Best Practices to Enhance the Number of Millennial Leaders

Millennial Leaders

Best Practices to Enhance the Number of Millennial Leaders

Due to the rise in creativity and innovation worldwide, the future has been shaped and requires implicit knowledge. The need for the development of younger leaders has also been a point of concern. There are generational differences, but millennials have been regarded as the most significant part of the organizational workforce. According to Fore (2013), it brings about the new management and leadership styles that will not only revamp the different operations that are being done within the system but also ensure quality services. This paper examines the best practices a team can cultivate to enhance the number of millennial leaders.

Creation of Communication Platform: Millennials are well networked, and tech-savvy and moist cases miss the necessary skills to make them better future leaders. Therefore, creating a communication platform or forum will help them express their ideas and limit them from being self-centered. Those who cannot speak are taught professionalism and communication skills through these platforms.

Mentorship is also the best practice a team can apply to cultivate better leaders (Weirich, 2017). Organizations can organize millennials into groups and sides with a seasoned leader who takes them through various aspects of leadership practices, skills, and codes of ethics associated with them.

Social Networking: Although the millennials do not have problems associated with social networking, proper guidance is needed to boost such skills and ensure that the team is revamping and follows the accorded setup principles. They should be exposed to opportunities where they can apply their learned skills in solid form. They also support to be motivated after taking up specific projects to boost their Morales in exploring further. Overall, through adverse investment and development, millennials can be successful leaders in the future.

References

Fore, C. W. (2013). Next-generation leadership: Millennials as leaders (Doctoral dissertation, Capella University).

Weirich, B. (2017). A millennial leader’s views on the millennial workforce. Nurse Leader15(2), 137-139.

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Revised Arusha Declaration: Human Resource Management Practices

Revised Arusha Declaration: Human Resource Management Practices

Human resource management has a perilous role to play in the fight against corruption in customs. The revised Arusha declaration proposed six human resource management practices that embody transparent pay packages, efficient internal control, and merit-based recruitment policies to counter corruption in customs. This task explores the effectiveness of the six HR practices proposed in the Arusha declaration in the fight against corruption.

Efficient Salary and remuneration have a significant impact on reducing corruption. A broad consensus is that low salary is the breeding ground for fraud. Poorly paid customs officials develop discrete coping plans to top up their revenue and compensate for economic hardship by soliciting bribes and misusing customs resources for private gain. Proper remuneration will ensure customs officials maintain decent living standards to avoid corruption and other unethical acts.

Recruiting personnel who maintains high standards of integrity also helps to curb corruption. The personal integrity of the employees is core to having customs officials who maintain ethical behaviors. Recruiting the right people whose integrity cannot be compromised and sticks to responsible conduct is vital in overcoming corruption.

Ensuring selection and promotion strategies that are free of bias and favoritism are critical to maintaining corruption-free customs officials.  Weak incentive strategies weaken good recital, resulting in weak work ethic and deprived service provision. Discretion in performance management and promotion provides administrators with opportunities for favouritism. Limited opportunities cause customs officials to turn to unethical behaviours such as bribery for compensation.

Appropriate performance appraisal promoting personal and professional integrity is essential in curbing corruption. Biased performance appraisal and promotion create limited opportunities thus generating an incentive for corruption. However, effective performance appraisal promotes diligent performance and ethical work practices to be rewarded accordingly.

Additionally, adequate training and development throughout customs officials’ career have a significant role in reinforcing high ethical and professional standards. Training and development help the officials to align their decisions with ethical practices and thus are able to overcome temptations to engage in corruption.

Effective deployment, rotation, and relocation of staff that takes account of the staffs’ needs and reduces the duration they  hold vulnerable positions reduces their propensity to corruption. Holding one position for too long can help an official build a corruption network or give the employee excessive power and incentive to enrich oneself.

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Explaining how nurses apply the identified theory from part A to implement excellent nursing practices.

Nursing Theory

  1. Explaining how nurses apply the identified theory from part A to implement excellent nursing practices.

Dorothea Orem’s Self Care theory defines self-care as the actions by which an individual directs to himself or his environment to adjust his health functioning and development for the aim of sustaining life while also maintaining and restoring the integrated function under changing and stable environmental conditions and bringing about or maintaining the condition of well-being (Masters, 2011). The key focus of the self-care model is enhancing the ability of the individual or patient for self-care, as well as extending the care’s ability to their dependents. Orem outlines that the degree of nursing intervention or care depends on the extent or degree to which a patient is capable or incapable of meeting his self-care needs. Four key terms have been identified as fundamental in the description and understanding of Orem’s self-care theory (Erickson et al., 2012). These are self-care, the theory of self-care agency, the concept of self-care requisites as well as therapeutic, and finally, self-care demand. Self-care agency revolves around the capacity of an individual to undertake self-care, which is essentially conditioned by various factors such as gender, age, life experience, health, developmental stage, available resources, healthcare/family system, sociocultural factors and patterns of living (Erickson et al., 2012).

The theory combines three sub-theories: self-care, the theory of self-care deficit, and the theory of the nursing system (Erickson et al., 2012). The nurse may help patients meet their self-care needs by utilizing five methods under self-care deficit. However, the nurse must assess the levels of self-care that a patient needs so as to utilize the nursing system that appropriately fits the capacity of the patient to perform self-care (Munn, 2008). This underlines the fact that the interaction of the four theories or models allows for the enhancement of the self-care capacity of the patient.

  • Discussing how the identified theory from part A fits your professional practice.

This theory incorporates a broad scope as far as clinical practice is concerned, but incorporates a lesser extent as concerning education, administration and research. Nevertheless, the theory may be applied to the primary, secondary and tertiary levels of preventive care. Since the self-care mainly revolves around the capacity of an individual to maintain health in himself or the environment so as maintain health. It has a huge impact on my professional practice.  For instance, it can be used to promote positive health outcomes among diabetes patients. The self-care theory by Dorothea Orem encompasses three sub-theories that are blended to come up with the nursing process, where nursing care deficits are evaluated, and the roles of both parties defined in line with fulfilling the self-care demands of the patient (King & Fawcett, 1997). This process of nursing incorporates three steps. First, the nurses diagnose the patient and come up with prescriptions of remedy. The nurses then design or come up with a nursing plan, as well as a system for delivering care to patients. Lastly, the healthcare practitioner engages in the production, as well as the management or administration of the systems of nursing. These steps are fundamentally different from the nursing process of contemporary nursing. (Munn, 2008).

B. Identifying the contributions of two historical nursing figures in the nineteenth or twentieth century.

            The two historical nursing figures in the 19th and 20th century are Mary Eliza Mahoney and Virginia Avenel Henderson.

  1. Comparing the differences in the contributions of the two historical figures identified in part B.

Mary Eliza Mahoney’s greatest contribution to nursing involved the issue of racial and ethnic inclusivity and diversity in the nursing workforce while Virginia Avenel Henderson promoted the concept of need theory; a concept that stresses the prioritization of patient self-determination in order for them to continue doing well even after their discharge from the hospital. The theory states that a nurse’s role is just substitutive (Basavanthappa, 2007).

  • How their contributions affect my nursing practice

The contributions of Mary Eliza Mahoney’s have motivated me to relate well with colleagues from diverse socio-economic and racial backgrounds while Virginia Avenel Henderson’s contribution has helped me understand my role and place within the patient’s care process/model.

C.  Explaining the functional differences between the State Board of Nursing and the American Nurses Association (ANA).
1.  Define the roles of these two organizations.

The State Board of Nursing regulates nursing practice while on the other hand, the American Nurses Association (ANA) advocates for nurses
2.  Explain how these two organizations influence your nursing practice.

My nursing practices are regulated by the rules, regulations and laws that are passed and implemented by the State Board of Nursing. It means that I cannot practice without their mandate and authority. The American Nurses Association (ANA) on the other hand dictates the conditions under which I practice such as issues pay and labour relations.
3.  Explain the requirements for professional license renewal in your state.

The Arizona State Board of Nursing has the following requirements for the renewal of a professional license.

  1. 960 hours of registered nurse (RN)-licensed course
  2. Board-approved refresher course
  3. Advanced nursing degree such as MSN, doctorate etc.


a. Discuss the consequences of failure to maintain license requirements in your state.

Inability to legally practice as a nurse
4.  Compare the differences between registered nursing license requirements in a compact state versus a non-compact state.
            An RN in a compact state licensure process must conform to the complex licensure requirements of the interstates while that of a noncompact state only has to comply with requirements from a single state.
D.  Discuss the functional differences between the Food and Drug Administration and the Center for Medicare and Medicaid Services

FDA is concerned with ensuring the safety and quality of food and drugs consumed by Americans while the Center for Medicare and Medicaid Services is concerned with their health outcomes.
1.  Discuss how the two regulatory agencies influence your professional nursing practice.

The two bodies influence my professional practice since they have an impact on the type, quality and status of drugs, food and medical service recommendations that I offer to my patients.
a. Describe your role as a patient advocate in promoting safety when a patient has requested to use alternative therapy.
            As a patient, advocate, I must rely on evidence-based practice while promoting the health and safety of my patients.
E.  Discuss the purposes of the Nurse Practice Act in your state and its impact on your professional practice.

The Arizona Practice Act plays a role in ensuring that there is safe nursing practice in the state of Arizona
1.  Discussing the scope of practice for an RN in Arizona.

The scope of practice defines the rage of nursing activities or operations common to all nurse in Arizona and can be influenced greatly by the level of experience, education and population that is served by a nurse.
2.  Discuss how your state defines delegation for the RN.
            In Arizona, nurses have a role of supervising certified nursing assistance (CNAs) as well as other trained nursing professionals.
F.  Apply each of the following roles to your professional practice:
•   a scientist- as a scientist, a registered nurse may take part in random clinical trials (RTC)
•   a detective- as a detective, nurses can take part I epidemiological investigations to find the root cause of certain ailments and behaviours
•   a manager of the healing environment- as a manager, nurses can be involved in the management of other personnel and patients s as a part of a larger patient, disease or health care management process.
G.  Identify two provisions from the American Nurses Association (ANA) Code of Ethics (see web link below).

Two provisions from the ANA code of ethics are;

  • Provision 1: The nurse practices with compassion and respect for the inherent dignity, worth, and unique attributes of every person.
  • Provision 2: The nurse’s primary commitment is to the patient, whether an individual, family, group, community, or population. 

1.  Analyze how the two provisions identified in part G influence your professional nursing practice.

These two provisions influence my professional nursing practice by encouraging me to adopt a patient-centric approach to the management of patients
2.  Describe a nursing error that may occur in clinical practice (e.g., clinical setting, skills lab, or simulation).

One of the errors that may occur in a clinical setting is the administration of the wrong dosage

a. Explain how the ANA provisions identified in part G can be applied to the error discussed in part G2.

The two provisions above can be applied to the elimination of errs by building systems that ensure the provision of utmost patient-centric care to all patients.
 
H.  Identify four leadership qualities or traits that represent excellence in nursing.

The four leadership qualities that excellent nurses must possess are;

  1. Self-awareness
  2. Self-management
  3. Relationship management
  4. Social awareness


1.  Discuss the significance of the four leadership qualities identified in part H in the nurse’s role as each of the following:
•   a leader at the bedside- self-management can help nurses to avoid getting emotional while serving patients
•   within a nursing team or interdisciplinary team- relationship management and social awareness can help a nurse to have better interpersonal skills with other team members.
2.  Identify how your work environment impacts the following:
•   nursing leadership- The work environment has a huge impact on nursing leadership since a great nursing leader would motivate his team
•   decision making- proper decision making only thrives in an environment that fosters peace, teamwork and understanding
•   professional development-professional development leads to greater employee motivation and a better performing workforce.

References

Basavanthappa, B. T. (2007). “Chapter 4: Henderson’s Unique Function of Nurses”. Nursing Theories. Jaypee Brothers.

Masters, K. (2011). Nursing Theories: A Framework for Professional Practice. Sudbury, MA: Jones and Bartlett Learning, LLC.

Orem, D. E. (1971). Nursing: Concept of practice. New York: McGraw-Hill

Neuman, B., & Reed, K. S. (2007). A Neuman systems model perspective on nursing in 2050.

Nursing Science Quarterly, 20 (2), 111-113.

Erickson, J.I., Jones, D.A., & Ditomassi, M, (2012). Fostering Nurse-Led Care. Virginia: Sigma Theta Tau International.

Munn, Z, (2008). Dressings for superficial and partial thickness burns; Effect of partogram use on outcomes for women in spontaneous labour at term; Exercise for depression; Vitamin C for preventing and treating tetanus. Journal of Advanced Nursing.

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The Impact Of Corporate Social Responsibility Practices On Customer Loyalty Of Haier Group In China Market

The Impact Of Corporate Social Responsibility Practices On Customer Loyalty Of Haier Group In China Market

 

Contents

1.0 CHAPTER ONE: INTRODUCTION.. 1

1.1 Background Information. 1

1.2 Rationale. 4

1.3 Research Aim and Objectives. 5

1.4 Structure of the Study. 6

2.0 CHAPTER TWO: LITERATURE REVIEW.. 7

2.1 Theoretical Review Concerning Customer Loyalty. 7

2.1.1 Definition of Customer Loyalty. 7

2.1.2 Dimensions of Customer Loyalty. 8

2.1.3 Factors Influencing Customer Loyalty. 11

2.2 Theoretical Review Concerning Corporate Social Responsibility. 12

2.2.1 Definition of Corporate Social Responsibility. 12

2.2.2 Aspects of Corporate Social Responsibility. 12

2.2.3 Practices of Corporate Social Responsibility. 14

2.3 Influence of Corporate Social Responsibility Practices On Customer Loyalty. 17

2.3.1 Community Support and Customer Loyalty. 17

2.3.2 Employee Relations and Customer Loyalty. 19

2.3.3 Product and Service Oriented Responsibility and Customer Loyalty. 20

2.3.4 Environment Support and Customer Loyalty. 21

2.4 Summary. 22

 

 

1.0 CHAPTER ONE: INTRODUCTION 

1.1 Background Information 

The entry into the World Trade Organisation (WTO) in 2001 opened many opportunities for Chinese companies. This entry was flagged by the 1979 government-sponsored open door policy. This policy catapulted Chinese companies to global fame in terms of their ability to export high quality products to overseas markets. One of the most notable developments since the start of the open door policy and the subsequent entry into the WTO is the expansion and diversification of the local home appliances market (Fernadez & Fernadez-Stembridge, 2006). 

Broadly, the Chinese home appliances market has grown tremendously since 1979. The demand for critical home appliances such as washing machines, refrigerators, vacuum cleaners, television sets, and audio equipments has been amazing compared to the situation before 1979 (Zhang, 2011). Major manufacturers and retailers of home appliances such as Haier and Gome have shown phenomenal growth in both local and international markets (Li, 2005). This however is coming at a time when both local and international markets are beginning to slow down courtesy of the ongoing market recovery slow-down (Zhang, 2011), stiff competition among major players (Li, 2005), and the saturation of major markets due to unfavourable demographic factors such as stagnant population growth and changing social values (Zhang, 2011). 

Nevertheless, home appliances continue to occupy the leading position among Chinese consumer market products. Specifically, white goods are the most popular trade goods in the country (Li, 2005). This has contributed to the maturity of the Chinese home appliances industry to the levels of most European and American standards – it has formed a robust industrial chain that consists of large manufacturing and retailing industrial outlets out to promote economic development sustainable healthy lifestyles among consumers (Zhang, 2011). 

Based on recent data gathered and analysed by the National Bureau of Statistics between January and June 2009, the local home appliances manufacturing industry registered a total output of 353.4 billion Yuan, with total sales amounting to 343.65 billion Yuan (Hao, 2012). During this period, the overall washing machine production output amounted to over 20,056, 000 units (4.1 percent growth), refrigerators amounted to 30,044,000 units (9.2 percent growth), home freezer output grew to 6,332,400 units (9.6 percent growth), colour television output was 41,742,000 units (1.3 percent) mobile handsets output was 267,881,500 units (5.1 percent decrease), air-conditioning equipments amounted to 45,328, 000 units (20 percent decrease), computer machine output was 76,623,300 units (10.9 percent growth). The overall industrial output was 68.62 billion Yuan (Hao, 2012), a relatively stable growth given the prevailing economic and demographic conditions. 

Analytically, the Chinese home appliance industry has shown strong momentum and stability in recent years. This strong market stability has been buoyed by the Chinese government’s strategy to pump in 4 trillion Yuan in support of locally owned industries to make them more competitive at the face of large multinational companies such as LG, Sony, and Samsung (Li, 2005). Moreover, this market momentum has been buoyed by the decision by the Chinese government to offer subsidies to local companies that engage in energy efficient manufacturing practices such as triple energy air-conditioning as well as those who venture into the global markets (Fernadez & Fernadez-Stembridge, 2006). As a matter of fact, China has encouraged its companies to venture into the international market through subsidies as well as by improving its overall international business reputation. Overall, the Chinese home appliances industry is currently in a critical phase of its growth (Zhang, 2011). The demand for home appliances in both rural and urban markets is low yet robust – the rural market has been opened up following many infrastructural developments undertaken in the marginalised regions (Li, 2005). Urban markets on the other show signs of saturation but it is still robust following the increase in urban population. 

Both the local and international market for home appliances have been opened and diversified to accommodate new home appliances. For instance, between 1989 and 2000, there was a 101 times growth in the world’s possession of home refrigerators in the local market. This growth was flagged by a 78.14 percent annual growth. The world’s washing machines possession rose by 287 times buoyed by a 102.88 percent growth. From a domestic standpoint, the possession of household refrigerators increased by a 92.23 margin while that of washing machines grew at a margin of 84.82 percent (Hao, 2012). A large chunk of this growth, about 90 percent of the industry’s total sales was made up by the major home appliances such as Coloured TV, washing machine, microwaves and air conditioners. 

Historically, the Chinese household appliances can be broken down into four major phases. The first phase started in 179 and ended in 1983. This phase was also known as initial development stage. The second phase was referred to as the fast-growing stage and started in 1984 and ended in 1988. The third phase was the stable adjustment stage and started in 1989 (Li, 2005). This is the ongoing phase and it is characterised by low demand and market consolidation among the leading manufacturers (Zhang, 2011). Overall, the leading manufacturers of home appliances have consolidated their market share through capitalistic synergy building strategies such as mergers and acquisitions and supply chain partnerships. Haier, for instance, has acquired many local manufacturers of home appliances and has also entered into many mergers to boost its overall market standing in the local and international markets. The company merged with Germany’s Liebherr Group in the 1980s and has since acquired local companies such as Qingdao Electroplating Company, Qingdao Air Conditioner Plant, Red Star Electric Appliance Factory, and Huangshan Electronics Group (Haier, 2012). This has catapulted it to great heights and currently the company occupies the largest market share in the domestic home appliances market.

The growth in the domestic demand for home appliances can be attributed to a robust economy and change in consumption habits. According to Kotler (2008), the development of consumer products industries in emerging markets is usually occasioned by increase in disposable income and shift from traditional ways of life to modern ways. As a matter of fact, the most important of the factors influencing the recent developments in the Chinese household appliances is the large growth in the phenomenal household income (Li, 2005). This large income growth has been as a result of various government economic and socio-cultural programmes that have increased employment and investment opportunities while decreasing inflation rates. Currently, the Chinese economy is relatively stable compared to what is happening in the international landscape. 

On the other hand, the opening up of Chinese culture to accommodate western cultural values has led to change in consumption habits among Chinese households. Currently, there is more inclination to leisure spending than any other time in the history of Chinese economy. Both urban and rural households tend to spend a big chunk of their disposable income buying non-basic commodities such as television sets, smart phones, washing machines, and home freezers (Zhang, 2011). Moreover, there is demand for high-end and efficient products that can improve the quality of life experiences among Chinese households. Following this phenomenal change in economic and social fortunes, it is expected that the demand for high-end home appliances will definitely rise to cushion the high production costs incurred by large manufacturers such as Haier. 

1.2 Rationale

A desk survey conducted by the researcher unearths many studies addressing the relationship between CSR practices and customer loyalty. The most comprehensive and recent of these studies is done by Mandhachitara and Poolthong (2011) who divide CSR practices into four major components of community support, employee relations, product and service-oriented, and environment support. The authors then show that these practices shape customer’s attitudinal loyalty. On their part, Carroll (1991), Mohr et al. (2001), del Mar Garcia de los Salmones et al. (2005), Maignan (2001), and Matten and Crane (2005) show that CSR comprise of economic, legal, ethical, and discretionary functions. The authors argue that these practices enhance customer loyalty and firm’s profitability. 

On their part, Ailawadi et al. (2011) and Luan and Ailawadi (2011) find that though not all CSR practices lead to customer loyalty, those CSR practices related to products and the employees who directly serve consumers enhances loyalty. On his part, Kotler (2008) argues that a socially responsible firm is responsive to its stakeholders and many firms today employ CSR as part of their customer retention efforts. On their part, Berens et al. (2007), Bhattacharya and Sen (2003), Folks and Kamins (1999), Lichtenstein et al. (2004), Luo and Bhattacharya (2006), and Mohr et al. (2001) reason that CSR practices have a direct influence on consumer attitudes towards a particular firm and its products. 

Nevertheless, there is a shortage of empirical studies tackling the relationship between CSR and customer loyalty from a Chinese home appliances perspective in general, and from Haier standpoint in particular. Even the studies that address Haier as a leading market player in China do not factor in the relationship between CSR and customer loyalty. For instance, in his Bachelor’s thesis, Yidan (2009) finds the correct brand building strategy Haier’s globalisation pursuits. It is therefore important to study how CSR, a proven critical customer retention strategy applies in the case of Haier and how such CSR practices can be better employed by the company for better results.

1.3 Research Aim and Objectives

This study aims to investigate and report the impact of CSR practices on customer loyalty of Haier Group in China market. From this overarching aim, the study will also pursue the following objectives: 

  1. Analyse the impact of community support on customer loyalty in Haier;
  2. Analyse the impact of employee support on customer loyalty in Haier;
  3. Analyse the impact of product and service oriented responsibility on customer loyalty in Haier;
  4. Analyse the impact of environment support on customer loyalty in Haier;

1.4 Structure of the Study

This study is structured into five main chapters. The first chapter offers a general overview of the Chinese home appliances industry – it presents a comprehensive account of the history and future as well as the present developments of the industry in the face of the ingoing economic and social developments such as local and global economies, changing consumer habits and strategies employed by large home appliances manufacturers such as Haier to enhance customer loyalty. The second chapter covers the dynamics of CSR as it pertains to the case of Haier. This chapter is divided into three main sections. The first section addresses customer loyalty, the second section addresses CSR, while the last section addresses the relationship between CSR practices and customer loyalty. 

The third chapter covers the study methods and methodology. Here, the study philosophy, approach, strategy, sampling methods and methods of data collection and analysis are addressed. In addition, the chapter covers the ethical obligations and the limitations experienced during the course of the study. The fourth chapter is perhaps the most important because it presents in a detailed and structured manner, the findings of the study as well as the discussions underpinning such findings. Finally, the fifth chapter wraps up the study findings and offers a set of recommendations on how Haier can employ the various components of CSR to enhance customer loyalty. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.0 CHAPTER TWO: LITERATURE REVIEW 

2.1 Theoretical Review Concerning Customer Loyalty

2.1.1 Definition of Customer Loyalty 

Customer loyalty involves attracting customers, encouraging them to purchase much often, making them to purchase in large quantities, and encouraging them to make successful purchase referrals (Kotler, 2008; Mandhachitara and Poolthong, 2011; Schlesinger & Heskett, 1991). Organisations build customer loyalty through keeping a good rapport with their customers through constant communication, creating a team of competent and well motivated employees (Schlesinger & Heskett, 1991), showing care and empathy towards customers by partaking of activities that add value to their lives (Luan & Ailawadi, 2011), and rewarding customers regularly for shunning competing products (Kotler, 2008; Kotler & Armstrong, 2008). 

2.1.2 Dimensions of Customer Loyalty 

Normally and as Mandhachitara and Poolthong (2011) find, there are three core models of customer loyalty. These three models amount to measures used by marketers in evaluating the propensity for customers to buy again and bring their friends with them when making repeat purchases. These are “attitudinal, behavioural and combinational loyalty measures” (p.122). The main contention underpinning the attitudinal, behavioural and combination models is that customer attitudes towards a product influence their purchasing behaviours (Kotler & Armstrong, 2008). The attitudinal approach contends that for customer loyalty to be sustained in the long run there must be a strong attitudinal commitment or genuine consumer intentions to purchase a specific product or service from a specific firm (Jacoby & Chestnut, 1978; Uncles & Dowling, 2003). On the other hand, behavioural approach posits that behavioural indicators such as the propensity to exclusively purchase from a certain firm as may be shaped by attitudes towards that firm is critical for the enhancement of genuine consumer loyalty (Chaudhuri & Holbrook, 2001). As the name suggests, the combinational model is derived from both attitudinal and behavioural approaches. It posits that the propensity to make a repeat purchase is determined by the expectations customers have on a certain product and the ability for them to affiliate the quality of a certain product with their expectations (Kolter & Armstrong, 2008). 

Other models include the service quality model advanced by Storbacka, Strandvik and Gronroos (1994). This model posits that customer satisfaction is a function of recent experiences about a certain product or even a service – the more the recent experiences surpass customer expectations, the more the customer loyalty, the more strong the relationship, the more the customer loyalty (Dawkins & Reichheld, 1990). This is an indicator that customer loyalty can still be achieved even with low quality products especially when customer expectations are low or when the price of the product is low compared to its performance (Storbacka et al., 1994). This approach holds that the strength of business relationships is a function of customer satisfaction. Such satisfaction is built around the quality of a product, the quality of stakeholders’ relationships, and the consumer commitment towards a product (Buchanan & Gilles, 1990). Overall, so as to achieve a sustainable customer loyalty firms should ensure their products are relevant to their consumers experiences all the time, their consumers stay within their operation regions, there no suitable alternative products, and that there no unexplainable price changes. 

Another popular customer loyalty model is the loyalty business model. This model can be described to be more of a strategic management strategy than a marketing one. This is because it is argues that customer loyalty is a long term strategic competitive advantage gimmick and should therefore be built around a company’s core resources, core capabilities and core competences (Mandhachitara & Poolthong, 2011). Moreover, this model argues that customer loyalty is a corporate strategy that helps organisations to achieve corporate goals (Kotler & Armstrong, 2008).

According to Figure 2.1.2.1 below, customer loyalty can be described as a multidimensional approach. It is multidimensional because it incorporates the gains made in the realms of product and service delivery, employee satisfaction and competence, customer satisfaction, product of prices, and relationship with the local communities (Schlesinger & Heskett, 1991). This model perceives customer loyalty to be a gradual process that begins from how a product or a service is presented in the market, the ability of such product to satisfy customer needs, and the ability of the customers to keep coming back for more or the product or service, and the overall impact of such repeat purchases on a firm’s profitability. 

Figure 2.1.2.1 A Typical Customer Loyalty Model.   

alt text

Source: Schlesinger and Heskett (1991).

However, for purposes of this dissertation, the combination loyalty measure of customer loyalty as argued by Mandhachitara and Poolthong (2011) will be employed. The decision to pursue this measure is based on the fact that it captures two main determinants of consumer decisions. Specifically and as Mandhachitara and Poolthong (2011) argue this measure captures the product quality and CSR constructs. Reliable evidence show that product quality and CSR have been noted to be major profitability constructs in a high competitive and saturated home appliances market (see for example Chaudhuri & Holbrook, 2001; Kotler, 2008; Jacoby & Chestnut, 1978; Kotler & Armstrong, 2008; Mandhachitara & Poolthong, 2011). 

Moreover, behavioural and attitudinal models have weaknesses. Each of them cannot independently explain the reasons behind loyalty in an exhaustive manner. Attitudinal model for instance only shows the attitudes customer build towards a product but does not explain why such attitudes are built (Chaudhuri & Holbrook, 2001). On the other hand, behavioural approach explains why these attitudes are formed but does not explain how they are formed. A combination approach is therefore the most suitable for this study. Moreover, though each of these three models is independent, they are in most cases perceived to be interlocking. They are interlocking because they are built on each other – the combination model for instance is built on both attitudinal and behavioural models (Mandhachitara & Poolthong, 2011). 

The above arguments are derived from Kotler and Armstrong’s (2008) position that customer loyalty is a critical facet of today’s marketing strategies that help firm’s to achieve long term competitive advantage. This is so since Jacoby and Chestnut (1978) posited that “the success of a brand in the long term is not based on the number of consumers that buy it once, but on the number of consumers who become regular buyers of the brand” (p.1). This is true since organisations incur more costs in obtaining one new customer than retaining an existing customer and that profitability increases with the increase in customer loyalty (Chiou & Droge, 2006).

2.1.3 Factors Influencing Customer Loyalty

The combination model of customer loyalty adopted by this study argues that customer loyalty is determined by attitudinal and behavioural factors. The behavioural measures include the propensity to make repeat purchase, the propensity to make exclusive purchase, and the propensity to spread a good word about a production among friends. On the other hand, the attitudinal indicators include the level of commitment, the intention to buy, and the intention to spread a good word about a product (Chaudhuri & Holbrook, 2001). These measures are occasioned by among other things the quality of the existing relationships between firms and their consumers, the quality of products, the prices of products, lack of suitable substitute products, proximity of products/firm to the customers, and the perceived relevance of products.

Several studies have acknowledged that customer loyalty is enhanced by the quality of a product – a high quality product will attract more repeat customers while low quality ones will not (see for example, Berens et al., 2005; Carroll, 1999; Chiou and Droge, 2006; Mandhachitara & Poolthong, 2011 and Maignan, 2001). Several studies too argue that the relationship between firms and their customers, lack of suitable substitute products, proximity of products/firm to the customers, and the perceived relevance of products are responsible for increased customer loyalty (see for example Buchanan & Gilles, 1990 and Storbacka et al., 1994). The studies posit that the propensity for customers to make repeat purchases is shaped by their expectations which in turn are advised by product-related factors. 

Moreover, other studies posit that customer loyalty is shaped by the prices of products. For instance, Storbacka (1994) argues that highly priced products rarely attract repeat purchase unless they are perceived to be of excellent quality. On the other hand, it has been argued that lowly priced products tend to attract repeat customers especially when the customers perceive the quality of the products to be irrelevant to the purpose they serve (Chiou and Droge, 2006; Mandhachitara & Poolthong, 2011). This is true especially for basic commodities like food stuff among poor communities who have few choices, if any when fulfilling their daily needs. 

2.2 Theoretical Review Concerning Corporate Social Responsibility

2.2.1 Definition of Corporate Social Responsibility

CSR is a self-regulating obligation fulfilled by firms to a set of legal and ethical standards informally set forth by stakeholders. According to Mandhachitara and Poolthong (2011), CSR comprises of four major components of practices which are aimed at enhancing community support, employee relations, quality of products and services, and environmental support. On their part, Carroll (1991), Mohr et al. (2001), del Mar Garcia de los Salmones et al. (2005), Maignan (2001) and Matten and Crane (2005) show that CSR comprise of economic, legal, ethical, and discretionary functions. On the other hand, Berens et al. (2007), Bhattacharya and Sen (2003), Folks and Kamins (1999), Ailawadi et al. (2011), Kotler (2008), Kotler and Armstrong (2008), Lichtenstein et al. (2004), Luan and Ailawadi (2011), Luo and Bhattacharya (2006), and Mohr et al. (2001) reason that CSR Comprise of a set of social and moral obligations to their stakeholders. Overall, these authors agree that CSR practices have a direct influence on consumer attitudes towards a particular firm and its products. 

2.2.2 Aspects of Corporate Social Responsibility

Two major aspects can be drawn from the above operational definitions of CSR. These aspects are based on the notion that CSR is a voluntary yet a necessary strategic competitive advantage-building tool that determines firm’s long term survival in a competitive and unpredictable business world (Kotler, 2008). BDA (2006) offers that the two major aspects of CSR are its ability to lobby national and international policy makers in ensuring that companies remain committed to their voluntary social obligations as well as its ability to offer non-obligatory advice and other informational support to companies so as to help them become committed to their social obligations without having to explicitly stipulate a specific code (Ailawadi et al., 2011). The authors suggest that CSR can be described in terms of its voluntary approach and its ability to turnaround company’s fortunes through relationship building. 

From these two major aspects, a number of minor issues emerge. These minor aspects include the fact that CSR is voluntary, it helps organisations to achieve competitive advantage, it helps organisations to relate well with their society, it is a form of long term strategic driver among large multinational companies such as Haier, and there are no “best” CSR practices (BDA, 2006). Companies are not required by any existing law to honour their CSR obligations yet cases of huge sponsorship deals litter the corporate world today. Wal-Mart, for instance spent about $512 million between February 2009 and January 2010 on CSR activities (Ailawadi et al., 2011). It has been shown in earlier parts of this study that companies do this with the hope of improving their public image, increasing market share, and building good relationships with their stakeholders. 

However, how each company undertakes their CSR obligations differs across the corporate divide. While western companies are known for their generous philanthropic contributions to the society, Asian and African companies have a rather laid back approach. Reliable evidence shows that this difference is as a result of the market maturity, competition as well as the increased participation by social organisations such as labour unions, consumer watch groups, media bodies, environmental groups, and government agencies (Jamali, Safieddine, & Sabbath, 2008; O’Laughlin, 2008). The western market is more open to criticism than its Asian and African counterparts – there is immense media scrutiny in the western world than there in Asian and African countries (BDA, 2006). For instance, large multinational companies such as BP and its subsidiaries have been on the recovering end in the recent years for alleged poor working conditions and poor operating processes that endanger the environment yet Chinese energy firms have the worst work conditions and environment conservation records but they continue to make good business especially in their Asian and African based operations. While drawing from the fact that CSR is a form of capitalistic market penetration strategy (Kotler, 2008; Kotler & Armstrong, 2008), it is arguable that, large Chinese firms such as Haier which were initially owned by the state and are still considered as partly-private and partly-public may feel less obligated to fulfil their CSR obligations as they enjoy state patronage and a monopolistic market dominance.  

On a different note, it is arguable that the impacts of CSR efforts differ across the market divide. CSR efforts carried out by multinational companies operating in emerging countries such as China with pressing social issues related to disease, security, child labour, and poor education and health standards may not be easy to quantify when compared to the case in the western world with strong social systems – a CSR budget of say, $2 billion in China will make little impact compared to a similar budget in the western world (BDA, 2006). Overall, CSR is becoming a major theme among leading multinational companies with a footprint in both mature and emerging markets (O’Laughlin, 2008). Even in Asian and African markets where western and local companies have been in the past somehow relaxed to undertake huge CSR projects, trends are changing and companies are sponsoring large projects such as green energy, disease control and eradication as well as infrastructure development.  

2.2.3 Practices of Corporate Social Responsibility

CSR practices can be grouped into four main components. This grouping is advised by Mandhachitara and Poolthong (2011) arguments that CSR is meant to serve four major stakeholders which are the consumers, immediate community, employees, and the environment. Analytically, these four major stakeholders comprise of the four major components of CSR which according to Mandhachitara and Poolthong (2011) are community support, employee relations, product and service-oriented, and environment support. Overall, it is arguable that CSR practices covered in Mandhachitara and Poolthong (2011) model as well as in other models seek to create a friendly business climate that allow for maximisation of profits while making the world a happy place to live in.   

Each of these four components is broken further to include other specific practices. As Figure 2.2.2.1 below shows, community support is divided into five specific practices of donations made charities, help to the disadvantaged, disaster relief, anti-drug campaigns, and provision of education scholarships (Mandhachitara & Poolthong, 2011). On the other hand, employee relations is divided into four specific practices of provision of safe working environment, support to employees family values, provision of fair compensation, and upholding of the equal employment opportunities policies (Mandhachitara & Poolthong, 2011). Product and service-oriented practices are broken down into two specific practices of provision of quality products and services as well as the provision of customer-satisfying products and services (Mandhachitara and Poolthong (2011). Lastly, environment support practices can be conceptualised into three specific activities of support to forest preservation efforts, support to environmental preservation efforts and support extended to water resources preservation efforts (Mandhachitara & Poolthong, 2011). These specific practices can be assumed to be the benchmarks against which organisational competitive advantage should be measured. Since customer loyalty is one of the major facets of competitive advantage, then it is right to clarify that the specific practices builds to customer loyalty. 

Figure 2.2.2.1: A Typical CSR Model as it Relates to Customer Loyalty

 

 

 

 

 

 

 

 

 

 

 

Adapted from: Mandhachitara and Poolthong (2011)  

Other CSR models include the Kinder, Lydenburg, Domini (KLD) index of corporate social performance. This index quantifies CSR efforts into the following facets “cost judgment, profit judgment, price fairness, and customer loyalty (attitudinal and behavioural)” (Ailawadi et al., 2011, p.8.). This model posits that CSR performance in general, and its impacts on customer loyalty, is a function of consumer perceptions on the cost of a product relative to other similar products (Bhattacharya & Sen, 2003). Further, the model posits that all facets of CSR directly contribute to attitudinal loyalty yet not all CSR practices contribute to behavioural loyalty. To this effect, it has been clarified that CSR practices that encourage consumer-firm relationships such as well treatment of employees or even sourcing raw materials from the local communities have positive impact on behavioural loyalty (Ailawadi et al., 2011). 

Bhattacharya and Sen (2004) re-examined the relationship between CSR initiatives and their effect of customer loyalty. They categorized  a firms CSR initiatives into six main domains which include: employee support, this encompasses issues such as profit sharing, employee safety concerns and job security just to mention a few; diversity include a firms and the family institution, accommodation of different genders and race, support for the disabled and sexual orientation; the environments’ main domains include management of hazardous waste, eco-friendly products, recycling and pollution; community support, this is mostly synonymously associated with CSR, it include philanthropic donations, support to health and education initiatives; non-domestic operations like labour practices overseas; and product which includes mainly  product safety. 

Lastly, the social identity theory built by various scholars undertaking consumer-company identification research can be employed to explain the consumer inclination to CSR compliant firms. This theory argues that consumers tend to show great liking for companies that dedicate a significant chunk of their profits towards CSR activities (Ailawadi et al, 2011; Bhattacharya & Sen, 2003). Consumers build a clear and distinctive identity of a company that has a clear CSR record (Ailawadi et al, 2011). Basing on the combined model of measuring customer loyalty adopted by this study, it is arguable that consumers tend to dedicate their attitudes and behaviours towards companies with good CSR track record. 

Nevertheless, for purposes of this dissertation, Mandhachitara and Poolthong (2011) four-pronged model will be utilised. The reason behind this decision is supported by the fact that, Mandhachitara and Poolthong (2011) study is dedicated to the examination of the impact of CSR on customer loyalty in an Asian market perspective, Thai banking industry. While other studies may have made attempts to arrive at a balanced conclusion regarding the role CSR practices play in enhancing customer loyalty, it is strongly held that no other recent study achieves purpose better than Mandhachitara and Poolthong (2011). Moreover, the model captures almost all the pertinent issues pertaining to both CSR and customer loyalty. 

2.3 Influence of Corporate Social Responsibility Practices On Customer Loyalty

2.3.1 Community Support and Customer Loyalty

Although the semantics on CSR may differ, it almost universally accepted that CSR has an impact on customer loyalty. This is so since more and more customers are increasingly buying products produced in a socially and environmentally acceptable way (Lai, 2006, p.10). However the effects of CSR on customer loyalty have continually proven difficult to quantify – depending on how an organisation handles CSR activities, their impact may either be positive or negative. 

Countless studies have been done on the effects of community support related CSR activities on customer response to a company’s products and services. Vavra (1994), for instance argues that customer satisfaction is an important aspect in all successful business organisations. As stipulated by Mandhachitara and Poolthong (2011), community support comprises of all activities falling within the following facets: donation to charities, help to disadvantaged, disaster relief, anti-drug campaigns, and education scholarships. In the current corporate environment, the success of an organisation is dependent on its relationship with key stakeholders who include customers and their level of satisfaction (Vavra, 1994). According to Li (2009), customers are more likely to offer support to businesses that engage in community based initiatives such as donating to charity and sponsoring anti-drugs campaigns. Overall and as Arli and Lasmono (2009) posit, community support related activities play two important roles in creating customer loyalty – they improve the attitude of the customer towards the company and reduce any negative customer concerns the customers might have towards a product. 

Galbreath (2008) and Li (2009), have a different perspective on the relationship between CSR and customer loyalty. Their emphasis is on the importance of a company’s reputation and public image. To them, community support based CSR efforts build customer loyalty by continually emphasizing on a positive public image and reputation which customers use to associate with the company’s products. Bromley (2001) defined corporate images as the mental perception held by an individual or group of people, according to Gray and Balmer (1998), this mental perception of the business can be created by the use of community support programmes such as setting educational funds. Reputation on the other hand comes from stakeholders in form of feedback received regarding perceived businesses identity (Whetten & Mackey, 2002). While using the social identity theory, it is arguable that customers embrace a company with a unique identity built from the company’s community support initiatives (Bhattacharya & Sen, 2004). Yoon and Gurhan-Canli (2003) deduced that companies that are perceived positively by consumers will also be perceived to produce superior quality products. 

Almost all literature on the impact of CSR on customer loyalty are in agreement that customer perception on a company’s image brought about by community support initiatives are very crucial in developing a customer base for the long-term and goes a long way in creating brand loyal customers (see for example Godfrey & Hatch, 2007; Raghubir et al., 2010). Nevertheless, organisations should ensure there community based support projects have the maximum impact on the customers perception son them. Effective community support programmes should help consumers build positive images of the organisation. 

2.3.2 Employee Relations and Customer Loyalty

Organizations that are involved in employee-related CSR practices appeal to their customers. Studies have revealed that customers tend value the relationships organisations build with their employees (see for example and Hopkins, 2007; Hond et al., 2007). Participation in CSR activities that are essential to employees helps to build employees who are responsible to customers’ needs (May, 2007). Encouraging staff to participate in CSR initiatives creates a social bond beyond the business needs of the company (Turban, 2000). Based on expert views from Hopkins (2007) and Hond et al., (2007), it is arguable that organisations achieve employee relations-related customer loyalty. This accords them the opportunity to focus on developing teams and building leadership capacity through employee involvement in CSR activities. Since customers shape their attitudinal and behavioural decisions based on the products as well as the employees who serve them (Mandhachitara & Poolthong, 2011), it becomes therefore easy for an organisation to win the trust and hence the loyalty of its customers when it cultivates good relationships with its staff. 

Based on equality theory, it is arguable that influential motives underpinning staff behaviour go a long way in creating strategic competitive organisations. Assuming employees’ perceptions of CSR contribute to positive customer attitude and behaviours, it is agreeable that multiple needs model of company’s fairness is a precursor to customer loyalty (Hopkins, 2007). This hypothesis implies that employees’ concern for workplace fairness arises from relational, instrumental, and ethical-based motivations derived on the three basic needs for control, belongingness and consequential existence. Relational needs for fairness are linked to the psychological need of belongingness (Mandhachitara & Poolthong, 2011). Relationships signify the suggestion of an individual’s position, rank, and level of fit within the society. On the other hand, belongingness beliefs can cause issues of self-identity among staffs (Hopkins, 2007). Relational factors for instance trust as well as alleged organizational support arbitrate justice effects. Employees will turn to CSR to evaluate the degree to which their company values such relations. 

Lastly, control is essential to human because having control over circumstances can optimise the favourability of results. Employees derive instrumental desires for assuming that an organization is interested with the outcomes of its activities on its immediate community (Kotler & Armstrong, 2008). In other words, a company’s CSR measures show the staff that the company is concerned about their welfare thus fulfilling their need for control (Kotler, 2008). A final significant concern is the social implication provided by the company for its initiative, which to some level alleviate effects of supposed unfairness (Hopkins, 2007). This refers to the belief that when a company has dedicated an act that is socially reckless to its staff, one likely instigation that might minimize negative reactions would be to provide a realistic validation for such actions. 

2.3.3 Product and Service Oriented Responsibility and Customer Loyalty

Product and service quality directly impact on customer loyalty. While basing on Mandhachitara and Poolthong (2011) four components model of CSR, it is arguable that the basic product quality indicators which include quality of products and the level of customer satisfaction. Since organisations are social responsible to their customers to provide them with high quality products and services as well as to fulfil their product-related concerns, it is arguable to argue that satisfied customers are more loyal than unsatisfied ones (Yaseen et al., 2011). Contemporary consumers are more aware about brands than ever before and base their purchase attitudes and behaviours on strong brands that add value to their socio-economic needs (Grewal, Monroe and Krishnan, 1998). Organisations should however invest more on brand awareness especially for new products or new technology as consumers without proper knowledge of a particular brand will shun it for well known ones notwithstanding the fact that the new brand may even be of high quality compared to existing ones. 

Reliable evidence shows that strong and popular brands contribute directly to customer loyalty. Consumers have been to be willing to disseminate positive information and to make repeat purchases if they perceive a brand to be popular and capable of fulfilling their needs (MacDonald & Sharp, 2000). This calls for brand awareness among organisations. For instance, Haier refrigerators are perceived to be of high quality among Chinese households and customers are always willing to advice their friends to buy them. According to Grewal et al., (1998), Kotler (2008) and Yaseen et al., (2011), a company’s profitability is directly tied to the quality of its brands as consumers are always willing to be associated with superior brands irrespective of the price of such brands. Manufacturers of durable home appliances such refrigerators should therefore ensure that their products are superior and that they accord the best customer care to their customers so as to encourage them to replace such durable products for new ones just to keep abreast with new technology. 

2.3.4 Environment Support and Customer Loyalty

CSR has had a tremendous increase over the years in the business context. Branco and Rodrigues (2007) established that majority off Forbes and Fortune companies employ some form of environment friendly CSR initiatives. Bhattacharya and Sen (2004) argue that customers and companies develop strong bonds especially when they perceive a company to be environmentally responsive. According to Auger (2004), firms that engage in CSR research have come to a conclusion that customers are a driving force that corporate cannot do without. To this effect, a considerable number of companies are applying life-cycle chain principles to innovate and establish leading green practices. For example HP accompanies its inkjet printer cartridges with an envelope to allow customers recycle their old cartridges at no cost and with relatively little effort (Maignan, 2001; Olson, 2010). This is a major CSR undertaking that has won the hearts of many customers especially those who perceive the wellbeing of their immediate environment to be part of their lives. 

In the past 10 years environmental support initiatives have become a major driver of customers’ perceptions. Bhattacharya and Sen (2004) argue that customers’ commitment towards a company increases gradually when a given problem or issue is of paramount importance to them as in the case of environmental conservation or even water conservation. Since customers can pressurise organizations to engage in green practices through activism and boycotting a company’s products or services, any slight indication of a negative publicity portrayed through the media houses is dealt with quickly (Maignan, 2001). Currently, companies are offering a wide variety of high-quality products and this has made the consumers to shift their focus to the commitment of companies towards conservation of environment failure to which will make customers impose sanctions towards companies which are environmentally irresponsible (Dashwood, 2007). More customers are expressing dissatisfaction towards environmentally irresponsible companies. This is expressed through their purchasing behaviour. Therefore, companies need to reposition their role in conservation of the environment so as to become acceptable to the customers. 

Carroll (1999) and Branco and Rodrigues (2007) examined how CSR engagement earn companies a well deserved license which in turn builds customers loyalty on a certain corporate action towards the environment. The authors find that companies must produce environment friendly products so as to gain customers loyalty. Moreover, it was found that environmental support serves to extend the penetration a corporate into the market and as a process the corporate reaps huge benefits since there will be an increase in shareholding value. Maignan (2001) further emphasized that the nature of corporate business engagement forces a corporate body to understand its abilities and limitations in a manner that reflects its need of the surrounding community. These scholars emphasize that when a corporate understands this it forms a social contact in such a way that a consensus is built between the company and its community it gives way to fulfilment of both parties expectations. 

2.4 Summary

Customer Loyalty is determined by a combination of customer attitudes and behaviours towards a specific product or a firm. While the reviewed literature provides a comprehensive account of what entails customer loyalty, it is strongly felt that the existing literature is too broad to apply to the case of Haier. Specifically, there is need to collect first-hand information of some of the most pertinent indicators of customer loyalty from a Chinese perspective. 

Nevertheless, the reviewed literature suggests that CSR practices are critical for customer loyalty. Practices such as community support, employee relations, product and service quality and environment support are believed to be the most comprehensive set of CSR practices with the most impact on customer loyalty. However, it is worth noting that not all CSR practices have a direct impact on customer loyalty – some practices shave little impact while others have much impact. As such, organisations should engage in the most rewarding CSR activities if they expect to boost their customers’ loyalty levels. To this end, there is need to collect first-hand data that is relevant to the Chinese and Haier situation and compare it with what other studies have found in other countries and companies. 

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The corporate governance practices of Kingfisher PLC.

The corporate governance practices of Kingfisher PLC.

Introduction

Kingfisher PLC is a multinational home improvement retailer with headquarters in United Kingdom. It is the largest home improvement retailer group in Europe with over 1000 outlets in eight countries in Europe and in Asia (Kingfisher plc, 2012). The main retails brands for this company are B&Q, Screwfix, Castorama, Brico Dépôt, Koctas and Hornbach. It is currently the third-larest in the global market behind the Home Depot and Lowe’s.  It was established in 1982 in UK as part of FW Woolworth Company which was later dissolved. It started to expand internationally through establishment of outlets in foreign countries and through acquiring foreign companies. By 2012, this company had acquired five million square metres of selling space with more than 90,000 employees. Lately, this business serves over six million customers every week and has been generating annual sales amounting to £11 (Kingfisher plc, 2012). Generally, Kingfisher PLC can be said to be successful in its venture. Various factors are attributable to the successful performance of any business organization. One of these is a strong commitment by an organization’s board to high standards of corporate governance. As FRC (2010, p. 4) describes, Corporate governance is key in determining how well a business is able to deliver its strategies and achieve set goals while safe-guarding long-term interests of shareholders and generating value for their investment. In this view, the purpose of this paper is to provide a critical evaluation of corporate governance practices of Kingfisher PLC to determine whether they maximize shareholder’s wealth.

The corporate governance practices of Kingfisher PLC.

Evaluation of corporate governance of Kingfisher PLC

According to Kingfisher PLC (2012), good corporate governance is one of the key drivers for the long-term successful performance of Kingfisher PLC. It is highly compliance to the UK Corporate Cord and other sources of principles that guide corporate governance practices. To start with, the board of this company comprises of a non-executive chairman, six independent non-executive directors and two executive directors. As described in the UK Corporate Cord, such a size is sufficient to enable it to meet the business’s requirements and the right composition to ensure that executive views do not dominate the board’s decision making (FRC, 2010, p. 11). According to Kingfisher PLC (2011), the board members have appropriate balance of knowledge, skills and experience which enable them to discharge their responsibilities and duties effectively. The board has put in place a formal, transparent and rigorous procedure for appointing new directors. The appointment is conducted by a nomination committee and is done on merit and against objective criteria. The diversity of the board is also observed. The directors are re-elected annually by the shareholders subject to continued satisfactory performance (FRC, 2010, p. 12).

The UK Corporate Code requires that the board should consider the independence of all non-executive directors, annually to determine they have formed any relationships or circumstances have occurred that may affect their independent judgement (FRC, 2010, p. 12). In compliance with this requirement, the board of Kingfisher PLC evaluates the independence of each of the non-executive directors every year and includes the findings in the annual report.

According to Kingfisher PLC (2011), the board members allocate sufficient time to this corporation to discharge their duties effectively. The directors are rarely absent in the meetings they must attend. The board performs annual evaluation of its performance, of committees and of individual directors. The chairman acts on the results of the evaluation by determining the strengths and weaknesses of the board and the board members and where necessary, seeking resignation of some of the directors and arranging for the appointment of new ones. It also presents a balanced and understandable assessment of the corporation’s position and prospects. According to Kingfisher PLC (2012), the board has also established and maintained sound internal control and risk management systems. It has put in place a formal and transparent arrangement for the application of corporate reporting and internal control and risk management principles and for maintaining good and appropriate relationship with the corporation’s auditor.

In regard to remuneration, the directors are compensated sufficiently enough to motivate them. However, the company avoids paying them more than necessary or to a level that would lead to dissatisfaction of the shareholders (Kingfisher PLC (2011). Unlike in most corporations, Kingfisher PLC engages in constructive dialogue with institutional shareholders to discuss matter relating to remuneration packages of the directors. Where necessary, the remuneration packages for the directors are revised in accordance with the wishes of investors. Generally, the board of directors of Kingfisher PLC is effective in discharging its responsibilities as required by the standards that guide the conduct and practices of directors. The effective corporate governance system in this company helps in maximizing shareholder’s wealth.

Theory

Corporate governance is based on Agency theory which explains how best the relationship between principals and agents can be tapped to form governance that can help an organization to realize its goals. Some entrepreneurs accumulate a lot of capital but they do not have enough time or requisite expertise to run their own expertises (Organisation for Economic Co-operation and Development, 2011, p. 261). At the same time, there are managers who have excess of ideas to use that capital effectively. The owners of capital (principals) hand over their enterprises to managers (agents) for control. In this relationship, principals (or shareholders) have a duty to safeguard their investment by selecting and putting in place the most suitable governors (directors) to ensure that effective governance system is implemented. The Agents are then given the responsibility for managing and controlling the enterprise in the most efficient way. As (Organisation for Economic Co-operation and Development, 2011, p. 262) explains, all corporations are exposed to agency problems which may ruin their performance if not effectively dealt with. The board of directors’ major role is to develop action plans to develop with these problems in to ensure that the interests of the principals are safeguarded.  A corporation’s board of directors is also accountable to non-shareholder stakeholders that have an interest to see that a corporation is well governed such as customers, partners, suppliers, employees and the surrounding community (Organisation for Economic Co-operation and Development, 2011, p. 261). Therefore, the board of directors of Kingfisher PLC is expected to discharge its duties in line with these requirements in order to maximize shareholders’ wealth and to protect the interests of non-shareholder stakeholders.

Relation between performance and corporate governance

There is a strong positive relationship between corporate governance and performance in all corporate organizations. A well functioning corporate governance system helps in generating investors’ confidence and goodwill. As Smith (2010, p. 21) explains, good corporate governance helps an organization to investors and to raise funds necessary for organization’s strong performance. Good corporate governance focuses on enhancing efficiency and increasing profitability of an organization. This helps increase employment opportunities with better work terms and create wealth and other benefits for the shareholders. Transparency, probity and accountability of corporate organizations make stakeholders to accept them as responsible, caring, legitimate and honest wealth creating organs. This helps to enhance organizational image, market standing and reputation (Smith, 2010, p. 22). This helps to attract local and foreign investors and to assure them that their investment will be well managed and secure and will generate wealth to them. Thus, a corporate organization with good corporate governance is able to attract funding and to shield it self from financial distress. Moreover, such an organization is able to record successful overall performance over time (Smith, 2010, p. 22).

 On the contrary, poor corporate governance makes an organization vulnerable to future financial distress in the future. As Frederikslust et al (2008, p. 75) explains, a weak corporate framework leads to poor performance of an organization, risky financing patterns and non-conducive macroeconomic crises. Poor governance leads to loss of investor confidence which results into insufficient funding. Without investment, corporate organizations will stagnate and collapse. Therefore, good corporate governance is crucial to the overall performance of Kingfisher PLC (Frederikslust et al, 2008, p. 75). Therefore, good corporate governance is a key factor in facilitating long-term successful performance of Kingfisher PLC.

Conclusion

In conclusion, effective corporate governance of Kingfisher PLC has been a key factor in facilitating the successful performance of this company and hence it has played a great role in maximizing shareholder’s wealth. The conduct and operations of the board are highly compliant to the principles that guide corporate governance practices in listed companies, including the UK Corporate Cord. The agency theory clearly explains the principal-agent relationship that exists between shareholders and directors and obligations of each of the parties. As noted, there is a positive relationship between corporate governance and the performance of a corporate organization.

Recommendation for the company

As observed, the board of this corporation has discharged its obligations effectively and highly complied with the laid standards and principles governing the conduct and practices of directors of listed companies. Based on the above analysis of Kingfisher PLC, it is essential for this corporation to work on any loophole that might may arise and lead the board to be perceived as not discharging its obligations effectively.

References

FRC. 2010. ‘The UK Corporate Governance Code,’ Accessed 21st December 2012 from, http://www.frc.org.uk/documents/pagemanager/corporate_governance/uk%20corp%20gov%20code%20june%202010.pdf

Frederikslust, R A I V & Ang, J S. 2008. Corporate Governance and Corporate Finance: A European Perspective, Taylor & Francis, London. 

Kingfisher plc.  2011.‘Annual Report and Accounts 2011/12’ Accessed 21st December 2012

from, http://www.kingfisher.com/files/reports/annual_report_2012/files/pdf/annual_report_2012.pdf

Kingfisher plc.  2012. ‘Company overview.’ Accessed 21st December 2012 from,

http://www.kingfisher.com/index.asp?pageid=15

Organisation for Economic Co-operation and Development (OECD). 2011. Corporate Governance Board Practices: Incentives and Governing Risks, OECD Publishing, Paris.

Smith, H. 2010. ‘Corporate Governance: Status Report,’ Accessed 21st December 2012 from, http://www.herbertsmith.com/NR/rdonlyres/4070E00E-CB33-436D-9934-C0D02470EF7A/0/8734StatusReport_d3.pdf

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A Study on the Factors Affecting the Infant Feeding Practices of Mothers in San Antonio

Introduction 

The melamine controversy that emitted amid the last quarter of year 2008 brought individuals’ consideration over to the open deliberations in the middle of breastfeeding and the utilization of breast milk substitutes like business baby recipe. This wasn’t the first occasion when that baby recipe had created sicknesses and even deaths to newborn children around the world – subsequently the nonstop crusade of World Health Organization (WHO) and UNICEF alongside other breastfeeding promoters, for mothers to breastfeed their youngsters in any event until 6 months of age. 

Baby feeding practices allude for the most part to help the infant. An investigation of baby bolstering practices was completed on an example of 100 mother and newborn child sets. The results uncovered that just 20% of mothers in the study as of now only breastfeed their children. It additionally demonstrates that financial components like mother’s work status, conjugal status and instructive accomplishment had immediate bearing on these practices. Utilized mothers have a tendency to stop breastfeeding their infants and in the long run stop and simply turn to equation bolstering as they retreat to work. The study additionally demonstrated that mothers who are hitched and living with their accomplices are more inclined to breastfeed their newborn children than single parents. Those with higher instructive fulfillment resort more to recipe bolstering and blended sustaining than those with lower instructive achievement. Health awareness expert’s impact mothers the most with regards to newborn child nourishing choices. 

 

Methodology
Type of Research

The sort of research that will be utilized within this study is qualitative examination and quantitative exploration. Qualitative specialists plan to accumulate an inside and out understanding of human conduct and the reasons that represent such conduct. The order researches the “why” and “how” of choice making. Other than this, the scientist will likewise look at the wonder through perceptions in numerical representations and through factual examination. Alongside polls that will be offered out to respondents for the factual representation of the discoveries in the study, meetings with the respondents and a couple of specialists in this field will likewise be directed. 

Sampling Method

The exploration examining system that will be utilized within this study is irregular testing to get a more exploratory come about that could be utilized to speak to the aggregate of the population. A rundown of all health awareness offices (maternity and lying-in facilities, open and private clinics, wellbeing focuses) was procured from the San Antonio Hall. 

From 20 groups, three will be picked through random testing. The health awareness offices and foundations in these three barangays will then be the target wellsprings of respondents of the specialist. The social insurance offices and foundations will be reached to get a verbal agree to regulate the survey to mothers at their spots. A letter of assent will likewise be sent to them alongside an example duplicate of the poll that will be utilized, and also the convention of the specialist. A letter was likewise tended to the City Health Officer to get underwriting and agree to lead an exploration in chose barangays and appropriate polls to the mothers in the region. 

Information accumulation was directed all through the facilities‟ and wellbeing centers‟ working hours from Mondays through Sundays so as to incorporate both working and non-meeting expectations mothers. 

Respondents

The respondents in this examination will all be originating from one single area – San Antonio, particularly the arbitrarily chose barangays of Pamplona I, CAA/BF International and Pamplona III. The scientist picked San Antonio on account of the financial conditions display in the territory that is applicable to the study furthermore as it fits the period and assets of the specialist. The specialist will approach the arbitrarily examined respondents for agreeing and endorsement to answer the survey until the wanted number of respondents that is 100 is arrived at. The notion of masters will likewise be looked for in this exploration to give clarifications in regards to the respondents‟ baby nourishing practices and practices. 

Questionnaire

The poll obliges data about the financial and demographic foundation of the mother. It additionally has inquiries identified with past baby sustaining practices and the conception of her most youthful newborn child furthermore in regards to the infant’s general wellbeing and age. 

Explanations that are seen to be elements that impact mothers‟ newborn child is feeding choices were displayed. The depiction of the sort of baby recipe given by equation and blended bolstering mothers will likewise be asked in the material.

Conclusion 

Larger part of the mother’s recipe sustain their tyke and just a minority only breastfeeds their youngsters, particularly according to the proposal of the World Health Organization. While dominant part of the mothers in this study demonstrated an inspirational disposition towards breastfeeding, the majority of them chose just to equation nourish because of the reasons of deficient drain supply and work. 

In light of the aftereffects of the study, the instructive fulfillment, work status, conjugal status, and courses in the barangay the respondents are part of, about breastfeeding, are the noteworthy elements that influence the newborn child nourishing choice of mothers in San Antonio. Most of the mothers that served as respondents in this study fall under the age scope of 17-30 years of age. More than 50% of them were additionally school graduates while a noteworthy number are students and have just arrived at until secondary school. A large portion of the mothers is housewives and the others remaining have full-time occupations, low maintenance employments and independently employed. A couple of them are still understudies. While lion’s shares of them were hitched, a great deal were still in the status of live-in and were single. More than 50% of the mothers did not have past kids before the current one. Dominant parts of the respondents additionally have a yearly horrible family pay that does not surpass P50, 000. 

Among the few data sources to be specific, media through TVs/radios and printed/distributed materials, the social help supportive network contained the mother’s family, companions and different relatives and wellbeing organizations, the mothers who give their children newborn child equation are affected the most by medicinal services establishments through wellbeing experts and other health awareness staff. They impact the mothers in choosing to nourish the child with recipe and in picking, too, which brand of equation is best for their children. Mothers believe their infant’s specialist due to their aptitude in the said field thus this sort of connection is attained. 

Mothers were in general not worried about the conceivable reactions of breastfeeding as couples were just stressed as indicated in the information introduced. It can be reasoned that various inside and outside components impact a mother in settling on the newborn child sustaining choices, and a more prominent part of these is financial in nature. 

 

References

Fallani, M., Amarri, S., Uusijarvi, A., Adam, R., Khanna, S., Aguilera, M., … & Edwards, C. A.  (2011). Determinants of the human infant intestinal microbiota after the introduction of     first complementary foods in infant samples from five European centres. Microbiology,            157(5), 1385-1392.

Maehr, J. C., Lizarraga, J. L., Wingard, D. L., & Felice, M. E. (1993). A comparative study of     adolescent and adult mothers who intend to breastfeed. Journal of adolescent health14(6), 453-457.

Rempel, L. A. (2004). Factors influencing the breastfeeding decisions of long-term breastfeeders.            Journal of Human Lactation, 20(3), 306-318.

 

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British Columbia 14 Best Practices for More Effective Communication Article Review

Assignment

Need 150 words:

“Review this Inc.com article on the best practices for more effective communication.

Now, think about someone you know who you consider to be an effective communicator. What practices from the inc.com article do they follow? What communication practices from the inc.com article do you think are the most important when it comes to being an effective communicator”.

 

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In conclusion, describe five communication practices you think may be key when working with members from the country you choose.

Review chapter 4 of our textbook – “Cultural Diversity & Global Engagement.”
Analyze the Cultural Dimensions of a Country

1.Choose a country of interest to you. Using Hofstedes cultural dimensions (www.hofstede-insights.com/products/compare-countries) , analyze the country in terms of the following:

-Individualism and collectivism
-Power distance
-Cultural masculinity and feminity
-Uncertainty avoidance

In conclusion, describe five communication practices you think may be key when working with members from this country.

 

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Evaluate public health policies and practices as they relate to legal and ethical implications for individuals and populations.

Competencies

  • Evaluate public health policies and practices as they relate to legal and ethical implications for individuals and populations.
  • Analyze health needs, disparities, and healthcare delivery systems within the context of cultural, social, legal, political, and economic forces.
  • Examine the structure of the U.S. legal system and government as it relates to ethics, law, and core principles of public health.
  • Assess current legal and ethical principles and the application of such principles in healthcare practice.
  • Analyze ethical and legal dilemmas that healthcare workers may encounter in the medical field.
  • Examine legal requirements for managing patient information, health information documentation
  • , the release of information, and electronic health records.

Scenario

You have recently been promoted to Health Services Manager at Three Mountains Regional Hospital, a small hospital located in a mid-size city in the Midwest. Three Mountains is a general medical and surgical facility with 400 beds. Last year there were approximately 62,000 emergency visits and 15,000 admissions. More than 6,000 outpatient and 10,000 inpatient surgeries were performed.

You have been asked by the CEO to create an intake packet for new patients that will help establish patient trust. Once you’ve created this packet, the CEO wants you to send an email to all hospital

employees letting them know about the intake packet. You will also create a PowerPoint reviewing intake packet details for the hospital to post on its website to inform patients

Instructions

This is a great opportunity to tie everything together that you have learned! Let’s break this up into 3 parts. Deep breath – it’s easier than it seems!

Part 1: Intake Packet

  • Create a New Patient Letter in a business letter format. (Here is a library resource for help writing a business letter.)
  • In the letter:
    • Explain the importance of ethics
    • Explain why each part of the packet is included and how the packet is to be used
    • Include a HIPAA/Confidentiality statement and a Privacy Pledge
    • Add a line at the bottom of the form for the patient to sign acknowledging receipt
  • On a separate page, include your reference list in APA format.

Part 2: PowerPoint

  • Create a 10-slide PowerPoint presentation that explains the various elements of the new patient intake packet. (Here is a library resource for help creating a PowerPoint presentation.) Make sure to use the notes section below each slide to expand on the key points.

Part 3: Email

  • Write an email in a Word document that will be sent out to all hospital employees making them aware of the intake packet. (Make sure your email uses proper email formatting. (Here is a library resource for help writing a professional email.)

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Discussion Risk Assessment Practices

Discussion Risk Assessment Practices.

In a minimum of 300 words, respond to the following: What are the strengths and weaknesses of current risk assessment practices? When writing your response, focus on tests designed to assess risk and dangerousness. How can you utilize or build upon the strengths of current risk assessment practices in forensic psychology? How can you account for the weaknesses of current risk assessment practices in forensic psychology? Provide examples and rationales. Which term do you prefer, “prediction of risk” or “assessment of risk”? State your reasons for your opinion.

Discussion Risk Assessment Practices

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