33) 21. 01 (1. 94) 0. 87 0. 00 0. 00 0. 00 17. 05 (0. 41) 19. 27 (0. 24) 20. 85 (0. 24) 24. 31 (15. 01) 0. 0 0. 00 0. 00 0. 11 1. 61 (0. 64) 1. 76 (0. 67) 4. 07 (0. 67) 4. 30 (0. 70) P;|t| 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 01 0. 01 0. 00 0. 00 0. 57 0. 00 0. 00 0. 00 0. 00 (0. 00) Number of obs 680. 00 Pseudo R2 0. 84 Other Problem is the basis for the comparison Jacknife standard error in parenthesis 4. 4 Suppliers’ Measures to circumvent CSRC auditing 25 When considering other transaction costs of governing with the CSRC, suppliers may apply different strategies to get around the CSRC auditing. Because most CSRC auditing would give advance notice to suppliers, suppliers would have room for measures to circumvent the auditing.This study has documented some of the common supplier measures to circumvent CSRC auditing: fire drill, trained question, giving a holiday, cleaning the factory, and safety drill. Certainly, suppliers may use more than one measure to get around the CSRC auditing; it is likely that suppliers with more labor problems would use more measures to cover up their problems. This section first looks at the number of measures that may be associated with labor problems. We then investigate how the different measures affect labor conditions. Table 6 shows the UIRT model for the number of measures to circumvent CSRC auditing. The first column of Table 6 shows the result of â€Å"no measure. A response of â€Å"no measure† to circumvent CSRC auditing is associated with no significant measures that are different from â€Å"o ther problem,† suggesting that a supplier without any measure for CSRC auditing is performing relatively well in terms of labor conditions. The second column, i. e. , â€Å"one measure† to circumvent CSRC auditing, shows a very different pattern. Although no task is as difficult as the union problem, all tasks show a significant coefficient, except the fire safety problem. The third column, â€Å"two or more measures,† indicates an even stronger coefficient in all the tasks than the column with one measure. Furthermore, the task â€Å"complaint to client† is as strong as â€Å"union† in this column.When comparing the three columns in Table 6, it appears that the more the measures suppliers use, the higher the likelihood they commit more labor problems. This is consistent with the transaction cost hypothesis that opportunism may increase the transaction cost of governing with the CSRC. It is not necessary that all measures have an equal effect on lab or problems. The next section shows the effect of individual measure of CSRC auditing on labor problems. 26 Table 6: Unidimensional Item Response Model for Labor Conditions by Number of Supplier's Measure No Measure One Measure Two or More Measures Item Labor Bargaining and Association Rights Union 19. 88 0. 22 20. 47 0. 0 34. 57 0. 00 (15. 58) (3. 66) (4. 30) Complaint to Client 5. 35 0. 79 7. 34 0. 00 34. 57 0. 00 (19. 88) (1. 20) (4. 30) Employee Association 5. 35 0. 79 7. 34 0. 00 20. 80 0. 00 (20. 03) (1. 21) (2. 85) Bargaining Rights 1. 64 0. 92 2. 40 0. 00 17. 16 0. 00 (15. 09) (0. 77) (2. 19) Bargaining Channel 3. 47 0. 82 4. 24 0. 00 17. 84 0. 00 (14. 91) (0. 74) (2. 13) Labor department Use 3. 20 0. 83 3. 85 0. 00 17. 42 0. 00 (14. 89) (0. 71) (2. 17) Collective Bargain 19. 88 0. 22 6. 63 0. 00 19. 85 0. 00 (15. 58) (1. 03) (2. 30) Strike Use 2. 94 0. 85 3. 78 0. 00 18. 47 0. 00 (15. 15) (0. 73) (2. 18) Violation of Law Child labor (>14 yrs) -14. 1 0. 34 1. 26 0. 09 15. 87 0. 00 (14. 61) (0. 74) (2. 18) Under age labor (>16 yrs) 2. 24 0. 88 2. 59 0. 00 16. 91 0. 00 (15. 11) (0. 77) (2. 12) Maternity leave 2. 77 0. 86 4. 60 0. 00 18. 89 0. 00 (15. 14) (0. 76) (2. 20) Illegal Over Time work 5. 23 0. 80 6. 39 0. 00 19. 09 0. 00 (19. 94) (1. 06) (2. 26) Safety and Living Environment Fire Safety 0. 00 1. 00 0. 73 0. 40 12. 91 0. 32 (22. 56) (0. 86) (12. 82) Workshop Safety 0. 00 1. 00 2. 03 0. 01 16. 24 0. 00 (22. 56) (0. 78) (2. 09) Food problem 4. 13 0. 79 5. 10 0. 00 21. 50 0. 16 (15. 39) (0. 86) (15. 24) Live environment problem 2. 19 0. 89 2. 67 0. 00 16. 88 0. 00 (15. 10) (0. 77) (2. 2) Number of obs 267. 00 1777. 00 1321. 00 Pseudo R2 0. 52 0. 51 0. 52 Other Problem is the basis for the comparison Jacknife standard error in parenthesis Supplier's measures to circumvent CSRC auditing include fire drill, trained question, giving a holiday, Cleaning the Factory, and Safety Drill. 27 4. 4 Suppliers’ Measures to circumvent CSRC auditing Table 7 s hows the UIRT model for individual measures to circumvent CSRC auditing. The measures in this study include fire drill, safety drill, giving a holiday, trained question, and cleaning the factory. As the safety drill estimation is not converged, Table 10 shows only the four other supplier measures.Table 7 ranks the measures according to the number of the most serious tasks (compared to union) from the left, namely, fire drill (6 tasks), giving a holiday (4 tasks), trained question (0 task), and cleaning the factory (0 task). Why do fire drill suppliers have the most tasks similar to the union coefficient? As discussed in the last subsection, fire safety is one of the most serious areas that the Chinese local authorities are concerned with, and it is the most frequent task to be checked during a factory visit. If a supplier has not even met the basic standard of the fire safety, it is reasonable to infer that other tasks are likely to be a problem as well. This is similar in the case of holidays for workers – meaning that the supplier tries to prohibit workers from revealing this fact.As giving holidays for a busy factory is costly, suppliers are likely to create more than one problem in the task. â€Å"Trained question† is one of the most common ways that suppliers try to get around CSRC auditing during the worker interview. Suppliers try to train workers with â€Å"model answers† that fit the CSRC auditing interview questions. The â€Å"trained question† effect may be very limited as only trained workers model their answers to the interview question, and this cannot cover other the problems in the factory. It is clear that the â€Å"trained question† may have fewer problems than â€Å"fire drill† and â€Å"giving a holiday. † â€Å"Cleaning the factory† was found the least serious measure.Only suppliers who are confident with their labor conditions would use â€Å"cleaning the factory† to polish th eir workshop. 28 Table 7:Unidimensional Item Response Model for Labor Conditions by Supplier's Measure Fire Drill Give Holiday Trained question Cleaning Factory Item Coef. P>|t| Coef. P>|t| Coef. P>|t| Coef. P>|t| Labor Bargaining and Association Rights Union 40. 28 0. 00 39. 74 0. 00 35. 79 0. 00 21. 80 0. 00 (1. 05) (3. 83) (5. 39) (2. 87) Complaint to Client 40. 28 0. 00 39. 74 0. 00 21. 55 0. 00 8. 79 0. 49 (1. 05) (3. 83) (2. 80) (12. 70) Employee Association 40. 28 0. 00 22. 22 0. 24 21. 55 0. 00 7. 68 0. 00 (1. 05) (18. 58) (2. 98) (1. 00) Bargaining Rights 18. 38 0. 29 0. 00 0. 75 17. 88 0. 00 3. 5 0. 00 (14. 33) (0. 00) (2. 78) (0. 75) Bargaining Channel 18. 38 0. 00 39. 74 0. 00 18. 36 0. 00 4. 47 0. 00 (0. 45) (3. 83) (2. 62) (0. 73) Labor department Use 21. 11 0. 00 16. 38 0. 32 18. 07 0. 00 4. 38 0. 00 (0. 61) (16. 06) (2. 69) (0. 71) Collective Bargain 40. 28 0. 00 39. 74 0. 00 20. 60 0. 00 6. 54 0. 00 (1. 05) (3. 83) (2. 81) (0. 85) Strike Use 40. 28 0. 00 17. 62 0. 0 0 19. 30 0. 00 4. 85 0. 00 (1. 05) (1. 31) (2. 88) (0. 74) Violation of Law Child labor (>14 yrs) 0. 00 0. 45 18. 35 0. 00 16. 41 0. 00 2. 01 0. 01 (0. 00) (1. 70) (2. 61) (0. 73) Under age labor (>16 yrs) 18. 38 0. 29 18. 00 0. 00 17. 51 0. 00 3. 33 0. 00 (14. 3) (2. 04) (2. 60) (0. 75) Maternity leave 21. 11 0. 25 22. 22 0. 27 19. 09 0. 00 5. 22 0. 00 (14. 97) (19. 80) (2. 72) (0. 74) Illegal Over Time work 40. 28 0. 00 22. 22 0. 27 19. 85 0. 00 6. 14 0. 00 (1. 05) (19. 80) (2. 72) (0. 85) Safety and Living Environment Fire Safety 0. 00 0. 39 0. 00 0. 75 14. 16 0. 00 0. 72 0. 40 (0. 00) (0. 00) (2. 54) (0. 85) Workshop Safety 0. 00 0. 38 0. 00 0. 75 16. 77 0. 00 2. 84 0. 00 (0. 00) (0. 00) (2. 70) (0. 75) Food problem 40. 28 0. 00 39. 74 0. 00 20. 59 0. 00 6. 11 0. 00 (1. 05) (3. 83) (2. 87) (0. 89) Live environment problem 18. 38 0. 00 21. 51 0. 00 17. 53 0. 00 2. 88 0. 00 (0. 45) (2. 15) (2. 72) (0. 5) Number of obs 85. 00 408. 00 1440. 00 2452. 00 Pseudo R2 0. 83 0. 88 0. 49 0. 50 Other Problem is the basis for the comparison Jacknife standard error in parenthesis except the fire estimation, which indicates standard error in parenthesis. â€Å"Safety Drill† is not converged in estimation. 29 Robustness Check For convenience, the estimation of the UIRT model in Table 7 uses the â€Å"other problem† as a base. However, as the â€Å"other problem† is not exactly along zero in the data, there may be a problem in estimating the â€Å"true probability† of the task. More importantly, there may be problem of the UIRT assumption about the zero covariance among items in the estimation.This robustness check uses the â€Å"union† as a base in Table 8, which reruns the UIRT model in Table 5. If the zero covariance assumption is violated, using the upper bound of the problem, the union, as the base of estimation will give very different results. However, if the zero covariance assumption is not violated, as this estimation uses  "union† as a base, the coefficient will be interpreted exactly opposite to that given in Table 5; those problems with larger and significant coefficients given in Table 5 should now be close to zero and insignificant in Table 8 and vice versa. Most of the coefficients here are negatively signed, suggesting that they are â€Å"weaker† than the union problem.Non-CSRC suppliers are seen to have six problems (complaint to client, employee association, bargaining rights, bargaining channel, collective bargain, and maternity leave), â€Å"1 CSRC† has two problems (complaint to client and emplo

Composition and Seperations Essay

When a kernel of popcorn is heated, pressure builds and, depending on the percent of water in the kernel, the kernel pops open and popcorn is produced. The percentage of water in each kernel differs between brands of popcorn. If the steam produced fails to pop the kernel, the kernel becomes hard and burns. The purpose of Part 1, â€Å"Popcorn Composition†, of the â€Å"Composition and Separations Lab was to determine whether premium popcorn brands display desirable qualities when measured and compared with cheaper brands of popcorn. The experimental relevance of Part 1 of the experiment was to demonstrate the effects of water in a popcorn kernel when heated and converted to heat. Differences in water percentage determine whether or not the kernel will burst and create popcorn. In Part 2, â€Å"Separating a Solid Mixture†, the purpose was to work with supplies in the lab to separate a solid mixture of popcorn, sand, salt and iron filings into the four separate components to eventually learn the percent composition of the solid mixture. By developing a plan to separate the mixture, the group should have ended up with four separate items with weights that added up to the original weight of the mixture. The experimental relevance of Part 2 of the experiment was to learn how to separate each component in a four part solid mixture from each other. Procedure: In part 1 of this week’s lab three popcorn kernels of a one brand were given to each group. A Bunsen burner was set up by each group and the three kernels were each weighed separately on an electric balance. The Bunsen burner was then lit following the instructions given. (ch185) A 100mL beaker was obtained and filled with a half inch of clean sand. The beaker was placed on a ring stand and one kernel of popcorn was submerged into the sand. The beaker was then covered with a watch glass and heated over the Bunsen burner until the kernel popped. After popping, the kernel was removed and weighed and the moisture content was measured. This procedure occurred for all three kernels. After the moisture content of all three kernels were measured, an average was deduced for the three and written on the board. Each of the other four groups also wrote their averages for their individual brand on the board to give the class a better understanding of the differences in moisture content for each of the five brands. In part 2 of this week’s lab, a 50mL beaker was filled with a solid mixture consisting of popcorn, sand, salt and iron filings. The group then got the mass of the entire mixture and began sketching a plan to separate the mixture properly into its original four contents. First the group separated the popcorn from the mixture by using a drainer. The popcorn was then weighed. Second, the iron filings were separated using a magnet after pouring the remaining mixture onto a piece of paper. After the magnet collected all iron, the iron was scraped into a beaker and the weight was recorded. The third and final separation used a beaker and a filter paper. The filter paper was weighed and put into a filter that spilt into the beaker. The remaining salt/sand mixture was then poured into the filter paper using water to dissolve the salt. After the solution was put into the filter paper and the salt had dissolved, the filter paper and sand was dried and then weighed. After subtracting the filter paper weight from the weight of the filter paper and sand together, the weight of the sand was known. Once you had the weight of the sand, iron and popcorn, the weight of the salt was found by subtracting the three combined weights from the original weight of the mixture. To find the percent composition of each component, the weight of each was divided by 100 and, in the end, each components percent added up to 100% of the initial mixture. Results/ Data/ Calculations: Part 1: Each group determined the moisture percentage of their brand of popcorn. Table 1 shows the moisture content of each brand. Table 1: Moisture Percentage of Popcorn Brands Group Number| Popcorn Brand Used| Percent Moisture| 1| Act III| 6.24 %| 2| Food Club| 8.35 %| 3| Jolly Time| 12.2 %| 4| Orville Redenbacher| 7.47 %| 5| Pop Perfect| 6.22 %| Jolly Time popcorn was measured for weight and the moisture content was then measured. Table 2 shows the initial weights, final weights, moisture contents and percent moistures of each of the three trials performed. Table 2: Moisture Percentage by Weight of Jolly Time Popcorn Kernels Kernel| Initial Weight (g)| Final Weight (g)| Moisture Content| % Moisture| 1| 0.105 g| 0.086 g| 0.019 g| 17.8 %| 2| 0.138 g| 0.140 g| -0.003 g| -1.89 %| 3| 0.113 g| 0.106 g| 0.007 g| 6.55 %| AVERAGE| 0.109 g| 0.096 g| 0.013 g| 12.2 %| Sample Calculations: Find weight= (cupcake holder + kernel – cupcake holder) = (.263 g – .177 g) = 0.086 g Moisture Content= Initial weight – final weight = 0.105 g – 0.086 g = 0.019 g % Moisture= Moisture content x 100 Initial weight of kernel = 0.019 g = 17.8% 0.105 g Average % moisture = 17.8 + 6.55 = 12.2% 2 Part 2: The weight and eventually percentage composition was measure in a mixture of corn, iron, sand and salt and then with each component individually. Table 3 shows the weight and % compositions. Table 3: Percent composition of Mixture Material| Weight (g)| % Composition| Full Mix| 42.2 g| 100 %| Corn| 3.26 g| 7.79 %| Iron| 19.0 g| 45.0 %| Sand| 15.7 g| 32.5 %| Salt| 6.25 g| 14.8 %| Sample Calculations: Percent Composition:Initial Weight x100 Total Mixture Weight Beaker with nothing: 59. 95 g Beaker with mix: 102.1 g W/ Mix:102.1 g W/O Mix: – 59.95g 42.98 g Discussion: The experiment in part 1 was done to show that even slight differences in moisture content in popcorn make a big difference when it comes to the popcorn’s â€Å"popping† abilities. Before the experiment, the moisture content and its effect on popcorn were unknown. After the experiment each group left with the knowledge of moisture content in both preferred brands and cheap brands of popcorn. This experiment gave insight into the importance of exactness for popcorn companies pertaining to the moisture content in each kernel. The experiment in part 2 was performed to show that most solid mixtures can be separated if using the right tools. Each group had to propose a solution to separating the mixture and then weighing each of the four components afterwards to conclude if they added up to the initial weight of the solid mixture. This experiment allowed students to use their brains to separate any solid mixture that they come in contact with, which will be helpful for the future in this lab and others. Throughout the two parts of this experiment several specific errors were found and dealt with. In part 1 of this experiment several popcorn kernels were burnt and did not pop. These kernels may have affected our experiment by giving us false data, as we did not include these kernels in any final data. With burnt popcorn kernels, we were shown that the moisture content in the popcorn brand given may have resulted in one of the â€Å"cheap† brands given. In part 2 of our experiment, the initial weight was supposed to be taken before separating any part of the mixture. Unfortunately, the initial weight was skipped before the popcorn was separated. The popcorn then had to be put back into the mixture and the mixture was then weighed for the initial weight. This may have affected the final data, although it was a small error. In part 2 another error occurred when the group began to separate the salt and sand in an incorrect manner. This, however, did not affect final data, as the salt would have been eliminated anyway. Conclusions: The goals in this experiment for part 1 were to determine the moisture content in a brand of popcorn, compare the given brand with others in the lab and then find out if moisture content affects the ‘popping’ or corn and which brand or brands has a better likelihood of popping (i.e. preferred vs. cheap brands). In part 2 of the experiment the goals were to separate a solid mixture and then find the percent composition of each of the four materials within the mixture. The average moisture percentage for Jolly Time popcorn was 12.2 %. To get to this point, the group popped three separate kernels and found the moisture percentage for each and then averaged them. The percent composition for part 2 of the solid mixture was 7.79 % for corn, 45.0 % for iron, 32.5 % for sand and 14.8% for salt. These measurements added up to the 100% solid mixture and the weights added up correctly. References: Ch185. How to Light and Adjust a Bunsen Burner. http://ch185.semo.edu/labsafe/bunsen.html (accessed Feb 12, 2013). Composition and Separations. http://linus.chem.ku.edu/genchemlab/184SP13/Download184_Labs/Composition%20and%20Separations%20Chem%20184%20Spring%202013.pdf (accessed Feb 12, 2013) Guidelines for Laboratory Reports http://linus.chem.ku.edu/GenChemLab/184SP13/guidelines%20for%20lab%20reports.htm (accessed Feb 12, 2013)

Final Draft

Football is a kind of sport which involves kicking a ball with our foot to score a goal. In football, the common skills include passing, tackling, catching and kicking the ball. There are some reasons why soccer has been the most popular sport in the world, including Indonesia. The first reason why soccer has been the most popular sport in Indonesia is because it is played on all levels. Soccer can be played by children, teenagers or even middle-aged man. Experts found out that professional Club academies recruit thousands of young footballers – some of hem only five years-old, meaning children can also play football.Dry. Jean- Pierre Marksmen, a director of medical team in soccer, estimate that the maximum age for soccer players is about 40 years old. He added that this age is for top-class players who play in a well-known league, so for older people who wants to play soccer just for fun, they still can play but they shouldn't force their body too much. In Addition, playing s occer could also bring health benefits to our body which includes: lowers body fat, builds strength, flexibility, and endurance.One of Soccer Expert, Timmy Sutherland, explained that â€Å"An increase in aerobic capacity allows soccer players to run farther for a longer period Of time. † This means as soccer increases our cardiac capacity, it also improve our endurance or body stamina. He also added that â€Å"As people get older, bone density becomes more of an issue. The repeated weight-bearing loads on the body during a soccer match are an excellent way to increase the strength of our skeletal frame†. In other words, playing soccer will increases muscle and bone strength. Soccer is a great sport for weight ass because it works your muscles in different ways.Playing soccer burns more calories than typical workouts because you ire forced to switch between using your aerobic and anaerobic energy pathways. Playing soccer burns for about 260 calories in half an hour. The refore, if you play soccer for an hour three times a week, you can burn 1,500 calories each week, and lose 2 pounds each month from playing soccer. Other than that, many people choose soccer as the best sport to play because it is challenging yet easy to play. As we know, it is hard to score a goal in soccer because we need to pass wrought 10 enemy players then shoot towards goalie to score a goal.One key thing in playing soccer is teamwork, in order to score goal easily, we must show a good teamwork and team cooperation, because compared with the one who play individually, we can save our energy and work as a team. In conclusion, soccer is the most popular sport in Indonesia because in soccer, running and kicking the ball, or even scoring a goal can burn a lot Of fat in our body and make our body healthy. For those who like soccer, kicking a soccer ball around is something that can be so addictive and they can spend hours ongoing it without getting bored. Final Draft Ethos pertains to ethical appeals; pathos relates to emotions and values; and lastly, logos communicates a logical appeal. Through the use of logos, ethos, and pathos, this paper will discuss how I became a member of my discourse community; which is my youth group. In addition, it will give you an insight into a large segment of my life. The first night was ever invited to join my youth group was during the fall of 2008. Sitting in youth group on Wednesday nights has taught me about God on a much deeper level and has helped me have a more personal connection with my Lord and Savior.Because have been in youth for six years I have developed logos by having a well-rounded knowledge of the Bible, and because of my level of experience. My youth group knows that they can come to me if they are ever stressed or concerned about anything, or even if they have any questions. Additionally, Robert and Leslie know they can come to me if they need help with the youth or setting up a game. Every no w and then, Leslie and Robert will plan a game night instead of teaching. It is during these nights that they usually pick me as a team captain because of my knowledge of the Bible, due to all my years in youth group.Now some naysayer might say that have not yet become a part of this discourse community, but this summer my youth group leaders believed otherwise. Throughout the years, have developed a strong bond with my youth group leaders. Because am one of the original members of our youth group, I have been there the longest along with my best friend, Andrea Camp-Valve. Traditionally, after a person graduates from high school, our youth group traders throw a party in celebration of their entrance into the adult congregation that meets at the same time.This year, for the first time since youth began, my youth group leaders offered my friend Andrea and I an assistant leadership position in youth, further cementing my ethos. Although assistant leadership positions have been offered to others before, this marks the first time it has been offered to someone our age. Leslie and Robert felt we truly know God's Word and could teach it if one day something came up and they had to be absent. With that being said, one of our responsibilities as assistant leaders is to share a message once every two months.Some of our other responsibilities include decorating the youth room; planning game nights once a month; and assisting in planning youth events such as lock-ins, parties, and any trips we may take. In previous years, I have attended countless mission trips with my youth group to Mexico. During these trips, I have had the privilege to pray and intercede for many families and children. On one of our youth group mission trips to Mexico, I went to a shelter for or orphan children with mental disabilities. This home is not funded by the government at all and has been able to survive throughout the years from donations and several volunteers.It was at this shelter where th e youth and I were able to help the owners clean up the grounds, paint fences and gates, and feed the children. Once I finished helping out with the outside work, I was able to sit down and color and read with these beautiful children. Although they were poor and had very little, was highly impacted by how happy the children were and how peaceful the atmosphere seemed. This experience helped me develop pathos by having some one-on-one time with these children and by helping the owners refurbish part Of the grounds.Over the past few years, I have been a part of numerous fundraisers that my youth group has held in order to raise money for the lower income families in my church to go on mission trips. At the same time, most of the money we have raised during these fundraisers has gone into donations we give to people or churches when we go on mission trips. For the past two years, my youth group has been able to raise enough money to host a summer camp or the children in Mexico in two different churches. This is a very large feat for our youth to have been able to achieve.It takes countless hours and a willing staff to prepare all the decorations, games, toys, and prizes we hand out during Vacation Bible School. Even after everything has been made and prepped, we still have to load it all in several vans and drive it all the way down to Mexico. Last year, I had the privilege to go and share the Gospel with over 200 children and teenagers. The amount of prizes for the kids that were donated to our church was overwhelming. Even though we did BBS for two very large churches, we had enough prizes for all the kids to receive at least three toys per person.These kids are extremely poor, therefore for them to have received these toys was an incredible blessing to them. During BBS, we were also able to feed all the kids and make sure they went home full; sadly, for most of these kids, that meal we gave them was the only thing they would eat that day. Cannot stress enough just how poor these children are, and yet, they are tremendously happy. It is quite unbelievable to see heir need and yet none of them complain about anything, while here in America, we have everything and still complain if it is too hot in a building with air conditioning.This helped me develop the pathos aspect by highlighting these mission trips and visiting said orphanages and underprivileged individuals. Being a member of my youth group has helped me mature and grow in so many ways. It has opened my eyes to see the world in a completely different perspective. My youth group has always been there with me through thick and thin; not one time have I ever felt rejected by them. Lastly, it has taught me about God and how much He wants to have a personal relationship with me.Because of my youth group, have the best group of friends I could imagine; all of my best friends are members as well. I cannot wait to start this new chapter in my life as assistant leaders for my youth group a nd looking back on all the years I have been a part of youth, am truly thankful that God has put me in this discourse community. Because of ethos, pathos, and logos, have earned valuable skills that I know I will need for future endeavors. I can honestly say I am a proud member of this discourse community.

Eharmnoy Case Study

Introduction eHarmony is an online personal site targeted marriage-minded individuals and offered a unique product, which combined an extensive relationship questionnaire, a patented matching system and a guided communication system. â€Å"eHarmony made its mark in the online dating landscape by establishing its brand as the site for the serious relationship seeker, particularly women†(Gabby). eHarmony is a well established company that â€Å"launched in August 2000 with $3 million in funding and grew into a rumored $100 Million, highly profitable company in less than 5 years†(Gabby). Harmony is one of the first dating sites to succeed in providing good matches. Situational Analysis eHarmony’s existing customers are online users are both men and women that range from the age groups of 18 all the way up to 87, but the fastest growing group right now is men and women ages 35-55. Another fact of Internet data is that regardless of gender, age, or race the majority o f serious Internet daters earn at least 50K per year†(Profilehelper. com). eHarmony is a safe and easy way to date without having to go out. Harmony is an excellent way to explore ones options with an unlimited amount of choices. eHarmony’s competitors are the do yourself site which are, Yahoo! the personals and Match. com. Other competitors consist of Match. com, Chemistry, heterosexual sites, African American sites, faith-based sites and online social networks that are a threat to eHarmony such as Facebook, and MySpace. Consumers of eHarmony look for a site that bases upon personality rather than how an individual looks. eHarmony chooses the perfect match based upon personality traits, which is why consumers truly enjoy this site.The economic conditions that eHarmony faces during these hard economic times is that consumers have to pay a fee to become a member. The fee makes it harder for consumers who are not doing very well during the recession. SWOT |Strengths: |Opp ortunities: | |Memberships |Gay and Lesbian market | |Patent ompatibility test |Divorce | |Advertising formulas |Casual daters | |Guided communications |Global Expansion | | | | | | | | | | |Weaknesses: |Threats: | |Doesn’t offer gay and lesbian services |Online social networks | |eHarmony only operates in the US |Competition | |Lengthy Questionnaire |Free dating services | | | | | | | Strengths Harmony has much strength in its business that are necessary for its success. eHarmony charges a fee to become a member because of their success rate of achieving long-term relationships. There has been an increase in the number of paying members, because eHarmony is confident in recommending matches that result in a high level of marital satisfaction. The compatibilities test, is used to match individuals, based on their personality types. The questionnaire has 250 questions, which takes about 45 minutes to complete. Even though the questionnaire is a lengthy process more tha n 14 million people have completed it in the first seven years of eHarmony’s existence. Harmony’s advertising formula was successful because eHarmony was one for the few companies that made off line marketing work and pay for itself. Guided communication is the questionnaire that is done before the matches can communicate directly. This is a strength because it determines if the individuals are a true match for one another. Weaknesses EHarmony’s weaknesses are that it does not offer its single matching services to women seeking women or men seeking men. Giving eHarmony limited resources and the small size of the same sex market the company did not believe it was necessary to enter the market place. Another weakness that eHarmony has is that it does not market in other countries but the US.If eHarmony does not expand to new geographic areas, it could find that its competitors would already take its target segment. Lastly, the personality profile has been abbrevia te from 450 to 250 questions, which takes about 45 minutes to complete. It has been stated in the case study, that men are less likely to complete the questionnaire after starting. This is a weakness because they are ultimately losing costumers from the time consuming questionnaire. Opportunities eHarmony's opportunities are that they have the ability to enter into the gay and lesbian market which is one of the largest niche markets. This market attracts about one tenth  of the Internet traffic of the heterosexual personal sites.With the divorce rate being extremely high, this has led to the older individuals searching for a new soul mate. eHarmony makes it easier for singles to find dates, by saving time since eHarmony does the picking for  the  consumers. eHarmony could create a competitive advantage, by broaden their customer base, and including more casual daters. There are many people interested in casual dating who could benefit from eHarmony’s matching compatibil ities. Even though global expansion has been stated as a weakness we also believe it is an opportunity. Threats Large online social networks such as Facebook and Twitter attract customers though the process of friends encouraging friends to join.This website provide personal information, which persuaded other to talk to one another and potentially date. Online social networks are also attractive to people who are in a long term relationship, and could not join a dating site without jeopardizing their current relationships. With Match being its biggest competitor customer have, a difficult time differentiating between the two. Chemistry one of Match’s sister companies is another competitor that companies that it does not know why eHarmony rejects people. The free dating service has, become an enormous threat to eHarmony because consumers claim that making people pay to join a dating site served as a serious barrier  that  separates  individuals.Assumptions The missing in formation that we believe is not in the case is the following, 1. If the lesbian and gay market where in eHarmony would it affect its current customers. 2. What is the main reason why they don’t have same sex pairing 3. What is holding eHarmony back from expanding overseas. Statement of the Problem The main problem that eHarmony faces is that they only focus on matching men with women and do not focus on same sex paring. According to the Independent Gay Forum, â€Å" A team at the Harvard school of public health reported that 6. 2 percent of men and 3. 6 percent of women reported same sex-partner in the pervious five years.These statistics are extremely high, and it would be in the best interest of eHarmony to focus on this market as well as straight individuals. Alternatives/ Recommendation The statement of problem that could have been avoided by eHarmony is to have a gay and lesbian section. This would attract this market to their website, but they will also still focus on promoting to matching women and men. This website will guarantee a compatible partner whom shares similar backgrounds, goals, values and beliefs among many other valuable characteristic. Implementation eHarmony will implement a gay and lesbian section to their website that guarantees a long lasting relationship. It will use the same format of questionnaires and personality test that eHarmony uses now. This site will lso implement success stories, privacy policy and safety tips to ensure that this is what they truly are looking for. This site will focus on this market segment with out gays and lesbians feeling as if they are being segregated. Control/Evaluation To ensure that eHarmony is achieving what they set out to accomplish they will establish actions to support their goals. eHarmony’s goal is to create a marketing strategy by launching a campaign that focuses on gay and lesbians, to attract them towards the new and upcoming website of eHarmony. By creating awareness tow ards this market, this would increase positive word of mouth, as well new memberships for eHarmony. Harmony will also create a strong bond with these customers to understand their wants and needs. Works Cited Gabby, Nisan. â€Å" » EHarmony Case Study: Offline Advertising the Key to Scale – Startup Review Blog. † Startup Review Blog – Analyzing Web Success. 07 Dec. 2006. Web. 27 Nov. 2011. . Online Dating Profile Writing Help | Online Dating Profile Experts | Profile Helper. com. 2 Jan. 2006. Web. 27 Nov. 2011. . Varnell, Paul. â€Å"More Gays than Lesbians — IGF Culture Watch. † IGF Culture Watch — Forging a Gay Mainstream. 30 Nov. 1999. Web. 27 Nov. 2011. . Warren, Neil C. EHarmony #1 Trusted Singles Online Dating Site – More than Personals. 28 Mar. 2001. Web. 27 Nov. 2011. .

Office of Strategy Management

Office of Strategy Management In the article â€Å"Office of Strategy Management†, Kaplan and Ditto reveal that there is a disconnection amongst companies between strategy formulation and strategy execution. On average, 95% of a company's employees are unaware of, or do not understand, its strategy. They say that there is a gap in many large organizations between strategy formulation and execution, between ambitious goals and actual performance. The authors submit that if employees are unaware of the strategy, they cannot help the organization implement it effectively. Kaplan and Norton say it doesn’t have to be like that. They have studied companies that achieved performance breakthroughs by adopting the Balanced Scorecard and its associated tools to help them better communicate strategy to their employees, and to guide and monitor the execution of that strategy. While some companies have achieved better, longer-lasting improvements than others, the organizations that have managed to sustain their strategic focus have typically established a new corporate-level unit to oversee all activities related to an office of strategy management (OSM). The OSM coordinates an array of tasks. The function of the OSM is to create and manage the scorecard, align the organization, review the strategy, develop strategy, communicate strategy, manage strategic initiatives, and integrate strategic priorities with other support functions. They assert that the OSM does not do all the work, but it facilitates the processes so that strategy is executed in a more integrated way across the organization. They say that an OSM is applicable with every organization whether it is used or not. I agree with the authors the OSM sets the framework to ensure good communication throughout the company. An OSM can improve a strategy execution, and the communication of that strategy, and to ignore any of the process that an OSM seeks to achieve for an organization could lead to its failure. If the company is working fine it might be necessary, but some form of an OSM might be in place. However an OSM is a must for companies where the communication and the execution of a strategy are poor.

DQ 2 Essay Example | Topics and Well Written Essays - 250 words - 1

DQ 2 - Essay Example Just as the Central Florida Police Stress Unit proposes, there should be department-based programs to help effectively alleviate specific job-related stress and to help generally thwart occupational stress in the disciplined forces. It is the responsibility of criminal justice agencies to include criminal justice agency staff members, professional legal counselors and peers of these criminal justice agencies in stress reduction efforts. First, this cannot materialize if criminal justice agencies do not come together as a caucus. Just as the National Institute of Justice observed, to successfully alleviate professional stress, criminal justice agencies must unitarily appoint a dedicated member of staff to: identify with stressed colleagues; solicit the support of, and work together with administrators, staff members, family members and officers’ unions; observe confidentiality; and accord stressed employees, an array of support services (Gino and Cable, 2013). Above all, criminal justice agencies can best abate employee stress by counseling and educating employees on their legal or constitutional duties. Inadequate understanding of legal injunctions opens up doors for legal suits, dismissal of evidence or work acquired outside the confines of the law and ultimately, personnel frustration. This case is being exemplified by New York Police Department officers who are having their evidence acquired through stop and frisk being challenged and declared inadmissible in the court of law, on the account that stop and frisk is

How to Use Marketing Strategy to Improve Sunform Supermarket's Dissertation

How to Use Marketing Strategy to Improve Sunform Supermarket's Performance - Dissertation Example This essay stresses that a business should first focus its attention on nurturing, retaining and growing its existing customers before planning to spend more on new customers. Satisfying existing customers is critical in order to enhance its sales. To achieve this objective, it should understand its customer psychology to gain knowledge of what they want and how they want it. only then it will be able to deliver the most value point to its customers. This paper makes a conclusion that Since it is not practical to deliver the same product to all the customers belonging to different groups, it is better to divide the market into different segments, then evaluate each segment’s attractiveness, select target segment having more profit potential, identify positioning concept for each target and then effectively communicate and deliver the chosen positioning concept to target customers. This will create an image for the business in the minds of customers, which in turn will grant it market ownership in the future. After segmenting and targeting the largest customer group, Marketing Mix should be used to improve its performance and customer satisfaction level. By strategically applying the product, place, price and promotion tactics into the business, and by communicating effectively those promotions, it can influence customer’s choice and reach its ultimate goal of increased sales followed by high profits.

Leadership diary Assignment Example | Topics and Well Written Essays - 250 words - 2

Leadership diary - Assignment Example The children stopped playing and ran for shelter as the noisy crows flew low, away from the nest bumping into each other. As the chaos cleared up and the gardener shook the bush in order to check if all the crows had left, all but one crow stood close to the nest. The constant shaking was only able to budge him a little but he was back at the nest almost instantly. He kept on screaming as if calling out to the scattered flock of crows which had left. To my surprise, the scattered crows responded to his calling and started to come back towards the nest which held the crow’s young. They began to sit at the top of the bush and when the gardener shook the bush once again, the resilient crow flew towards the gardener with all the crows behind him as if they were all charging at him. The gardener ran for his life at this sight and refused to come back for quite a while until all the noise had died down. He did not touch the bush again even once. The crows are collectively called a flock or poetically a ‘murder’ (Word Detective). Now I know why. Today, I saw for myself that a brave leader can lead the smallest of armies against the largest of enemies and yet

Organizational Behavior Essay Example | Topics and Well Written Essays - 1750 words - 1

Organizational Behavior - Essay Example I.e. what are the specific OB related issues? There are some basic reasons that have brought about the problems in the MOB department. The problems stem from the lack of communication and collaboration among the members. Since the members comprise of a mix of senior and junior faculty, this increases the need for communication and interaction in order to understand each other's mind sets and point of view. One of the fundamental reasons for the success of the Accounting department was due to the comradeship of the members and their regular meetings. The personality of the organization is called it's the organizational culture. It can be described as the set of shared norms, values, beliefs and expectations that govern the way employees within an organization interact with each other, think about and act on problems and opportunities and work together towards the objectives of the organization. The components of organizational culture include Behavior and artifacts, Values and, Assump tions and beliefs. In the MOB department, there is a deviation in the culture and the representation of it. The divergence of the senior and junior faculty expectation has created a gap between their objectives and this leads to a lack of direction for the department. Now that you have analyzed the problems, what are the goals you think Vese needs to accomplish? List these in priority order. Increase communication by organizing regular meetings Encourage discussion in order to understand the various point of views and reach a common ground as to which area should the department focus upon Inculcate a common objective and a uniform culture within the department that is coherent with the overall goals of the university. Base performance evaluation by taking into consideration present as well as past performances of faculty. Conduct evaluations and communicate important information in an organized manner in order to avoid complains from faculty as they had these issues with the former department chair. Partner Senior faculty members with junior members in order to mentor them and collaborate in research Encourage spending more time working in university rather than from home Make a time schedule showing how Vese should use the hours of each day of his first week. For each entry, state the purpose of the listing, who is to be present (if anyone), what approach you will use, and why. Day 1: Conduct an induction meeting to introduce himself, his credibility and achievements. The meeting would accomplish his short term goals and how he would bring change in the department. This would involve a short meeting with all the members of the department. In order to make an appropriate change in the organization it is important to analyze its feasibility and how it should be carried out. The systematic process of congregation and analysis of data on certain ongoing system is called organizational diagnosis. Organizational diagnosis helps in forming a suitable direction towar ds making the change. Vese could conduct an organizational diagnosis of the department based on collection of data through questionnaires, interviews, observation