RJR Nabisco Case Study Essay Example for Free

RJR Nabisco Case Study Essay Executive Summary The RJR Nabisco case study was used to implement concepts that I have learned in class during the semester and apply it to the real world. The Nabisco case allowed me to develop my skills by using an Excel Worksheet, understanding how to calculate the fair value price per share, and determining the fair value price per share by changing the tax rate and growth rate. First, I was expected to construct an Excel Worksheet. Using the given data and analyzing the case, I was able to find all of the fixed variables needed in the Excel Worksheet. Using these fixed variables, I was able to use my prior skills in Excel to construct equations to find the dependent variables, such as the fair value price per share. This case also helped me develop my skills in calculating the fair value price per share. Using the different variables given in this case, I was able to use equations to find the best estimate for the fair value price per share of RJR Nabisco. The third benefit I gained from this assignment was how the tax rate and growth rate affected the fair value price per share. Using the previous data and the reusable Excel Sheet, I was able to find the changes in the fair value price per share due to changes in the tax and growth rate. Overall, the RJR Nabisco case helped me develop my skills in using Excel Worksheets. It also let me apply what I have learned in class about calculating the fair value price per share, and allowed me to experience it in a more realistic setting. I was also able to see how changes in the tax rate and growth rate affect the fair value price per share. 1. Construct a reusable Excel sheet that computes the fair value per share using the information given in the case. Please make sure that your Excel sheet can closely approximate the value per share given in the case (~$108). I was able to construct an Excel Worksheet (see page 5) that was able to use the information given in the RJR Nabisco Case Study. I was able to make it using different variables that would allow me to change the tax rate and  growth rate to get the next two answers. 2. In your Excel sheet, change the input cell for tax rate to 15%. What is the new fair value per share? By changing the tax rate to 15%, it causes the price per share to increase to $123.19 3. Change the tax rate back to 34% and this time change the perpetual growth rate to 5%. What is the new fair value per share? By changing the tax rate back to 34% and moving the growth rate up to 5%, it causes the price per share to increase to $125.14.

Corporate Reporting Case Study Diageo plc

Corporate Reporting Case Study Diageo plc 1. Information about the company Diageo, formed in 1997, from the merger of Guinness PLC and Grand Metropolitan PLC, is a multinational company, trading in over 180 markets across the world, listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). It is the worlds leading premium drinks business. The company containes 24,270 employees worldwide with offices in around 80 countries. Company takes up about 30% global markets, and holds worlds top 20 brands include: Smirnoff, Johnnie Walker, Captain Morgan, Baileys, JB, Josà © Cuervo, Tanqueray, Guinness, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines, and Bushmills Irish whiskey. Key numbers for fiscal year ending June, 2009: Sales: $15,378.0M One year growth: (4.7%) Net income: $2,849.0M Income growth: (10.6%) Source: Answers (2009) Diageo: Information from answers 2. Competitive Environment 1 ¼Ã¢â‚¬ ° Industry Competition Overview The world drink market is broadly exploited in the mature markets. Among the competitors, the most successful are Pernod Ricard Group, Majestic Wine PLC, Bacardi Company Limited, Brown-Forman Corporation, Fortune Brands, Inc. Diageo PLC holds 30 per cent of the total drink market. 2 ¼Ã¢â‚¬ ° Globalisation and Mergers Acquisitions There is a rapid growth in international trade and increasing globalisation of Liquor industry. The main competitions focus on the emerging market and expanding the global market shares by mergers and acquisitions. Pernod Ricard and Fortune Brands jointly buyout the worlds second largest spirits company Doumic in UK. In order to precedence over its competitors, the company speeds up mergers and acquisitions internationally. 3 ¼Ã¢â‚¬ ° Legislation and Economic Environment The EU will enact legislation to uniform the standards for wine production. Regulation is also rapidly developing in emerging markets, which may compounds some difficulties in taking up the emerging market. Economic crisis had a deep impact on the pattern of alcohol manufacturing competition, which had a varied impact on Diageos brand performance and parts of the brands sales fell significantly. Evaluation of Financial Statements The Corporations financial position is evaluated by ratio analysis, horizontal analysis and vertical analysis, which is measured by using FinSAS, according to the Income Statements and Balance Sheets, compared with another biggest drink manufacture-Majestic Wine PLC. 1. Ratio Analysis The value of the firm is determined by its profitability and growth. In ratio analysis, I compare the ratios of the Diageo PLC for six years and compare the group with another firm in the same industry. The objective of ratio analysis regarding to the firms financial position is to evaluate the effective of the groups policies in operating management, investment management, financial strategy and dividend policy. 1) Overall Profitability Assessment The ROE is a comprehensive indicator of firms performance. The ROE of Diageo shows a significant increase from 2007 to 2009, from 33.94% to 43.78%, much higher than its competitor in UK. On average over long periods, large publicly traded firms in the U.S. generate ROE in the range of 11 to 13 percent. The ROE of Diageo is stable at a relatively high level around 30% to 50%. That indicates the managers are suitable performed in employing the funds invested by the firms shareholders to generate returns. Diageos strategies of focusing on profit improvement, such as acquisitions, restructuring initiatives and targeting at emerging markets, gains positive results. 2) Operating Management Assessment The Gross Profit Ratio and EBIT Margin show the profitability of companys operating activities. The figures above show that the Gross Profit Ratio and EBIT Margin of Diageo are much higher than Majestic Wine plc, indicating a seriously competition in the economic situation. Both ratios of Diageo decreased slightly to 1.59% and 1.28% form 2008 to 2009 due to the impact of economic downturn, especially in Spain and Ireland. However, both ratios maintained at a relatively high level, validating the companys stated intention in its annual report of focusing on profitability. Diageo has grown profits in the mature markets and made great advances in emerging markets by volume, by net sales, and by operating profit. 3) Financial Management Assessment The level of Diageos financial leverage is s slightly higher than Majestics and increased significantly from 2006 to 2009. Financial leverage increases the Groups ROE as long as the cost of the liabilities is less than the return from investing these funds. What we should pay attention to is that while a firms shareholders can potentially benefit from financial leverage, it can also increase their risk. 4) Investment Ratio Assessment The DPS of Diageo increased steadily from 2005 to 2009, which reflects a stable dividend policy. Reported EPS growth increases by 10% in the recession period. The profits come from two restructuring initiatives in the year, which generate  £160 million of cost reductions in all, and from the Exchange rate movements which increase net sales by  £1,095 million. 5) Liquidity Ratio Assessment The above ratios attempt to measure the firms ability to repay its current liabilities, i.e. short-term solvency. The Current Ratio of Diageo is significantly outstanding than Majestics, about 1.35 on average. Diageos inventory situation form 2005 to 2009 was uncomfortable when measured in terms of quick ratio, which is too low (less than 1) for manufactory industry. Diageo paid less attention to improve the inventory management. 6) Financial Strength Assessment A companys financial leverage is also influenced by its debt financing policy. The Diageos Debt Ratio and D/E Ratio are higher than its competitors, and its D/E Ratio increased significantly from 2006 to 2009. From the tables above, we can find out that Diageo relies on debt to some extent. It is optimal for firms to use debt in their capital structure for its low costs. However, too much reliance on debt financing is potentially costly to the firms shareholders. Furthermore, Diageo will face financial distress if it defaults on the interest and principal payments. 2. Horizontal Analysis Sales were increasing significantly from 2005 to 2009, especially in 2009, reflecting the contribution from brands outstanding performance in Asia Pacific and Europe, which offsets the impact by the weakness in North America. The operational progress and foreign exchange benefits stated by annual report also increase its net sales. The increase of Cost of Good Sales is more than Sales increase for the accounting period, which means that it costs more to sell the product than we actually made. The growth of Operating Expense exceeds the growth of Gross Profit by 18.53%.This means that our sales exceeded the expenses, and the company gains the money. Income Tax Expense exception, other items on the income statement are increase, which indicates a decline in profitability of the company. The increase of Net Income results in the change for EPS on LSE and DEO. 3. Vertical Analysis The proportion of COGS increased from 2005 to 2009 by 2.28%, which shows the direct effect on the companys Gross Profit. The decrease of the proportion of Operating Income and the increase of proportion of Interest Expense results in the slightly decline of Net Income. 2) Capital Structure analysis The total long-term liabilities of Diageo PLC take more than half parts of its capital structure both in 2008 and 2009. Its capital structure is far more risky than the Majestic Wine PLC which contains large proportion of equity and current liabilities. Under the risk-based capital structure, low liquidity enhances the Diageos financial risk. On the other hand, the non-current assets, which gain high level of return, take up a large proportion, so the profitability of the company has also been improved. Conclusion Diageos strategy is to generate consistent top line growth while enhancing its operating margins and return on invested capital. The company seeks out selective acquisitions to support brands growth which strengthen its market position in both United Kingdom and abroad. In the future, according to the companys strategy, Diageo looks for the opportunities in emerging markets, such as Brazil, Russia, India and China. Annual report reveals that the Companys credit risk comes from financial instruments and business activities. Diageo minimizes its financial credit risk through the application of risk management policies approved and monitored by the board. Trade and other receivables exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate for the customer. There is no concentration of credit risk with respect to trade and other receivables as the group has a large number of customers which are internationally dispersed  [1]  . Although the corporate gains stable profitability, it has several financial management limitations. Its capital structure contains too many long-term debts and inefficient inventory management may add the liquidity risk. SECTION B Corporate GovernanceThe goal of Corporate Governance is to solve the agency problem and create sustainable shareholders wealth. The corporate governance practices of Diageo PLC mainly include: internal control by board of directors and remuneration policy. Key to committees  [2]   1. Audit 2. Executive (comprising senior management) 3. Nomination 4. Remuneration Comes from the figures above and corporate governance report, the board has an appropriate structure and directorship. The size of board is appropriate, in which case, the decision making and internal control are effective and can make sure all the directors are participating in the significant affairs. Good balance between executive and non-executive directors. There are fewer executive directors and more non-executive directors. Putting the outside directors into the committees can prevent manager conspiracy plundering the shareholders profits. The Board Committees are constructed clearly according to their functions, which plays a positive effect to the board: 1) Define the functions of board of directors. 2) The directors can access to company information more easily. 3) In favor of non-executive directors of the companys affairs involvement. The company has experienced experts serving on their board. The executive directors have a plenty of experience in the drink business, supported by a wide range of financial and technical experience of the non-executive directors. 2) Independence The Non-Executive Directors play an important part in corporate accountability and governance through their membership of sub-committees: Audit Committee, Executive Committee, Nomination Committee and Remuneration Committee, which improves the boards independence. The non-executive directors have a particular responsibility for ensuring that the business strategies proposed are fully discussed and critically reviewed. This enables the directors to promote the success of the company for the benefit of its shareholders as a whole,  [3]   2. Remuneration Committee 1) The composition of Remuneration Committee The Remuneration Committee consists of Diageos non-executive directors, all of whom are independent. In that case, the committee members have no financial interests about themselves conflicting with shareholders, which reinforce the committees independence. 2) Responsibilities for the corporate governance The responsibilities of the Committee include  [4]  : Making recommendations to the board on remuneration policy as applied to the executive directors and the executive committee. Setting, reviewing and approving individual remuneration arrangements for the chairman, executive directors and executive committee members including terms and conditions of employment. Determining arrangements in relation to termination of employment of each executive director and other designated senior executives; and Making recommendations to the board concerning the introduction of any new share incentive plans which require approval by shareholders. Types of Main Executive Compensation  [5]  : Base Salary: The Committee takes base salary into the consideration of the value created by individual, performance and the external market data. Annual Bonus: Incentives year on year delivery of short term performance goals. Cash bonuses were earned by other senior managers for achieving relevant performance targets for the financial year. Share Options: Incentives three-year earnings growth above a minimum threshold. Provides focus on increasing Diageos share price over the medium to longer term, however, may increase the manipulating of accounting profits. Performance share awards: Provides focus on delivering superior returns to shareholders. Pension: Provides competitive post-retirement benefits. Long Term Incentive Plan (LTIP): These awards vest three years after grant and are subject to satisfying the appropriate performance criteria over the relevant three year performance period. This policy can prevent manager focusing on manipulating short-term earning. Ownership Structure Diageo Plc is incorporated as a public limited company in England and Wales. It is listed on the London Stock Exchange, as DGE, and on the New York Stock Exchange, as DEO. The Ownership Structure of Diageo PLC is classified into Block-Holders Ownership. Capital Group Companies, Inc. are the only major shareholders, with 123 million ordinary shares (4.01% of the issued ordinary share capital) and no different voting rights. No other major shareholders are listed in Diageos Annual Report. Audit Independence 1. The audit report opinion  [6]   The financial statements give the objective and fair description of the Groups affairs at 30 June 2009 and its profit for the year then ended. The statements have been prepared accordance with IFRS. The statements have been prepared accordance with the requirements of the Companies Act 2006 and Article 4 of the IAS Regulation. 2. Assurance The independent auditor provides a positive assurance. It gives the audit opinions that the financial statements meet the requirement of IFRS, Companies Act and IAS Regulation. The mentioned above can improve the independence of external auditing. 3. Non-audit services  [7]   The group has a policy on the use of the external auditor for non-audit services, which is reviewed annually, most recently in June 2009. These pre-approved non-audit service categories may be summarized as follows: Accounting advice, employee benefit plan audits, and audit. or other attestation services, not otherwise prohibited; due diligence and other support in respect of acquisitions, disposals, training and other business initiatives; and Certain specified tax services, including tax compliance, tax planning and related implementation advice in relation to acquisitions, disposals and other reorganizations. All the non-audit services are under the supervision of audit committee which avoids the interest conflict while audit and non-audit services are provided by external group audit simultaneously. Audit Committee 1. The main features and characteristics Composition: Exclusively Independent Non-Executive Directors. Assurance: Financial reporting is evaluated by the Audit Committee. Background of committee members: The corporate requires at least one committee member is a financial expert. The term of office: The term of office of members should not be too long, generally 3 years. 2. The role in enhancing the credibility of the published information The audit committee takes the following responsibilities: Monitor internal control and risk management throughout the Group. Review the objectivity of the interim and annual financial statements including a review of the significant financial reporting judgments contained in them, before submission to the full board. Monitor the effectiveness of the global audit and risk function. Critically review the groups policies and practices concerning business conduct and ethics. Monitor the companys relationship with the external auditor, including its independence and managements response to any major external audit recommendations. According to the mentioned above, audit committee can monitor the key financial and operational risky areas, review the fairness and effectiveness of internal control system, and oversight of external audit and internal audit on the implementation of the recommendations of internal control through the internal audit functions. 3. The role in enhancing the independence of the external auditor  [8]   In reviewing the independence of the external auditor, the audit committee considered a number of factors. These include: the standing, experience and tenure of the external audit director; the nature and level of services provided by the external auditor; and confirmation from the external auditor. The audit committee established the policy to reinforce the independence of external auditors. The provision of any service must be approved by the audit committee. The fees generated from non-audit services are under the supervision of audit committee. Consulting work cannot be performed for audit clients. Voluntary Disclosures 1. The evaluation of voluntary disclosure  [9]   Environmental disclosure The Companys Environmental Statement provides a detailed description of environmental policy regarding to the improvement in environmental performance, energy and greenhouse gases, Water management, Brands, packaging and innovation, Supply chain, Research and transfer of technology, Hazardous substances, and Emergency response. Social disclosure Diageo PLC makes a real contribution to creating a positive role for alcohol in society, minimizing the harm from misuse and promoting the social benefits of responsible drinking. The companys investing in employee development increases the capability of its workforce, creates value and spreads wealth through the community. The company sets some policies about safety at work, employees health, employees capability and development. Ethical disclosure The liquor has a negative impact on peoples health, and the Diageo not only focuses on the markets expanding but also give a positive guidance to the public. 2. Three main potential impacts The Company contributes to the wider community through their involvement in corporate citizenship, volunteering and charitable activities, which gain positive impact on corporate reputation. One of the most significant impacts of its business on local economies is to provide employment. The occupational health and safety of employees is a high priority, which enhances the motivation and performance of employees.

Essay --

Marlene Cazahuatl 12/19/13 F.D.R Senior Bullying is a serious issue many young kids in society go through. Most of these children that face this issue many of which are Latinos or from Hispanic descendent are the main ones who suffer from this. These kids are sometimes bullied on where they are from and what they are or what they're not. The fact being is that no one should feel intimidated by another person that's most likely the same age as them. Now a days the media play a huge role in uncovering the issue of bullying. The media makes us reflect on how bullying wasn't such a big issue as it is now in past generations. The Fact is that we should do what ever is in our hands to prevent more cases like these and not allow anyone to be a victim of someone's aggressive behavior. According to reports from last year 2012, statistics show that 1 out of 4 students from Hispanic descendent are being bullied in their schools, most of which are afraid of attendin...

The Relation of Rights to the Real :: Ontology Bentham Papers

The Relation of Rights to the Real This paper approaches Bentham's ontology of rights from a viewpoint influenced by American philosophical pragmatism. I examine how rights are conceived and discussed in relation to the real. Jeremy Bentham maintained that all rights are "fictitious entities." But, in privileging "political" over moral and natural rights, Bentham implies that legal rights stand in a privileged position over natural rights with regard to the relation of mind to the actual. By reason of its enforceability through sanctions, a legal right for Bentham has a privileged connection to the real. I argue that nonlegal rights can be conceived as bearing a roughly parallel relation to the real in guiding human conduct by suasion rather than sanctions. Their relationship to "something real and observable" is their relation to voluntary conduct through belief. Bentham's ontology dictates a distinct legal and political system. Practically, it leaves the real existence of rights entirely in the hands of government o fficials, and the only choice of humans interested in securing rights lies in their enactment and enforcement in and through a legal regime. In this paper I will approach Bentham's ontology of rights from a viewpoint influenced by American philosophical pragmatism. In order to do so, some introductory remarks are necessary. There is more than one version of "American pragmatism," but I think it safe to say that there are only two that are relevent here; I will call them A and B. Pragmatism A finds its main sources in Peirce, James, Dewey, and Holmes, and tends toward what might roughly be identified as ontological realism. (1) Pragmatism B draws from a somewhat different reading of Dewey and Holmes, not so much from Peirce and James, and has been profoundly influenced by Wittgenstein and the so-called linguistic turn in philosophy; its principal exponent has been Richard Rorty. It tends toward both "antirealism" and, some might say, a contemporary nominalism. For those interested I will provide explanatory references (2) and proceed to pragmatism A, which is the preferred version for me and the approach I find so helpful. Why? Because I find the literature of law and rights filled with distinct and often conflicting ontological assumptions. In a moment I will give an example. But to summarize the paper, we must start with the fact that there are conflicting theories of law and its leading categories, from the most general (e.g. rights) to the more specific (like contract).

American Film Industry Essay -- Media History, Cinema

The American film industry has become the most dominant over all other national cinemas. Millions of people now watch feature films all over the world but there is, and always has been one prevailing place where the films originate and this is the ‘cinema of the United States of America’ better known as Hollywood. This essay will explain how Hollywood has become the dominant force over all the other national cinemas in relation to historical factors which have affected the high quality of the films, the economic supremacy of Hollywood’s budgets and revenues, aswell as the glamour of high-profile actors and actresses. Through discussing each of these concepts and comparing the success of Hollywood to other national cinemas, in particular British cinema, we can discover how it has become the most dominant cinema in the past to this present day. Before looking into the rise to dominance of Hollywood, we must gain an insight into the history of the cinema industry. The first practices of cinema entertainment was with Thomas Edison’s invention of the kinetoscope in 1896, which gave the audience the chance to view nickelodeons in fairgrounds and later on short films but it wasn’t until 1903 with the ‘Great Train Robbery’ (directed by Edwin Sporter) The pistol shot used in the Great Train Robbery is used in more contemporary films such as James Bond. The audiences started to show interest as now the cinema developed a narrative for the first time with the story shown through a series of various camera shots. It was then that longer movies with more complex story lines and innovative editing were released, and cinema’s possibilities as a form of market as well as entertainment were then recognised. The Motion ... ...gn markets and America’s investments in them could be jeopardized by restricting distribution. The 1948 Anglo-American Film Agreement, allowed American companies to withdraw only a fraction of their huge annual profits, in exchange for the abolition of import quotas. As Balio (1976: p397) points out, the Americans held veiled advantages under the act- ‘American companies could spend there frozen earnings in Britain†¦ to acquire story rights and buy real estate and studios.’ Similar terms could be found in the 1948 Franco-American Film Agreement, where ten million dollars of ‘blocked’ profits could be used to co-produce films with French companies and gain distribution rights. It is through Government collaborations such as this that Hollywood was able to attain the status of an expansive commercial enterprise within the U.S. and indeed outside it that it has today.

Urban Farming in New York

Ilona Mukhisnova ENG 1101 10/22/2012 Prof. Alatriste Home Paper #2 – Argumentative Essay Urban Farming for Providing NYC with a Sustainable Food System ?Nowadays, a life in a huge megalopolis like New York can be very advantageous for a person in things like an easy access to business, culture, politics, and entertainment. However, live in the big city can has its own negative sides. Scott Stringer, in the report â€Å"Food NYC: A Blueprint for Sustainable Food System† points out serious nutrition and pollution issues in the city.Indeed, there are a lot of problems that New Yorkers have to face with, but a lack of â€Å"affordable and healthy† food is one of things that the City’s residents suffer most from. The report contains ideas and recommendations that New York can adopt to â€Å"balance health, economic, and environmental needs. † According to the report, it could be reached by changing processes of producing and consumption of food such as t he use of efficient and energy-saving technologies which may lead to reducing NYC’s GHG emissions.I think that sustainable food system could be developed by means of promotion of local agriculture and encouraging residents and businesses to consume locally produced food. ?There are a lot of problems that make the developing of local agriculture in the city difficult. One of such problems is the high CO2 production. In his report, Stringer says that â€Å"the city has committed to reducing its GHG emissions by 30 percent by the year 2030,† if it sticks to Mayor Bloomberg’s PlaNYC initiative.However, a lot of people think that it’s really a low percentage of improvements for almost twenty-year period, but I believe that it’s way better than no improving at all, and that there’s some other ways to improve the environmental situation the city. One of the ways to reduce such problems as CO2 emission is to increase the number of parks and gardens in the city. According to Stringer’s report, some people consider gardens as â€Å"a transitional use of land, available until the land is ready for urban development. I find this point of view wrong, as these green oases in the middle of the concrete jungles help to keep our city healthier by both â€Å"absorb[ing] carbon through photosynthesis† and, thus, preserving the environment and being a place for community activities. Lubie Grujicic-Alatriste, the author of the article â€Å"New York City Community Gardens Are in Full Bloom,† says community gardens â€Å"bring so much needed relief from urban pollution. I agree with the author’s view that local residents’ help in maintaining community gardens are one of the best examples of people’s efforts to save the green â€Å"plots of land,† and this, most importantly, can help decrease the negative impacts of food sector. ?One of the biggest stoppers of developing urban agriculture in New York City is a lack of available for gardening and farming lands. In a built-up city like New York, the demand on land is great.There are some groups of people such as construction companies who are against securing the City’s land for agriculture purposes. They all need land for developing new projects and getting large profit. I think the City Government should create proper legislation to regulate the City’s land use and protect existing parks and gardens from being replaced with buildings. Also, the land demand keeps the prices on land extremely high, what makes it difficult to do business by growing fruits and vegetables; farms’ profits not always can cover the costs of production.Danielle Sonnenberg writes in her article â€Å"Interest Grows in Urban Farms: City’s Green Movement Has Ear of Wall Street† that â€Å"real estate costs are high†, and that the City and community organizations should increase the interest of Wall Street to invest in urban farming. The author points out that agriculture companies like NewSeed Advisors and Gotham Greens find urban farming profitable. Examples of these companies show that projects like hydroponic greenhouse are actually â€Å"commercially viable. That makes Wall Street consider urban farming as a good source of investment. All of the above reasons bring us to the point that we should consider new ways of city farming. According to the â€Å"Food NYC†, urban agricultural growth may be achieved by considering opportunities of using of â€Å"underutilized spaces, such as rooftops, basements, or warehouses. † In the article â€Å"Huge Rooftop Farm is Set for Brooklyn†, which appeared in the New York Times on April 5th, 2012, the author (Lisa W.Foderato) tells about a new project of â€Å"Bright Farms, a private company that develop greenhouses,† the world’s largest rooftop farm in Sunset Park, Brooklyn. The farm is going to work on the hydroponic technology, – â€Å"vegetables are [going to be] grown in water rather than soil. † Rooftop farms are not a novelty for New York: there are already farms in Long Island City, the Greenpoint, etc. Thus, the development of alternative urban farms may encourage city residents to consume locally produced food.The supporting and developing untraditional type of urban farming will bring affordable fresh produce to the City’s counters. Locally produced food with the use of modern technology can improve the overall health of the City’s population, lower the food’s costs, and reduce negative environmental impact. Securing the land for parks and gardens use can also improve NYC environment. Promoting urban agriculture and encouraging residents to consume locally produced food can help the City Government to provide New Yorkers with sustainable food system.

Age Discrimination in Employment Act Essay

The Age Discrimination in Employment Act (ADEA) of 1967 prohibits employers from discriminating against employees, or job candidates, on the basis of age. This law covers workers who are 40 years of age and older. An employer must have at least 20 workers to be covered by this law. The Equal Employment Opportunity Commission (EEOC) enforces the Age Discrimination in Employment Act. According to the Equal Employment Opportunity Commission (EEOC), the Age Discrimination in Employment Act makes it unlawful for an employer to make employment-related decisions based on an employee’s or a prospective employee’s age. Here are several ways in which workers age 40 and above are covered: †¢An employer can’t make hiring decisions based on an applicant’s age and he or she can’t discriminate based on age when recruiting job candidates, advertising for a job or testing applicants. †¢An employer can’t fire a worker because of his age. †¢An employer can’t use age to classify, segregate or limit an employee if this will negatively affect the employee’s status or deprive him or her of opportunities. †¢An employer can’t use age to determine an employee’s pay. †¢An employer can’t deny benefits to an employee because of the employee’s age. In some circumstances, however, the employer may provide reduced benefits to older workers if the cost of providing those reduced benefits matches the cost of providing benefits to a younger worker. In other words, the cost of providing the benefits to older workers and younger workers must be the same. †¢An employee may take age into account when making an employment-related decision only if it is in regard to an authentic qualification necessary for the business’s operation. Age discrimination involves treating someone (an applicant or employee) less favorably because of his age. The Age Discrimination in Employment Act (ADEA) only forbids age discrimination against people who are age 40 or older. It does not protect workers under the age of 40, although some states do have laws that protect younger workers from age discrimination. It is not illegal for an employer or other covered entity to favor an older worker over a younger one, even if both workers are age 40 or older.Discrimination can occur when the victim and the person who inflicted the discrimination are both over 40. Age Discrimination & Work Situations The law forbids discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment. Age Discrimination & Harassment It is unlawful to harass a person because of his or her age. Harassment can include, for example, offensive remarks about a person’s age. Although the law doesn’t prohibit simple teasing, offhand comments, or isolated incidents that aren’t very serious, harassment is illegal when it is so frequent or severe that it creates a hostile or offensive work environment or when it results in an adverse employment decision (such as the victim being fired or demoted). The harasser can be the victim’s supervisor, a supervisor in another area, a co-worker, or someone who is not an employee of the employer, such as a client or customer. Age Discrimination & Employment Policies/Practices An employment policy or practice that applies to everyone, regardless of age, can be illegal if it has a negative impact on applicants or employees age 40 or older and is not based on a reasonable factor other than age (RFOA). The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years of age or older from employment discrimination based on age. The ADEA’s protections apply to both employees and job applicants. Under the ADEA, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment, including hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. The ADEA permits employers to favor older workers based on age even when doing so adversely affects a younger worker who is 40 or older. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on age or for filing an age discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under the ADEA. The ADEA applies to employers with 20 or more employees, including state and local governments. It also applies to employment agencies and labor organizations, as well as to the federal government. ADEA protections include: †¢Apprenticeship Programs It is generally unlawful for apprenticeship programs, including joint labor-management apprenticeship programs, to discriminate on the basis of an individual’s age. Age limitations in apprenticeship programs are valid only if they fall within certain specific exceptions under the ADEA or if the EEOC grants a specific exemption. †¢Job Notices and Advertisements The ADEA generally makes it unlawful to include age preferences, limitations, or specifications in job notices or advertisements. A job notice or advertisement may specify an age limit only in the rare circumstances where age is shown to be a â€Å"bona fide occupational qualification† (BFOQ) reasonably necessary to the normal operation of the business. †¢Pre-Employment Inquiries The ADEA does not specifically prohibit an employer from asking an applicant’s age or date of birth. However, because such inquiries may deter older workers from applying for employment or may otherwise indicate possible intent to discriminate based on age, requests for age information will be closely scrutinized to make sure that the inquiry was made for a lawful purpose, rather than for a purpose prohibited by the ADEA. If the information is needed for a lawful purpose, it can be obtained after the employee is hired. †¢Benefits The Older Workers Benefit Protection Act of 1990 (OWBPA) amended the ADEA to specifically prohibit employers from denying benefits to older employees. Congress recognized that the cost of providing certain benefits to older workers is greater than the cost of providing those same benefits to younger workers, and that those greater costs might create a disincentive to hire older workers. Therefore, in limited circumstances, an employer may be permitted to reduce benefits based on age, as long as the cost of providing the reduced benefits to older workers is no less than the cost of providing benefits to younger workers. Employers are permitted to coordinate retiree health benefit plans with eligibility for Medicare or a comparable state-sponsored health benefit. †¢Waivers of ADEA Rights An employer may ask an employee to waive his/her rights or claims under the ADEA. Such waivers are common in settling ADEA discrimination claims or in connection with exit incentive or other employment termination programs. However, the ADEA, as amended by OWBPA, sets out specific minimum standards that must be met in order for a waiver to be considered knowing and voluntary and, therefore, valid. Among other requirements, a valid ADEA waiver must: obe in writing and be understandable; ospecifically refer to ADEA rights or claims; onot waive rights or claims that may arise in the future; obe in exchange for valuable consideration in addition to anything of value to which the individual already is entitled; oadvise the individual in writing to consult an attorney before signing the waiver; and oprovide the individual at least 21 days to consider the agreement and at least seven days to revoke the agreement after signing it. If an employer requests an ADEA waiver in connection with an exit incentive or other employment termination program, the minimum requirements for a valid waiver are more extensive. See Understanding Waivers of Discrimination Claims in Employee Severance Agreements† at http://www.eeoc.gov/policy/docs/qanda_severance-agreements.html