Analysis the Four Idols - 1048 Words

Name: Instructor: Course: Date: ANALYSIS â€Å"THE FOUR IDOLS Francis Bacon’s in his essay named as â€Å"The Four Idols† is derived from the historical expression Novum Organum (1620). In the essay, he attempts to investigate the perception of an individual of reality based on their reasoning fallacies by extensive examples and thorough analysis. Francis Bacon has been credited through creating the scientific techniques, illustrations of this are apparent the presented literature. Bacon in his essay notes the four idols of cave, tribe, theater and marketplace are accountable for hindering the understanding of individuals of the world that surrounds them. The four idols are broken down to logical fallacies founded on: individual†¦show more content†¦Bacon (544) notes that for every person (notwithstanding the errors which are common to the human nature) has a den or a cave of their own, which discolors and refracts the light of the nature. Every person has their own preferences and tastes, and this can easily refract t heir facts perception. Moreover, Bacon (549) writes â€Å"men usually become attached to specific speculations and particular sciences. In his later years, Einstein worked is searching a correlation amid electromagnetism and gravity whilst ignoring the quantum mechanics due to the verity that it was not fitting into his nature perception. Presently, the theories of quantum mechanical theories are in essence unquestionable. This Provides a very good illustration of viewing the globe how one would prefer it rather than how it actually operates. The shortcomings of a person ought to be taken into consideration when observing nature and society. The Market place idol is illustrated as a logical hindrance that is based on language, especially word. Bacon describes the hindrances (545) to be established through the association of men with one another ad the unfit and ill words choice to a greater extent acts as an obstruction to understanding. This clearly indicates that the general populace can be misleading easily through the simple word choice that one uses in describing a specific topic. This is vital since as is seen the

Stereotypes Of Native American Society Essay - 2376 Words

Native American people have a unique struggle in society. This stems from cultural epidemics like drug addiction, alcoholism, poverty, obesity, and rampant suicide, but also systemic racism and cultural lag (Flores 1999; Greenfield, Cocking 2014; Sarche, Spicer 2008;). This is not a critique of culture, just an observation of the condition of the families I have helped serve over the course of this internship. To be â€Å"Native† carries with it a slew of stereotypical representations (Gay 2002; Mihesuah 2009). Stereotypes do not represent reality, but they do affect one’s social standing (Gay 2002). More than that, stereotypes alter how individuals view themselves, and limit their ability to become something other than the stereotype (Gay 2002; Mihesuah 2009). And the cycle goes on and on. If Native American children grow up in a closed network, such as a reservation, the reality is brutal (Mihesuah 2009). Drug abuse, domestic abuse, alcoholism, and the like are everyw here. These things that seem so horrible and extraordinary are commonplace and normalized. That doesn’t mean that all Native Americans are addicts or alcoholics—they aren’t, it’s just the prevailing narrative (Mihesuah 2009). Natives are exposed to a very euro-centric cultural perspective of Native Americans, and this is usually in the historical sense (Mihesuah 2009). The dominant culture tells Native children that they exist only in the past, and teaches them that they have limited avenues (Mihesuah 2009;Show MoreRelatedRed Convertible1014 Words   |  5 Pagesthe â€Å"American Dream† Word Count: 1013 The â€Å"American Dream†, an idea that success, freedom and equality exists according to each mans capabilities regardless of social status and ethnicity, is one that appeals to every American from all walks of life. After the Great Depression, the importance of realizing success, freedom and equality became a priority in the lives of many, including the Native Americans. TheRead MoreAnalysis Of The Film Blaxploitation Films And Chappelle s Show 1633 Words   |  7 PagesWriting 3 Throughout history, American society has famously taken advantage of non-European cultures and traditions for their own entertainment. Major media companies, colleges, and athletic organizations have famously exploited the cultures and stereotypes of Native American’s and African Americans for the sole purpose of profit and increased entertainment value. In American society, there has been the era of â€Å"Blaxploitation films† in which African American’s society was shown through raunchy andRead MoreThe use of Native Americans as mascots or team names has developed an issue that has been drawing600 Words   |  3 PagesThe use of Native Americans as mascots or team names has developed an issue that has been drawing controversy in today’s society. The question that must be asked then is: Why do we as a society quietly permit such disrespectful and hurtful conduct towards Native Americans continue, without taking any affirmative action to restrict it? Havi ng people who run around in war paint and headdresses whooping it up at the sport games doesn’t honor anyone’s culture. It just praises racism and encourages peopleRead MoreThe Challenges Of Stereotypes Within Africa1513 Words   |  7 PagesThe Challenges of Stereotypes within Africa Between America and other European nations, stereotypes and misrepresentations have ultimately plagued the continent of Africa. To every side there is often another story, yet unfortunately for the many countries of Africa, they are ultimately victimized and suffer through further oppression. According to Curtis Keim’s book Mistaking Africa, Keim suggests that Africa is essentially under the public microscope, it tends to be scrutinized, and compared toRead MoreAnalysis Of Hello Columbus : America Was No Paradise In 14921746 Words   |  7 Pages In the article Hello Columbus: America was No Paradise in 1492, by Robert Royal, Royal argued that Native Americans, along with Columbus, are portrayed wrongly in society today, from schools to media. To start, Royal’s first points out that America was not â€Å"discovered† by Columbus as was taught in grade school, it was filled with thriving Native American tribes. As he wrote, â€Å"Hundreds, perhaps thousands, of different indigenous groups lived here at the time of Columbus s arrival, and historiansRead MoreThe Impact Of Music On The Music1386 Words   |  6 Pagesof each other’s physical qualities. For colored artists separating race from music, essentially making race irrelevant in music, became a possibility. The ability to pursue a race-blind industry could be seen as a blessing, especially for African Americans of the era—a group that had been give little, if any opportunity to pursue music. The racial relations during this time, a time where the remnants of slavery were still engrained in the air through segregation, also made records seem as a possibleRead MoreThe Washington Redskins Name And Mascot1089 Words   |  5 Pagesof the most r ecognized American Indian figures in the United States. The controversial team name has been used since 1933, ever since changing from its original name â€Å"Boston Braves†. It has sparked a nationwide outcry among the remaining Native Americans who reside in the United States. Indians are forced to be reduced to cartoon savages, ferocious warriors, and animal like heathens. After centuries of rampant dismissal, removal, and destruction of this group, White Americans are still finding waysRead MoreBlack Women And Native American Women984 Words   |  4 PagesBlack women and Native American women have been oppressed for many years throughout history. They were enslaved and were essentially objectified by white men. Today in the media black women are seen as interesting individuals who are hypersexualized or promiscuous. On the other hand, there is hardly any representation of Native American women in our daily life but when they do appear they are usually sexualized. Our cul ture essentially label and define these women based on their representation inRead MoreAnalysis Of The Movie Reel Injun774 Words   |  4 PagesWhen the subject of Native American characters comes up in conversation, most picture Tonto from the film The Lone Ranger. However, many don’t realize how the film industry has created a stereotype that has affected generations of Native Americans. From mascots to logos of tobacco and other products, the early westerns have help mold minds into placing Native Americans into something they are not. The documentary Reel Injun help shed light on the subject as well as raise awareness to how these filmsRead MoreNative American Stereotypes Essay1357 Words   |  6 Pages Another issue is how Native Americans internalize the stereotypes that are forced upon them. In a study conducted by Fryberg, Markus, Oyserman, and Stone (2008), they found three common stereotypes of Native Americans in mass media: Spiritual people who are in tune with nature, warriors, or people with stereotypically bad outcomes, such as alcoholism. It is important to note that not all of these stereotypes are negative, and in fact a few of them are positive. What Fryberg et al. (2008) found,

It Was A Beautiful Summer - 975 Words

It was a beautiful Summer s day. Everything was just perfect. The sun was shimmering golden rays onto the smooth concrete road. We were driving from Los Angeles to Las Vegas to celebrate the Fourth of July. My brother Seth, who was sitting at the front along side my mum who was driving, and I had been singing old folk songs non-stop since we left the house. Mum and Dad always loved to hear us sing, they claim that it s the only thing that makes them smile. We were one happy family. All of that changed in an instance. All I could remember was us singing Amazing Grace, then suddenly there was a black car driving rapidly towards us. There was glass shattered everywhere. I screamed and held onto my dad as if I was holding onto my life. The car span several times crashing into other cars. I was so shocked that I eventually blacked out. I opened my eyes. I was laying down on my back on a hard mattress. I could barely move my stiff body. All I heard was chit-chat. I began sweating horrifically, my mouth was filled with sawdust. For the last breath I thought I had, I yelled, â€Å"Help!† The room goes quiet. I heard footsteps approaching me. A lady with pale skin, a blonde ponytail and a weird looking hat appeared in front of my eyes. In a soft voice I muttered, â€Å"W-w-where am I? W-where s my family?† The lady in the white dress helped me to sit up against the wall behind my bed while replying, â€Å"Oh sweetheart, you were in a car crash a week ago, this is the first time you woke upShow MoreRelatedIt Was August 18, 2014, Just Another Beautiful Summer Day.1174 Words   |  5 PagesIt was August 18, 2014, just another beautiful summer day. It was my first day back in the classroom as a third year teacher. I greeted all the smiling faces of my first graders that morning and rushed through the day, trying to get in everything that I had planned. The craziness of the first day of school quickly passed and before I knew it, it was time to start planning for the next day. But all I could think about was getting home and being with my 18-month old son. Before I had children, I wouldRead MoreThe Imperial Gardens By Victor Hugo893 Words   |  4 PagesThe Old Summer Palace, known in Chinese as Yuanming Yuan. Emperor Kangxi named the garden as Old Summer Palace. The first â€Å"yuanâ⠂¬  means round, which hints the hoping to be a perfect person that like a round, without a gap. Ming imply the wish that to govern the dynasty and politic bright and clear. It was originally called the Imperial Gardens and located in western suburbs of Beijing China. I will introduce this famous Chinese great art because it described by Victor Hugo as â€Å"dazzling cavernRead MoreSonnet 18 and Sonnet 751457 Words   |  6 Pagesmake you immortal. Line 7: â€Å"For I myself shall like to this decay.† = I, myself will have to die. Decay means rot away, here it means to die. Line 8: â€Å"And eek my name be wiped out likewise.† She will be wiped away by death, just like her name was washed away by the waves. Her name will be wiped out from God ´s book of life. Eek means also Line 9-10: â€Å"No so (quoth I), let baser things devise, to die in dust, but you shall live in fame.† He ´s a real fool because he says it ´s simply not trueRead MoreTop Three Places to Visit During The Summer 726 Words   |  3 PagesThe Summer The temperature is rising and so is the need to escape this scorching heat. Everyone is planning a vacation to one place or the other. But, here I am to suggest you some top places to visit this summer andRead MoreBeauty And Natural World : William Shakespeare Essay845 Words   |  4 Pagesthrough the sonnet was that good things will last forever. In the beginning of the article, Moschovakis mentioned, â€Å"It praises the beloved but denies the beloved the benefit of that praise. † (Moschovakis 280). He thought Shakespeare compared the young man to be as beautiful as summer. However, as you read more of the sonnet, the narrator contradicts himself as he realizes that summer can be harsh and brutal. It is too short and won’t last forever. The young man that was compared to summer is seen as moreRead MoreMy Favorite Time Of The Year1266 Words   |  6 PagesMy favorite time of the year was coming to an end, as I had to say goodbye to those worry-free, beach-bum summer days. Summer had passed before my eyes and it was now the start of my sophomore year in college. I was enrolled in a couple psychology classes for my major and a Geology class that would count towards my GE. The semester before was not the best, as it had a negative impact on my grade point average. So here I am again, another semester hoping the same thing does not happen again. I wakeRead More Sonnet 12 Essay934 Words   |  4 Pages In modern times, youth and beauty is an image seen everywhere. For example, a Versace billboard, magazine ad, TV commercial, all of which displays images of beautiful people. But what happens when this beauty fades? Shakespeare in his 12th sonnet talks about his experience and fading beauty. The purpose of this poem is to encourage a young man to not lose his beauty to the ravages of time. In order to do this, one must reproduce so beauty will live. In the first quatrain, Shakespeare begins hisRead MoreThe Effect of Summer School on Rita in Educating Rita by Willy Russell751 Words   |  4 PagesThe Effect of Summer School on Rita in Educating Rita by Willy Russell Of course; you dont do Blake without doing innocence and experience, do y? When Frank explains to Rita that after summer school they will study William Blake, Rita says that she has already studied Blake and implies in such a way that she almost disgraces Frank. Before summer school Rita has only been taught Frank and has only learnt his ideas, when she gains her own confidence she then challengesRead MoreBook Report on the Go Between1676 Words   |  7 PagesHartley was born in 1895; he studied in Oxford and was officer in France during World War 1. He was novelist, short-story writer and critic. His reputation as a writer was established with the publication of the trilogy of novels, The Shrimp and the Anemone (1944), The Sixth Heaven (1946), and Eustace and Hilda (1947). He died in 1972. The Go-between was first published in 1953, the following year it received the Heinemann Foundation Prize of the Royal Society of Literature. Its film version was alsoRead MoreShakespeares And Moss Poem Analysis1283 Words   |  6 Pageslanguage. For example, Shakespeare in his poem uses words like â€Å"thee’ â€Å"art† and â€Å"thou†. Both of these poems were written at different times which explains the difference of language. Shakespeare’s was of course witten first because this is the original poem and Moss’ is a parody of Shakespeare’s poem which was written way after. Another difference shown in both poems are the poets use of imagery. In Shakespeares Poem he describes his person to a summer’s day figuratively; as in using metaphors, personification

Rationale of Payment Method and Risk Sharing Under Capitation Essay

Essays on Rationale of Payment Method and Risk Sharing Under Capitation Essay The paper "Rationale of Payment Method and Risk Sharing Under Capitation" is a good example of an essay on finance and accounting. Insurance companies such as MCOs, Blue Cross/BlueShield, and the government are classified as third-party payers with the patient and the providers being the other two parties. The payment extended to the latter parties by the third-party payers is referred to as reimbursement. However, while providers traditionally preferred the fee-for-service method, this method has been dismissed due to fee escalation. Hence fore, various other methods bearing varying merits have been devised to cater to the reimbursement needs. The rationale for the payment methods and risk-sharing are highlighted below (Shi, 2013). a. Free for service – this method has been dismissed due to charge escalation. However, the method required insurers to pay charges passively set by the providers. These charges were developed under the assumption that services were provided within a set of identifiable and individually unique circumstances involving service delivery.b. Package Pricing – this payment method is also referred to as bundled charges as it covers related services in one price. For example, vag9inal delivery can have one set fee that includes pre- and post-delivery care.c. Resource-Based Relative Value Scale – this method is more based on the risks involves and therefore reimburses physicians regarding the skills, time taken, and the intensity of providing services. This method involves adjustment for reimbursement regarding with respect to the geographical factor to the practice location – hence, involving a complex formula.d. Reimbursement Under Managed Care – This is a set of reimbursement approaches. Firstly, the PPO is a variant of the fee-for-service method and institutes fee schedules relative to discounts conveyed with providers within the grid. Secondly, the HMO puts physicians on the payroll. However, the HMO has a branch classified as the third method, capitation. Capitation is a mechanism which reimburses providers monthly. This method has no merit of compensating a provider with regards to enrollee frequency in search of services. It also downplays the role of providers in inducing demand – providers are encouraged to provide only needed services. Package Pricing and Resource-Based Relative Value Scale has the same effect as the capitation method – risk sharing is economically managed (Shi, 2013).

Cosmic Redshift free essay sample

The new Physics of Cosmic Redshift Introduction:As we all know that light travels from source in a straight line(ray) according to concepts of classical ray optics. Redshift is the phenomenon by which light rays from distant stars that are observed on earth, show smaller frequency (longer wavelength) i. e. shifted towards the â€Å"red† end of the visible light region. This phenomenon of redshift is conventionally explained by the well-known â€Å"Doppler effect†. But according to the book â€Å"QED: The strange theory of light and matter† by Nobel Laureate Richard Feynman Redshift occurs due to the quantum mechanical propagation of photons. The Problem:Edwin HUBBLE discovered that light from distant stars exhibits longer wavelengths or reduced frequencies than that from similar radiation sources on Earth. All specific frequency lines in the electromagnetic spectrum of distant cosmic radiation sources appeared shifted towards the red end of the visible spectrum. His discovery therefore was called â€Å"astronomic redshift† defined by the redshift ratio, z = ? / lo (1), ? l: the elongation of a specific wave length lo: the original wave length of emission at the source Frequency n and wavelength lo of the radiation are correlated by the velocity of light in vacuum, c = n x (2). From on its discovery the Redshift phenomenon was referred to the â€Å"Dopplereffect of wave dynamics†, occurs when the source and the receiver are moving relative to each other. Hence this theory proved that all the distant stars , galaxies are moving away from the Earth i. e the universe is expanding. The apparent radial recession velocity away from Earth can be calculated following the Doppler equation: n/no= (1-v/c) (3) n: a specific frequency of the arriving light, no: corresponding frequency of emission at the source v : the recession velocity of the source c the velocity of light in vacuum Simultaneously, HUBBLE discovered that the apparent recession velocity of cosmic radiation sources increases proportionally to their distance r from Earth: v = H x r (4), H means the famous HUBBLE-constant currently estimated at about 70 km/s per megaparsec or per 3. 6 million light-years. Hubble’s theory led the current view that the universe has formed from a gigantic explosion called â€Å" the Big Bang†, which spontaneously arose from a tiny volume of matter at unimaginably high temperature followed up by adiabatic expansion and the condensation of matter while cooling down. Apparently, this expansion process is still going on today. Following HUBBLE? s law (4), the escape velocity of an extremely distant galaxy might gain ultimately the velocity of light in vacuum, meaning its redshift ratio would theoretically equal unity. Physically of course, this is impossible nevertheless redshift ratios of z=5 and even z=7 have been measured in recent years showing supernova explosions, which apparently occurred further away from Earth than the age of the Universe postulated at about 14 billion light-years. In addition, as well known, various other inconsistencies weigh upon the Big Bang theory and many a scientist therefore questions this view. The new theory (methods used and result): The new theory uses the concepts from the â€Å"quantum electrodynamics†. He (Richard Feynman) explained the quantum mechanics of the linear propagation of photons. He showed that from the countless number of radiations that are emitted from the source only those are really effective which reach the source (cover the distance b/w them) via straight line and in close company i. e. when they cover the distance in the shortest possible time. All other dispersed photons take larger time to reach to the receiver and hence are ineffective. He said that the straight stream of photons emitted from the distant source to the Earth will meet/collide innumerous bodies (such as stars, galaxies, planets, comets, meteorites, grains, etc. hich are swirling around in the universe with a typical speed of few hundreds kilometers per second) through which the photons can not pass. When those bodies cross a straight ray of light, this ray will be interrupted shortly and all photons dropping onto the bodies will be removed from the stream independently of their individual energy or frequency. After many such interruptions only the few remaining photons will reach the Earth and the frequency of these radiations arriving on the Earth exhibit lower frequencies because the dispersed photons did not rech in time to the earth. Thus the frequency shifts towards the red end of the visible region (spectrum). As the number of interruptions depend (directly proportional) on the distance between the source and the destination, the redshift ration is also directly proportional to the distance between the source and the receiver ( Earth ). Thus this theory confirms the Hubble’s discovery that the redshift ratio depends upon the distance. HUBBLE? s law still implies another connection. When replacing in equation (4) the recession velocity v by the product z x c, i. e. y a fraction of the ultimate velocity of light, an interesting correlation arises: z = H/c x r (5). The constant factor H/c can be regarded as a modified HUBBLE-constant, which amounts to 0. 00023 per megaparsec or 0. 00007 per million light-years. This modified HUBBLE-constant signifies the loss of photons suffered by a beam of light, which has traveled one million light-years through the Universe. It is a very small loss of photons in fact ov er such big distance, confirming our experience that the Universe is largely empty of solid matter. The reciprocal of the modified HUBBLE-constant i. e. 1/0. 00007 gives 14 billion light-years, in accordance with the postulated age of our Universe following the conventional theory. However, the meaning is different. It shows namely that ordinary starlight cannot propagate further through the Universe than 14 billion lightyears. All photons grouped in a straight light beam from a remote source to the Earth would have got lost due to the absorption effect of celestial matter. Usually, we cannot look deeper into the Universe than this distance, corresponding theoretically to a redshift ratio of unity. However, what about those bigger redshift ratios of z=5 or even z=7, which have been observed in recent time? We know from nuclear physics that energetic radiation penetrating through a shielding medium will be absorbed according to the general correlation, E = Eo x e^ µ(gama) (6), E means the radiation energy behind the shield, Eo the energy of emission at the source, the absorption coefficient of the shielding medium and r the traveling distance through the medium. In the present case, it makes sense to take the modified HUBBLE-constant H/c as a cosmic photon absorption coefficient and r as traveling distance of a stream of photons through the Universe. The energy of photons emitted by a heat source corresponds to the well-known correlation, E = kxT (7), T: the surface temperature of the source k: is the BOLTZMANN-constant On the other hand, the photon energy corresponds to PLANCKs equation, E = h x n (8), h is the PLANCK-constant and n the frequency of the photons. From equations (6), (7), and (8) follow the correlations, n/no = T/To and E / Eo = e-H/c . r (9). Referring to the previous equations (1) and (2), one finds that the cosmic redshift ratio equals z = e H/c . r – 1 (10). The distance of a cosmic radiation source therefore can be estimated from its redshift ratio according to r = 1 / H/c x ln (z + 1) (11), with H/c = 0. 00007 per million light-year. For a redshift ratio of z=1, for instance, one finds 9. 9 billion light-years, and for z=5 a cosmic distance of 25. 6 billion light-years. Conclusion: -According to this new theory more accurate age of universe can be calculated -In contrast to the traditional redshift theory, the present new physics of cosmic redshift doesn’t show any upper limit of ‘z’ or any restricted age of our Universe respectively. Referring to the aforementioned equations, the cosmic redshift ratio also equals, z = To/T – 1 (12), i. e. it is proportional to the ratio of the surface temperature of a cosmic radiation source To and its apparent temperature T observed on Earth. The light rays from a remote cluster of galaxies at an average surface temperature of about 5800 °K as our sun would show the apparent temperature of 970 °K (700 °C) on Earth, when arriving from a cosmic distance of z=5 or 25. 6 billion light-years. This cluster, of which most of the photons got lost on the way to Earth, would be invisible to ordinary optical telescopes. However, cosmic radiation sources of much higher surface temperatures or bigger emission energy like supernova explosions would still be visible over such extraordinary distances, which largely exceed the age of our Universe as postulated from the big-bang hypothesis. taken from the paper itself) -In contrast to the conventional theory of cosmic redshift, the present new physics does not present any difficulty to explain those observations. In addition, this physics still offers another interesting conclusion.

Essay on Corporate Governance for Australian Organizations

Executive Summary The main objective of this paper is to explore the major significance of corporate governance in an organization. In order to explain the central idea of corporate governance, a public listed company of Australia has been selected. In this paper, HIH collapse will be discussed along with its corporate governance framework and failure. This report will clearly explain the significance of effective corporate governance in HIH Insurance. Table of Contents Executive Summary. 2 Introduction. 4 Importance of Corporate Governance. 4 Principles of Corporate Governance. 5 Corporate Governance Failure of HIH Insurance. 6 HIH Collapse. 7 Corporate Governance Failure in HIH Insurance Limited. 9 Conclusion and Recommendations. 12 References. 13 Introduction Business risk management includes various activities including corporate governance. Corporate governance basically supports the organization in meeting its objective of maximization of the shareholders wealth. Failure of corporate governance has leaded many organizations towards bankruptcy as well as affected the shareholders and concerned community. Global concern regarding corporate governance is increasing due to collapse of gigantic public listed companies. In 21st century, one of the biggest corporate failures in Australian market is collapse of HIH Insurance Limited. It has been identified that the organization has been over-optimistic in evaluating the assets. In contrast, the liabilities of the organization were extensively underestimated. HIH Insurance was liquidated in 2001 which leaded to substantial loss for the shareholders, policy holders and creditors of the organization. The major reason for the collapse of HIH insurance is the corporate governance of failure in term s of managing the risk of the organization. The entire corporate world can learn a lesson from the incident of HIH and focus on improving the corporate governance. In this paper, severity of the corporate governance is discussed in context of HIH Insurance Limited collapse (Hih.com.au, 2014). Importance of Corporate Governance Corporate governance is a system of an organization which is responsible for directing and controlling the corporate activities of the organization. Corporate governance distributes the responsibilities and authority among different individual, committee or bodies of the organization. It also designates the rules and process for making decision regarding corporate affairs. According to Fama and Jensen, Corporate governance can be described as the control over the entire operations of an organization. In other words, corporate governance is a framework of the principles and systems which guides, manages and controls the operations of an organization. The objective of corporate governance is to provide a mechanism that assists the stakeholders in exerting control over the management and organization so that their interest is catered. Effective corporate governance aims to achieve the corporate objective by enhancing the performance, improving the financial management and maintaining in tegrity of an organization. Over the past few decades corporate governance issues have received extensive attention in the public policy debates. Corporate governance is receiving greater importance as it has significant impact on the economic performance of the organization. An organization having superior quality corporate governance will assist the organization in having easy access to the capital market. The major components of corporate governance in an organization are the Board of Directors, Corporate Governance Committee, Legal framework, Organizational regulations, Business Policy, Ethical codes, Transparency and disclosure, Effective management of risk, Monitoring and Communication. Internal audit is an important tool that helps in carrying out all the corporate governance activities efficiently (Kim and Nofsinger, 2007). Principles of Corporate Governance The concept of corporate governance revolves around some basic principles. Corporate governance principles are discussed below: Every organization must respect the rights of the shareholders and enable the shareholders to exercise their rights. This requires effective communication of information which can be facilitated by motivating the shareholders to take part in the general meetings of the company. Every organization must recognize the obligations to its stakeholders (government, local community, suppliers, investor, society, employee etc) and design its business activities accordingly (Monks and Minow, 2004). The corporate governance board members must have relevant skills and knowledge about the procedure. They must understand and review various challenges regarding corporate governance. Moreover, the boards must be adequate and it has suitable level of independence as well as commitment. It is the responsibility of the organization to develop an appropriate code of conduct for its board of directors as well as executives which will be an aid in promoting the ethical decision making process in the organization. Maintenance of integrity must be basic criteria for appointing the executives and board members for corporate governance. The board of the organization is accountable to the stakeholders for its activities. It is the responsibility of the organization is to disclose and clarify the roe of the corporate governance board and management in maintaining integrity of the organization. Procedure must be adopted which will support the verification of integrity of the financial reports of the organization. All relevant information must be communicated to the investors to have a lucid and transparent idea about the activities of the business (Mallin, 2004). Corporate Governance Failure of HIH Insurance HIH Insurance Limited was one of the largest publicly listed companies in Australia. It used operate in various countries and was the second largest insurance companies of Australia. The organization was founded in 1968 and it acquired some other insurance companies. The organization has expanded and diversified globally. HIH was listed on Australian Stock Exchange (ASX). In 2001, HIH was liquidated as it failed to pay back its debt obligation. The estimated loss was 5.3 billion dollar (Austlii.edu.au, 2014). HIH Collapse The major cause of HIH collapse is failure in corporate governance. If the case is analyzed from the financial perspective it can be observed that the company encountered liquidation position as HIH Insurance was incapable of paying the claims to the policy holders. Moreover, it also failed to meet other debt obligations. The inefficient financial management of the organization has leaded to the poor cash position of HIH Insurance. This allegation against the second largest insurance of Australia is universally accepted. In order to manage the operational activities of an organization, each company needs to maintain enough cash balance. At the beginning and end of each operating cycle the company can maintain required level of cash by generating more revenue and managing it effectively. The cash position of an organization reflects the operating policy, financial policy and business activities of the organization. Moreover, there are some long term non cash transactions which influen ce the cash position of an organization. Hence, in order to identify the reason of collapse emphasis must be given on operational as well as financial activities of the organization. The insurance industry has to deal with enormous risk and every organization has high risk in terms of going concern issue. Risk in insurance industry can be mitigated by adopting appropriate strategies regarding risk pricing, investment decision and provision for outstanding claim. The risk pricing ability of an insurer can be represented by the underwriting performance of the organization. According to the investigation report presented by Royal Commission, in 1997 HIH Insurance Company had incurred underwriting loss of 33.8 million dollar. The net earnings of the company in 1997 were 1233.5 million dollars. Again the underwriting loss was estimated for 1999 and 2000. In 2000, the underwriting loss of HIH Insurance was estimated to be 103.5 million dollar for the net revenue of 1995.4 million dollar. It was observed than within the two years period (from 1997 to 1990), the estimated underwriting loss was doubled with the rise in earnings by 25%. The major reasons behind the incurre d loss are outstanding provision fro claim, recovery of reinsurance and underwriting expenditures. According to the investigation report presented by the Royal Commission, CEO of HIH Insurance Limited did not acknowledge the requirement for prudential margin. Consequently, the company had adopted as well as implemented an under-reserve policy with respect to the expected future claims. If the organization followed the regulatory Australian Prudential Regulation Authority (APRA) for setting the prudential margin, the underwriting performance of HIH Insurance would have decline which would reflect the real situation of the organization. It is frequently observed that a general insurer makes loss on the underwriting in a certain period of time. But, in case of HIH Insurance it is observed that the company is continuously encountering losses on underwriting for successive periods. Hence, it can be concluded that HIH experienced this situation due to continuous deterioration in operational activities (Findlaw.com.au, 2014). One of the most significant activities of an insurance company is managing investment activities. Money collected from the shareholders, policy holders and creditors need be invested in suitable funds so that the return is maximized. Thus the underwriting loss can be recovered by the high return achieved from investment. If the organization fails to manage its investment activities effectively it will generate negative return from investment. HIH Insurance had encountered significant loss in terms of investment. These are the major reasons for collapse of HIH Insurance apart from corporate governance issue. Corporate Governance Failure in HIH Insurance Limited One of the principle reasons for bankruptcy of HIH Insurance Limited is flawed corporate governance practice. According to Agency theory, agency cost can lead to bankruptcy of an organization. Hence, financial theories suggest that equilibrium must be maintained between the debtors and stockholders of the organization. In order to maintain the equilibrium effective corporate governance practice is considered to be an effective tool. In contrast, failure in corporate governance will lead to agency problem which is the major reason for collapse of an organization. In the annual report of HIH Insurance it had established a model for corporate governance which apparently seems to be effective for an organization. The corporate governance model outlined in the annual report of 2000 complies with the guidelines mentioned by Australian Securities Exchange (ASX). In the board level of HIH Insurance there are four major committees. Audit Committee: Audit Committee of HIH Insurance is responsible for considering the significant issues regarding the financial affairs through monitoring compliance of accounting policy, internal audit issues etc. Human Resource Committee: The Human Resource Committee of HIH Insurance was developed for reviewing the remunerations of senior executives, issues regarding the formation of board, issues related to organizational structures, development plans for employees etc. Reinsurance Committee: The responsibility of the reinsurance committee is to review the scope as well as character of the Group reinsurance policies. Investment Committee: The major responsibilities of the investment committee are consideration as well as formulation of Group asset allocation. Moreover, it determines the guidelines of investments and responsible for and reviewing the internal as well as external fund performance. According to the investigation report disclosed by Royal Commission, HIH Insurance had lot of flawed practice in Corporate Governance which leaded to major financial break down of the organization. The identified flaws regarding corporate governance are discussed below: In HIH Insurance management did not allowed the non-executive directors to work independently. There were five non-executive directors and among those two directors were former partner of an accounting firm. HIH Insurance paid them for auditing service as well as non-auditing service. Non-auditing service is the major reason for detracting the independence from the auditors and associated directors. The takeover of FAI is considered to be a major reason of failure of HIH Insurance Limited. HIH had to pay large cost for acquiring FAI. The investment committee failed to evaluate the consequence of this acquisition. The member of investment committee Rodney Stephen Alder is suspected as he could have been paid due diligence. In 2000, in order to insure the directors and executives, an entity used to pay the insurance premiums. It was recorded as liabilities but the amount and nature of the liability as not disclosed by the company. Lack of transparency leaded to corporate governance failure. Due to lack of independence of the directors, they fail to perform their job role effectively. Consequently, the corporate governance practice in HIH Insurance represented some kinked characteristics. Scarcity of clear definition and clarity of the guidelines, policies etc, lack of independence of non-executive directors and it leaded to no critical analysis of the proposals suggested by management. Thus, the corporate governance failed to identify and solve the conflict of interest in HIH Insurance Limited. Excessive dominance of the CEO, Ray Williams leaded to corporate governance failure in the organization. Due to his excellent performance and credibility he had won respect from everybody in the organization. The high ranking of the organization made him overconfident and he did not considered the interest of the shareholders. The board of directors also encouraged him to run the organization depending on the free will of Ray Williams. The existence of a dominant CEO in HIH insurance was a major reason for failure of the corporate governance. The company gradually shifted its focus from the interest of the stakeholders to their own corporate benefits. Corporate governance is an effective model for managing the risk of an organization. In case of an insurance corporation, risk management plays a vital role. The investment committee failed to perform effectively which can be reflected in three massive investment failures. It can be understood that risk management of HIH Insurance organization was not well shaped. According to Justice Neville Owen, directors were not serious while analyzing various strategies. Moreover, the investment decisions and risk were not evaluated properly. Accounting system plays a significant role in corporate governance model. In HIH Insurance Limited, the non-executive directors did not have sufficient access to the relevant information. Thus the activities for fulfilling the corporate governance standard I compromised by the non executive directors. Hence, they have to rely on the accounting system organized by the management of HIH Insurance which incorporates huge risk. As the non executive directors do not have the independent resources for information they fail to meet their responsibilities (Jiangbo, 2005). The above stated reasons are considered as the principle reason for corporate governance failure in HIH Insurance Limited. Conclusion and Recommendations From the above discussions it can be concluded that corporate governance plays a significant role in achieving the organizational goals. The failure in corporate governance had leaded to HIH collapse. Few recommendations can be made for building effective corporate governance model in Australian organizations: Every organization must lay strong foundation for managing organizational activities and oversight. The corporate governance board must be structured in such a way so that it can add value to the organization. The board must consist of more number of independent directors. Organizations must provide all relevant information to the board. Moreover, the procedure adopted for evaluating the performance of corporate governance board. Ethical, rational and responsible decisions must be made. Every corporation must have an organized approach for verifying and safeguarding the integrity of the financial reporting independently. Regular and balanced disclosure of material matters is required by the company. The rights of the shareholders must be respected. Risk management must be effective by recognizing risk properly and with the aid of internal control. The remuneration offered by a company must be fair and reasonable (www.asx.com.au, 2011). References Austlii.edu.au, (2014).Adams, Michael --- "Australian Corporate Governance: Lessons from HIH Insurance" Findlaw.com.au, (2014).The HIH legacy: Corporate governance and shareholder value. Hih.com.au, (2014).HIH Insurance - Home Page. Jiangbo, X. (2005). HIH Insurance Limited: Corporate Governance and Corporate Excesses. Kim, K. and Nofsinger, J. 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