Human Services 322 Ideology and Policy Evolution (Rev.C2) Assignment

Human Services 322 Ideology and Policy Evolution (Rev.C2) - Assignment Example People learn from the society on what to believe and what to say and even how to act. When the society holds the belief that the disabled in society do not need to be accorded any justice or treated fairly because they are not the same as the rest of the people, then everybody else in society will follow suit in the oppression. The societal beliefs are also what makes the rest of the society consider the people living with various forms of disabilities as deserving to suffer whether from humiliation, being treated with hostility or being condemned and especially to those suffering from mental disabilities and do not have the power to fight for their rights (Lightman, 2003). The other cause of oppression to the disabled in society is brought about by a misunderstanding. This misunderstanding is spread through propaganda by the media which depicts the disables as being lazy and hence slow in doing their work. This is clearly a misunderstanding and a misconception because the disabled are slowed down by their significant impairment. A crippled man using clutches for example cannot be expected to work at a faster rate as a normal and abled individual. Some of these people with disabilities also suffer constant pain and hence have to rest every now and then. These are the signs that are misconstrued and regarded as being laziness and slowness while they are indeed trying out their best. The other disabled on the streets seeking assistance are another reason for being regarded as lazy but they are simply seeking help but this does not mean they are lazy (Tomlinson & Trew, 2005). The other cause of oppression is simply dislike for the disabled people because they are different from the rest of the people. The dislike is in such excess as to cause people to make the disabled suffer. The dislike is usually brought about by the fact that the disabled get the welfare assistance, are exempted from

Affirmative Action Policies Essay Example | Topics and Well Written Essays - 1750 words

Affirmative Action Policies - Essay Example Only in the late decades of the last century the federal government and the Supreme Court, Republicans and Democrats, and various human rights organizations implemented systematic approach to resolve the problem of discrimination in employment and education, but the results were usually inconsiderable. Racial conflicts and discrimination persisted as well as attempts to eliminate them. In the second half of the 20th century the latter were labeled as 'affirmative action' policies. The origins of these policies dates back to 1961, when President John F. Kennedy issued Executive Order number 10925 proclaiming the 'affirmative action' policy the central axis of the US employment and educational policies. The Civil Rights Act became the next step toward elimination of discrimination in the United States. After its approval in 1964, the necessity emerged to change a number of traditional policies and official procedures, such as seniority status and aptitude tests, which included discriminatory provisions. In 1965 President Lyndon Johnson signed his Executive Order number 11246 stating that all government contractors and subcontractors were obliged "to take affirmative action to ensure that applicants are employed without regard to their race, creed, color, or national origin". The order was immediately followed by a series of lawsuits that supported the policy of affirmative action. Thus, the Supreme Court ruling in Griggs vs. Duke Power Company case invalidated i ntelligence tests and several other discriminating criteria in employment. The newly created governmental institutions, the Office of Federal Contract, had to implement the order (Encyclopedia Americana, 1985: 241). The contemporary meaning of the term 'affirmative action' has not changed over years. The initial purpose of affirmative action also remained unchanged: elimination of racial, sexual, ethnic, disability, or any other discrimination. In 1996, President William Clinton defined affirmative action as "an effort to develop a systematic approach to open the doors of educational, employment, and business development opportunities to qualified individuals who happen to be members of groups that have experienced long-standing and persistent discrimination" (Clinton, 1996: 131). In the recent years the affirmative programs has become one of the most widely discussed domestic issues in the United States. A number of analysts tend to consider the affirmative action policy a very effective tool that significantly reduced discrimination against non-white and female population of the United States. However, there is also an opinion that the affirmative efforts have been nothing but a great illusion from the very beginning: the positive results were made up to justify huge sums of money spent on implementation of affirmative programs. Although both standpoints have seemingly strong arguments, it will be closer to the truth to state that affirmative action policies largely failed. Main Discussion First of all, there are credible data that demonstrates the increase in well-being of some representatives of racial minorities was achieved not at the expense of the white majority, but at the expense of other representatives of the same minority: "The civil rights movement, anti-discrimination

David Cronenberg's A History Of Violence Essay Example | Topics and Well Written Essays - 1000 words

David Cronenberg's A History Of Violence - Essay Example The family, its struggles and its entirety are the focus of the story. Millbrook, Indiana, and the Stall residence are the structure in which Tom establishes his identity. The mise en scne is alive with little embellishments that suggest good nature and an ingenuousness of being. A History of Violence depicts the life of a small-town diner owner, Tom Stall (Viggo Mortensen), and his close-knit family of four. After defending their lives, killing two thugs during a robbery attempt, Tom becomes a local hero and, in turn, finds himself at the receiving end of some real trouble. The action is brutal, fast and sloppy but in many ways it gives the audience what they expect for the two wicked fellows. Tom's newfound celebrity brings Philadelphia mobster Carl Fogarty (Ed Harris) to Millbrook insisting that Tom is actually a man named Joey Cusack who Fogarty clearly has some unfinished business with - bringing you to a dimension where sudden burst of extreme violence takes place out of domestic tranquility. A History of Violence has an interesting technique. Most violent movies have a steady stream of violence spread throughout the film. Occasionally the violence will go over the top in an attempt to shock the audience, but the shock effect usually isn't strong. When the audience knows violence is coming, they can be somewhat prepared for it whether it is mild or extremely graphic. Peter Suschitzky's cinematography is definitely the b... Peter Suschitzky's cinematography is definitely the best. Colors come out rich and bright and brilliant; images are sharp, concise and clear, black's are dark and contrast comes out as it should; this is because Cronenberg and Director of Photography Peter Suschitzky have used a 27mm lens. A standard lens is 50mm focal length, so 27mm is very much a wide angle lens. To create 'normal' framings, the camera has to be placed closer and care is needed to avoid distortion. The effect is unnerving although a scene looks conventional, it feels wide of the mark SOUND English Dolby Digital 5.1 and Dolby stereo soundtracks are presented. The 5.1 makes great use of the set up as needed. Music comes through in all speakers but doesn't overwhelm. Sound effects come through sharply as does the dialogue, mostly pumped through the center channel. There was no noticeable distortion anywhere. New Line has presented a fine audio mix to accompany a fine video transfer. Sound adds life to the story as to signify the intense feeling of the characters, and the extremes of every scene, especially the extremely distressing violence. ASSESSMENT While it's just right, the film skillfully draws its audience into the graphic nature of violence and the way it later affects the film's protagonists. Some people might ignore the drama developed by Tom's actions, but Cronenberg handles the drama in such a way that is very effective; it doesn't come across as melodramatic. Everyone closely associated to Tom is changed or, at the very least, forced to look the consequences of their actions. The idea that violence breeds more violence and whether or not the vengeful and unforgiving instinct for destruction is imbedded in human DNA is in the heart of almost every scene. The

HSBC Bank Development Case Study Example | Topics and Well Written Essays - 2250 words

HSBC Bank Development - Case Study Example This paper is a review of its strategic planning and resulting growth along with a brief history of the company. The original Hong Kong and Shanghai Banking Corporation was started in 1865 by a visionary Scottish businessman called Thomas Sutherland to facilitate growing trade between China and India and the Europe. The company began rapid expansion in Europe and USA even though the main focus was expansion in Asian countries. The company at that time grew large enough even to fund government projects in many developing countries in Asia. World War II saw many of its operations in Asia being closed down. The bank realised that focusing only on Asia was risky and began a expansion program mainly through acquisitions in Europe, Asia and the formation of a organization in the USA. The prominent acquisitions include the Hand Seng Bank, the Mercantile Bank and the British Bank of the Middle East (all in the Asia-Pacific region), the Marine Midland Bank (USA) and the Midland Bank (UK). "The formation of HSBC Holdings plc in 1991, creating a holding company for the entire Group with its shares quoted in London and Hong Kong, showed that the Group viewed Europe and the London market in particular, as a vital part of its future development." (Group History 1980-1999. 2009). A typical departmental structure is explained here. ... It should be noted that the structure is based on its policies of customer service policies and other strategies. The head of the structure is the CEO followed by nine departments. They are legal and financial control, Operations, Human resources, Commercial Banking, Internal Audit, Marketing, Treasury and Personal Financial Services. There is an administrative department under the financial control department. Under the Operations section, there are seven departments, namely IT, Support services, Property and security, Credit operations, Credit cards, Projects and Cash. The ATM department comes under Cash section. Under Commercial Banking, there are the Trade Services and Credit departments. Under the Personal Financial Services Department there are Customer Service, Teller Area, Consumer Finance and Loan Approving Department (for personal financial services). (Organization Chart. 2008). Group structure of HSBC Holdings Plc: Considering the size of the company, the organisational structure of the bank is extremely complex with seven major division and many other divisions formed under each of the seven ones mentioned above. The seven major divisions are HSBC Latin American Holdings (UK) Ltd, Grupo Financiero HSBC SA de CV, HSBC Investment Holdings Plc, HSBC Finance (Netherlands), HSBC Overseas Holding (UK) Ltd, and HSBC Bank Plc. As the name suggests, HSBC Latin America bases its operations in those countries while Grupo Financiero operates in Mexico. HSBC Investment Holding operates in UK and Taiwan. HSBC Finance headquartered in the Netherlands has operations in several countries (mainly in Asia) like Malaysia, Panama, Middle East, Hong Kong, China, Bermuda and Japan. It has control over the original Hong Kong and Shanghai Banking

Realism and Emotion in Gothic Art Essay Example | Topics and Well Written Essays - 1000 words

Realism and Emotion in Gothic Art - Essay Example The term maintained its deprecating association until the 19th century. During this period, a positive critical revaluation of Gothic architecture took place. The term Gothic remains a standard one in study of art history even if modern scholars have long realized that Gothic art has nothing to do with the Goths. 2. Gothic Art and Architecture The most important and original art form during the Gothic period is architecture. Its principal structural characteristics began out of medieval masons’ efforts to solve the problems connected with supporting heavy masonry ceiling vaults over wide spans. An example of the earliest Gothic sculptures which is said to be a revolution in style is the Western (Royal) Portal at Chartres Cathedral (ca. 1145). These jamb statutes affixed to the columns next to the doorways are tall, slender standing figures of kings and queens from whom the Portail Royale derived its name. In the eighteenth and nineteenth century, these figures were erroneously identified as the Merovingian monarchs of France. 3. Gothic Painting Gothic painting did not emerge until the beginning of the thirteenth century. This became visible nearly 50 years after the start of Gothic architecture and sculpture. The transition from the Romanesque art to Gothic is very vague and inaccurate. However, beginnings of darker and more emotional styles were seen as deviating from the previous period. Paintings during this period were practiced in four primary crafts such as frescos, panel paintings, manuscript illumination and stained glass. Simone Martini is one of the most original and influential artists of the Gothic era. He painted many frescos and altarpiece panels such as the Virgin and Child (1320) for the Church of Saint Catherine in Pisa. He added refined contour of line, grace of expression and serenity of mood in his paintings. 4. Trend to Realism and Emotion The growing concern for realism and emotion can be traced across Gothic art forms. The two majo r and important arts forms during the Gothic era are sculpture and painting. The trend toward greater realism and emotion can be said to have been entrenched from the era. The general effect of the development of the Gothic style is now shown on the west front of the Chartres Cathedral (c. 1140-50). This is the first impulse of Gothic art towards realism. One can see the development of sculpture during this early period of Gothic art which is towards increased realism and that deviates from the wooden feel of Romanesque sculpture. This was achieved in a series of stylistic impulses and not by continuous evolution. The figures in the sculpture on the west front of Chartres are barely â€Å"real† and their forms are strongly aligned with the architectural composition. The work of the goldsmith Nicholas of Verdun showed the second creative impulse of Gothic art. His artwork is marked by graceful, curving figures and soft Greek-like ridged-and-troughed drapery or the so-called Mu ldenstil. A third impulse towards realism in Gothic sculpture, based on 10th century Byzantine prototypes, seems to have originated at Notre-Dame, Paris (c.1200)2. This style is characterized by figures with a

The American Exceptionalism Development Essay Example for Free

The American Exceptionalism Development Essay Since the begining of the founding of the English colonies, This land we now call America has always been looked upon as the promise land and land of opportunites. having the image of exceptionalism has been a great part of U.S history. from the founding of the English Colonies, throuhgh 1877, The American Identity was the image of _______________________________________ . Although many changes in ruling, laws, and roles happened during this period, American’s were still able to reach the expectiations they had since the beginning of their time. The United states started off as colonies in the 1600’s. When John Winthrope founded the colony of Massachusetts bay, he as a leader wanted to bring together a society of moral codes in reference to the bible. He gave the NOTION that New England was looked upon as a â€Å"city upon a hill† which was to mean that more American’s began to see themseves as exemplary and a model to the rest of the world. The American ideal at this period of time was to be seen as a model based on religion. â€Å"let us choose life, that we and our seed may live by obeying His voice and cleaving to h/im, for He is out life, and our prosperity.† (Winthrope, 1630) This helps understand that American’s were living based on God and obeying â€Å"Him†. As more time passed and more settlers arrive to the new land, the first colonial constitution came to action in 1639, known as The Fundamental Orders. This constituion paved the way for self-government and democratic freedom in the North American Colonies. If the idea of self-government never came to mind, American’s wouldn’t have been able to create laws against england and create laws and government to benefit the Americans. which soon lead to the freeing of power from BRITAIN, in having said that, would expand the ideals of the American Exceptionalism. In 1677, a charter for the separation of church and state was created, guaranteeing separation of church and state in the American colonies bringing the Americans closer to freedom. Blacks, however, did not recieve these rights, they soon at this time began introducing slavery. Women also had been looked down on simply because they are weak. By the 1700’s The coloies had begun to shape. Charters, Acts and laws have been established, more rights were given, but of course, Slaves were excluded. In 1738, the Great Awakening had begun to take full swing reshaping religious policies, and by 1763, the road to independence from Britan had begun. The Boston Massacre and The Boston Tea Party were two great events that showed how Americans began to push their way through and to fight for their independence. As American’s get closer to their independence, Women begin to GROW with ENTHUSIASM and curiosity about their rights. Right before the declaration of Independence of the Thirteen Colonies, Abigail Adams had written to John Adams about the â€Å"New code of laws† and how she wished, they be more considerate to the women and their rights. Abigail also threatens that â€Å"If particular care and attention is not paid to the ladies, we are determined to foment a rebellion and willl not hold ourselves bound by any laws in which we have no voice or representation.† (Adams 1776) This is a bold statement proves of another identity that America has: Women had no voice, nor representation in anything. From the 1600’s to the late 1700’s, America still has not changed in accordance to who is included in having rights; women always had the image of staying home and caring for housework and children, and slaves never had rights. A little after the personal corres pondence between Abigail and John, the Colonies finally gained their independence from Britain. Although the Declaration of lndependence, which was established July 4, 1776, did declare independence from Britain, this declaration also states laws to prevent something like the ruling of Britain happen again. In the declaration of independence it is stated that â€Å"We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their creator with certain unalienable Rights, that among these are life, liberty, and the pursuit of happiness† (Jefferson 1776) At the time, the words â€Å"All men are created equal† was not clarified unto who was created equal, did they mean all humans, or all males? The meaning behind â€Å"men† in that time period was meant for white men, or men who would vote, and had a voice and represintation. In this new ideal of America, many groups of people were excluded, such of those would again be women, and blacks. In 1783, however, Slaves do get their freedom if they served in the continental army. In 1801, when Thomas Jefferson gives out his first inaugural address In the Inaugural Address, he points to common underlying principles and a loyalty that transcends partisanship. He praised a minimal federal government, and avowed a federalism affirming â€Å"State governments in all their rights† as a shield against â€Å"antirepublican tendencies†. (Jefferson 1801) By this time, Jefferson is attempting to better the country by speaking out about what should be done, he tries to bring back the identity of being a model to the rest of the world. Not long after, in 1839, John L. O’Sullivan also points out America and it’s destination to better deeds on Manifest Destiny. Sullivan tells about the principles as a country that we are and how we are â€Å"the nstion of progress, of individual freedom, of universal enfranchisement.† (Sullivan 1839) When Sullivan speaks of America, he does include everyone as a whole. During this time period, this was the period of renewing, and revival in the United States. Because of this Manifest Destiny, many new opportunities were open to the people and many changes were made in the government, along with slavery. During this period of â€Å"renewing and revival† Women finally make an early move in women’s rights. Elizabeth Cady Stanton paired up with Lucrettia Mott, and wrote the Declaration of Sentiments in 1848. Stanton models directly on the declaration of Independence; it identified male patriarchy as the source of women’s oppression and demanded the vote for women as a sacred and inalienable right of republican citizenship. In the Declaration of Sentiments Stanton rewrites the declaration of independence with one of the tweaks being â€Å"We hold these truths to be self-evident; that all mem and women are created equal†(Stanton 1848) This reminds us of how American’s have gotten carried away from including everyone, now to just certain groups. During the 1800’s not only do women start movements, but blacks also begin to get some freedom as soon states begin to illigalize slavery and prohibit it. During the civil war, Abraham Lincoln gives out his gettysburg speech adress in 1863 and brings to attention the strive and perserverance these men have given to the w ar. †Fourscore and seven years ago our fathers broughtt forth on this continent a new nation, conceived in liberty and dedicated to the proposition that all men are created equal.† (Lincoln 1863) He highlighted the fact that liberty and equality were the core components for the emancipation of America. Lincoln urged the common man and politician to consider the lives lost in the attempt to save the nation from colonization, and pay tribute to the unsung heroes. He emphasized on the fact that the Gettysburg Address may be forgotten in time, but not the soldiers who willingly laid down their lives. By 1877, much has changed and been accomplished. moe states abolish slavery, and blacks finally have some rights in the Constitution, and representation in congress. Women still fought to get their voice and Congress now had control of the states rather than have another country take over. looking through the history that American’s went through from founding colonies to staying united as a whole, American’s managed to live up to those standards and ideals that they set for themselves in the beginning. although there were troubles throughout the years in including and excluding certain people, American’s strived through in still becoming exceptional and trying to include everyone in the country. Bibliography Adams, Abigail and John. Personal Correspondence. March-May, 1776. Cady Stanton, Elizabeth. Declaration of Sentiments. Seneca Falls, N.Y.: July 19th and 20th, 1848. Jefferson, Thomas. The Declaration of Independence of the Thirteen Colonies. 1776. Jefferson, Thomas. First Inaugural Address. Washington, D.C., 1801. Lincoln, Abraham. The Gettysburg Address. Gettysburg, Pennsylvania, 19 November 1863. L.O’Sullivan, John. On Manifest Destiny. 1839. Winthrope,John. The Modell of a Christian Charity. 1630.

Parmalat Accounting Scandal | Summary

Parmalat Accounting Scandal | Summary The Parmalat Accounting Scandal 1. What were the events leading up to the Parmalat accounting scandal and ultimately the revelation of the accounting fraud and the reasons behind the scandal? Evolving from a small dairy shop into an international concern, Parmalat appeared to be a gigantic and stable dairy producer. At some point in time, it may well have been gigantic and stable, but in December 2003, shocking news was broken to Parma, Italy, and the world at large. Parmalat was no longer a success as it once may have been, and it was bankrupt, and had been bankrupt for several years without this ugly truth being exposed. The truth had apparently been concealed due to a number of people being at least somewhat aware that something was amiss with transactions on the books, but had not spoken out. Through the years that Parmalat was going bankrupt, there were several events that took place before Parmalat’s condition was finally exposed. To begin with, as early as 1990, there were signs that Parmalat was in debt. In accordance with what has been uncovered, Parmalat’s fraudulent activities are said to have ‘taken off’ in 1990. This was when their stock went public, and reflected the need for a big company like Parmalat to perform in the international market so that their performance improved and met investor expectation (Family Arrests in Parmalat Scandal, 2004). The following year [1991] the Tanzis purchased Parma Football Club of which Tanzis son, Stefano, was president, and also was Parmalat board member. With this purchase, the football club rose to fame quickly, but faced large losses that recorded a deficit of over â‚ ¬77m in 2002. According to investigations, Parma Football Club was the first asset to be sold[1]. Another set of purchases that went along with purchasing the Parma Football Club included Tanzi buying up his competitors. Once he had established Parmalat Milk in the global market, his financial ventures proved to be devastating. This included his family’s financial interest in football and tourism, as well as his failed attempt to outdo Belosconi when he purchased a TV network, Odeon TV. At this point, Parmalat’s finances were a mess. Purchasing Odeon TV Network was a disaster as Tanzi had to sell the network off for a around  £30m. From this point on though, it is said that Parmalat still progressed in spite of its major losses. This was largely achieved through altering the books and attaining bank loans and investments against falsified figures. Parmalat had spent â‚ ¬130 million on Odeon TV, but it collapsed within 3 years. In order to prevent bankruptcy at this point, Parmalat had to sell itself to a company that was already listed on the Milan stock exchange. This helped to produce â‚ ¬150 million from external investors, and paved the way for Parmalat to be in public view in 1990. It also enabled them to patch up some of its accounts[2]. It is thought that Parmalat began altering its books in 1993. If Parmalat had not ‘cooked’ its books it would have registered financial losses every year. However, they registered profits, which meant that they would still be viewed as a viable organization and one that was worth investing in. Therefore, they managed to avoid being suspected of any losses and attracted much investment. Parmalat managed to cover losses through a combination of fictitious transactions and aggressive acquisition. This commenced in 1992, when Parmalat started ‘snapping up’ various companies in Argentina, Italy, Brazil, Hungary and the U.S. However, beyond 1995 it is thought that Parmalat was not able to fund its own needs. Yet it managed to prove to investors that it was registering significant profits. Perhaps, Parmalat’s profits registered were so convincing that the Bank of America alone, in 1997, provided $1.7 billion through bonds and private placements for U.S. investors. It also received $30 million or more as payments and commissions[3]. One of the main events that lead up to the Parmalat accounting scandal exposure includes the company changing its external auditor. In accordance with Italian law, an external auditor can be changed once in 9 years. So, in 1999, Parmalat, in accordance with Italian law replaced Grant Thornton with DeLoitte and Touche. Grant Thornton was keen to keep working with Parmalat, which was a high profile company, as it would be good for their reputation still being developed. Therefore, they recommended that Parmalat spin off its travel and other businesses, and permit these to be under them [Grant Thornton]. Such an arrangement would be convenient to both Parmalat itself and Grant Thornton. Through such an arrangement Parmalat could then satisfy its new external auditors [DeLoitte and Touche] with Grant Thornton making illicit payments to Parmalat. This was made possible through the executives at Parmalat creating debts, and Grant Thornton creating false accounts from which Parmalat could be paid. Grant Thornton would then produce these records to DeLoitte and Touche who saw little wrong with them. Numerous reports reinforce that Grant Thornton was aware of the ‘shell games’ that Parmalat was playing. One example of these games includes case of â€Å"cooking the books,† that reports the Cayman Islands subsidiary Bonlat claiming to have sold a large quantity of powdered milk in a span of one year to Cuba. It claimed that this quantity was sufficient to produce 55 gallons of milk for every individual on that island. Another interesting event that lead up to Parmalat’s exposure of the accounting scandal was that Grant Thornton and Deloitte Touche signed off on its increasingly surreal accounts. In return, it is said that they booked millions of dollars (Parmalat Scandal Deepens†¦, 2006). In Parmalats final weeks, Deutsche Bank had taken on helping it work with Standard Poors, hardly ten days before the exposure. Around this time, analysts around the world kept encouraging investors to continue purchasing its stocks and bonds. In 1999, finance director Alberto Ferraris laid out a financing scheme. He managed this through a Delaware company known as Buconero. This was the Italian for black hole, that Citigroup established for Parmalat in 1999[4]. This company loaned out $137 million to a Swiss subsidiary of Parmalat. From here, the money was transferred to Parmalat companies. In return for Buconero’s service to Parmalat, it received a return of around 6%, in addition to $7 million in payments for Citigroup. Just like Parmalat made use of Buconero, it also used other offshore companies to dress up its debt till the time of its exposure[5]. Back in 1995, Parmalat also commenced concealing its debt through shell companies. It had been losing $300 million annually in Latin America, and decided to wipe this debt off the companys financial records. It managed to do so by using 3 shell companies situated in the Caribbean. The huge debt patchwork through the 90s began to raise concern by the end of the decade. Esteban Pedro Villar, expressed concern and filed an early warning report (Gumbel, 2004). This was regarding Parmalats Latin American set-ups. He had so many questions that his concerns were termed as offensive and ridiculous† (Gumbel, 2004). Then suspiciously, Deloittes Parmalat business in Argentina was terminated. In response, Deloitte was silenced, and the accounts were certified. In addition to the above concern that was demonstrated by a Deloitte partner in Latin America, there were others. On March 28th, 2003, Deloittes Maltese office raised questions regarding a $7 billion intercompany transfer they suspected was fictitious. Wanderley Olivetti, the Deloitte auditor in Brazil, raised such concern at the Milan office regarding Parmalats Brazilian accounts that the matter went straight to Deloittes chief executive in New York City at that time, Jim Copeland. However, Olivettis objections were mysteriously ignored and he was soon removed from dealing with the Parmalat account. Deloitte claims it behaved within its rights to remove any employee it wishes to, and this may be done for a number of reasons. It also said that the investigation of Parmalat started in October 2003, after Deloitte Italy had drawn attention to Parmalats financial dealings[6]. Following the suspicions raised by auditors, Epicurum was established in an attempt to show that Parmalat was due considerable amounts of money. However, this attempt to erase debt from the records at Parmalat failed, and the company admitted that it could not retrieve the amount they were due from Epicurum. One of the key events that led to the exposure of Parmalat includes Tanzi and his son’s meeting with private equity firm Blackstone Group in New York. Tanzi and his son Stefano, one of the main executives at many of the family’s concerns, met with the Blackstone Group to discuss the sale of 51 percent of the family’s share in the food empire. It was in the course of conversation regarding preparation for the books to be opened to a transition team from Blackstone, that Tanzi and his son slipped out with the fact that the cash on hand was less than the 3 billion Euros registered in the company’s annual report. In addition to this, they revealed that there were barely any liquid assets. They even further stated that the company was in debt of about 10 billion Euros. In addition to the suspicion that was brought against Parmalat through observations of its faulty accounting records, it is this final attempt to sell of 51 percent of family shares that marks the end of the road for Parmalat’s long trail of fraud. The following facts presented date-wise are interesting to note as they map the path that Parmalat took since its inception till its end on 13th December 2003: 1961 Parmalat was founded by 22-year-old Calisto Tanzi. It was established as a small family food business that pasteurised and sold milk 1963 Parmalat introduces Tetrapak for packaging its ‘long-life’ milk products. 1980s Parmalat starts producing fruit juice, biscuits and ready-made sauce. 1990 Parmalat is listed on the Milan stock exchange. Through the 1990s Parmalat grows after flotation. It then reaches into America, Brazil, few South American countries, and Eastern Europe and Australia. Tanzi aims at expanding a television network to outdo tycoon Prime Minister Silvio Berlusconi. However, his Odeon television foray flops and costs Parmalat  £30m. Parmalat products also get sale in 20 countries. 1999 Parmalat‘s Bonlat subsidiary is established in the Cayman Islands. 2003 11 November Crisis escalates when shares are hit after auditors raise questions regarding accounting of transactions with mutual fund Epicurum [a Cayman-based company linked to Parmalat]. 15 November Alberto Ferraris resigns from the position of Finance director. 8 December Parmalat admits failure to recover â‚ ¬496.5m from Epicurum. This amount was needed to service debt. 15 December Tanzi resigns as chairman and CEO. 16 December Enrico Bondi takes control of the company. 17 December Bank of America denies the credibility of documents that affirm Bonlat account existence. 24 December Parmalat files for irregular administration operations. 27 December Italian authorities hold Tanzi in their custody in Milan [7] 29 December Tanzi admits to siphoning off â‚ ¬500m of company funds; Bondi takes charge as Parmalat administrator; US Securities and Exchange Commission bring charges against Parmalat for fraud. 30 December Tanzi is formally charged with fraud. 31 December Parmalat officials are arrested. These included former CFO Fausto Tonna and Luciano Del Soldato, and two officials from Grant Thorntons Italian branch that audited Bonlat. 2. How was fraud perpetrated and how was the company able to continue with the fraudulent practice for such a long time? Parmalat started out as many other businesses have. It was first a small dairy shop that slowly progressed and expanded its range of products, and finally turned into a large dairy producer that sold its products in several countries. From the early 1990s and onwards, Parmalat appeared to make significant progress, registering profits annually that was encouraging enough for investors to go on investing in the company. However, the truth of the matter was that these very investors were all being deceived due to Parmalat’s fraudulent practices largely perpetrated by Tanzi, top managers, the Parmalats external lawyer, Gian Paolo Zini, and two external auditors, Maurizio Bianchi and Lorenzo Penca. However, Zini, Bianchi and Penca claim that they are innocent[8]. Falsifying Credibility and Obtaining Loans and Investments: Tanzi and all those who were allegedly involved in what is known to be one of the biggest scams, managed to borrow money from banks and even justified these loans for Parmalat through inflating revenues and fictitious sales in records between 1990 and 2003. They would also ‘cook’ its books in order to make debt vanish. They managed to do this through transferring debt to offshore ‘shell’ companies. In addition to covering up debt in this manner, there were other tactics that Parmalat resorted to (Parmalat Dream Goes Sour, 2004). One of the other methods Parmalat used in order to cover their debt when it got too big to cover with the offshore shell companies included their invention of a bogus milk producer, supposedly situated in Singapore. Parmalat claimed that the company had supplied 300, 000 tons of milk powder to Cuba. This process included Bonlat, a Caymen Island subsidiary of Parmalat. Bonlat had a fictitious account in the Bank of America. This whole setup is so surprising that it has left many baffled as to how could such a fraudulent concept have been so successful and convincing when there was no concrete evidence in it[9]. Looking at the above example of the manner in which Parmalat faked transactions, it can be observed that the whole concept is such that it would have an ordinary person believe that it was authentic. Who would have suspected that any of it was fictitious, particularly because Parmalat had been a company in operation for several years? Ordinarily, one would suspect a company if it had a single concern that was being publicized. However, since Parmalat was projecting trade being conducted that included different physical points, there was little suspicion raised. There was the exporter in Singapore, the importer in Cuba, and Bonlat involved too in the Caymen Islands. The scheme thought up was very believable also because of the fact that Bonlat supposedly had an account in the Bank of America. Different Roles Played to Conceal Debt: Considering the debt that was actually showing up in the books, Parmalat had to have people who could cover it up well enough. This called for people on the inside as well as the outside to co-operate. External auditors, internal auditors as well as the top-notch individuals at Parmalat had to play their roles. One the inside, the books were maintained in the hands of trusted people. External auditors were told to keep this quiet. In this case, it was chiefly Grant Thornton that aided Parmalat in carrying out its fraudulent practice for so long. Grant Thornton’s Role: Grant Thornton played a major role in helping Parmalat continue its long-term fraudulent practice. It did so because it had a great deal to gain from Parmalat, and so did Parmalat have a lot to gain from Grant Thornton working with them. Grant Thornton was and up and coming auditing firm that needed to be have sound clients in order to help its reputation in the market. Parmalat paid Grant Thornton considerable amounts to conceal debts. Quite obviously, this seemed to work for several years, and did so till 1999, when Parmalat were compelled to replace Grant Thornton with DeLoitte and Touche. This was necessary because by Italian law, an external auditor should be changed every nine years. Parmalat abided by the law, but was also proposed a way of continuing its fraudulent practice. With DeLoitte and Touche taking charge as external auditors meant that debts would no longer be concealed, and Parmalat could be exposed. This could have happened in 1999. However, since Parmalat maintained Grant Thornton for its spin offs [its travel and other businesses], they were able to continue tricking everyone far and wide. This scheme was simple as well, and included another series of false records in order to show that Parmalat was still making profits annually. This was possible through illicit payments that these spin offs could make to Parmalat. Executives at Parmalat would create debts while Grant Thornton would create false accounts from which they could make payments to Parmalat. They would produce these records to DeLoitte and Touche, and they would be approved[10]. More Actions that helped to Conceal Parmalat’s Debt: Basically, it could be asserted that it was the executives on the inside of Parmalat and the external auditors that were hand in glove; together they managed to conceal debt. However, in addition to this practice that lasted for many years, the innovative idea of offshore concerns enhanced credibility. In addition to this, the fact that Parmalat products were popular in several countries meant that fewer questions would be asked. Also, for a whole decade none of the auditors in any location raised any concerns. It is thought that the amount concealed by 1995 amounted to $300 million annually in just Latin America. By this time, debt was already enormous and it is obvious that a great deal was being done to conceal it well enough. However, since Parmalat’s increasing debt went unnoticed for a few more years, it is obvious that more action needed to be taken in order to make sure that it stayed covered. This meant that Parmalat had to transfer debt off its financial statements. In order to do this, it had to make use of ‘shell’ companies in the Caribbean. These companies had to show sales, and Parmalat would send them fictitious invoices in order to legitimize the sales. Parmalat would then make out notes to banks in order to show them that they were owed so much finance. Against these notes, Parmalat would be granted loans, as it appeared that the Parmalat was making profits. In order to make their debts disappear, Parmalat transferred its debts to its offshore subsidiaries that were based in tax havens (Parmalat Dream Goes Sour, 2004). The Beginning of the End: Parmalat had been making use of offshore shell companies until 1999. Parmalat shifted operations of its three offshore shell companies to Bonlat, in the Cayman Islands in 1999. This is thought to be the beginning of the end for Parmalat. At this point, debt was so high that it was becoming difficult to conceal it. Fictitious assets at Bonlat amounted to around $8 billion, which forced Parmalat to create a Cayman Islands-based investment fund, Epicurum, which would take over part of the fictitious credit. It was Epicurum that caught auditors’ attention as well as Italys stock market regulator [November 2003]. It was just a matter of a month before everything was exposed and the company officially was declared bankrupt[11]. Finally, it may be asserted that it was the auditors through which Parmalat managed to deceive everyone for so long with the help of top-level management at Parmalat. If Parmalat had not been able to get Grant Thornton to work in their favor along with their internal auditors and top-level management, the entire scam would not have been possible. This dates back to the beginning of the fraud when Parmalat first began to conceal its debt. If it did not have an external auditor on its side to conceal the large debt it incurred because family business and unnecessary purchases, Parmalat’s debt would have been in public view in the early 1990s. However, this was not to be due to a ring of people working to conceal debt. Though there were several people involved in making debt disappear off the records, it can be observed that it was the auditors that made each of Parmalat’s fraudulent schemes possible. This is true to say whether one looks at the debt covered in the earlies t days of fraud or towards the end. The fictitious transactions with shell companies too were made possible due to the auditors who ‘cooked’ the books. However, it can also be asserted that the auditors were not solely to blame in making sure this fraud lasted for so long, as there had to be others in on these schemes too. This included key people of Parmalat such as the executives, its CEO, its internal auditors as well as external auditors and individuals at key financial institutions. In order for a fraudulent scheme to last as long as it did in the case of Parmalat, there had to be a whole ring of people involved, which also explains why it took such a long time and deep investigation to uncover all those were responsible for the scandal. 3. The role and the responsibility of auditors in preventing financial scandals and ensuring and upholding the principles of good corporate governance. In organizations such as Parmalat and other large organizations where there are several shareholders and many people dependent on the progress of these corporations, executives and top-level managers have a responsibility towards them. Generally, it can be asserted that corporate governance refers to ways in which rights and responsibilities are shared between various corporate participants, the management and the stakeholders[12]. Governing corporations such as Parmalat consists of fixed processes, customs, policies, laws and institutions that impact the way it is directed and administered. These are processes that should have been conducted responsibly in order to make sure that Parmalat made progress. If Parmalat was facing debt, executives and all those concerned should have been honest and made sure that these debts were made known (Gumbel, 2004). This would have saved the organization in its earliest days of trouble. Therefore, it can be asserted that being honest and responsib le in corporate governance is important. It is important to assert that corporate governance also encompasses the relationships among the many participants involved in the process (the stakeholders) as well as the goals for which the corporation is managed or governed. The principal participants are the shareholders, management and the board of directors. In addition to these main players there are other stakeholders: employees, suppliers, customers, banks and other lenders, regulators, the environment and the even community[13]. This is because all these people and institutions are affected in one way of another by the actions and repercussions of a corporation and the decisions it makes. In view of the many people that corporate governance impacts as in the case of Parmalat, accountability, fiduciary duty and mechanisms of auditing and control are of immense importance. Responsibility of Auditors: Auditors, whether they are external or internal auditors, have responsibility towards all those involved with a corporation. Particularly, it may be asserted that there are many individuals who are not directly involved with the operations of a corporation, but they may be dependent on its operations significantly. These are the kinds of people that really need to be protected, and auditors have a great responsibility towards them (Gunz and McCutcheon, 1996, 7-15). To begin with, a very basic and generally stated duty of auditors is to make sure that a corporation’s operate efficiently, their records are maintained properly, and its taxes are handed in on time. Auditors generally offer these services to their clients, which include government, public and management accounting. In offering these services, their role includes preparing reports, analyzing, and verifying financial statements and documents for the purpose of providing information to their clients. By performing these tasks honestly and not concealing any information auditors fulfill their duties (Gunz and McCutcheon, 1996, 7-15). This is precisely what is required of them when they deal with huge corporations like Parmalat. The role of auditors would include exposing whether the corporation is actually making huge annual profits or whether they are concealing their debts[14]. In addition to the roles that auditors play in offering their services to corporations, other services they provide include financial and investment planning, budget analysis, information technology consultation, and limited legal services. However, these are services can only be carried out if they perform their fundamental duties responsibly. This is because the figurers that they provide after performing their fundamental tasks impact these additional processes. For example, if debts of a corporation are not presented accurately and annual profits are fictitious, how can an authentic and realistic budget be prepared? Therefore, it can be asserted that auditors cannot work and produce any realistic figures if they distort debts and profits made annually. In recent times, this is what has been occurring. Corporations hire auditors to check their statements. Somehow, these auditors have gotten involved in illegal behavior and have hidden debts and elevated profits. Based on these fig ures they helped in painting pretty pictures for the corporation’s reputation in the market. This is how Parmalat managed to remain in the global market for a long time without being suspected of having immense debt. Having asserted the above, it is also important to consider the fact that in the US there are limitations imposed on auditors that investigate a corporation’s financial statements. Due to the fact that there have been corporate scandals that have involved auditors being involved, it is now illegal for an accounting firm that audits a corporation’s financial statements, to advise areas such as investment banking, legal matters, etc. of that firm. One exception to this prohibition is that auditors may provide advice on tax issues that would benefit the company (Young, 1997). Forensic Auditing: Having asserted the necessity of making accurate reports of financial figures regarding a corporation’s annual budgets or debts, it must be asserted that one major and specialized accounting practice is forensic accounting. Several public accountants specialize in this, as it is of growing importance in today’s world where corporate scandals appear to occur frequently. Forensic accounting includes investigation and interpretation of white-collar crimes. This type of crime includes bankruptcies, securities fraud and embezzlement, and contract disputes. In addition to this, criminal financial transactions, such as money laundering, are also included in white-color crime. It can be asserted that auditors who specialize in forensic accountancy play an important role in preventing corporate scandals such as the one that took place with Parmalat. However, it should be remembered that auditors who do not specialize in forensic accountancy are no novices. This means that if there are any unusual entries and irregularities in records, any auditor should be to detect them, and this is why all auditors are said to have responsibility to report any irregularities[15]. Though auditors generally are able to detect any irregularities, those that specialize in forensic accounting make use of accounting and finance knowledge, law and investigative techniques. They use this combination in order to detect illegal activity in a corporation, and it is obviously a greater advantage to them as they are more specialized. It is known that there are several forensic accountants that work in tandem with personnel from law enforcement departments during investigations. However, this occurs normally after a corporate scandal has been detected. Considering this, it might be a good idea for forensic accountants to work in this manner as part of regular and standard procedure in order to safeguard everyone involved with a corporation. If such a practice were adopted as standard procedure, it would become more difficult for financial scandals to take place. This is considerate of acknowledging that corporations usually appoint their own auditors. Auditing firms might be required to adhere to practices that would make regular procedures more thorough and transparent as a result[16]. Aside from considerations for current practices of audit firms and ones that could be included in order to prevent financial scandals, the general concept of internal and external auditors reviewing and analyzing financial statements of firms aims at doing the same thing. Fundamental Responsibilities of Auditors: It is the primary responsibility of internal auditors to make sure records are accurately maintained. These records are also checked for any form of irregularity, which may include things like mismanagement or even fraud. Internal auditors are not only supposed to maintain records of financial figures, but their roles also encompass examining the firm’s operations with regard to finance and information systems, management, and internal controls. Examining these operations are important as they help to make sure that financial records are accurately maintained. In addition to this, these steps also examine the adequacy of controls to protect the firm against financial scandals (Gunz and McCutcheon, 1996, 7-15). Further, it can be asserted that internal auditors have the responsibility of evaluating important areas of the corporation such as effectiveness, compliance with all standards and corporate policies and procedures, efficiency, laws, and government regulations. Since there are so many types of operations to take care of in a corporation, there are areas of specialization for internal auditors as well. Some of these may include environmental, engineering, electronic data-processing, legal, insurance premium, banking, and healthcare auditors. The reason for specialization in these areas is because there are technical procedures that need to be understood in order to evaluate things like efficiency and effectiveness. Having deeper understanding of individual industries helps internal auditors to evaluate a corporation’s operations more specifically (Bavly, 1999, 25-30). Among the important steps that internal auditors may take towards better controls within a corporation, recommendation of better controls is high on the list of priorities for better auditing processes. An example of recommendations that internal auditors may make in a firm, internal auditors may help managers through co