Stefan Topfer’s blog post on the effects of fraud provides an excellent understanding on the importance of fraud prevention. Main points from the post that I’d like to point out is how fraud is growing at an alarming 5%, how it takes a victim of fraud 500 days on average to realize that they are even a victim, and how most businesses are subject to CV misrepresentation from applicants.

This post relates to some concepts of financial accounting that we learned in class 9, particularly the ones related to Financial Statement Fraud and the Generally Accepted Accounting Principles. I took two accounting courses in high school and although the importance of following GAAP procedures in order to prevent fraud was highlighted when it was first taught, the rest of the course was entirely focused on learning accounting concepts themselves. In a way, it felt like GAAP was pushed to the side and that it was just something that we needed to memorize.

References:

http://sme-blog.com/business-advice-2/know-who-your-business-is-dealing-with

http://www.enlawyers.com/wp-content/uploads/2012/02/fraud.jpg

In Stella Choi’s blog about Yahoo adopting Microsoft’s heavily criticized method of firing employees through using a bell curve, an interesting insight is given on the different ways performance can be driven amongst the employees of a company. However, this bell curve has caused increased competitiveness, resulting in bitterness and suspicion between employees, which may ultimately decrease productivity.

Although it is necessary for a business to drop its poorly performing workers in order to stay profitable, Yahoo could do so using another method. For example, instead of grading and constantly reminding employees that they would be fired if they produced less satisfactory results compared to their colleagues, management could determine who to fire by simply observing who produces the worst results without the employees knowing. This way, without the pressure constantly pushing the employees, workers would be able to cooperate and take more risks.

This article can also relate to the concepts of business ethics that we learnt in class 3. Motivating employees for maximum performance through fear is not sustainable in the long term nor is it ethical towards the employees; it is crucial for a business to treat its employees well.

References:

https://blogs.ubc.ca/seokyungchoi/2013/11/17/yahoo-adopted-one-of-microsofts-worst-ideas-just-as-microsoft-killed-it-off/

http://watchurmouth.com/wp-content/uploads/2012/06/Fired.jpg

Alexander Cai’s blog on the development of oil fracking technology clearly portrays the uncertainties of environmental sustainability of this technology despite the benefits gained from using it. Although a company’s main goal is to maximize profits, I believe that the negative effects of using this technology to obtain outweigh the benefits. Oil fracking releases immense volumes of greenhouse gases into the atmosphere, as well as erode the landscape significantly, creating possible earthquakes.

Using this technology to extract oil has become extremely popular in developing countries as well. Because of the lower standards of living, firms tend to be more indifferent towards environmental sustainability as making a profit is of larger concern.

Although it is more profitable for a company in the short term to use oil fracking practices as it lowers costs significantly, companies need to be aware that it may be detrimental towards its profits in the long term. It is plausible that society will become increasingly aware of the environment as it continues to worsen and resources continue to to deplete, and the reputation of these companies will be affected.

References:

https://blogs.ubc.ca/alexandercai/2013/11/16/fracking-pros-and-cons/

http://motherboard-assets.s3.amazonaws.com/content-images/article/oil-companies-are-fracking-the-seabed-off-the-california-coast/dd1985635f12dfc31517961d52c23a17_vice_630x420.jpg

Every night, approximately 150 airplanes arrive at Memphis International Airport and depart before the sun comes up. These jets have no passengers nor seats, only cargo. With all these cargo planes coming through its airport moving 1.5 million packages overnight, Fedex-based Memphis is the world’s second busiest airport in terms of cargo volume. Nearby Louisville also has a similar industry as the airport alone accounts for a whopping 9% of employment in the city. Both Fedex and UPS have picked to locate their headquarters in these cities as a result of its geographic location – they’re central have a plethora of connections including rail lines, river ports, and interstate freeways.

Since a company’s main goal is to maximize profits, an immense number of firms have relocated their head offices to these shipping hubs in order to reduce massive costs. This way, companies will be able to add significantly shorter shipping times to its value proposition. Over 150 businesses, including online retailers, health care firms, and custom clothing companies have relocated to Louisville since 1993. With rapid growth in e-commerce and online shopping over the past few years, these cities will only continue create employment and grow as “aerotropolises”.

References:

http://www.economist.com/news/business/21588923-fedex-and-ups-have-turned-memphis-and-louisville-aerotropolises-cabin-fever

http://mig.s3.amazonaws.com/images/blog/memphis-airport.png

In October, activists in Switzerland acquired over 125 000 signatures, which is enough to initiate a referendum, on providing a monthly income of approximately $2 800 USD to every person regardless age and current wealth. Supporters of this proposal say that providing a monthly income would eliminate poverty almost entirely and release the entrepreneurial and creative qualities of the workforce; if people did not have to worry about putting food on the table at the end of the day, they would pursue careers and ideas that they actually enjoy rather than doing something just to survive.

8 million coins were poured in front of the Swiss parliament building, one for every citizen.

Personally, I partially agree with the fact that providing a monthly income to everyone would act as an incentive for creativity and ambition. However, for a country as large as Switzerland, there would be more people that would abuse this benefit by being lazy, as was the case with communism. Also, providing such a benefit to everybody would be unsustainable for the country unless the money spent on providing monthly incomes would generate enough returns through increased tax revenue as a result of the newly inspired entrepreneurial motivation, which is highly unlikely.

According to a report released by Deloitte Canada, our country’s tourism industry has been falling consistently throughout the past 13 years. As the global tourism industry continues to flourish as a result of the standard of living increasing steadily, Canada’s number of tourists has decreased by 20% since 2000, and the country is now the 18th most popular tourist destination, falling from 2nd place in 1970. Canada’s economy has taken a massive hit from this industry shrinkage, missing out on at least a potential $4 billion if the industry kept up with the growth of the US tourism industry.

It is speculated that this stunt in growth of the tourism industry was a result of the expensive Canadian dollar and increased competitiveness from rapidly developing countries. However, I have noticed recently that there has been a growing number of complaints regarding the rudeness of the customs officers. Also, Canada boasts one of the most expensive travel visas in the world – approximately $100. With the relative expensiveness of our currency, hotel rates are reaching prices of luxury accommodations in more exotic destinations in Europe and Asia. All these elements may be significant factors of why Canada may seem like just an overall less attractive tourist destination.

References:

http://www.theglobeandmail.com/report-on-business/economy/tourism-boom-misses-canada/article15429047/

http://www.businessreviewcanada.ca/money_matters/Canada%20-%20Alberta%20-%20Moraine%20Lake.jpg