Does Malaysia Need The Green Belt Concept Environmental Sciences Essay

Does Malaysia Need The Green Belt Concept Environmental Sciences Essay Malaysia is moving forward to be an industrialized economy. Malaysia moved from material production to manufacturing. The Malaysia manufacturing sector contributed 32% of the gross domestic product (GDP) in 2007, exports of manufactured products account for 75% of Malaysias total export in 2007. The manufacturing industries have become the economys main source of growth in recent years. According to the Third Industrial Masterplan (IMP3) 2006 2020, twelve industries in the manufacturing sector have been targeted for further development and promotion (Table 1). These industries are strategically important in contributing to the greater growth of the manufacturing sector, in terms of higher value-added, technology, exports, knowledge content, multiplier and spin-off effects and potential to be integrated regionally and globally. But, on the other side, the future target might also encourage environmental degradation if there is no comprehensive plan toward sustainable industrial development is taken into consideration. Table 1: Exports and Investments Targets for the 12 Targeted Manufacturing Industries Source: Ministry of International Trade and Industry Environmental protection through pollution prevention and the meeting of environmental standards by waste treatment of the effluents in the various industries have not worked in many countries. The problem of industrial environmental pollution is particularly serious in developing countries where the enforcement of environmental regulations is not strictly enforced. Malaysia can experience high chances of negative environmental impacts due to its efforts to boost the rapid industrialisation of its economy. Many aspects of the residential environment and living conditions of houses located near industrial areas potentially affected. Evidence shows that plants can reduce the pollution level. In develop country they have come out with a Greenbelt Plan to buffer the urban and industrial area from spreading its pollutants. A greenbelt is an area of land that is preserved for a non-urban land use. The term of greenbelts tend to share two features, an open landscape (green) and a linear shape (belt). All this while, greenbelt was not being strongly addressed on developing country due to its target on economic growth. Develop country like United Kingdom and Canada have come out with their own Greenbelt Plan. Greenbelts in the UK have had a profound effect on the landscape around urban areas, for the most part achieving their purposes of keeping the countryside open and preventing new development except for agriculture, forestry and recreation. The London Green Belt was created in response to the unchecked and sprawling growth that took place in that city during the 1920s and 1930s. 1.2 Issues and Problems Statement Rapid industrialization can have a detrimental effect on the environment which is related to several including resource use, water and air pollution as well as waste generation. The severity of these environmental consequences may vary, depending on the technologies used in the industrial production process and its organization. Malaysias rapid economic and industrial growth is characterized as a mixed-use urban areas development that incorporates residential industrial areas. These residential areas support the industry by providing them human resources. This growth produces both positive and negative impacts on housing development. The lack of usable arable land for urban development further results in some housing estates being nestled within industrial establishments as consequences to urban sprawl. Current status of green efforts in Malaysia is focusing on commanding and controlling the wastes occurring during the manufacturing stage of a product. In Malaysia, only big businesses have committed to voluntary initiatives towards green industrial development and this approach is yet to be accepted by SMEs (small and medium enterprise). Landscaping the industrial areas by the development of greenbelts is an effective way of mitigating industrial pollution.The effectiveness of green belts differs depending on location and operation. They are often being eroded by urban rural fringe use and sometimes, development encroached over the green belt area, resulting in the creation of satellite towns which, although separated from the city by green belt, function more like suburbs than independent communities. 1.3 Objectives of Study i) To clarify the importance of industrial greenbelt for economic growth whilst minimizing environmental degradation. ii) To identify the significant aspect that should be considered for green industrial development. iii) To give a recommendation for effective strategies of Greenbelts Plan for industrials area towards achieving sustainable industrial development. 1.4 Significance of Study Greenbelts in urban areas particularly in industrial are important to the ecological health of any given region. The various plants and trees in greenbelts serve as organic sponges for various forms of pollution, and as carbon sequestration to help offset global warming. On the other hand, industrial activities in urban areas have caused cities to maintain higher temperatures than their surrounding countryside and these phenomena is known as an urban heat island. Parks and greenbelts will reduce temperatures while the Central Business District (CBD), commercial areas, and even suburban housing tracts are areas of warmer temperatures. Greenbelts are also important to help urban dwellers feel more connected to nature. All cities should earmark certain areas for the development of greenbelts to bring life and colour to the concrete jungle and serving a healthy environment to the urbanities. The future risk from rapid expanding of industrial development should be investigate and must be seriously taken into consideration. Therefore, through the establishment of planned greenbelts it can helps in limiting urban sprawl. 2.0 EVOLUTION OF GREENBELT CONCEPT 2.1 History of Greenbelt Concept The idea of greenbelt was inspired by Sir Ebenezer Howard, a British social reformer, at the beginning of the twentieth century. Howard proposed Garden City which would not only be free of pollution but would also be antidote of polluted cities. The garden cities would be surrounded by a green backcloth of agricultural land providing local employment opportunities as well as open space for recreation. It was British architect and planner Raymond Unwin, a town designer and contemporary of Howards, who coined the term greenbelt (Ruth and William, 1994). In 1898 the concept was developed to tackle the problems associated with the planning of new towns located outside the periphery of London, which was then sprawling far into the countryside. The Garden City Concept is one out of many attempts to reduce and solve social problems during the Industrialization Period. The problems occurred, as more and more farmers became workers in the factories. The living conditions became worse, due to the fact that many workers settlements were located next to the industrial areas or within the cities. Figure 1 illustrates diagram of The Three Magnets where Howard analysed why people move to city or to the country side. Howards proposal emphasized the integration of the town, the country. He found out that both have advantages and function as magnets. He started with discussions of the optimum size for towns whereby a central city of 58,000 people surrounded by smaller garden cities of 30,000 people each (Figure 2). Green space or greenbelt and agricultural land will be as major component in the garden city whereby the permanent green space would separate the city and towns and serving as a horizontal fence of farmland. The requirement of the greenbelt or agricultural land for the Garden City in Howards view was 5,000 acres of the total 6,000 acres. Therefore, his solution was to develop a city structure which contains the advantages of a city and those of the countryside. The main objective of the concept is to found a new city. Figure 2: Ebenezer Howard, Garden City. Figure 1: Garden Cities of To-morrow; The Three Magnets, Ebenezer Howard, 1902 In the United States, Franklin Roosevelt tried to adapt Howards new town concept as part of its resettlement program. In the American concept of greenbelt, relatively wide band of rural land or open space surrounded a town or city. The term greenbelt meant, generally, any swath of open space separating or interrupting urban development. The designated land is controlled through regulation or public or quasi-public ownership (such as the Nature Conservancy) to retain its natural character and provide a resemblance of rural ambience in urban areas (Ruth and William, 1994). 2.2 A Greenbelt as a Development Plan Component A greenbelt is a policy and land use designation used in land use planning to retain areas of largely undeveloped, wild, or agricultural land surrounding or neighbouring urban areas. Similar concepts are greenways or green wedges which have a linear character and may run through an urban area instead of around it. In essence, a green belt is an invisible line encircling a certain area, preventing development of the area allowing wildlife to return and be established. The green belt policy was pioneered in the United Kingdom in the 1930s after pressure from the Campaign to Protect Rural England (CPRE) and various other organizations. There are fourteen green belt areas, in the UK covering 16,716 km ², or 13% of England, and 164 km ² of Scotland; In United Kingdom town planning, the green belt is a policy for controlling urban growth. The idea is for a ring of countryside where urbanisation will be resisted for the foreseeable future, maintaining an area where agriculture, forestry and outdoor leisure can be expected to prevail. The fundamental aim of green belt policy is to prevent urban sprawl by keeping land permanently open, and consequently the most important attribute of green belts is their openness. 2.2 Categories of Greenbelt A greenbelt principal purpose is to protect open space for natural, cultural, or scenic resources, to separate urban communities, to preserve and conserve natural resources and agriculture. Therefore, greenbelt can be categorized as below. Figure 3: Category of Greenbelt 2.2.1 Shelter Belts and Wind Breaks A shelterbelt is usually a barrier longer than a wind break and consists of a combination of shrubs and trees intended for the protection of field crops and the conservation of soil and water. A wind break is a barrier for protection from winds commonly associated with vegetable gardens and orchards. (Abbasi and Khan, 2000) The objectives of creating shelterbelts are: to protect agricultural land to shelter population in a city-from hot wind blast to arrest particulate matters as much as possible to shelter live-stock to control sand movement to provide healthy habitat 2.2.1 Forest Belts Forest belts is consists of protected natural forest. The objectives of preserving forest belts are: to protect watershed area to protect wildlife and its habitat to act as major carbon sequestration to preserve the exotic and indigenous species of forest vegetation to achieve environmental equilibrium with development 2.3 Greenbelt Encroachment by Urbanisation There is no doubt that human civilisation has had a negative impact on biodiversity and since the industrial revolution the negative impacts have only increased with processes such as over fishing and hunting, agriculture, the use of herbicides and pesticides and urban sprawl (Hunter, 2007). Rapid urban growth has led to the problems of urban sprawl, ribbon development, unregulated development, high cost for urban infrastructure, and pollution due to the inadequate disposal of urban and industrial waste. All such issues involve land. Land can be used for agriculture, forestry, grazing, industrial and urban uses, utility corridors, roads, waste disposal and recreation. With the increase of urban population, more and more green areas have to be converted into urban use. Large cities on the other hand need to have the land to spread out. Increase in population will put the pressure on land to serve a better accommodation and facilities for human needs. Industrial development will provide job for people, but in the same time it provides an opportunity to the developer to clear up the land for housing development. When there is housing development, other kind of development will follows, such as commercial retail areas and school. 3.0 THE GROWTH OF INDUSTRIAL ESTATE 3.1 Industrialization Evolution Ever since Industrial Revolution from late eighteen century, economic progress and development have been closely identified with industrialization. This thinking has continued to influence policy makers especially so in developing countries (Jomo, 1993). Since the early 1970s, it has been widely recognized that to ease the problems of poverty and mass unemployment encountered in developing countries, industrialization should play a key role in the economic growth of these nations. The types of industries deemed most suitable for promotion in developing countries are the small and medium-scale industries. These industries are generally less capital intensive than large-scale industries and hence are more spread out in terms of ownership. Establishment of small and medium-scale industries could thus lead to a more equitable distribution of income. Former studies on development of small-scale industries have concluded that an effective means of promoting the growth and dispersal of small and medium-scale industries is the provision of proper sites for the establishment of these enterprises. These sites should preferably be located in an industrial estate which is defined as a tract of land which is subdivided and developed according to a comprehensive plan for use of a community of industrial enterprises (Fong 1980). In other words, an industrial estate can also be known as an industrial park. An industrial park is defined as a large tract of land, sub-divided and developed for the use of several firms simultaneously, distinguished by its shareable infrastructure and close proximity of firms. Types and synonyms of industrial parks include industrial estates, industrial districts, export processing zones, industrial clusters, business parks, office parks, science and research parks, bio-technology parks and eco-industrial park (Peddle, 1993). 3.2 Industrial Estate Development in Malaysia Figure 4: Malaysias Industrial Development Phase (1867 1957) Export of agricultural products minerals (1957 1969) Import Substitution Industrialization Strategy (ISI) (1970 1980) Export Oriented Industrialization Strategy (EOI) (1981 1986) Import Substitution Industrialization Strategy (ISI) (1987 1996) Export Oriented Industrialization Strategy (EOI) (1997 2005) Recovery Period (EOI) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 (2006 beyond) EOI Phase 7 Malaysias industrial development can be classified into seven phases according to industrial strategies (Figure 4). The first phase was during the British colonial rule (1867-1957) which was largely limited to export of agricultural products and minerals mainly rubber and tin. The period immediately after independence (1957-1969) is the second phase largely dominated by the Import Substitution Industrialization strategy (ISI). Export Oriented Industrialization strategy (EOI) was introduced in 1970 until 1980, followed by the second round of ISI from 1981 up to 1986, an constitute the third and fourth phase respectively. The fifth phase marked the return to EOI in 1987 till 1996. The Asian crisis and the recovery period constitute another phase from 1997 up until 2005. The final phase was in 2006 and beyond where Malaysian economy hopes to move towards global competitiveness. In early 1970s it has been realized that rapid economic development in developing countries leads to an acute inequality in income distribution. To prevent massive dissatisfaction among their citizens, developing countries were urged to achieve economic growth (particularly industrial growth) with distribution of income as their development goal. Malaysia is one of the fastest growing economies in the world and in many ways a Third World success story. From a country dependent on agriculture and primary commodities in the sixties, Malaysia has today become an export driven economy spurred on by high technology, knowledge based and capital intensive industries. The establishment of industrial estates in the locations where such activities are desired became a good way of promoting growth and dispersal of industrial activities which can accelerate the economy of the country. Industrial estates are specific areas zoned for industrial activity where infrastructure (such as roads, power and other utility services) is provided to facilitate the growth of industries and to minimize the impacts on the environment. Industrial estates may include effluent treatment; solid and toxic waste collection, treatment, and disposal; air pollution and effluent monitoring; technical services on pollution prevention; quality management (quality assurance and control); and laboratory services. In the context of economic strategy, State Economic Development Corporations (SEDCs) were established by the various Malaysian states to stimulate industrialization through the development of industrial estates in the respective states. The industrial estates to be established by these SEDCs are envisaged to be in the form of improved tracts of land, with access roads and utility services. Industrial land so developed are leased out (usually for 99 years) to interested entrepreneurs. The lower rates are for industrial land developed in the rural areas, while the higher rates are for such land developed in the urban areas. Currently, Malaysia has over 200 industrial estates or parks occupying a total of 16,000 hectares and 13 Free Industrial Zones (FIZs) developed by government agencies, namely, the State Economic Development Corporations (SEDCs), Regional Development Authorities (RDAs), port authorities and municipalities throughout the country. New sites, fully equipped with infrastructure facilities such as roads, electricity and water supplies, and telecommunications, are continuously being developed by state governments as well as private developers to meet demand. Specialised parks have been developed in Malaysia to cater to the needs of specific industries. Examples of these parks are the Technology Park Malaysia in Bukit Jalil, Kuala Lumpur and the Kulim Hi-Tech Park in the northern state of Kedah which cater to technology-intensive industries and RD activities. 3.3 Environmental Impacts from the Industrial Estates The effects on the environment connected with industrial activities are mainly related to the production of industrial wastes either from its emission or effluent discharges. Figure 5 illustrates on the possible environmental impacts of industrial estates. POSSIBLE ENVIRONMENTAL IMPACT OF INDUSTRIAL ESTATES Spills Contaminated soil lost future land use Disposal of solid wastes Local nuisances such as noise, lighting transport Landscape disturbance Ozone depleting greenhouse gases Habitat degradation Air Pollution Freshwater Pollution Marine Pollution Risks from hazardous waste Exposure to toxic chemicals Figure 5: Possible environmental impacts of industrial estates Industrial development may always cause changes to the physical environment. Under natural condition, landuse changes can be absorbed by the physical environment through interactions of the various components to attain a dynamic equilibrium state. Rapid human disturbance will create imbalance to the environmental ecosystem as well as to human quality of life. There are a number of forms of industrial pollution. One of the most common is water pollution, caused by dumping of industrial waste into waterways, or improper containment of waste, which causes leakage into groundwater and waterways. Industries release pollutants which impact air quality that lead to photochemical smog, haze and acidification. Due to industrial discharges, and the indiscriminate disposal of raw materials, land pollution takes place. Both, air and water pollution will affected human beings, birds and aquatic life. Ozone depletion is another result of industrial pollution. Chemicals released by industries will affect the stratosphere, one of the atmospheric layers surrounding earth. The ozone layer in the stratosphere protects the earth from harmful ultraviolet radiation from the sun. The emission from industries will removes some of the ozone, causing holes; to open up in this layer and allowing the radiation to reach the earth. Ultraviolet radiation is known to cause skin cancer and has damaging effects on plants and wildlife. Activities in industrial estates also can cause noise pollution. Industrial noise refers to noise that is created in the factories which is jarring and unbearable. Sound becomes noise only it becomes unwanted and when it becomes more than that it is referred to as noise pollution. Heavy industries like shipbuilding and iron and steel have long been associated with Noise Induced Hearing Loss (NIHL). Continuous exposure to noise pollution leads to hearing impairment especially for people who are working in the industry and common people as well. It has been scientifically proved that noise more than 85 decibels can cause hearing impairment and does not meet the standards set for healthy working environment. 4.0 A RATIONALE FOR AN INDUSTRIAL GREENBELT 4.1 Current Status of Greenbelt Consideration in Industrial Estate As highlight in earlier chapter, current status of green efforts in Malaysia is focusing on commanding and controlling the wastes produce during the manufacturing stage of a product. Green efforts in Malaysia can be classified into four groups as follows: Broad Guiding Principles: Establishing common principles and statements of intent across subscribing organizations. Process Based Management Systems: ISO 14001 is a well known example of a process based environmental management system. Performance Based Systems: Public disclosure of industrial pollution programs is examples of voluntary programs with clear performance standards. Process-based Systems with Performance Elements: Establishing a hybrid system that combines a structured management system approach with specific performance requirements. Unfortunately, there is no specific guideline and regulation of creating and preserving greenbelt in developing industrial estates as many parties seen it as a secondly important factor. In Malaysia, Kulim Hi-Tech Park is the first in country that can be seen as well planned fully-integrated high technology park. Besides providing one of the best infrastructures, the Parks Masterplan also emphasizes on the quality of life within a self-contained township. Amenities incorporated in the plan include a shopping centre, a hospital, educational institutions and recreational facilities. But still, we are lacking in controlling the development over-exploitation the land resulting which can resulting environmental deterioration. 4.2 Pollution Status Caused by Industrial in Malaysia The two major environmental issues in Malaysia caused by industrial activities are atmospheric pollution and solid and hazardous wastes (Khidir and Suhaiza, 2009). 4.2.1 Atmospheric Pollution Atmospheric pollution has long been associated with the burning of fossil fuels, the resulting sulphur dioxide being a major atmospheric pollutant. Combustion of motor fuels causes an added influx of volatile organic compounds (VOC), coupled with carbon dioxide (CO2) and Nox, nitrous oxides. In Malaysia, local and transboundary emissions play very important roles in determining the status of the atmospheric environment (Hassan, Awang and Jaffar, 2006). The major pollutants observed are sulphur dioxide (SO2), nitrogen dioxide (NO2), carbon monoxide (CO), ozone (O3) and total suspended particulate matter, in particular PM10 (Hassan, Awang and Jaffar, 2006). Industries including power stations, motor vehicles and open burning activities remain the major sources of air pollution in the country. In 2008 a total of 22.971 industrial sources were identified to be subjected to Environmental Quality (Clean Air) Regulations, 1978. The breakdown of industrial sources by states is as shown in Figure 6. The highest number of stationary pollution sources was in Johor (8141:34%) followed by Selangor (4127:18%) and Perak (2956:12.9%). This is possibly due to the large industrial area in Johor and Selangor that contributed to the pollution. Besides that, both states have a rapid landuse development resulting to the environmental degradation. As to particulate matter, the highest contributor was industries (40%) followed by power stations (25%), motor vehicles (14%) and others (21%) (Figure 7). Source: *DOE, Environmental Quality Report 2008. Figure 6 : Industrial air pollution sources by state in Malaysia, 2008 Motor vehicles Power station Industrial Others 4,557 (14%) 7,784 (25%) 12,664 (40%) 6,667 (21%) Source: *DOE, Environmental Quality Report 2008. Figure 7: Particulate Matter (PM) emission load by sources (metric tonnes),2008 4.2.2 Solid and Hazardous Wastes Growing affluence and increasing concentration of population in urban areas have increased the generation and types of solid waste produced. Solid waste management is one of the most important issues of local authorities; where much money is spent in the collection and disposal of solid waste (Hassan et. al, 2000). Toxic and hazardous wastes are also one of the major issues in Malaysia. Currently, Malaysia produces about 10000 tonnes of waste every day, equal to 0.8 to 1.5 kg per capita (MGCC, 2006). According to Hassan, Awang and Jaffar, 2006, the amount of solid waste collected in Malaysia is 70 percent of waste generated The remaining 30 percent not collected ends up in illegal dumping sites, or is diverted at source or during collection for recycling purposes. The illegal dumping sites can cause leachate which possibly will contaminate the soil as well as the waterways. The recycling activities amount to only 5% of total waste generated. Manufacturing industry 6,830 (38.73%) Sewage treatment plants 9,524 (54.01%) Agro-based industry 491 (2.78%) Animal farm (Pig farm) 788 (4.48%)Solid, toxic and hazardous wastes become pollutants to the water. In 2008, 17,633 water pollution point sources were recorded. These comprise of sewage treatment plants (9,524:54.01%) inclusive 668 Network Pump Stations), manufacturing industries (6,830: 38.73%), animal farms (788:4.48%) and agro-based industries (491:2.78%) as shown in Figure 8 (Department of Environment). Source: DOE, Environmental Quality Report 2008. Figure 8 : Composition of water pollution sources by sector, 2008 Manufacturing industry was in the second place of water pollution sources. This is due to the expanding of industrial estates in the country. Compared to 2007, there are declining in water quality trend of river basins in 2008 (Figure 9). From 94 clean river basins were recorded, it reduce to 79 in 2008. Whereas, the number for both, slightly polluted and polluted river were increased. Figure 9 : Riber basins Water Quality Trend based on BOD subindex (1998-2008) Source of Pollution (Activity): Sewage, agrobased manufacturing industries. Pollution Indicator (Parameter): Biochemical Oxygen Demand (BOD) Clean Slightly polluted Polluted Source: *DOE, Environmental Quality Report 2008. From all those charts and statistics, there are evidences to shows that industrial estates have become one of the major contributors to environmental pollution in the country. Therefore, there is need for an alternative plan on how to overcome this problem eventhough special requirements and regulation has been put into efforts but still there is declining in environmental quality. 4.3 Greenbelt as Environmental Pollution Abatement In the context of environmental pollution abatement, a greenbelt has been defined as a strip of trees of such species, and such a geometry, that when planted around a source, would significantly attenuate the air pollution by intercepting and assimilating the pollutants in a sustainable manner (Ruth and William, 1994). The concept of greenbelt as a source of pollution abatement was recognized initially by three nations: The U.S.A., Britain and Kenya (Ruth and William, 1994; Gareth et al., 1992; Andy, 1991; Parsons, 1990). In reality greenbelts almost always include other vegetation, especially shrubs, which also play some role in capturing pollutants. But trees are the mainstays of greenbelts, and often greenbelt plantation is simply referred as trees eventhough other types of vegetation is also established and nurtured. 4.3.1 Air Pollutants Removal by Vegetation Plants remove pollutants from the air in three ways: (i) Absorption by the leaves, (ii) Deposition of particulate and aerosols on leaf surface, and (iii) Fallout of particulate on the leeward (downwind) side of the vegetation because of the slowing of the air movement (Tewari, 1994; Rawat and Banerjee, 1996). Vegetation acts as CO2 sink and some species have the capacity to utilise air pollutants effectively. Several plants have the capacity to collect the dust suspended in the atmosphere and dilute the concentration of toxic and harmful gases. Trees have been reported to remove air pollutants like hydrogen fluoride, SO2, and some compounds of photochemical reactions and collect heavy metals like mercury (Hg) and lead (Pb) from the air (Hill, 1971; Lin, 1976). After absorbing the air pollutants, trees change them to harmless metabolites through various physiological processes. Of course each and every plant cannot be an agent of air pollution control; only those which can tolerate pollutants can act as attenuators. All-in-all, increasing vegetation in the cities, towns, and industrial establishments holds great potential to combat air pollution. Substantial evidence is available to support the view that plants in general and trees in particular function as sinks for gaseous pollutants. 4.3.1 Soil and Water Pollutants Removal by Vegetation Surface water streams are also affected by industrial effluents and organics. Most of the treated industrial

Marshmallow Test

The Marshmallow Test is a study that was done by Walter Mischel in 1972 to test how children are able to delay gratification and how that might affect them later in life. The four year old children were told they could either eat the first marshmallow in 15 minutes or wait and receive a second marshmallow. They were visited again when they were 20 and the ones who were able to resist temptation had less behavioral problems and did better on their SATs. There are three types of research methods used in this study. One is experimentation. Experimentation is when researchers manipulate certain variables to see how they affect other variables. There are two types of variables, independent and dependent. The independent variable is the variable that might cause an effect. The dependent variable is the variable that shows the outcome of the experiment by showing the effects of the independent variable. In this study the independent variable is the marshmallow, or the ability to delay gratification. The dependent variable is being able to delay gratification as a child makes one less likely to have behavioral problems, and also do better in school. The second type of method used in this study is correlation. Correlation shows how two things relate to each other. In this study, they are the two variables, which are the ability to delay gratitication as a child and how well someone does as a young adult. These two variables correlate by showing that a child who is able to not eat the marshmallow in 15 minutes is more likely to not have behavioral problems later in life and to do better on their SATs. The third method used in this study is observation. Observation studies behaviors as they happen, without any intervention. This study shows that because the person who runs the study observes the children after telling them the rules and does not intervene with how they reacted to the marshmallow, whether that be eating it, playing with it, smelling it, etcetera. They did not interfere with the outcome of the study. In conclusion, this study shows that children who are able to delay gratification are more likely to be able to be more socially competent and get higher test scores.

Consensual Relationship Agreement Essay

Abstract As companies begin to acknowledge the existence of work place romances, the use of consensual relationship agreements (CRAs) has become an area of discussion. While many of today’s organizations prohibit the romantic involvement of its employees with one another, there are other companies that have adopted the use of consensual relationship agreements. Although employers find the CRAs an easy solution to this situation, the employees romantically involved, employees are against the agreement, arguing that the contract is intrusive in their personal lives. They go further on their arguments, stating that the agreement is an invasion of their privacy, and that the document goes against some ethical principles. From the Human Resources professionals perspective, they will try their best to make sure employees and employer agree with the contract and are happy with the situation, so a negative influence do not impact other coworkers, and their performances will not affect their jo bs. 1. Critics of CRAs assert that they are too intrusive, ineffective, and unnecessary and that they can cause as many problems as they solve. Identify the specific reasons and examples that might justify these criticisms. Critics are relying on the concern-for-others principles that focus on â€Å"the need to consider decisions and behaviors from the perspective of those affected†, which in this case, are the employees who sign the Consensual Relationship Agreements. Employees who are romantically involved at work and are asked to sign the agreement, may consider getting into their personal life too intrusive. Informing an employer of a relationship should be a decision made based by both parties involved, and not imposed. CRAs can be ineffective because even after signing the agreement, an employee may be discontent with the invasion of privacy, and according to the Human Resource Management, on their Workplace Romance Poll conducted in 2009, they found that: â€Å" Our experi ence was if a company tried to forbid it, more people started dating for the thrill of it† (Hellriegel & Slocum, 2011). With that in mind, when employees romantically involved disagree with the policies of the contract, they will tend to act against the agreement’s policies. In order to avoid a break of the agreement, the policy must clearly identify who is protected, and explain that the contract works in favor of all three parties involved. Some human resources managers also argue that even with the terms in the contract being clearly and rigorous, that will not make the couple act professionally while at work and many other effects of workplace romance, and therefore, they classify as ineffective. The contracts become unwanted for instance, when employees disagree with such policy. They do not want to be excessively monitored. If an employee feels that the CRAs are too restrictive and that he/she is being treated unfairly, problems in morale, motivation, and productivity are likely to occur. In order to keep productivity and avoid a hostile work environment, the use of the agreement is not essential, as long as the rules of conduct in the workplace are specified. 2. How would you assess the ethical intensity of CRAs from the perspective of the employer? From the perspective of the employees in a consensual relationship? From the prospective of the employer, the CRAs are very necessary. Because on the job relationships are very likely to happen, it is good to have a policy in place to address issues that may possibly arise from on the job relationships. The agreement also protects the company from being sued by employees because of sexual harassment or favoritism, and creates a clearly understanding of properly professional workplace behavior expected, in order to maintain a good working environment for all. According to an article written in the May 2010 issue of Ceridian Connection â€Å"Any work environment presents the opportunity for individuals with similar interest to develop a relationship that is more than friendly.† The article goes on to say that according to a 2009 survey conducted by CareerBuilder.com, 40 percent of respond ents indicated that they have dated coworkers; and 18 percent said they have been involved in two or more workplace romances. Because is inevitable the romance in the workplace, many HR professionals try to balance interests for both parties involved: â€Å"Most employers realize that it’s unwise to try and ban all office romances. However, they are very interested in preventing these relationships from having a negative impact on the workplace† (Jones, May 2011). From the prospective of the employee, signing an agreement based on their personal relationship with a co-worker may be intrusive and often times, they prefer to keep the relationship private. Sometimes when employees sign the CRA they have the impression of their superiors and co-workers keeping an extra eyes on them to insure that they are not breaking the policy. That in the end could distract the employee from performing the job to their best ability and reflect on his/her overall performance. 3. What specific ethical principles might be used to justify the use of CRAs? Explain. The principles used to justify the use of CRA would be Organization Interest Principle and the Professional Standards Principle. The Organization Interested Principle is based on â€Å"you act on basis of what is good for the organization† (Hellriegel & Slocum 2011). This principle is used on this situation where the employer foresee a possible issue and impose a policy (CRA) to prevent that issue from affecting the company. This can save time, money, and problems in the long run. The ethical dilemma for CRAs revolves around the ethical principle of Professional Standards Principle, where the employer is balancing the rights of the individual and the needs and rights of the other employees. Most employers want to ensure a reasonable degree of employee privacy; however, there is wide consensus that employers must protect against the actions of employees who send harassing e-mails, disclose personal information, or spend too much time surfing the Internet for personal use. Therefore, the CRA in this case, is used to discuss properly professional workplace behavior, to remind employees that they do not have a legal right of privacy according to the no-harassment policy, and also reduce the risk of harassment litigation. 4. What ethical principles might be used by employees in consensual relationships to oppose signing such an agreement? Explain. The â€Å"Hedonist Principle† and the â€Å"Golden Rule Principle† could be used as a counter argument by the employees that are against the CRAs, because it would foster feelings of injustice for the employees in consensual relationships. The Hedonist Principle is based on â€Å" You do whatever is in your own self-interest† (Hellriegel & Slocum 2011). The employees involved in this situation can complain that the employee is only implanting the agreement because of fear of being sued, and not taking in consideration their personal lives. Furthermore, they can argue using the principle that the employer is acting only for his benefit and that they feel the CRAs are excessive, intrusive and unfair. Using the same perspective, the Golden Rule Principle, which consists in â€Å" You act on the basis of placing yourself in the position of someone affected by the decision and try to determine how that person would feel† (Hellriegel & Slocum 2011), can justify that the employer is misjudging their ethical work based on the feel that dating has nothing to do with the quality of an employee’s work and that job security and advancement should be based on the work itself. According to Randy Sutton on his publication Regulating Workplace Romances, â€Å"Any â€Å"no dating† policy must also consider whether the policy will disadvantage certain employees†, so the employees involved have no negative impact on their career. 5. Do you personally favor or oppose the use CRAs in the workplace? Explain. In my opinion, the use of Consensual Relationship Agreements in the workplace is very necessary and effective. As stated in the case, office romance is bound to take place if you put individuals together in a 40 plus hours per week. Nearly half of some employees reported that they didn’t know if their company had a policy on office romances. I think every employee should act in a professional manner, but unfortunately, a company cannot rely on the hope that they will. A Consensual Relationship Agreement is an agreement between both the employee and management that provides that the employee will not allow the relationship to interfere with or impact the work environment. This agreement also confirms and documents that the relationship is consensual and voluntary. All employees need to have a clear understanding of harassment. If the CRA is done correctly, the document will protect all parties involved of future accusations of sexual harassment, favoritism or unfairness. Mark Gomsak in his publication suggests that the company take the following procedures: implement company-wide policies for romance in the workplace, Forbid Romance Between Boss and Subordinate, apply the so called love contracts, and avoid favoritism (January 2011). From the prospective of the employees romantically involved, they may find a little intrusive in their personal lives, but on the other hand, if the relationship comes to an end, the agreement will secure that they have acted according to the policy and not letting their personal lives interfere in the workplace. Therefore, if the employees act ethically, even when they have a romance in the workplace, then the agreement would not be a problem, it would only prove that the employee is capable of being honest and ethical despite their outside lives, and that work comes in first. The companies would be secure with the document, and the romance would not have any impact to any parties involved. References: Gomsak, Mark J. (2011, January 11). Office romances: How employers can avoid the sting of cupid’s arrow. The Metro Chamber of Commerce. Retrieved from http://www.greaterlouisville.com Hellriegel, D., & Slocum, J. W., Jr. (2011). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning. Jones, L. (2011, May 23). The love contract debate – Employers may want to regulate your romance. Higher education and career blog. Retrieved from http://www.kelloggforum.org No longer a secret: Tools to cope with workplace romances. (2010, May).Ceridian Connection. Retrieved from HR Compliance database. Sutton, R. (2009). Regulating work place romances. Saalfeld Griggs Pc. Retrieved from http://www.sglaw.com

A study on Investors Preferences towards various investment avenues... - Free Essay Example

Sample details Pages: 5 Words: 1489 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? In India, generally all capital market investment avenues are perceived to be risky by the investors. But the younger generation investors are willing to invest in capital market instruments and that too very highly in Derivatives segment. Even though the knowledge to the investors in the Derivative segment is not adequate, they tend to take decisions with the help of the brokers or through their friends and were trying to invest in this market. Don’t waste time! Our writers will create an original "A study on Investors Preferences towards various investment avenues" essay for you Create order This study was undertaken to find out the awareness level of various capital market instruments and also to find out their risk preference in various segments. Need for the study: To educate investors who are risk averse for trade in derivatives Awareness about the various uses of derivatives can help investors to reduce the risk and minimize the losses REVIEW OF LITERATURE Investment property portfolio management and financial derivatives by Patrick McAllister, John R. Mansfield. His study on Derivatives has been an expanding and controversial feature of the financial markets since the late 1980s. They are used by a wide range of manufacturers and investors to manage risk. This paper analyses the role and potential of financial derivatives investment property portfolio management. The limitations and problems of direct investment in commercial property are briefly discussed and the main principles and types of derivatives are analysed and explained. The potential of financial derivatives to mitigate many of the problems associated with direct property investment is examined. Derivatives, risk and regulation: chaos or confidence? by R. Dixon, R.K. Bhandari said that there has been an extraordinary increase in the use of financial derivatives in the capital markets. Consequently derivative instruments can have a significant impact on financial institutions, individual investors and even national economies. This relatively recent change in the status of derivatives has led to calls for regulation. Using derivatives to hedge against risk carries in itself a new risk was brought sharply into focus by the collapse of Barings Bank in 1995. The principal concerns of regulators about how legislation may meet those concerns are the subject of current debate between the finance industry and the regulators. Recommendations have been made and reviewed by some of the key players in the capital markets at national and global levels. There is a clear call for international harmonization and its recognition by both traders and regulators. There are calls also for a new i nternational body to be set up to ensure that derivatives, while remaining an effective tool of risk management, carry a minimum risk to investors, institutions and national/global economies. Having reviewed derivatives and how they work, proceeds to examine regulation. Finds that calls for regulation through increased legislation are not universally welcome, whereas the regulators main concern is that the stability of international markets could be severely undermined without greater regulation. Considers the expanding role of banks and securities houses in the light of their sharp reactions to increases in interest rates and the effect their presence in the derivatives market may have on market volatility. Includes the reaction of some 30 dealers and users to the recommendations of the G-30 report and looks at some key factors in overcoming potential market volatility. Managements disclosure of hedging activity: An empirical investigation of analysts and investors reactions by JenniferReynolds-Moehrle. This study aims to examine how market participants changed the way they process earnings information after learning of the implementation of hedging activities. Design/methodology/approach Using a sample of derivative user and non-user firms, this study empirically compares earnings predictability, forecast revision behavior, and the earnings response coefficients before and after the disclosure of hedging activity. Findings The findings indicate that analysts forecast accuracy increased and that unexpected earnings were incorporated into subsequent earnings forecasts to a greater extent subsequent to disclosure of sustained hedging activity. Additionally, the findings indicate an increase in the earnings-return relation in the hedging activity period. OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE To Study the various investment avenues and the investors risk preference towards it. SECONDARY OBJECTIVES To find out the general demographic factors of the investors dealing in capital market. To find out the preference level of investors on various Capital Market instruments. To find out the type of risk which are considered by the investors To find out the ways through which the investors minimizes their risk To find out the preferences of Investors in derivatives market. RESEARCH METHODOLOGY Research Design A Research design is purely and simply the framework of plan for a study that guides the collection and analysis of data. The study is intended to find the investors preference towards cash market and derivatives. The study design is descriptive in nature. TYPE OF RESEARCH- DESCRIPTIVE RESEARCH Descriptive study is a fact-finding investigation with adequate interpretation. It is the simplest type of research and is more specific. Mainly designed to gather descriptive information and provides information for formulating more sophisticated studies. Sampling Design Selection of study area: The study area is in Chennai. Selection of the sample size: 100 Sampling Methods Convenience method of sampling is used to collect the data from the respondents. Researchers or field workers have the freedom to choose whomever they find, thus the name convenience. About 100 samples were collected from Chennai city and most of the respondents were customers coming in to stock brokers office and certain addresses were collected from reputed brokers. Formulation of the questionnaire Data collection Primary data collected through Structured Questionnaire. Secondary data Earlier records from journals, magazines and other sources. Tools used for analysis Percentage analysis Chi-square test Kendall test ANOVA Correlation Analysis Multiple Response Table LIMITATIONS OF THE STUDY Understanding the nature of the risk is not adequate unless the investor or analyst is capable of expressing it in some quantitative terms. Expressing the risk of a stock in quantitative terms makes it comparable with other stocks. Measurement cannot be assured of cent percent accuracy because risk is caused by numerous factors such as social, political, economic and managerial efficiency. Time was a limiting factor. Only those investors who deal in capital markets are considered. Respondents bias was another limiting factor. SUMMARY OF FINDINGS: Most of the respondents (44%) are of the age group 31-40. Majority of the respondents (65%) are male. Most of the respondents (38%) are graduates followed by Post graduates. Most of the respondents (29%) are entrepreneurs and Working Executives. Most of the respondents (38%) are having an Income level of 1- 5alcs followed by respondents having income level 5-10 lacs. Most of the respondents (40%) are influenced by friends and relatives followed by brokers. Most of them (29%) are highly favourable towards the cash market. Most of them (30%) are highly favourable towards the Futures market. Most of them (26%) are favourable towards the Options market. Most of them (30%) stayed neutral towards the Commodities market. Majority of the respondents (37%) wanted to invest in short term funds followed by both short term and long term funds. Majority of the respondents (36%) preferred wealth maximization instruments followed by steady growth instruments. Most of them (43%) invested about 5-10% of their income on investments and only 9% invested more than 20% of their income on investments. Respondents perceived that Market Risk and Credit risk are the two major risk observed in capital markets. Most of the respondents (82%) wanted to minimize their risk involved in the capital market. Most of the respondents (49%) said that News Papers and Financial Experts help them to minimize their risk. Most of the respondents (63%) said that high Margin charged was their main barrier while dealing in Derivatives market. Most of the respondents (38%) feel that the margin amount charged in derivatives market should be in between 5000-10000 and if it is less than 5000, they are very much happy.. From Correlation test , it is found there exist a negative correlation between the income percentage on investment and the participation in derivative market From One Way ANOVA it is found that there is significant difference between the annual income and the income percentage towards investment. From the Multiple Response test, it is found that the investors who invest around 5-10% of their investment mostly considers the market risk(18%) as the major risk which prevails in the market. From the Multiple Response test, it is found that the investors whose investment is around 10% of their income, consider that the affordable margin amount for investment in Derivatives is up to Rs10000/-. CONCLUSION In the current scenario, investing in stock markets is a major challenge ever for professionals. Derivatives acts as a major tool for reducing the risk involved in investing in stock markets for getting the best results out of it. The investors should be aware of the various hedging and speculation strategies, which can be used for reducing their risk. Awareness about the various uses of derivatives can help investors to reduce risk and increase profits. Though the stock market is subjected to high risk, by using derivatives the loss can be minimized to an extent.