Online Privacy as a Corporate Social Responsibility- an Empirical Study

Business Ethics: A European Review Volume 20 Number 1 January 2011 Online privacy as a corporate social responsibility: an empirical study Irene Pollach Aarhus School of Business, University of Aarhus, Aarhus, Denmark Information technology and the Internet have added a new stakeholder concern to the corporate social responsibility (CSR) agenda: online privacy. While theory suggests that online privacy is a CSR, only very few studies in the business ethics literature have connected these two.Based on a study of CSR disclosures, this article contributes to the existing literature by exploring whether and how the largest IT companies embrace online privacy as a CSR. The ? ndings indicate that only a small proportion of the companies have comprehensive privacy programs, although more than half of them voice moral or relational motives for addressing online privacy. The privacy measures they have taken are primarily compliance measures, while measures that stimulate a stakeholder dialogu e are rare.Overall, a wide variety of approaches to addressing privacy was found, which suggests that no institutionalization of privacy practices has taken place as yet. The study therefore indicates that online privacy is rather new on the CSR agenda, currently playing only a minor role. Introduction Since the 1990s, companies striving to be good corporate citizens have had to devise strategies to address issues such as pollution, energy use, waste production, animal testing, child labor, sweatshops, workforce diversity, or advertising to children.It has become a de-facto standard for very large corporations to publish social reports documenting how they address these issues in the marketplace, the workplace, the supply chain, and the community in order to ful? ll their role as good corporate citizens (Snider et al. 2003). The advent of the Internet has not only revolutionized many business models but has also rede? ned what it means to be a good corporate citizen (Post 2000), as most of the above issues are of little relevance to companies dealing with data and technology.One issue of public concern that has become highly relevant for IT companies is online privacy (De George 2000, Johnson 2006). doi: 10. 1111/j. 1467-8608. 2010. 01611. x Information privacy denotes an individual’s right to decide what information is made available to others (Westin 1967). Privacy is thus guaranteed only if individuals know that data are collected about them and if they have control over this data collection and the subsequent use of the data (Foxman & Kilcoyne 1993, Caudill & Murphy 2000). In the United States, privacy-related legislation exists only for health care, ? ancial services, and children on the Internet (Bowie & Jamal 2006), while many aspects of data collection and user control in electronic commerce are still unregulated (Fernback & Papacharissi 2007). Countries of the European Union, meanwhile, protect privacy more strictly (Baumer et al. 2004), which has proven to be a hurdle for US technology companies operating in Europe. In 2008, for example, technology giant Google encountered problems in several European countries with its data handling practices (O’Brien 2008).Despite legislative efforts in Europe, data privacy violations have occurred in a number of 88 r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. , 9600 Garsington Road, Oxford, OX4 2DQ, UK and 350 Main St, Malden, MA 02148, USA Business Ethics: A European Review Volume 20 Number 1 January 2011 large organizations, including, for example, the largest German bank, DeutscheBank (Neate 2009), or T-Mobile UK (Wray 2009). The problems with privacy legislation are that it is dif? ult to identify violations of these laws and that the law may lag behind what is technologically feasible. For the above reasons, global companies have some discretion over how much privacy they grant users and how much they reveal about their data handlin g practices to their users. This discretion adds extra complexity to the moral issue of whether companies take advantage of their powerful position by collecting and using data from users to further their own business interests, for example by sending out unsolicited promotional e-mails or selling user data (Pollach 2005).The discretion companies can exercise when it comes to information privacy and the ethical implications of this discretion entail that information privacy is a question of corporate morality. While theoretical work on corporate social responsibility (CSR) suggests that privacy could be a meaningful addition to a corporate CSR program, little is known about corporate practices. This paper therefore sets out to explore whether and how companies whose core business is based on data and technology are embracing information privacy as a CSR. The ? dings suggest that information privacy is emerging as an element of CSR programs, but that there is a great deal of variety regarding the adoption of privacy as a CSR. The paper ? rst discusses the moral issues behind information privacy on the Internet, reviews the literature on corporate responses to people’s privacy concerns, and then looks at the literature on privacy as a CSR. After describing the sample and the methodology underlying this study, the results are presented and their implications are discussed. The ethics of information privacyThe very core of electronic and mobile commerce revolves around technology, digitization, and the exchange of information, which poses a number of ethical problems (Zonghao 2001). A particular challenge to information handling in electronic commerce is the trade-off between collecting data for the sake of transparency and not collecting data for the sake of privacy (Introna & Pouloudi 1999). Another challenge is the trade-off between collecting data for the sake of pro? ts and not collecting data for the sake of privacy.As commercial transactions on the I nternet or through mobile phones are commonly based on credit-card payments and the shipment of goods to the buyer’s home address, the balance is tipped towards the need for disclosure rather than the safeguard of privacy. However, companies collect not only personally identifying information (PII) from transactions but also collect PII when users register themselves, use online services, participate in sweepstakes or surveys, or send inquiries to the company. In addition to PII, companies collect anonymous click-stream 1/2 data and compile anonymous user pro? es when Internet users navigate the companies’ websites (Kelly & Rowland 2000). Through the collection of IP addresses, PII can also be combined with anonymous click-stream data in order to obtain very comprehensive user pro? les (Payne & Trumbach 2009). The easier access to and increased mobility of data have made information a commodity that is bought and sold by data brokers (Spinello 1998). It is therefore al so possible for companies to buy datasets of user information from data brokers and merge them with the data they have collected themselves.Companies may use the data they collect from customers and visitors on their websites merely to execute transactions, recognize users when they return to the site, and improve their website design based on users’ interests. But companies may equally use such data for purposes other than those they were collected for. For example, they may target banner ads at users, harass users with unsolicited commercial e-mails, or share this information with third parties (Han & Maclaurin 2002). A growing body of literature documents people’s concerns about privacy violations in online transactions (e. . Culnan & Armstrong 1999, Phelps et al. 2000, Sheehan 2002, Norberg & Horne 2007, Norberg et al. 2007). Essentially, these concerns stem from the imbalance in power between companies as data collectors and users as data providers. While companie s have superior knowledge of what user data are collected and how they are r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. 89 Business Ethics: A European Review Volume 20 Number 1 January 2011 handled, users may not even be aware that data are collected, let alone that they are combined into user pro? les. hus not suited to enhance user privacy or engender trust among Internet users. Corporate response to privacy At the turn of the century, some companies began to introduce chief privacy of? cers (Awazu & Desouza 2004). Their tasks include gathering information about social and legal aspects of privacy, devising the company’s privacy strategy, disseminating information about corporate data handling practices to internal and external stakeholders, and representing the company’s commitment to privacy (Kayworth et al. 2005). Another corporate response to information privacy is privacy policies posted on commercial websites (Sama & Sho af 2002).The original idea behind privacy policies on websites was that companies would disclose how they handle the data they collect from users, while users would carefully read through the explanation of the company’s data handling practices, understand their consequences, and then make an informed decision about divulging personal data or not (Ciocchetti 2007). In reality, privacy policies contain legalese, tech-speak, and other obfuscating language patterns that obscure questionable data handling practices (Pollach 2005, Fernback & Papacharissi 2007).Internet users have been found not to read privacy policies for the above reasons (Milne & Culnan 2004). Privacy policies are sometimes supplemented with privacy seals awarded by private-sector institutions (e. g. BBBOnline, TRUSTe, WebTrust) or accounting ? rms. These seals indicate that companies comply with responsible standards of data handling, as de? ned by the awarding institution (Smith & Rupp 2004). Consumers still have to read and understand the privacy policy, as the seal alone does not guarantee that the data handling practices of the company comply with an individual’s privacy preferences (Rifon et al. 2005).The problem with privacy seals is also that they do not effectively protect users from privacy breaches. The sealawarding institution may not know about a privacy breach or, if it does learn about it, can only revoke the seal, but has no means to help people regain lost privacy (Shapiro & Baker 2001). These measures are Information privacy as a CSR Carroll (1979) categorized corporate social responsibilities into economic, legal, ethical, and philanthropic responsibilities, arguing that making a pro? t is the quintessential responsibility of companies, together with their adherence to legal regulations. According to this classi? ation, information privacy can be categorized as an ethical responsibility, given that legislation is insuf? cient to govern corporate decision making i n all areas of data handling. This is elaborated on by Mintzberg (1983), who suggested that areas where CSR comes into play are those ‘where existing legislation needs compliance with its spirit as well as its letter [and] where the corporation can fool its customers or suppliers or the government through its superior knowledge’ (p. 12). If a company decides to address information privacy, it may not just do so because privacy is an ethical corporate responsibility. Rather, Aguilera et al. 2007) argue that companies accept responsibility for social issues for three different reasons: (1) moral reasons determined by morality-driven values; (2) relational reasons driven by the company’s concern about stakeholder relationships; and (3) instrumental reasons driven by corporate self-interest. Moral motives are enacted particularly by individuals with organizational decision-making power who have strong morality-based values. Relational motives are grounded in a compan y’s desire to promote and balance stakeholder interests, thereby building trust, maximizing stakeholder wealth, and gaining social legitimacy (Aguilera et al. 007). Instrumental approaches are self-interest driven, seeking to achieve greater competitiveness and protecting the corporate reputation (Aguilera et al. 2007). The latter approach corresponds to Jones’ (1995) argument that companies that manage to earn the trust of their stakeholders will be able to secure a competitive advantage through savings on monitoring costs, bonding costs, transaction costs, and search costs arising from managing the various corporate stakeholder groups. Instrumental motives 90 r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd.Business Ethics: A European Review Volume 20 Number 1 January 2011 can also be driven by the desire to preempt costly government regulations (Aguilera et al. 2007). The strategy literature follows the instrumental approach to CS R, arguing that companies to which a particular responsibility is highly relevant can bene? t from integrating this responsibility into their overall strategies. Burke & Logsdon (1996) list the following conditions in order for CSR to bring strategic advantages to the ? rm: the chosen CSR issue is central to the company’s mission, is voluntarily embraced, brings bene? s to both the ? rm and to the public at large, is addressed in a proactive manner, and is visible to external stakeholders. It has also been argued that CSR initiatives can bring sustainable competitive advantages in the form of a ? rst-mover advantage (Lieberman & Montgomery 1998). However, for this advantage to emerge, the company must not only be the ? rst one to address a particular CSR comprehensively but must also continuously seek to enhance what it has achieved in order to secure this advantage (Tetrault Sirsly & Lamertz 2008).The strategy literature therefore suggests that companies in the information t echnology industry could bene? t from embracing online privacy as a CSR, especially if they make this commitment visible to external audiences. Although theory suggests that privacy could be a relevant CSR theme for particular companies, very few empirical studies have addressed the link between information privacy and CSR. They include Sharfman et al. ’s (2000) survey among managers on how important they consider a number of social issues, including the protection of privacy.However, in the exploratory factor analysis they conducted, privacy was eliminated from further analyses. Fukukawa & Moon (2004) included information privacy as an indicator of CSR in their study of CSR activities reported by companies in Japan. In addition, Chaudhri’s (2006) case study of global citizenship at Hewlett-Packard mentions privacy as one area the company has included in its CSR agenda. In previous theoretical work, Carroll (1998) has highlighted the protection of online privacy rights as one area where the law lags behind ethical thinking and morality comes into play.Finally, Post (2000) examined the changing role of corporate citizenship in the 21st century and pointed to customer privacy as a new issue of CSR. To date, there is no article that empirically studies in what ways information privacy is actually addressed as a CSR. Research design This study explores whether and how companies are embracing online privacy as a social responsibility, focusing on what measures they claim to have taken and how they communicate these to their external stakeholders in their CSR disclosures.In view of the lack of previous research in this area, this study is exploratory in nature. Accordingly, its goal is to identify the variety of corporate practices rather than to compare and contrast companies. The starting point for the analysis are the three processes of CSR included in Basu & Palazzo’s (2008) process model of sense-making: (1) the reasons a company states for engaging in speci? c CSR activities, (2) the kind of behavior a company displays to live up to its CSR commitments, and (3) the way in which a company regards its relationships with its stakeholders.This section ? rst describes the sample and the data and then goes on to explain the methodology that was applied to analyze the data. Sample The sample consists of the largest companies from IT-related industries, as they are most closely intertwined with information through the hardware, software, or services they provide. To them, information privacy could be a meaningful strategic element of their CSR programs in two different ways. First, they may embrace privacy as a social responsibility in the way they collect and use data.Second, technology does not just violate privacy, it can also enhance privacy. Accordingly, IT companies may engage in corporate social innovation and develop privacy-enhancing products or commit themselves to educating consumers about privacy protection. Clea rly, other large companies, such as retailers, operate online as well, but were not considered for this study, as data and information are not at the core of their activities. Large companies were chosen, as these companies are believed to serve as lead innovators in their industries. All IT-related companies from Europe 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. 91 Business Ethics: A European Review Volume 20 Number 1 January 2011 and the United States listed among the Fortune Global 500 and the ? rst 1,000 companies of the Forbes 2000 company rankings were included in the sample. Neither of the two rankings includes ‘information technology’ as an industry. Rather, both include a number of industries that deal with information and technology. These include Computer and Data Services, Computer Software, Computers & Of? e Equipment, Network and Other Communications Equipment, and Telecommunications from the Fortune Global 500 list and Software & Services, Technology Hardware & Equipment, and Telecommunications Services from the Forbes 2000 list. A few IT companies listed in these two rankings could not be included in the analysis, as they had been acquired by another company since the publication of the rankings. Also, the two rankings overlap to a substantial extent, so that the ? nal sample amounted to a total of 95 IT companies. On each company’s website, the CSR section was accessed.If there was no such section, sections dedicated to the company background, mission and values, or ethics were accessed. The goal was to download all texts pertaining at least loosely to CSR and, if available, the latest CSR report. An important criterion was that privacy-related information was collected only if it was framed as a CSR issue. Privacy policies, which are a standard element of every commercial website, were not collected, as their existence alone does not represent a commitment to social responsibility. Of the 95 companies in the initial sample, 30 companies mention privacy in their CSR discourse.The analysis is thus based on these companies (see Appendix A). Their texts range from 21 to 2,367 words in length. Methods This exploratory study draws on both a positivist approach and a constructivist approach in order to look at the data as holistically as possible (cf. Jick 1979). When studying textual data, the fundamental difference between the two traditions is that the positivist tradition sees language as a transmitter of information, while the social constructionist tradition holds that people consciously and unconsciously create social realities when they use language. Accordingly, the textual data were ? st studied using quantitative content analysis, which systematically records the frequency of particular content features. Because of its quantitative, systematic nature, content analysis de-contextualizes the words from the discourse that is examined and therefore has no mean s to interpret its ? ndings within a wider context. The ? ndings of the content analysis were therefore combined with a discourse analysis and are presented together. The combination of content analysis and discourse analysis has also been suggested by researchers in linguistics (van Dijk 1985, Herring 2004), sociology (Markoff et al. 974), and information systems (Trauth & Jessup 2000). In this study, the results of both analyses together provide a much richer picture of corporate practices than one analysis alone could furnish. This is important, given the absence of previous research on privacy and CSR. Content analysis systematically condenses texts into content categories by applying a coding scheme that produces quantitative indices of textual content (Krippendorff 1980, Weber 1985, Kolbe & Burnett 1991, Neuendorf 2002).The content analysis conducted as part of this study records in a systematic and exhaustive manner which companies in the sample have implemented which measure s to improve user privacy. The approach chosen for this analysis uses factual codes, which capture precisely de? ned facts, as opposed to thematic codes, which capture themes addressed in a prede? ned textual unit (Kelle & Laurie 1995). The factual codes pertain to privacy measures companies have actually taken, but exclude those that companies plan to implement in the future.With no existing coding scheme available, a preliminary coding scheme was developed from the data by examining the texts in the sample inductively (cf. Strauss & Corbin 1990) for measures that companies have taken to secure user privacy. Overall, 41 different measures were identi? ed. The measures were recorded dichotomously as being either present (1) or absent (0). They are listed in Table 2 together with the results. The qualitative approach chosen here was discourse analysis, following a social constructionist tradition, which views discourse as a social action that is shaped by and shapes the context in wh ich it occurs (van Dijk 1997a).Discourse analysis is a 92 r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. Business Ethics: A European Review Volume 20 Number 1 January 2011 method of textual analysis that focuses on how and why language is used in a particular way (van Dijk 1997b). It is based on the premise that people intentionally and unintentionally construct social realities when they engage in discourse. They use language in their roles as members of particular social groups, professions, institutions, or communities but also construct such roles when they use language in social situations (van Dijk 1997a).Similarly, organizational texts can be constructive and constitutive of realities just like text or speech of individuals (Fairclough 2005). Discourse analysis typically pays attention to language features such as repetitions, pronouns, passive voice, nominalizations, modal verbs, agent–patient relations in sentences, and attitudi nal lexis in order to study the roles assigned to the participants in the discourse, the power relations between them, and the foregrounding or the backgrounding of concepts and events.The discourse analysis conducted here examines how companies present themselves as responsible companies when it comes to privacy and data handling. Basu & Palazzo’s (2008) process model of CSR has guided the analysis and therefore also provides the structure of the results section. Accordingly, the results section starts with the companies’ reasons for including privacy in their CSR programs, then presents privacy measures companies have taken as part of their CSR initiatives, and ultimately studies the relationships with the various stakeholders that are affected by the company’s privacy practices.The reasons for including privacy and the stakeholder relationships are analyzed in the form of a discourse analysis. The analysis of the privacy measures is based on a content analysi s, but enhanced with qualitative insights, as needed. Aguilera et al. ’s (2007) classi? cation of moral, relational, and instrumental CSR motives. Table 1 shows this categorization together with the text passages where these motives were expressed.The moral motives found include the understanding that Internet users have privacy rights, which the company wants to observe, and the acknowledgement that the company has the responsibility to protect the data they gather from Internet users. Relational motives include the recognition that customers have a desire for privacy, which the company seeks to meet, and the expectation that privacy protection will help the company win customers’ trust. Ultimately, one company expects to bene? t from its privacy program in that it expects to gain a reputational advantage from privacy protection. CSR behaviorThe content analysis revealed 41 different measures companies had taken to support user privacy (see Table 2). They have been gr ouped into four categories, which are discussed below. One company has implemented 19 of these measures, and nine companies have implemented eight, nine, or 10 different measures. At the other end of the spectrum, there are two companies that have not implemented a single measure, but still talk about privacy in the context of CSR. Further, eight companies have implemented one or two measures, and nine companies have implemented between three and seven measures.Most commonly, a measure was taken by only one company (19 measures) or two companies (six measures). The measure taken most frequently was taken by 15 companies. Thus, there is a broad variety in how companies address privacy. It is also worth noting that it is not necessarily the biggest companies in the industry that have taken lead roles in protecting user privacy. When ranking all companies according to their ranks on the Forbes 2000 and the Fortune Global 500 lists, one can see that the company with the highest number o f privacy measures ranks among the top three on both the Forbes and the Fortune list.The other two companies among the top three in the Fortune and Forbes rankings have implemented only one and three measures, respectively. The three companies Results Reasons for privacy as CSR The texts were examined for indications of why the companies include privacy in their CSR programs. Only 13 companies voiced their motivation for engaging in privacy protection, presenting different reasons why they engage in CSR. The communicated motives have been grouped according to r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. 3 Business Ethics: A European Review Volume 20 Number 1 January 2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Table 1: Communicated motives for corporate privacy programs Motive Moral Explanation Three companies acknowledge that people have a right to privacy Quotations ‘To us, the right to privacy includes the right of individuals to have a voice in the use and dissemination of their personal information. ‘A person has the right to control what information about him or her is collected and to determine how that information is used. ’ ‘Con? dentiality and security of consumer data . . . are areas safeguarded by PT in order to respect the freedom and basic rights of each individual’ ‘We feel a strong responsibility to help ensure a safer, more enjoyable Internet, while addressing the challenges to privacy and security posed by today’s new media. ’ ‘Companies have a responsibility to ensure that the information they hold about their customers and employees is protected, stored, transferred, and used i n a responsible manner. ‘Microsoft takes seriously its responsibility to help address the security and privacy challenges of the information-based society, from viruses and spyware to spam and online identity theft. ’ ‘Respect for privacy is part of our commitment to observe high standards of integrity and ethical conduct in all our operations’ ‘Protecting our customers’ privacy is a priority. We understand and respect your desire to protect your personal information. ’ ‘The protection of personal information is a very high expectation among our customers, and to meet it, we . . .. ‘Externally, Sabre is committed to building customer relationships based on trust, and that includes recognizing the importance of protecting personal information. ’ ‘Consumer trust and con? dence is critical to Cisco’s business and to any technology and Internet-related business; as a result, the industry must protect citizensà ¢â‚¬â„¢ privacy. ’ ‘[We] have to acquire a ‘license to operate’ by conducting our business in a decent and responsible way. ’ ‘Security and reliability form the basis of Telekom Austria Group’s stable and successful customer relationships.The Group therefore gives top priority to protecting the integrity and con? dentiality of sensitive data. ’ ‘Main opportunities: Enhance customer and employee trust, . . . support brand/reputation. ’ Four companies hold that they have a responsibility to protect the data they gather from Internet users Relational Two companies recognize that customers have a desire for privacy that needs to be met Four companies view privacy protection as a means to winning customer trust InstrumentalOne company states that it expects to gain a reputational advantage from its privacy program †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. that have implemented the second highest number of privacy measures occupy ranks #77, #87, and #173 on the Fortune Global 500 list and ranks #49, #518, and #782 on the Forbes 2000 list, which indicates that it is not necessarily the biggest companies in the IT industries that embrace information privacy.An investigation of the relationship between the number of measures taken and length of the privacy text on the corporate website revealed a correlation of 0. 77. This suggests that text length is an indicator of how important the issue is to a company. At the same time, it also shows that the companies generally do not talk at length about privacy without having taken relevant measures. One category of measures pertains to the companies’ internal affairs. They address processes, employee conduct, and, to a small extent, suppliers.The measures mentioned most frequently are the 94 r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. Business Ethics: A European Review Volume 20 Number 1 January 2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Table 2: The content of corporate privacy programs Internal Physical protection of data Procedural/administrative protection of data Electronic/technical protection of data Privacy policy Privacy is part of the code of conduct Privacy of? e(r) Privacy board/working group Employee training Disciplinary action for employee misconduct Privacy newsletter for employees Employee monitoring Privacy included in employment contract Onl ine resources for employees Ethics hotline for privacy questions Internal privacy campaign Limited employee access to data Online reporting of privacy incidents Regular review of systems and processes Regular review of privacy policy Binding third parties to privacy agreements Reviewing third-party privacy practices Privacy newsletter for customers Guidance/information for consumers Resources for parental control & child safety Privacy e-mail address Integrating privacy into product development Privacy blog Involving stakeholders in design of privacy policy Supporting IS education at schools and universities Publishing privacy research papers Supporting law making Supporting industry self-regulation Working with industry Working with governments Working with NGOs, think tanks Political action committee (PAC) Compliance with laws Exceeding laws Compliance with Safe Harbor Compliance with GRI Privacy seal 6 2 3 15 8 7 3 9 1 1 1 1 1 1 1 3 1 5 3 5 2 1 10 5 2 8 1 1 1 1 2 1 5 6 10 1 11 1 4 1 4 79 External 30 Collaborations 25 Compliance 21 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. existence of a privacy policy and privacy training, privacy being part of the code of conduct, privacy of? cers, physical data protection, and regular review of systems and processes. All other measures taken internally were taken by one, two, or three companies each, for example measures encouraging employees to report privacy violations and to comply with relevant guidelines. Two different measures pertaining to suppliers or other third parties were identi? ed, namely that the company reviews privacy practices of those partners and that these outsiders are bound to a privacy agreement.The second category of measures contains those directed towards external stakeholders. They include r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. 95 Business Ethics: A European Review Volume 20 Number 1 January 2011 primarily guidance for consumers regarding Internet privacy. Five companies take measures that address parents’ concerns about their children’s privacy. In addition to providing information, companies also solicit consumer feedback on privacy matters. Two companies highlight that they have an e-mail address to which people can send privacy concerns and inquiries, and one company involves stakeholders in the design of its privacy policy.The inclusion of privacy considerations in product development was embraced by eight companies. Another group of measures pertain to the participation in industry initiatives and collaborations. Ten companies mention a variety of privacy forums, centers, associations, think tanks, and institutes in which they are involved, in cluding for example, the Electronic Privacy Group, the European Privacy Of? cers Forum, or the Liberty Alliance. Some of them also state that they cooperate with other companies and governments. However, the nature of this cooperation remains unclear, and in some places, the cooperating institutions are not even mentioned.Ultimately, a few US companies express their views on privacy legislation. As part of the measures they have taken, three companies take an active stance for either privacy legislation or self-regulation. Both of these viewpoints are visions at this point, as there is neither privacy legislation nor a functioning model of self-regulation in the United States. The two viewpoints are as follows: ‘We also believe that governments must ? nd improved ways to enforce laws against data breach, misuse and fraud, and help consumers pursue those who mishandle their personal information. . . . HP was one of the ? rst companies to embrace the idea of a comprehensive U. S . privacy law. ‘Because disparate and multiple privacy rules place a heavy burden on global companies, we support a model of industry self-regulation (as opposed to government intervention) in which innovative tools give consumers greater choice in both protecting their personal data and understanding how it may be collected and used. ’ they comply with all relevant privacy laws. As compliance with laws is a legal rather than an ethical responsibility according to Carroll’s (1979) classi? cation of corporate responsibilities, only going beyond the law can qualify as a CSR initiative. Dressing up a legal responsibility as an ethical responsibility casts doubt over the sincerity of these efforts.In fact, one of these 11 companies has implemented no other privacy measure apart from legal compliance. There is only one company that vows to exceed legal requirements: ‘HP is pioneering an approach to the protection and responsible use of personal information. This effort goes beyond compliance with the law. ’ Only a minority of companies have adopted the privacy standards of outside organizations, such as GRI or privacy seal programs. Stakeholder relationships The measures identi? ed above relate to a number of internal and external stakeholder groups, including employees, consumers, parents, industry, suppliers, governments, advocacy groups, and the community at large.However, the analysis of the measures does not reveal anything about the relationships with stakeholders, and in some cases, the stakeholder group to which a particular measure was addressed was not even mentioned. This section therefore focuses speci? cally on the stakeholder groups to which the companies express some form of consideration. This could be in the form of protection measures, information provision, cooperation, or merely by expressing an awareness of their stakes in privacy. In addition to an account of these overt commitments to stakeholders, a discourse analysis is used to uncover discursively constructed relationships with stakeholders. Table 3 lists the various stakeholder groups identi? d, together with their stake in privacy, the number of companies that made a commitment toward each stakeholder group, and an example of such a commitment. This table is different from the results presented in Table 2 in that it was not concrete actions that guided this analysis, but the awareness of stakeholder concerns. We ? nd that companies recognize primarily the stakes of their customers and employees, who exercise a direct and economic in? uence on the company and can therefore be labeled Even companies that do not take a stance on the legislation vs. self-regulation debate emphasize compliance with legislation. Eleven companies state that 96 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. Business Ethics: A European Review Volume 20 Number 1 January 2011 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Table 3: Addressing stakeholder concerns Stakeholder GroupStake # Primary Customers/ Protection of 25 Users their data Employees Suppliers/ Vendors Training Guidelines 14 6 Example ‘In order to help our customers address these issues, we have begun to develop guidance documents to help customers understand which parts of our technology may have privacy applications. ‘We work hard to ensure that Sun employees have the information they need to apply our privacy protection standards in their work. ’ ‘When it is necessary for business reasons to share a person’s information with third parties such as network service providers and marketing campaign partners, we work together to ensure that we main tain the highest privacy standards. ’ ‘We met with government of? cials and regulators in all regions to understand their concerns and initiatives and to help them fully appreciate the potential implications for privacy of new technologies. ’ ‘We are working with other industry participants . . . to develop solutions that help us reach both of these objectives. ‘In 2007, we formed our Stakeholder Advisory Council (SAC) comprising respected experts from a variety of nongovernmental organizations. ’ ‘Symantec is committed to helping parents keep their kids cybersafe. We believe that in the same way that we educate our children about the risks of drugs, smoking, or violence, it is critical that we educate them about the importance of safe computing. ’ ‘We tap this internal resource to offer programs that bene? t our local schools and communities. We are also in the process of implementing an employee-led education program. †™ Secondary Government Industry Advocacy groups Parents Compliance with laws; expertise in data handling Cooperation Cooperation 6 6 3 Protection of 5 their children’s data Expertise 1 Schools/ communities †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. ‘primary stakeholders’ according to Ansoff (1965). However, there are also companies that talk about privacy in a CSR context, but do not voice a commitment to these two primary stakeholder groups. Of the 30 companies, ? ve do not state that they do anything to improve the privacy situation of their customers and 16 do not make such a commitment toward their employees. Suppliers, who are also primary stakeholders, are addressed to a smaller extent. We can also see that the companies in the sample largely neglect their secondary stakeholders, i. e. those groups who do not directly in? uence a company’s core business (Ansoff 1965).Only a maximum of six companies interact with each secondary stakeholder group, such as parents or governments. On the surface, all companies studied engage in a discourse characterized by care and concern for privacy. In particular, emotion-laden words like help, understand, respect, concern, and safe abound across all texts studied. For example: ‘Protecting our customers’ privacy is a priority. We understand and respect your desire to protect your personal information. ’ ‘And as the 24 A 7 demands of the Internet Age threaten to overwhelm customers with complexity, they need trusted and reliable companies to help them make sense of technology and put it to use to make their lives better. ’The tone becomes even more concerned when companies address their relationship with parents and children: ‘We understand the responsibility and concern of parents who worry about their children’s exposure to inappropriate content and potentially dangerous interactions on the Web. ’ ‘Protecting our children . . . We believe that in the same way that we educate our children about the risks of drugs, smoking, or violence, it is critical r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. 97 Business Ethics: A European Review Volume 20 Number 1 January 2011 that we educate them about the importance of safe computing. ’ In the second example, the pronoun ‘we/our’ adds to the concerned tone by promoting a sense of collegiality and shared affection.The same is also achieved in other places, when companies use this inclusive form of ‘we’ to reduce the distance between themselves and their outside stakeholders: ‘Our individual sensitivities about how our information is tr eated . . . are not uniform’ or ‘Sun is committed to investigating and addressing the privacy challenges . . . associated with our increasingly digital way of life. ’ In such statements, companies reduce the power distance between themselves and their stakeholders. The inclusive ‘we’ is also an indicator of positive politeness (Brown & Levinson 1987), indicating how writers conceptualize their audiences and what kind of distance writers create between themselves and their audience.While some companies use the inclusive ‘we,’ others talk about companies in general, e. g. ‘all businesses are responsible for . . . ,’ which includes themselves only implicitly and distances themselves from these events. Mostly, though, companies make themselves the causal agents: ‘we must address these concerns by helping to protect . . .. ’ Notably, one company draws its audiences into the discourse by always addressing them directl y, e. g. ‘We understand and respect your desire to protect . . .. ’ All together, the different voices present in these texts suggest that companies have different levels of self-awareness and different understandings of their role in this process.Less variety exists in the distance to the audience, which is – apart from one exception – not explicitly present in the discourse. This suggests that companies do not consider their CSR activities to be dialogic in nature. Another kind of discourse is found in 10 of the companies’ texts studied. This discourse reveals that some companies are actually interested in ? nding a balance between users’ privacy interests and their own business interests rather than protecting privacy unconditionally. They seek to achieve a balance between customers’ privacy interests and ‘business priorities,’ ‘business requirements,’ ‘business needs,’ their ‘values,â₠¬â„¢ or their ‘ability . . . to reap the bene? ts of online interactions. Business interests are also communicated implicitly: ‘our goal is simple: to balance the interests and concerns of our customers’ private information with their interest in receiving quality service and information about useful new products. ’ Alternatively, one company mentions only one weight of the balance, without saying what the other weight is: ‘that we are striking the right balance for our customers’ and ‘to reach balanced results. ’ The discourse of balance is a manifestation of the companies’ power, given that it is they who decide when this balance is reached. Interestingly, this kind of discourse has nothing to do with the motivations they express.Two companies, for example, have voiced moral motives, but also engage in this discourse of balance, as does the one company that has indicated an instrumental motive. It is also worth noting that not a single European company in the sample engages in this discourse of balance. Discussion The literature review has highlighted that users are concerned about privacy and that companies do not respond in a manner that eases stakeholder concerns. The companies chosen for this study are all active in the hardware, software, or telecommunications industries, in which data play a crucial role. Thus, information privacy, and in particular online privacy, is a central issue in their business conduct.The content analysis has revealed that only a small proportion of the largest IT companies comprehensively address privacy as a social responsibility. In the sample, we ? nd both companies that have taken a number of relevant actions to address user privacy and companies that have only taken one or two concrete measures, but nevertheless present privacy as part of their CSR program. A substantial proportion of the measures they have taken fall into the area of compliance and employee condu ct (e. g. guidelines, policies, monitoring, and reporting), while measures that stimulate a stakeholder dialogue or represent corporate social innovation are found less frequently.Further, some companies reveal that they seek to strike a balance between their own business interests and their stakeholders’ privacy needs. The sample even contains companies that 98 r 2010 The Author Business Ethics: A European Review r 2010 Blackwell Publishing Ltd. Business Ethics: A European Review Volume 20 Number 1 January 2011 voice moral motives for framing online privacy as a CSR, while at the same time indicating that they are interested in striking a balance between users’ privacy interests and their own business interests. We have also seen that some of the privacy measures are actually intended to ful? ll legal responsibilities rather than ethical ones.Thus, some companies in the sample voice concerns and a commitment to help, but do not take privacy to the level of an ethical responsibility (cf. Carroll 1991). At the same time, companies load their privacy discourse with emotive terms suggesting concern, commitment, and a desire to help. While this kind of language is typical of CSR messages and can almost be expected (cf. Pollach 2003), it is still in contrast to the results of the content analysis, which has shown that comprehensive privacy programs are for the most part non-existent. The ? ndings also indicate that companies have chosen a wide variety of approaches to information privacy. In fact, many of the different measures denti? ed were taken by one, two, or three companies only. Thus, little mimicry and no institutionalized practices have emerged yet. In uncertain environments, companies have a tendency to model themselves after other companies that are more successful or more respected. This mimicry leads to institutionalized practices that help companies to obtain legitimacy (DiMaggio & Powell 1983). The environment in which the sample compan ies operate can be characterized as uncertain, as there is no comprehensive privacy legislation as yet and privacy is, to some extent, at each company’s discretion. For mimicry behavior to occur, it must be clear to the ? m that adopting a certain practice brings competitive advantages (DiMaggio & Powell 1983). In the case of privacy, an institutionalization of voluntary privacy practices could mean that privacy regulation is preempted. However, as not every company in the sample, and maybe in the industry as a whole, is pro self-regulation, some companies may decide not to adopt privacy practices voluntarily, despite the fact that they care about user privacy. Privacy may be on its way to mature from the ethics/compliance focus to a more responsive, proactive focus, but at the moment, it plays a minor role as a CSR. This point is also re? ected in the ? nding that companies address primarily consumer oncerns and step up employee training, while all other stakeholder groups i n privacy play a subordinate role. Companies may not have recognized the bene? ts to be gained from engaging with secondary stakeholder groups, e. g. from cooperating with industry partners. At the same time, companies may have been too occupied with implementing privacy standards internally, so that their privacy efforts do not involve secondary stakeholders as yet. These internal compliance measures are clearly the sine qua non for a company’s external privacy activities, such as participation in industry initiatives. This study is not without limitations. One clear limitation is that the data stem from corporate selfreports, which are problematic (cf.Podsakoff & Organ 1986) in that they are based on what the company reveals rather than what is actually true. This could mean that companies overstate their activities. At the same time, companies may not have mentioned the particular measures they have taken, because they did not consider them important enough. Also, the samp le size could have been larger, but the small sample size also serves to illustrate that privacy is just about to begin to play a role in CSR programs of technology-oriented companies. 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Internetworking End-to-End Requirements Essay

– Hence such characteristics as: performance, reliability, scalability, mobility, and QoS of DS are impacted by the underlying network technology and the OS ? Principles of computer networking – Every network has: ? An architecture or layers of protocols ? Packet switching for communication ? Route selection and data streaming ? Comm Subsystems (network technologies rest on): – Transmission media: wires, cables, fiber, wireless (sat, IR, RF, mwave) – Hardware devices: routers, switches, bridges, hubs, repeaters, network interfaces/card/transceivers. – Software components: protocol stacks, comm handlers/drivers, OS primitives, network-focus APIs ? Hosts – The computers and end-devices that use the comm subsystem – Subnet: A single cluster or collection of nodes, which reach each other on the same physical medium and capable of routing outgoing and incoming messages – The Internet is a collection of several subnets (or intranets) ? Networking issues for distributed systems – Initial requirements for DS applications: ftp, rlogin, email, newsgroup – Subsequent generation of DS applics. : on-line shared resources. – Current requirements: performance, reliability, scalability, mobility, security, QoS, multicasting ? Performance – Key: time to deliver unit(s) of messages between a pair of interconnected computers/devices – point-to-point latency (delay) from sending out of outgoing-buffer and receiving into incoming-buffer. Usually due to software overheads, traffic load, and path selection – Data transfer/bit rate: speed of data transfer between 2 computers (bps). Usually due to physical properties of the medium. ? Message trans time = latency + length/bit-rate ? Bandwidth vs. bit-rate. – The total system bandwidth (volume of data sent and received in a unit time, e. g. , per sec. ) is a measure of its throughput – Bit rate or transfer rate is restricted to the medium’s ability to propagate individual bits/signals in a unit time – In most LANs, e. g. , Ethernet’s, when full transmission capacity is devoted to messaging (with little or no latency), then bandwidth and bit-rate are same in measure – Local memory vs network resources: ? Applications access to shared resources on same network usually under msec ? Applications access to local memory usually under msec (1000x faster)? However, for high speed network web-server, with caches, the access time is much faster (than local disk access due to hard disk latency) ? Scalability (Internet and DSs) – Future growth of computing nodes of Internet (hosts, switches) in 109’s (100’s of 106 hosts alone) – Requires substantial changes to routing and addressing schemes (more later! ) – Current traffic (load) on Internet approx. measured by the latencies (see www. mids. org), which seem to have reduced (with advances in medium and protocol types). – Future growth and sustainability depend on economies of use, charge rate, locality/placement of shared resource? Reliability – Failures are typically, not due to the physical medium, but at the end-end (at host levels) software (application-level), therefore, error detection/correction is at the level – Suggesting that the communication subsystem need not be error-free (made transparent/hidden to user) because reliability is somewhat guaranteed at the send/receiver ends (where errors may be caused by, e. g. , buffer overflow, clock drifts causing premature timeouts) ? Security – Most intranets are protected from external (Internet-wide) DSs by firewall. – A firewall protects all the resources of an organized from unlawful/malicious access by external users, and control/monitoring of use of resources outside the firewall – A firewall (bundle of security software and network hardware) runs on a gateway – the entry/exit point of the corporate intranet – A firewall is usually configured based on corporate security policy, and filters incoming and outgoing messages. – To go beyond firewalls, and grant access to world- or Internet-wide resources, end-to-end authentication, privacy, and security (Standards) are needed to allow DSs to function – E. g., techniques are Cryptographic and Authentication – usually implemented at a level above the communication subsystem – Virtual Private Network (VPN) security concept allows intranet-level protection of such features/devices as local routers and secure links to mobile devices ? Mobility – Need wireless to support portable computers and hand-held devices – Wireless links are susceptible to, e. g. , eavesdropping, distortions in medium, out-of-sight/range transmitters/receivers – Current addressing and routing schemes are based on ‘wired’ technologies, which have been adapted and, therefore, not perfect and need extensions? QoS (Quality of Service) – Meeting deadlines and user requirements in transmitting/processing streams of real-time multimedia data – E. g. , QoS requirements: guaranteed bandwidth, timely delivery or bounded latencies, or dynamic readjustments to requirements ? Multicasting – Most transmissions are point-to-point, but several involve one-to-many (either one-to-all – broadcast or selective broadcast – multicast) – Simply sending the same message from one node to several destinations is inefficient – Multicasting technique allows single transmission to multiple destination (simultaneously) by using special addressing scheme 3. Multimedia Transmission and Internetworking Heterogeneous Systems ? Types of Networks – LANs: (confined to smaller, typically, 2. 5km diameter spread) ? higher speed, single medium for interconnection (twisted pair, coax, opt), no routing within ‘segments’ – all point-to-point (from hub), inter-segment connections via switches/hubs, low latency, low error rate ? E. g. , Ethernet, token ring, slotted ring protocols, wired. (1) Ethernet: 1970 with bandwidth of 10Mbps, with extended versions of 100/1000Mbps, lacking latency and bandwidth QoS for DSs: (2) ATM – using frame cells and optical fills the gap but expensive for LAN, newer high-speed Ethernets offer improvement and cost-effective – MANs: (confined to extended, regional area, typically, up to 50km spread) ? Based on high-bandwidth copper and fiber optics for multimedia (audio/video/voice), ? E. g. , technologies: ATM, high-speed Ethernet (IEEE 802. 6 – protocols for MANs), DSL (digital subscriber line) using ATM switches to switch digitized voice over twisted pair @ 0. 25-6Mbps within 1. 5km, cable modem uses coax @ 1. 5Mpbs using analog signaling on TV networks and longer distances than DSL – WANs: (worldwide, lower speeds over sets of varying types of circuits with routers) ? High latency (due to switching and route searching) between 0. 1-0. 5s, signaling speed around 3x105km/s (bounds latency) plus propagation delay (round-trip) of about 0. 2s if using satellite/geostationary dishes; generally slower at 10-100kbps or best 1-2Mbps – Wireless: (connecting portable, wearable devices using access points) ? Common protocol – IEEE 802. 11 (a, b, and now g) (WaveLAN) @ 2-11Mbps (11g’s bandwidth near 54Mbps) over 150m creating a WLANs, some mobiles connected to fixed devices – printers, servers, palmtops to create a WPANs (wireless personal area networks) using IR links or low-powered Bluetooth radio network tech @ 1-2Mbps over 10m. ? Most mobile cell phones use Bluetooth tech. e. g. , European GSM standard and US, mostly, analog-based AMP cellular radio network, atop by CDPD – cellular digital packet data communication system, operating over wider areas at lower speed 9. 6-19. 2kbps.? Tiny screens of mobiles and wearables require a new WAP protocol – Internetworks ? Building open, extendible system for DSs, supporting network heterogeneity, multi-protocol system involving LANs, MANs, WLANs, connected by routers and gateways with layers of software for data and protocol conversions – creating a ‘virtual network’ using underlying physical networks ? E. g. , the Internet using TCP/IP (over several other physical protocols) – Comparisons ? Range of performance characteristics: ? Frequency and types of failures, when used for DS applics? Packet delivery/loss, duplicates (masked at TCP level to guarantee some reliability and transparency to DSs; but may use UDP – faster but less reliable and DS applic’s responsibility to guarantee reliability) Diagram 3. 2 Network Principles †¢ Packet Transmission †¢ Packet transmission superseded telephone/telegraph switched network †¢ Messages are packetized and packets are queued, buffered (in local storage), and transmitted when lines are available using asynchronous transmission protocol †¢ Data Streaming †¢ Multimedia data can’t be packetized due to unpredicted delays. AV data are streamed at higher frequency and bandwidth at continuous flow rate †¢ Delivery of multimedia data to its destination is time-critical / low latency – requiring end-to-end predefined route †¢ E. g. networks: ATM, IPv6 (next generation – will separate ‘steamed’ IP packets at network layer; and use RSVP (resource reserv. protocol) resource/bandwidth prealloc and RTP play-time/time-reqs (real-time transp protocol) at layers 3 & 1, respectively) to work ? Switching Schemes – 4 Kinds of switching methods typically used. – Broadcast – no switching logic, all nodes ‘see’ signals on circuits/cells (e.g. , Ethernet, wireless networks) – Circuit Switching – Interconnected segments of circuits via switches/exchange boxes, e. g. , POTS (Plain Old Telephone System) – Packet Switching – Developed as computing tech advanced with processors and storage spaces using store-and-forward algorithms and computers as switches. Packets are not sent instantaneously, routed on different links, reordered, may be lost, high latency (few msec – msecs). Extension to switch audio/video data brought integration of ‘digitized’ data for computer comm. , telephone services, TV, and radio broadcasting, teleconferencing. – Frame Relay – PS (not instantaneous, just an illusion! ), but FR, which integrates CS and PS techniques, streams smaller packets (53 byte-cells called frames) as bits at processing nodes. E. g. , ATM – Protocols – – Protocols – implemented as pairs of software modules in send/receive nodes, – Specify the sequence of messages for transmission – Specify the format of the data in the messages – Protocols Layers – layered architecture, following the OSI suite – packets are communicated as peer-to-peer transmission but effected vertically across layers by encapsulation method over a physical medium Protocols Suites – The 7-layered architecture of the ISO-OSI †¢ Each layer provides service to the layer above it and extends the service provided by the layer below it †¢ A complete set of protocol layers constitute a suite or stack †¢ Layering simplifies and generalizes the software interface definitions, but costly overhead due to encapsulations and protocol conversions Diagram 3. 3 4. Service Provider Management On the Internet, a management service provider (MSP) is a company that manages information technology services for other companies. For example, a company could hire an MSP to configure and administer its business computers and related systems on a continuing basis, saving the company. An MSP is a service provider that offers system and network management tools and expertise. An MSP typically has its own data center that runs advanced network management software such as HP OpenView or Tivoli. It uses these tools to actively monitor and provide reports on aspects of its customer’s networks, including communication links, network bandwidth, servers, and so on. The MSP may host the customer’s Web servers and application servers at its own site. The services provided by MSPs have been called â€Å"Web telemetry† services. The MSP Association defines MSPs as follows: Management Service Providers deliver information technology (IT) infrastructure management services to multiple customers over a network on a subscription basis. Like Application Service Providers (ASPs), Management Service Providers deliver services via networks that are billed to their clients on a recurring fee basis. Unlike ASPs, which deliver business applications to end users, MSPs deliver system management services to IT departments and other customers who manage their own technology assets. TriActive is an example of an MSP. It provides management and monitoring of PCs, servers, networks, and Web sites from its own NOC (network operations center), which is hosted by Exodus Communications. Exodus ensures that the NOC has fully redundant power, network connectivity, routing, and switching to ensure maximum reliability and integrity. A â€Å"microagent† interacts with customer systems to provide system management. The agent is lightweight and designed for use over the Internet. It acts as a universal agent invoking and managing other agents and programs as required for specific actions. The service is delivered via the Web through a secure Internet portal that lets customers view management information, based on their role in the organization. For example, CIOs can view overall management information while help desk technicians can check call queues, escalations, and open ticket status. Systems analysts can conduct asset inventories and view virus reporting. Objective Systems Integrators is another management service provider that provides software solutions for unified network, service application, and process management. OSI was recently acquired by Agilent Technologies. A list of other MSPs may be found at the MSP Association Web site. Web application and infrastructure monitoring and management have suddenly become critical, yet the tools to do them are lacking. Management service providers (MSP), the latest addition to the current slew of service providers, claim to offer products and services that will oversee your Web operations. Companies staking claims as early MSPs include Candle Corp. in Santa Monica, Calif. ; InteQ Corp. in Burlington, Mass. ; and Nuclio Corp. in Skokie, Ill. What makes MSPs distinctive is that their products and services are provided over the Internet on a subscription basis. That means â€Å"MSPs can achieve economies of scale that companies who license software cannot,† says Christopher Booth, head of technical operations at FreightWise Inc. , a Forth Worth, Texas-based online transportation exchange. Though he declined to say how much his company is paying to use Nuclio’s MSP, Booth did say that the service has been â€Å"very advantageous. † The cost savings that MSPs can pass on may help them catch on with corporate customers. Gartner Group Inc. in Stamford, Conn., estimates that the $90 million MSP market will balloon to more than $3. 25 billion by 2005. 5. Programmable/Cognitive Networks A key strength of the Internet has been to reduce the intelligence within the network to that required placed at strategic places within the network such as at administrative boundaries, or at locations where there is a large mismatch between bandwidth, or where the certain location specific services can be used. Others believe that the entire architecture should be rethought as a computational environment, in which everything can be programmed, and the entire network becomes active. The research in this area is aimed at discovering how viable it is to open up such elements of the communications architecture as the routing table. A fundamental question raised by both the active service and the active network approaches is how to ensure that the shared resource of the network remains safe and is protected from misbehaving programs. Programs can abuse the network by generating packet explosions and can abuse the shared processor by using all the memory and the processor cycles. Worse, they may subvert the working of correct programs so that they too break. If network programmability is going to be available to the application designers, we need to ensure that they do not break things by accident, let alone by intention. Traditional systems approaches to protection are based upon what a program should be able to do, then using runtime checks to ensure that the program doesn’t exceed these bounds. This leads to the sandbox model of protection, as used in Java and enhanced to provide protection for Active Networks. However, there are major problems with this approach. First, each runtime check reduces the performance of the system, increasing the overhead of each use of system resources. Second, it is very difficult to ensure that the protection mechanisms are correct, and cannot be subverted in any way. An alternative approach is to use compile time checks upon what the program is doing. This uses the type system to represent predicates about program functionality and if a program is well-typed, then it proves the program to obey the policies implemented in the type system. This approach has been used to allow users to run programs within the kernel as in Spin, and in protecting access to router functionality in the Switchware project. †¢ To provide a network programming language based on Internet `best effort’ communication. †¢ To provide scaleable high-level communication based on `remote spawn’ from which other communication can be built. †¢ To make use of types as safety properties, to ensure that the safety and security policies of the network are maintained. †¢ To rapidly prototype tools such as compilers and simulators in order to drive the development of the language by examples. Best-effort distributed programming In the Internet, an application transmits a packet, which is sent to the next router on the way to the destination. At this router, the arrival of the packet causes code to run, which calls other code dependent upon the fields in the header of the packet. This code may access and modify local state stored in the router and then copy or create one or more packets to be sent out from the router. These packets are then routed on output links depending upon the destination for each packet, and so on until the packets reach their destination, or are destroyed within the network for whatever reason. In our programming model, we have attempted to replicate this basic structure of packet transmission. In the Internet, the arrival of a packet initiates some thread of control which uses the data within the packet to decide upon the disposition of the packet. In our model, a packet becomes a thread of control, carrying the code to be run and the names or values of any data referenced within that code. When a thread arrives at a Safetynet-aware router or end system, the thread code is instantiated within the runtime and runs within a de_ned scheduling class. The thread of control may call other code to be run on its behalf. The other code is encapsulated within classes, which are either present in the router, or are dynamically loaded from elsewhere. Threads can spawn other threads, either locally or on the next hop to some destination. 6. Design of an Internetwork We will discuss about the networking especially the internetworking. In this case we will need to discuss some topics related with the Internet Infrastructure, Internet routing, domain name and address resolution, internet protocol and the applications. Internet Infrastructure: The Internet backbone is made up of many large networks which interconnect with each other. These large networks are known as Network Service Providers or Naps. Some of the large Naps are UUNet, Cerf Net, IBM, BBN Planet, Sprint Net, PSINet, as well as others. These networks peer with each other to exchange packet traffic. Each NSP is required to connect to three Network Access Points or NAPs. At the NAPs, packet traffic may jump from one NSP’s backbone to another NSP’s backbone. NSPs also interconnect at Metropolitan Area Exchanges or MAEs. MAEs serve the same purpose as the NAPs but are privately owned. NAPs were the original Internet interconnects points. Both NAPs and MAEs are referred to as Internet Exchange Points or IXs. NSPs also sell bandwidth to smaller networks, such as ISPs and smaller bandwidth providers. Below is a picture showing this hierarchical infrastructure. Diagram 4 This is not a true representation of an actual piece of the Internet. Diagram 4 is only meant to demonstrate how the NSPs could interconnect with each other and smaller ISPs. None of the physical network components are shown in Diagram 4 as they are in Diagram 3. This is because a single NSP’s backbone infrastructure is a complex drawing by itself. Most NSPs publish maps of their network infrastructure on their web sites and can be found easily. To draw an actual map of the Internet would be nearly impossible due to its size, complexity, and ever-changing structure. The Internet Routing Working: It is general phenomenon that No computer knows where any of the other computers are, and packets do not get sent to every computer. The information used to get packets to their destinations is contained in routing tables kept by each router connected to the Internet. The Routers are called the packet switches. A router is usually connected between networks to route packets between them. Each router knows about its sub-networks and which IP addresses they use. The router usually doesn’t know what IP addresses are ‘above’ it. Examine Diagram 5 below. The black boxes connecting the backbones are routers. The larger NSP backbones at the top are connected at a NAP. Under them are several sub-networks, and under them, more sub-networks. At the bottom are two local area networks with computers attached. Diagram 5 When a packet arrives at a router, the router examines the IP address put there by the IP protocol layer on the originating computer. The router checks its routing table. If the network containing the IP address is found, the packet is sent to that network. If the network containing the IP address is not found, then the router sends the packet on a default route, usually up the backbone hierarchy to the next router. Hopefully the next router will know where to send the packet. If it does not, again the packet is routed upwards until it reaches a NSP backbone. The routers connected to the NSP backbones hold the largest routing tables and here the packet will be routed to the correct backbone, where it will begin its journey ‘downward’ through smaller and smaller networks until it finds its destination. Domain Names and Address Resolution. But what if you don’t know the IP address of the computer you want to connect to? What if the you need to access a web server referred to as www. anothercomputer. com? How does your web browser know where on the Internet this computer lives? The answer to all these questions is the Domain Name Service or DNS. The DNS is a distributed database which keeps track of computer’s names and their corresponding IP addresses on the Internet. Many computers connected to the Internet host part of the DNS database and the software that allows others to access it. These computers are known as DNS servers. No DNS server contains the entire database; they only contain a subset of it. If a DNS server does not contain the domain name requested by another computer, the DNS server re-directs the requesting computer to another DNS server. Diagram 6 The Domain Name Service is structured as a hierarchy similar to the IP routing hierarchy. The computer requesting a name resolution will be re-directed ‘up’ the hierarchy until a DNS server is found that can resolve the domain name in the request. Figure 6 illustrates a portion of the hierarchy. At the top of the tree are the domain roots. Some of the older, more common domains are seen near the top. What is not shown are the multitude of DNS servers around the world which form the rest of the hierarchy? When an Internet connection is setup (e. g. for a LAN or Dial-Up Networking in Windows), one primary and one or more secondary DNS servers are usually specified as part of the installation. This way, any Internet applications that need domain name resolution will be able to function correctly. For example, when you enter a web address into your web browser, the browser first connects to your primary DNS server. After obtaining the IP address for the domain name you entered, the browser then connects to the target computer and requests the web page you wanted. The Disable DNS in Windows If you’re using Windows 95/NT and access the Internet, you may view your DNS server(s) and even disable them. If you use Dial-Up Networking: Open your Dial-Up Networking window (which can be found in Windows Explorer under your CD-ROM drive and above Network Neighborhood). Right click on your Internet connection and click Properties. Near the bottom of the connection properties window press the TCP/IP Settings†¦ button. If you have a permanent connection to the Internet: Right click on Network Neighborhood and click Properties. Click TCP/IP Properties. Select the DNS Configuration tab at the top. You should now be looking at your DNS servers’ IP addresses. Here you may disable DNS or set your DNS servers to 0. 0. 0. 0. (Write down your DNS servers’ IP addresses first. You will probably have to restart Windows as well. ) Now enter an address into your web browser. The browser won’t be able to resolve the domain name and you will probably get a nasty dialog box explaining that a DNS server couldn’t be found. However, if you enter the corresponding IP address instead of the domain name, the browser will be able to retrieve the desired web page. (Use ping to get the IP address prior to disabling DNS. ) Other Microsoft operating systems are similar. Internet protocols: As hinted to earlier in the section about protocol stacks, one may surmise that there are many protocols that are used on the Internet. This is true; there are many communication protocols required for the Internet to function. These include the TCP and IP protocols, routing protocols, medium access control protocols, application level protocols, etc. The following sections describe some of the more important and commonly used protocols on the Internet. Higher-level protocols are discussed first, followed by lower level protocols. Application Protocols: HTTP and the World Wide Web One of the most commonly used services on the Internet is the World Wide Web (WWW). The application protocol that makes the web work is Hypertext Transfer Protocol or HTTP. Do not confuse this with the Hypertext Markup Language (HTML). HTML is the language used to write web pages. HTTP is the protocol that web browsers and web servers use to communicate with each other over the Internet. It is an application level protocol because it sits on top of the TCP layer in the protocol stack and is used by specific applications to talk to one another. In this case the applications are web browsers and web servers. HTTP is a connectionless text based protocol. Clients (web browsers) send requests to web servers for web elements such as web pages and images. After the request is serviced by a server, the connection between client and server across the Internet is disconnected. A new connection must be made for each request. Most protocols are connection oriented. This means that the two computers communicating with each other keep the connection open over the Internet. HTTP does not however. Before an HTTP request can be made by a client, a new connection must be made to the server. When you type a URL into a web browser, this is what happens: If the URL contains a domain name, the browser first connects to a domain name server and retrieves the corresponding IP address for the web server. The web browser connects to the web server and sends an HTTP request (via the protocol stack) for the desired web page. The web server receives the request and checks for the desired page. If the page exists, the web server sends it. If the server cannot find the requested page, it will send an HTTP 404 error message. (404 mean ‘Page Not Found’ as anyone who has surfed the web probably knows. ) The web browser receives the page back and the connection is closed. The browser then parses through the page and looks for other page elements it needs to complete the web page. These usually include images, applets, etc. For each element needed, the browser makes additional connections and HTTP requests to the server for each element. When the browser has finished loading all images, applets, etc.the page will be completely loaded in the browser window. Retrieving a Web Page Using HTTP: Telnet is a remote terminal service used on the Internet. Its use has declined lately, but it is a very useful tool to study the Internet. In Windows find the default telnet program. It may be located in the Windows directory named telnet. exe. When opened, pull down the Terminal menu and select Preferences. In the preferences window, check Local Echo. (This is so you can see your HTTP request when you type it. ) Now pull down the Connection menu and select Remote System. Enter www. google. com for the Host Name and 80 for the Port. (Web servers usually listen on port 80 by default. ) Press Connect. Now type GET / HTTP/1. 0 And press Enter twice. This is a simple HTTP request to a web server for its root page. You should see a web page flash by and then a dialog box should pop up to tell you the connection was lost. If you’d like to save the retrieved page, turn on logging in the Telnet program. You may then browse through the web page and see the HTML that was used to write it. Most Internet protocols are specified by Internet documents known as a Request for Comments or RFCs. RFCs may be found at several locations on the Internet. See the Resources section below for appropriate URL’s. HTTP version 1. 0 is specified by RFC 1945. Application Protocols: SMTP and Electronic Mail: Another commonly used Internet service is electronic mail. E-mail uses an application level protocol called Simple Mail Transfer Protocol or SMTP. SMTP is also a text-based protocol, but unlike HTTP, SMTP is connection oriented. SMTP is also more complicated than HTTP. There are many more commands and considerations in SMTP than there are in HTTP. When you open your mail client to read your e-mail, this is what typically happens: The mail client (Netscape Mail, Lotus Notes, Microsoft Outlook, etc.) opens a connection to its default mail server. The mail server’s IP address or domain name is typically setup when the mail client is installed. The mail server will always transmit the first message to identify itself. The client will send an SMTP HELO command to which the server will respond with a 250 OK message. Depending on whether the client is checking mail, sending mail, etc. the appropriate SMTP commands will be sent to the server, which will respond accordingly. This request/response transaction will continue until the client sends an SMTP QUIT command. The server will then say goodbye and the connection will be closed. Transmission Control Protocol: Under the application layer in the protocol stack is the TCP layer. When applications open a connection to another computer on the Internet, the messages they send (using a specific application layer protocol) get passed down the stack to the TCP layer. TCP is responsible for routing application protocols to the correct application on the destination computer. To accomplish this, port numbers are used. Ports can be thought of as separate channels on each computer. For example, you can surf the web while reading e-mail. This is because these two applications (the web browser and the mail clien.

African Slav

Latin American/ Caribbean countries developed lower cost labor through the preservation of the hacienda system and continuous use of foreign and Mimi grant workers through Latin American/ Caribbean plantations, even though increasing indenture servitude and increasing of wage labor was becoming more prevalent in the growing cit The Hacienda system in Latin America kept labor costs at a virtually free price by nodding Indians to certain lands by constantly keeping them in debt through out the early modern to modern period.During the early 1 ass's, Herman Cortes after being granted the Spanish crown was given encompass, allowing him access to large amounts of indigenous labor. With the growth of Indian populace by the early sass's, the hacienda sys stem continued in full throttle. Similar processes occurred in Puerco Rich during the time Of Sp anis colonization in which haciendas were created and cheap labor force was used in order to create a greater production of goods.The reason for this continuity is that the use of the hacienda system continued to give Latin America the convenience of nearby indigenous labor for a very cheap price to pay. Foreign and immigrant workers within Latin America from 14501900 were use d to work on plantations and Haciendas, because of the benefit of cheap labor. By the late sass's, Trans Atlantic slave trade began to spark, causing African slaves to be a source of labor. As slave abolition movements began to ignite in the late sass's, it became me less acceptable to continue to have slave labor, so many plantation owners secrete kept slaves with them.However, by the late 1 ass's, slavery was almost non existent, alto ugh due to the increasing popularity of indentured servants in plantations, an element of mix oratory work was still reflected upon Latin American labor force. This continuity exists because of the fact that slaves were cheap, useful, and easily accessible labor that was overall very pr deductive to the purpose of prod ucing items. Indentured labor in the Caribbean was becoming an alternative to slavery quiz cocker as more Europeans began to migrate around the world.During the 1 ass's, slave arrays in a strong position for the Caribbean, but by the time that the late sass's rolled a round, migrating Europeans began to have the choose to become a servant by paying off debt with working on a plantation. A more effective way of labor because the workers are more MO titivated to do more. This change exist because Of the fact that slaves were not needed as m such once more dedicated workers came to do the job. A similar process occurred in American colonies in which indentured workers paid off debts in order to become citizens.Wage labor in Latin America was slowly becoming more prevalent rather than slavery on haciendas. During the 1 60(Yes, wage labor was basically unheard of in this a ere, however during the sass's, wage labor began throughout Latin America. By the sass's, wage labor continued to in crease in haciendas along with indentured labor and was used because of the massive European immigration occurring instead of having to use African Slav sees. This change exists because wage labor is the willingness or agreement to work on a Hacienda and by contract. Therefore, it is by choice, not force.

Analysis of Special Economic Zones in India Essay

* INTRODUCTION: SPECIAL ECONOMIC ZONES is a geographical region that has economic and other laws that are more free-market oriented than a country’s typical or national laws. â€Å"Nationwide† laws may be suspended inside a special economic zone. The category ‘SEZ’ covers the following: * free trade zones (FTZ), * export processing Zones (EPZ) * free Zones (FZ) * industrial parks or industrial estates (IE) * free ports * free economic zones * urban enterprise zones Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC), development of infrastructure and to increase the employment. India was one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. In order to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000. * HISTORY: The world first known instance of SEZ have been found in an industrial park set up in Puerto Rico in 1947. In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen.From 1965 onwards, India experimented with the concept of such units in the form of Export Processing Zones (EPZ). But a revolution came in 2000, when Murlisone Maran, then Commerce Minister, made a tour to the southern provinces of China. After returning from the visit, he incorporated the SEZs into the Exim Policy of India. Five year later, SEZ Act (2005) was also introduced and in 2006 SEZ Rules were formulated. The SEZ Act, 2005, was an important bill to be passed by the Government of India in order to instill confidence in investors and signal the Government’s commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employme nt through their establishment, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholders. A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose. The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The draft SEZ Rules were widely discussed and put on the website of the Department of Commerce offering suggestions/comments. Around 800 suggestions were received on the draft rules. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, came into effect on 10 February 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments. The remaining part of India, not covered by the SEZ Rules, is known as the Domestic tariff area. Exports from Indian SEZ totalled 2.2 Trillion in 2009-10 fiscal. It grew by a stupendous 43% to reach 3.16 Trillion in 2010-11 fiscal. Indian SEZs have created over 840,000 jobs as of 2010-11. Within SEZs, a units may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc. As per law, SEZ units are deemed to be outside the customs territory of India. Goods and services coming into SEZs from the domestic tariff area or DTA are treated as exports from India and goods and services rendered from the SEZ to the DTA are treated as imports into India. Currently, there are about 143 SEZs (as of June 2012) operating throughout India[5] and an additional 634 SEZs (as of June 2012) that have been formally/principally approved by the Government of India [6]: State/Union Territory| Number of operational Special Economic Zones (June 2012) * BENEFITS OF SPECIAL ECONOMIC ZONES: * Providing state-of-the-art infrastructure. * Access to a large well-trained and skilled work force * Incentives which include 100% income tax exemption for a period of five years and an additional 50% tax exemption for two years thereafter. * 100% FDI is also provided in the manufacturing sector. * Exemption from industrial licensing requirements and no import license requirements is also given to the SEZ units. Attractive incentive and great investment opportunities have attractive many business tycoons to step into the SEZ all over the country. The first step was taken by the Mahindra World City at Chennai. The SEZ was promoted by Mahindra & Mahindra Ltd and later on by the Tamil Nadu Industrial Development Corporation. Mahindra & Mahindra Ltd holds 89% equity in the same. Later on, Reliance Industries also signed a pact with the Haryana government for setting up of the Rs. 25,000 crore multi products SEZ near Gurgaon in 2006. * OBLIGATIONS UNDER SPECIAL ECONOMIC ZONES: It is compulsory for every SEZ units in India to achieve positive net foreign exchange earning as per the formula given in paragraph Appendix 14-II (para 12.1) of Handbook of Procedures, Vol.1. For this particular purpose, a legal undertaking is required which has to be executed by a separate unit of the Development Commissioner. The is responsible for providing periodic reports to the Development Commissioner and Zone Customs as provided in Appendix 14-I F of the Handbook of Procedures, Vol.1 * ROLE OF STATE GOVERNMENT IN ESTABLISHMENT OF SEZ UNITS: State Governments play a very active role to play in the establishment of SEZ unit. Any proposal for setting up of SEZ unit in the Private / Joint / State Sector is routed through the concerned State government who in turn forwards the same to the Department of Commerce with its recommendations for consideration. Before recommending any proposals to the Ministry of Commerce & Industry (Department of Commerce), the States Government properly checks all the necessary inputs such as water, electricity, etc required for the establishment of SEZ units. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval. Representative of the State Government. * ADVANTAGES: * Allowed to carry forward losses. * No license required for import made under SEZ units. * Duty free import or domestic procurement of goods for setting up of the SEZ units. * Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years. * Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc. * Exemption from Central Excise duty on the procurement of capital goods, raw materials, and consumable spares, etc. from the domestic market. * Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations. * Exemption from payment of Service Tax. * The sale of goods or merchandise that is manufactured outside the SEZ (i.e., in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports. * No routine examination by Customs officials of export and import cargo. * Setting up Off-shore Banking Units (OBU) allowed in SEZs. * OBU’s allowed 100% income tax exemption on profit earned for three years and 50 % for next two years. * Since SEZ units are considered as ‘public utility services’, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947. * The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots. * External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions. * DISADVANTAGES: * Revenue losses because of the various tax exemptions and incentives. * Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves. * Terms and conditions: Only units approved under SEZ scheme would be permitted to be located in SEZ. 1. The SEZ units shall abide by local laws, rules, regulations or laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labor laws as may be locally applicable. 2. Such SEZ shall make security arrangements to fulfill all the requirements of the laws, rules and procedures applicable to such SEZ. 3. The SEZ should have a minimum area of 1000 hectares and at least 35 % of the area is to be earmarked for developing industrial area for setting up of processing units. 4. Minimum area of 1000 hectares will not be applicable to product specific and port/airport based SEZs.. * FUNCTIONING/ SET UP OF SEZ: The functioning of SEZs is governed by a three-tier administrative set-up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues. * Board of Approval The Board of Approval has been constituted by the Central Government in exercise of the powers conferred under the SEZ Act. All the major decisions are taken by the Board of Approval. The Board of Approval has 19 Members * Unit Approval Committee All the request for setting up of units in the SEZ is approved at the Zone level by the Approval Committee consisting of Development Commissioner after a discussion with the Customs Authorities and representatives of State Government. All post approval clearances in matters related to importer-exporter code number, change in the name of the company or implementing agency; broad banding diversification, etc. are given at the zonal level by the Development Commissioner. A separate units is also there who monitor the performance of the SEZ units on a periodic basis and is governed by the Approval Committee. SEZ units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of any violation in the rules formulated by the Approval Committee. * Development Commissioner SEZs / EOUs, each zone are headed by a Development Commissioner, who is also heading the Unit Approval Committee. Development Commissioner is the nodal officer for SEZs and help in resolution of problem, if any, faced by the units or developer. In all SEZ’s, the statutory functions are controlled by the Government while the rest of the operations are privatized. * DIFFERENCE BETWEEN FREE TRADE ZONES(FTZ) AND SPECIAL ECONOMIC ZONES(SEZ): A free trade zone (FTZ) , also called foreign-trade zone, formerly free port is an area within which goods may be landed, handled, manufactured or reconfigured, and re exported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. . The world’s first Free Trade Zone was established in Shannon, County Clare, and Shannon Free Zone.[3] This was an attempt by the Irish Government to promote employment within a rural area, make use of a small regional airport and generate revenue for the Irish economy. It was hugely successful, and is still in operation today. The number of worldwide free-trade zones proliferated in the late 20th century A Special Economic Zone (SEZ) is a geographical region that has economic and other laws that are more free-market-oriented than a country’s typical or national laws. â€Å"Nationwide† laws may be suspended inside a special economic zone. PROMINENT EXPORT PROCESSING ZONES IN INDIA: * Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat * Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra * Cochin Export Processing Zone (CEPZ), Cochin, Kerala * Falta Export Processing Zone (FEPZ), Falta,West Bengal * Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu * Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh * Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh * While the Santa Cruz Electronics Export Processing Zone (SEEPZ) is meant exclusively for the exports of electronics and gems and jewelry, all other zones are multi-product zones. 100% foreign equity is welcome in EOUs and EPZs * INDUSTRIAL PARKS: Industrial parks are usually located on the edges of, or outside the main residential area of a city, and normally provided with good transportation access, including road and rail.[1] One such example would be the large number of Industrial Estates located along The River Thames in The Thames Gateway area of London. Industrial parks are usually located close to transport facilities, especially where more than one transport modes coincide: highways, railroads, airports, and ports. This idea of setting land aside through this type of zoning is based on several concepts: * To be able to concentrate dedicated infrastructure in a delimited area to reduce the per-business expense of that infrastructure. Such infrastructure includes roadways, railroad sidings, ports, high-power electric supplies (often including three-phase power), high-end communications cables, large-volume water supplies, and high-volume gas lines. * To be able to attract new business by providing an integrated infrastructure in one location. * Eligibility of Industrial Parks for benefits[2][3] * To set aside industrial uses from urban areas to try to reduce the environmental and social impact of the industrial uses. * To provide for localized environmental controls that are specific to the needs of an industrial area. * CRITICISM: Different industrial parks fulfill these criteria to differing degrees. Many small communities have established industrial parks with only access to a nearby highway, and with only the basic utilities and roadways. Public transportation options may be limited or non-existent. There may be few or no special environmental safeguards. * FREE ZONES: Free Zone are a geographically distinguished areas, possess a particular laws and regulation varies than those applied within the state. Free zone investors enjoy the particular incentives and privileges associated to these areas, such as: * Freedom to initiate any legal form for the activity * The investor has the freedom to determine prices of his services or products and the profit margin he desires. * The investor enjoys the exemption of Capital assets assets, productions supplies and imports and exports from customs, sales or any type of taxes or fees.

Humanities Today Paper Essay

Humanities are branches of knowledge that investigate human beings, their culture, and their self-expression. Distinguished from the physical and biological sciences and, sometimes, from the social sciences, the humanities include the study of languages and literatures, the arts, history, and philosophy. The modern conception of the humanities has roots in the classical Greek paideia, a course in general education dating from the fifth century BC that prepared young men for citizenship. Humanities also draw on Cicero’s humanitas, a program of training for orators set forth in 55 BC. The Renaissance humanists contrasted studia humanitatis (studies of humanity) with studies of the divine; by the 19th century the distinction was instead drawn between the humanities and the sciences (Encyclopedia Britannica, 2006). The humanities are a group of academic subjects united by a commitment to studying aspects of the human condition and a qualitative approach that generally prevents a single paradigm from coming to define any discipline. The humanities are usually distinguished from the social sciences and the natural sciences and include subjects such as the classics, languages, literature, music, philosophy, the performing arts, religion and the visual arts. Other subjects at times included as humanities in some parts of the world include archaeology, area studies, communications, cultural studies and history, although these are often regarded as social sciences elsewhere (Wikipedia, 2006). Humanity in general is the experience of being human. The experience can be visual, audible or by touch. The philosophy of being human is also the aim within the general perception of humanity, thus separating the commonality understanding humanity from the personal experience of being human. The difference between the visualization of humanity and the practical application of humanity is the understanding of the critical observation of what humanity should be versus what humanity is. The larger interpretation deals with the different disciplines of science, medical and even in psychology. I do not believe that anyone can understand that the present situation globally has anything to do with humanity. For example, I do not believe that killing and raping like in Darfur or in other areas like Iraq or Iran has anything or needs much explanation if that is also humanity and if it is not, what is it? ArtThe art of painting has been said that the painter’s soul speaks within the creation of the painting. For example, Leonardo DaVinci’s painting of Mona Lisa is not proven that Mona Lisa really smiled, yet in the eyes of the soul of Leonardo DaVinci he saw this smile which leads to the conclusion that humanity has a soul which one cannot assume in contrast to an animal. In the style of surrealism, one can make the statement that the soul is talking in a language that only the painter can understand. To finish this topic of art and humanity, it is possible to say that the soul in humanity has many different faces that is only understood by the creator. The harmony or the dis-harmony to be attracted to one or the other like Ruben’s painting versus Picasso’s abstracts indicates that the resonance of the viewer is enchanted or dismayed, thus this only shows the uniqueness of the soul. MusicMusic from the viewpoint of one’s understanding of humanity is the rhythm of life. One would find oneself during the day humming this or that tune. One may not know why but one would be expressing the humming as joy. Theoritically one could ask the question, is music also the expression of the soul and if the answer is yes then why does the symphony entice some people but not all? So often one is confronted with the social expression that many people are gathered to be stimulated by the melody rather than the words. Case and point, when men have get togethers they are singing 99 bottles of beer on the wall which has nothing to do with the harmony or the expression of the soul and yet they are happy. Then the men start to come up with all kinds of variations of the song. If music is the expression of humanity or if humanity is the expression of music, then joy is the same. An opera for someone that likes opera, can be very moving in emotions. An overture can also be very moving. There are many people that like overtures and a cello concert and there are many people that like Christina Aguilera, Leonard Cohen or Johnny Cash. One can see as diverse the music, so diverse is humanity’s perception of it. ArchitectureThe visualization of an architect to create a structure is based upon the landscape and the scenery that can entice the architect to think and then create. It would be interesting to understand a child that creates the architecture in the clouds and tells his or her mother to look at the castle in the sky versus an architect that see’s the scenery and skillfully builds the castle. That would be the different findings. Throughout history, one has seen different styles of architecture like Roman and Gothic. Roman architecture is round and gothic is more triangular. Looking at Baroque, we see straight lines. All those different architectural styles are the expression of humanity and humanity’s evolution. PhilosophyPhilosophy in one’s opinion is the most intriguing part of humanity. To ask a question and to not have an answer or not wanting an answer, that is philosophy. Philosophy is the purest of the interpretation of humanities which means that humanities in action is at it’s best. The progression of thinking. What does it mean when Socrates says, I know that I don’t know or Shakepeare in Hamlet who says to be or not to be. With other words, philosophy represents the capabilities of humanities. LiteratureHumanity and literature go hand-in-hand with the evolution of humans and the different societies. Ancient texts like the Bible and other writings represent the history of humankind as written words where more and more use for communication. As the Bible seems to be the representation of the history of a particular group of people like the Jews, other groups like in the Mesopotamian history became less and less a real representation of history by geographic means. Literature became more poetic. For example the Mesopotamian epic story of Gilgamesh. Throughout the evolution of humankind, technology has changed the socio-economic structure which means from hieroglyphs communicated in clay or stone tablets to the skillfull calligraphy in monasteries and the triumph of the printing press by Gutenberg. Today literature is different because reading a book in the time of internet is almost a sacrilege. In not reading books in the way that it was done in the past, society has almost no time to read complete sentences because literature has also fallen in a trap that unfortunately takes away the thinking which is the hallmark of humanity. Humanity is comprised of many different cultures. Each culture has their own set of rules for humanity. The uniqueness of literature is lost in the complexity of it’s many interpretations. Humanities are about being human. The idea is to draw connections between all the various creative movements and influences that exist in a culture at any given moment, as well as how these movements and influences have influenced what has come later and what we are experiencing now. ReferencesEncyclopedia Britannica Online (2006). Humanities. Retrieved November 2, 2006 fromhttp://www. britannica. com/ebc/article-9367537Fiero, G. (2006). The Humanistic Tradition: The European Renaissance. The Reformationand Global Encounter. Boston, Massachusetts: McGraw-Hill. Robinson, J. (2003). What is Humanities? Retrieved on November 5, 2006 fromhttp://fp. uni. edu/robinsoj/Humanities/WHAT%20IS%20HUMANITIES. htmWikipedia the free encyclopedia (n. d. ). Humanities. Retrieved November 1, 2006, fromhttp://en. wikipedia. org/wiki/Humanities.

MARKETING ESSAY Example | Topics and Well Written Essays - 1000 words

MARKETING - Essay Example Segmentation constitutes the first step in Brand Development; it is referred to as the process of dividing and sub-dividing the entire population into ‘meaningful segments’. The word meaningful can be elaborated upon to mean segments that have distinct needs and characteristics, which different products can cater to (Kotler, Armstrong, Saunders, Wong, 1998, pp. 185). This segmentation is not done arbitrarily rather it initially was done on the basis of the demographics that match with those of the ideal consumer of the product, however over the years the focus of segmentation has changed from demographics to more qualitative measures such as psychographics. Unilever Ltd, one of the leading Fast Moving Consumer Goods Company has developed its own model of psychographic segmentation, that is, VALS (Values and Lifestyles). Market Segmentation is done in order to channelize the Organizations resources towards a targeted population instead of aimlessly squandering them on the whole population, majority of which does not form a part of its target market. A few years ago market segmentation was taken to be an unquestionable theory of marketing. Recently however, its validity has come into question by many researchers and critics such as Yankelovich and Meer (2006, pp. 1-10), Hoek, Gendall and Esslemont (1996, pp. 25-34). Amongst a few of the arguments presented by the afore mentioned researchers against market segmentation was the fact that market segmentation involves a lot of subjective judgment that is practiced on behalf of the researcher, the psychographic market segmentation tactics have led to all the advertising emphasis on the emotional appeal, thus rendering product functionality as insignificant as a result of which product innovation is declining and so forth. Yankelovich quoted the example of Miller Lite as an example to state that the emotional appeal used due and lack of focus on the product functionality led to an unsuccessful advertising campaign,