Personal Blog #10: SOCIAL ENTERPRISE

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Topic: If the United Nations was fully funded why should we need the Arc or social enterprise?

Before 2012, Shega Shero Eatery in Ethiopia’s capital city faced a risk of being shut down due to the limitation of expansion and the increasing competition in the local eatery area. However, its revenue ascended tremendously afterwards, contributing to the help of Arc Initiative.

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Arc Initiative

What is Arc Initiative? Unlike the usual NGOs, Arc Initiative is a social enterprise set up by the Sauder School of Business whose main mission is to introduce solutions to local entrepreneurial business problems in African countries. Despite the fact that United Nations takes a vital part in the development of Africa, there are still improvements that can be done by social enterprises like Arc Initiative. As a huge international organization, United Nations mainly focus on human rights, humanitarian affairs and war conflicts, rather on entrepreneurial problems.

By contrast, social enterprises take the responsibility for resolving those problems by teaching the entrepreneurs in Africa to “fish” more than simply giving them “fish”. For instance, Arc Initiative inspired Ms. Tesfaye to expand her businesses–Shega Shero Eatery and Yana Sweet using the “strategy map tool she learned at the Arc workshop.” The effect was amazing as Ms. Tesfaye’s monthly income almost doubled after implementing the new approach. This case is just the tip of the iceberg. Social enterprises like Arc Initiative have already successfully given assistances to a great number of individual entrepreneurs in Africa.

Supposing that the United Nations has unlimited resources, Arc Initiative and other social enterprises are still needed in current society, for the reason that they pay more attention to individuals’  further sustainable development.

SocialEnterprise_graphic2

Endnotes:

1. Jeff, K. (2014, April 11). In a crowded market, entrepreneur finds a sweet way to stand out. Retrieved November 12, 2014, from <http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/in-a-crowded-market-ethiopian-entrepreneur-finds-a-sweet-way-to-stand-out/article17912688/>

Picture reference:  

Retrieved from <http://kiecocenterorg.ipage.com/demo22/2013/07/07/social-enterprise-economic-challenges-in-central-indiana-and-the-missing-middle/>

<https://www.linkedin.com/company/arc-initiative>

Article Reference:

Jeff, K. (2014, April 11). In a crowded market, entrepreneur finds a sweet way to stand out. Retrieved November 12, 2014, from <http://www.theglobeandmail.com/report-on-business/small-business/sb-growth/going-global/in-a-crowded-market-ethiopian-entrepreneur-finds-a-sweet-way-to-stand-out/article17912688/>

Read more:

United Nations’s official website: <http://www.un.org>

Definition of Social Enterprise: <http://en.wikipedia.org/wiki/Social_enterprise>

PERSONAL BLOG #9: Ford’s organizational culture

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Ford: Lower or maintain service level?

Ford Motors Company, as one of the leaders in motor vehicles, is known for its positive organizational culture. Although its stock is undergoing a depreciation now, the values it shares within the company used to enable it to maintain high levels of customer service and employee experience. As a matter of fact, in order to get its previous leading position back in automobile market, I would recommend Ford to emphasize the importance of its organizational culture to the public.

Personally, I especially appreciate one of Ford’s organizational culture: “the leadership team is encouraged to admit mistakes.”¹ It could greatly trigger employee’s respect to leaders, and thus trigger their loyalty to the company. But the question is that does organizational culture bring more benefits or more costs to Ford? This reminds me of the debate in yesterday’s lecture that related to Zappos Company. Zappos is a shoes retailer company that values organizational culture much. Many of my classmates considered that Zappos provided employees and customers with too much welfare, which will in turn decrease profit.

However, The Good Job Strategy suggests that it is possible to “offer the lowest prices to customers while ensuring good jobs for their employees and superior results for their investors.”² As organizational culture is not built in a day, its benefits will be observed in a long run as well. Therefore, instead of lowering service level, maintaining current service level and developing a “sustainable competitive strategy in which everyone-employees, customers, and investors“³ will be better choices for Ford.

Ford

Ford Motor Company

Endnotes:

1. Hellriegel, Don. “The Organization.” Organizational Behavior. 9.th ed. Cincinnati, Ohio: South-Western College Publ., 2001. Print.

2. “The Good Jobs Strategy.” Zeynep Ton. Web. 29 Oct. 2013. <http://zeynepton.com/book/>.

3. Refer to endnote 2.

Picture reference:  

Retrieved from <http://www.victoriapremiumauto.com/inventory/ford>

Article Reference:

Hellriegel, Don. “The Organization.” Organizational Behavior. 9.th ed. Cincinnati, Ohio: South-Western College Publ., 2001. Print.

“The Good Jobs Strategy.” Zeynep Ton. Web. 29 Oct. 2013. <http://zeynepton.com/book/>.

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Personal Blog #8: Comments on Stem Cell Beauty’s post –Alexis Wolfer “The Female Beauty MacGyver” – Interview + New Book

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Is It Hard to Be a Female Entrepreneur?

iHuxM6nGTIZx

Alexis Wolfer: Founder and editor-in-chief of TheBeautyBean.com

TheBeautyBean.com was an online women’s magazine that I accidentally came across when I was shopping online. It was surprising to notice that the founder of this website was also a female whose name is Alexis Wolfer. According to the blog of stemcellbeauty.com, Wolfer had the prototype of today’s company as early as she was in graduate school, and it becomes “the business model for the Beauty Bean”¹ now. After reading through the blog, my interest in entrepreneurship was triggered.

Recently, we have many alumni guests coming to the lecture. As the matter of fact, they are all Sauder alumni, so their successes become more genuine. Both Alexis Wolfer and the alumni share a common characteristic that they believe in their ideas and have the desire to make them into products. Like what Amielle Lake said in alumni lecture, to be an entrepreneur, “your job is to sell the dream.” To tell the truth, I have never thought about being an entrepreneur before, as I believe it is extremely complex to set up a new business. However, after getting to know how Alexis Wolfer succeeded from this blog, I began to consider this option. Maybe I will be able to share my entrepreneurship experience someday as well. Who knows?

Endnotes: 1. The Blog of StemCellBeauty.com. (2014, September 9). Retrieved November 5, 2014, from http://blog.stemcellbeauty.com/alexis-wolfer-the-female-beauty-macgyver-interview-new-book/

Picture reference:   Retrieved from <http://www.stylebistro.com/You+Complete+Me/articles/ZNpvohZ0mpU/Complete+ Alexis+Wolfer+Multi+Purpose+Mixture>

Article Reference: 

The Blog of StemCellBeauty.com. (2014, September 9). Retrieved November 5, 2014, from http://blog.stemcellbeauty.com/alexis-wolfer-the-female-beauty-macgyver-interview-new-book/
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Personal Blog #7: Respond to Dibleen Grewal’s post of “Jell-O Aims To Make Comeback”

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Why did Jell-O’s previous campaign fail?

Can-I-give-my-baby-Jell-o

Jell-O

Dibleen Grewal’s post on “Jell-O” drew my attention when I was reading through classmates’ blogs. Grewal put his own experience related to the product in the post, which I think is the major reason I choose to comment on. However, his arguments and analysis are reasonable and explicit as well. I agree with him that the company should focus more on the customer segment of family, and increase marketing campaign meanwhile for their future development.

Jell-O is currently experiencing a tumbling sale due to its wrong target market. Kraft Foods, which owns Jell-O, in order to solve this crisis, announced that it will change its recent “adult-targeted approach”¹ back to the previous “family-targeted approach“¹. Basically, I believe the failure to identify its customer segment contributed to the defectiveness of its business model. Especially the part of customer segment, which is the heart of the whole business canvas. It is the company’s duty to define which segments to serve and then implement proper campaign.

As a consequence, since Kraft Foods recognizes Jell-O’s most suitable customer segment, it needs to alter its marketing campaign fitting to the new target group. If the company successfully attracts their previous family-based customers back, as what Dibleen Grewal expects in his post, Jell-O will “get back to being a solid competitor in the snacks sector.”²

Endnotes:

1. E.J., S. (2013, August 12). Kraft Launches New Campaign to Revive Jell-O | News – Advertising Age. Retrieved November 2, 2014, from <http://adage.com/article/news/kraft-launches-campaign-revive-jell-o/243616/>

2. Dibleen, G. (2014, October 5). Dibleen Grewal’s Blog. Retrieved November 2, 2014, from <https://blogs.ubc.ca/dibleengrewal/2014/10/05/jell-o-aims-to-make-comeback/>

Picture reference:  

Retrieved from <http://canigivemybaby.com/jell-o/>

Article Reference:

Dibleen, G. (2014, October 5). Dibleen Grewal’s Blog. Retrieved November 2, 2014, from <https://blogs.ubc.ca/dibleengrewal/2014/10/05/jell-o-aims-to-make-comeback/>

E.J., S. (2013, August 12). Kraft Launches New Campaign to Revive Jell-O | News – Advertising Age. Retrieved November 2, 2014, from <http://adage.com/article/news/kraft-launches-campaign-revive-jell-o/243616/>

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Personal Blog #6: Respond to Nezika Mulyadi’s post of “New Opportunity or a Wrong Decision?”

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Respond to Nezika Mulyadi’s post of “New Opportunity or a Wrong Decision?” 

aab3238922bcc25a6f606eb525ffdc56-what-to-expect-from-apples-iwatch

iWatch

A recent blog post from my classmate Nezika Mulyadi discussed the upcoming product “iWatch” introduced by Apple Inc. According to the press conference in September 2014, iWatch “won’t be available until early 2015.”¹ Even though society still has to wait for at least one year, iWatch has already become a heated topic. Based on Mulyadi’s post, she has a optimistic attitude towards the prospect of iWatch, which I share the same.

The value proposition of iWatch has become a vital factor to decide whether this product is a new opportunity or wrong decision. Nevertheless, according to the information I obtained online, I believe iWatch is demonstrating a competitive value proposition currently. To begin with, the existed Apple products have provided iWatch with a high perception in consumers’ mind. Hence, consumers trust iWatch will be a “gain creator” which fulfills the needs they want, and maybe even beyond their expectations. More importantly, iWatch presents powerful “points of difference“. Unlike other high-end watch companies (especially those in Switzerland), Apple designs iWatch to be a product that combined with both traditional appearance and state-of-the-art technology. The product is no longer just “a wrist-worn timekeeping device.”²

After analyzing the product from the aspect of “value proposition”, iWatch seems more likely to be a new opportunity to Apple. However, even Apple can not guarantee each of its product will be a hot item, for the reason that plans can’t catch up changes forever.

Endnotes:

1. Shara, T. (2014, September 7). Big-screen iPhones, iWatch start the clock on Apple’s ‘amazing’ product spree – CNET. Retrieved November 2, 2014, from <http://www.cnet.com/news/big-faced-iphones-iwatch-start-the-clock-on-apples-amazing-product-spree/>

2. Horace, D. (2014, October 31). Measuring the Apple Watch opportunity. Retrieved November 2, 2014, from <http://www.asymco.com/2014/10/31/measuring-the-apple-watch-opportunity/>

Picture reference:  

Retrieved from <http://www.bidnessetc.com/25169-what-to-expect-from-apples-iwatch/>

Article Reference:

Horace, D. (2014, October 31). Measuring the Apple Watch opportunity. Retrieved November 2, 2014, from <http://www.asymco.com/2014/10/31/measuring-the-apple-watch-opportunity/>

Shara, T. (2014, September 7). Big-screen iPhones, iWatch start the clock on Apple’s ‘amazing’ product spree – CNET. Retrieved November 2, 2014, from <http://www.cnet.com/news/big-faced-iphones-iwatch-start-the-clock-on-apples-amazing-product-spree/>

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Personal Blog #5: Aboriginal Title Rights VS. Gold-Copper Project

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Aboriginal Title Rights VS. Gold-Copper Project

Fishlake

Protesting of the Tsilhqot’in people

New Prosperity is an undeveloped project of Taseko Mines Ltd, which will provide a massive production of copper and gold. However, it has been continuously challenged by the Tsilhqot’in people, claiming “hunting, fishing, and trapping rights in the area” and now “folded the mine site into the tribal park boundary.”¹ In my perspective, this opposition affected Taseko negatively not only by political factors, but also by social factors regarding to PEST analysis.

Due to the first nation’s consistent appeals, the government paid much attention on this long-running battle. Since 2010, the project had already been “rejected twice by the federal government” concerning of damage to “fish and fish habitat.”² This regulation caused the company could not put its plans into effect and start the operation of the project. If the project is still prohibited in the future, Taseko will probably consider abandoning this project no matter how much effort it had put in before.

The social influence from Tsilhqot’in community members and supporters cannot be neglected as well. On December 13, 2014, a gathering protested “New Prosperity Mine outside of Taseko Mines Ltd.’s Vancouver office.”³ The crowd included not only the aboriginal people, but also their supporters who were persuaded by the Tsilhqot’in. With the number of opponents increases, the project will less likely be approved by the federal government and the company will have a notorious reputation. As a consequence, I would suggest that the business environment of Taseko Mines Ltd will be worse in its future development.

 

Endnotes: 

1. Larry, Pynn. “Tsilhqot’in Set to Declare Site of New Prosperity Mine a Tribal Park.”www.vancouversun.com. Larry Pynn, 11 Sept. 2014. Web. 7 Oct. 2014. <http://www.vancouversun.com/news/metro/Unilateral park declared Tsilhqot includes Prosperity mine/10192766/story.html>.

2. Refer to endnote 1.

3. Monica, Lamb. “Tsilhqot’in and Supporters Protest New Prosperity Mine – Williams Lake Tribune.” Williams Lake Tribune. Monica Lamb, 18 Dec. 2013. Web. 7 Oct. 2014. <http://www.wltribune.com/news/236412091.html>.

Picture reference:  

Retrieved from <http://www.radicalpress.com/?p=3258>.

Article Reference:

Larry, Pynn. “Tsilhqot’in Set to Declare Site of New Prosperity Mine a Tribal Park.”www.vancouversun.com. Larry Pynn, 11 Sept. 2014. Web. 7 Oct. 2014. <http://www.vancouversun.com/news/metro/Unilateral park declared Tsilhqot includes Prosperity mine/10192766/story.html>.

Monica, Lamb. “Tsilhqot’in and Supporters Protest New Prosperity Mine – Williams Lake Tribune.” Williams Lake Tribune. Monica Lamb, 18 Dec. 2013. Web. 7 Oct. 2014. <http://www.wltribune.com/news/236412091.html>.

“Understanding Pest Analysis with Definitions and Examples.” PESTLE Analysis. 31 Dec. 2013. Web. 7 Oct. 2014. <http://pestleanalysis.com/pest-analysis/>.

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Personal Blog #4: A Battle between Netflix and Verizon

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A Battle between Netflix and Verizon

by Daniel Kirschenbaum

Netflix and Verizon

Since early this year, Netflix have started a war of words with its Internet service providers (ISPs)- Verizon. Due to poor video streaming speeds, Netflix blamed Verizon for its “congested network and failing to provide the consistent bandwidth for Netflix customers.”¹ As a response, Verizon claimed there was “no congestion on its own network”, but blamed Netflix that it had “limited choice of transit providers.”²

As a layman of digital technology, I was unable to judge which one of them should be responsible for the stuttering streaming speed. However, from the perspective of mutual benefit and sustainable development, it was apparent to say neither of them was acting as a friendly partner. Although both Netflix and Verizon agreed that there occurred an Internet traffic problem, they disagreed on who is to blame and therefore induced a public controversy. This lasting word war not only affected their partnerships negatively, but also could not solve the problem efficiently. A good partnership should based on harmonious communication and genuine reliance.

To optimize their business relationship, I tend to recommend that Netflix and Verizon should figure out the solution for the problem together, rather than pushing responsibility back and forth towards each other. Therefore, there will be a “win-win-win situation for content providers, telcos and end users” at the same time.³

 

Endnotes:

1. Dror, Gill. “Netflix Vs. Verizon Vs. Consumer: Who Wins? | TechCrunch.” TechCrunch. Gill Dror, 6 Sept. 2014. Web. 1 Oct. 2014. <http://techcrunch.com/2014/09/06/netflix-vs-verizon-vs-consumer-can-everyone-win/>.

2. Refer to endnote 1.

3. Lan, Paul. “Verizon and Netflix Continue Battle over Slow, Stuttering Streaming Speeds.”TechHive. Lan Paul, 11 July 2014. Web. 1 Oct. 2014. <http://www.techhive.com/article/2452751/verizon-and-netflix-continue-battle-over-slow-stuttering-streaming-speeds.html>.

Picture reference:  

Retrieved from <http://www.flashrouters.com/blog/?attachment_id=8511>.

Article Reference:

Dror, Gill. “Netflix Vs. Verizon Vs. Consumer: Who Wins? | TechCrunch.” TechCrunch. Gill Dror, 6 Sept. 2014. Web. 1 Oct. 2014. <http://techcrunch.com/2014/09/06/netflix-vs-verizon-vs-consumer-can-everyone-win/>.

Lan, Paul. “Verizon and Netflix Continue Battle over Slow, Stuttering Streaming Speeds.”TechHive. Lan Paul, 11 July 2014. Web. 1 Oct. 2014. <http://www.techhive.com/article/2452751/verizon-and-netflix-continue-battle-over-slow-stuttering-streaming-speeds.html>.

Osterwalder, Alexander, and Yves Pigneur. “The Business Model Canvas.” Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: Wiley, 2010. Print.

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Personal Blog #3: Will Lululemon Disappear in 2015?

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Will Lululemon Disappear in 2015?

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A U.S. financial news website predicts the Lululemon brand will ‘disappear’ in 2015.

According to a U.S. website, Lululemon has made 24/7 Wall St’s list of “10 brands that will disappear in 2015.” This surprising prediction was affected by the threatening affair in February 2014, and the radical comment made by its founder in November 2013. I deemed the misfortune would probably happen as these two events resulted in the declining sales and falling value propositions.

In February 2014, it was reported that customers were being banned from Lululemon for “reselling products over the internet.”² The customers felt “shocked”, “victimized” and “humiliated” after receiving the threatening call. As loyal buyers, they supported this company with large effort because they loved the yoga culture of Lululemon. However, this event would greatly decrease their loyalty to this brand and then turn to another company. In my perspective, this behavior of Lululemon was not sensible because it did not solve the problem essentially, but lost a large number of loyal customers instead. 

The company failed to present its value propositions before in November 2013 as well. During the interview with Bloomberg TV, Lululemon founder Chip Wilson said “recently-reported problems with pilling” were “not necessarily a quality issue”, and he blamed “some women’s bodies just don’t work for it.”³ As a yoga-inspired athletic appeal company, it was Lululemon’s responsibility to provide customers with comfortable yoga clothes. However, after receiving the problem of its material, Lululemon did not search for solutions to the problem in order to see if it “[got] the job done” first. Instead, the founder turned to complaint about customers’ body shapes and thus caused the failure in value propositions.

 

Endnotes:

1. “Lululemon, BlackBerry on List of Brands ‘that Will Disappear in 2015′” CTVNews. CTVNews.ca Staff, 10 July 2014. Web. 30 Sept. 2014. <http://www.ctvnews.ca/business/lululemon-blackberry-on-list-of-brands-that-will-disappear-in-2015-1.1908720>.

2. “Lululemon Apologizes after Threatening to Ban Customers for Reselling Products Online.” CTVNews. CTVNews.ca Staff, 16 Feb. 2014. Web. 30 Sept. 2014. <http://www.ctvnews.ca/business/lululemon-apologizes-after-threatening-to-ban-customers-for-reselling-products-online-1.1689588>.

3. “Lululemon Founder Blames Women’s Bodies for Pants Problems.” CTVNews. CTV British Columbia, 6 Nov. 2013. Web. 30 Sept. 2014. <http://bc.ctvnews.ca/lululemon-founder-blames-women-s-bodies-for-pants-problems-1.1531351>.

Picture reference:  

Retrieved from <http://www.ctvnews.ca/business/lululemon-blackberry-on-list-of-brands-that-will-disappear-in-2015-1.1908720>.

Article Reference:

“Lululemon Apologizes after Threatening to Ban Customers for Reselling Products Online.” CTVNews. CTVNews.ca Staff, 16 Feb. 2014. Web. 30 Sept. 2014. <http://www.ctvnews.ca/business/lululemon-apologizes-after-threatening-to-ban-customers-for-reselling-products-online-1.1689588>.

“Lululemon, BlackBerry on List of Brands ‘that Will Disappear in 2015′” CTVNews. CTVNews.ca Staff, 10 July 2014. Web. 30 Sept. 2014. <http://www.ctvnews.ca/business/lululemon-blackberry-on-list-of-brands-that-will-disappear-in-2015-1.1908720>.

“Lululemon Founder Blames Women’s Bodies for Pants Problems.” CTVNews. CTV British Columbia, 6 Nov. 2013. Web. 30 Sept. 2014. <http://bc.ctvnews.ca/lululemon-founder-blames-women-s-bodies-for-pants-problems-1.1531351>.

Osterwalder, Alexander, and Yves Pigneur. “The Business Model Canvas.” Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: Wiley, 2010. Print.

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Personal Blog #2: Tesla in China

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Tesla in China

Tesla in China

Tesla started selling from March in 2014

As a leader in emerging electric car market, Tesla has already taken a place in the Western auto field. In China, by contrast, its selling rate was stuck, caused by the complicated car delivery process and a brand-name dispute. However, I believe Tesla will have a greater share in Chinese market if it enhances its strength in differentiation, and seizes the opportunity of increasing support from the Chinese government.

Due to Tesla’s relatively high pricing and differentiation-focused strategy, it is “considered by the Chinese to be a brand that rivals other automakers like BMW and Mercedes.”¹ The affluent in China, especially those who are pursuing better environmental standards, are willing to pay a high price for a unique and state-of-art automobile that can help to identify their status and attitudes towards life. And it turns out that Tesla perfectly fits their demand.

Since the economic revolution in China, China has been “the world’s largest auto market.”² With its awful smog problems, the demand of electronic cars and the awareness of improving environmental standards have increased. In July, “China’s State Council agreed to exempt electric cars from the 10 percent tax normally assessed on new auto.”³ Being one of the most successful electric auto companies, Tesla will definitely take the advantage of this action to further penetrate into the Chinese auto field that is occupied by mostly gasoline automobiles currently.

Despite the fact that Tesla is undergoing a slow development in China now, the strength it owns in differentiation and the support it gains from the Chinese government will provide Tesla with a brighter prospective.

 

Endnote:

1. Michael, Yoshikami. “Why Tesla Will Win in China.” CNBC. Michael Yoshikami, 1 May 2014. Web. 27 Sept. 2014. <http://www.cnbc.com/id/101634065#.>.

2. Einhorn, Bruce. “Tesla in China: Slow Sales Acceleration and a Brand-Name Dispute.”Bloomberg Business Week. Bloomberg, 7 Aug. 2014. Web. 27 Sept. 2014.<http://www.businessweek.com/articles/2014-08-07/tesla-in-china-starting-sales-slowly-winning-brand-name-dispute>.

3. Refer to endnote 1.

Picture reference:  

Retrieved from <http://stocksmarket.in/146552/2014/02/19/will-teslas-bet-on-china-pay-off/>.

Article Reference:

Einhorn, Bruce. “Tesla in China: Slow Sales Acceleration and a Brand-Name Dispute.”Bloomberg Business Week. Bloomberg, 7 Aug. 2014. Web. 27 Sept. 2014. <http://www.businessweek.com/articles/2014-08-07/tesla-in-china-starting-sales-slowly-winning-brand-name-dispute>.

Michael, Yoshikami. “Why Tesla Will Win in China.” CNBC. Michael Yoshikami, 1 May 2014. Web. 27 Sept. 2014. <http://www.cnbc.com/id/101634065#.>.

“Porter’s Generic Strategies.” Porter’s Generic Strategies. Web. 27 Sept. 2014. <http://www.quickmba.com/strategy/generic.shtml>.

“SWOT Analysis.” SWOT Analysis. Web. 27 Sept. 2014 <http://www.quickmba.com/strategy/swot/>.

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Personal Blog #1: A Business News Story with Business Ethics

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Ethics of Unpaid Internships

will work for free

Considering of ethics, the phenomenon of not paying interns with salary has become an issue. According to the Economist Newspaper, companies that “fail to pay are in growing danger of being taken to court.”¹ With the increasing awareness of personal right, the former unpaid interns now demand the companies pay their intern salary back. Nevertheless, in my own perspective, I tend to disagree with defining unpaid internships as illegal.

When an intern gets an internship offer from the company, it is clearly stated on the offer that the internship is unpaid. The offer will not go into effect unless the intern consents. Based on Milton Friedman’s concept —- companies that “engage in open and free competition without deception or fraud”² are defined as being social responsible, because the interns know they will not be paid in advance, and the companies do not force them to accept the offer, the unpaid internships should not be deemed as illegal.

Additionally, as the internships provide interns with experience and further development of their studies, the essence of internships is rather like practical lectures. Internships will shape intern’s future, and help them identify their values. However, during this process, the interns are far less effective than the regular employees, and they may even make huge mistakes that can affect the company negatively. It is not exaggerated to say that the interns are lucky for not having to pay the internships. As a result, it is not an ethical action for the interns who previously gained experience from the firms to take their “teachers” to the court.

Endnotes:

1. T.W. “Are Unpaid Internships Illegal?” The Economist. The Economist Newspaper, 9 Sept. 2014. Web. 10 Sept. 2014. <http://www.economist.com/blogs/economist-explains/2014/09/economist-explains-7>.

2. Zimmerli, Walther Ch. “The Social Responsibility of Business Is to Increase Its Profits.”Corporate Ethics and Corporate Governance. Berlin: Springer, 2007. Print.

Picture reference:  

Retrieved from <http://www.pikaland.com/2013/01/07/i-work-for-free-sometimes/>.

Article Reference:

T.W. “Are Unpaid Internships Illegal?” The Economist. The Economist Newspaper, 9 Sept. 2014. Web. 10 Sept. 2014. <http://www.economist.com/blogs/economist-explains/2014/09/economist-explains-7>.

Zimmerli, Walther Ch. “The Social Responsibility of Business Is to Increase Its Profits.”Corporate Ethics and Corporate Governance. Berlin: Springer, 2007. Print.


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