Essay on The Psychology of Parenting Styles - 1490 Words

The Psychology of Parenting Styles Would you have come out different if your parents used a different parenting style? If you are considered â€Å"cool† now could you have come out a nerd if your parents would have used a different parenting style? â€Å"Parenting style is one of the primary determinants of your child’s outcome whether he succeeds, achieves, meets the challenges, flounders, gives up, or runs from or fails in handling life.† (6) The purpose of this paper is to describe the outcomes, processes, labor, and techniques of parenting in a psychological point of view. Parenting styles are defined as the â€Å"manner in which parents express their beliefs on how to be a good or bad parent.† (4) Each parenting style has its weaknesses and†¦show more content†¦Permissive parents allow complete freedom to their children and there is very little discipline visible. Permissive parenting was â€Å"Popular in the 1950’s and 1960’s† because of all the troubles going on during WWII. (5) They like to tell their kids â€Å"One more time†¦Ã¢â‚¬  whenever the kids do something bad. An example can be if Timmy asks his parents if he can go to a party. They tell him he has to be home by 10pm. Then his parents tell him the limit is 10pm. Then he suggests 12pm and because they do not want Timmy to be angry with them they let him do whatever he wants. Permissive parents have a fear that their kids will not like them. Unlike authoritarian parents, permissive parents make rules but they never enforce the rules. The children in this parenting style are usually immature, dependant, aggressive, and unhappy. They do not do well academically because of their inability to regulate to the school rules. Now we come to the democratic parenting style. This is the best parenting style when it comes to raising a child in a healthy environment. Democratic parents make rules but they are flexible with their rules depending on the different situations. Democratic parents also have more open and honest relationships with their children. They allow their children more of a chance to take responsibility and learn from their mistakes. One thing you should remember when you are raising a child is that your child should not be afraid of you. WhenShow MoreRelatedIntroduction Of Psychology : Parenting Styles Essay1681 Words   |  7 PagesAchour 42150030 Introduction to Psychology Parenting Styles Outline I. Introduction Parenting styles are the strategies and the approaches that parents use when raising their offspring. II. Authoritarian a. The authoritarian parenting style is described as not being responsive yet having too many demands. b. children often develop low self-esteem, become shy, and are anxious when around others. III. Permissive (indulgent) a. Permissive parenting is the type of parenting where parents are nurturingRead MoreDiana Baumrinds Parenting Styles in Psychology784 Words   |  3 Pagesthe three parenting styles in psychology, authoritarian parenting, authoritative parenting, and permissive parenting. All of these parenting styles are seen today throughout everyone’s lives. All of these parenting styles can affect a person differently and studies have shown that depending on what style a person has been raised with can affect whom that person becomes and how they behave in life. The first style of parenting is authoritarian parenting. In this style of parenting, childrenRead MorePsychology Paper Parenting Styles915 Words   |  4 PagesParenting Styles, Discipline, and Behavioral Outcomes Many psychologists throughout history have indulged in studies related to parenting behavior and how children are affected from such behavior. The work of Diana Baumrind, which is considered to be one of the most influential and well-studied theories of parenting behavior, was the first to identify three styles of parenting (Sclafani 44). These styles of parenting are called authoritative, authoritarian, and permissive. This paper will furtherRead MoreBusiness Psychology: Different Parenting Styles6933 Words   |  28 PagesAbstract This research investigated the affect parenting styles have on a person’s performance in the workplace. Parenting styles play a major role in a child’s future performance. How parents raise their kids affects the kids for the rest of their lives. As with any aspect of psychology there is no right or wrong way about it. However, each parenting style has its pros and cons and this is why I have chosen this topic. To find out how different parenting styles affect the performance of the child in theRead MoreThe Theory Of Psychology And Psychology859 Words   |  4 PagesThroughout long history of psychology, there are many brilliant and remarkable psychologists who grew psychology longing as 21st century, today. They have contributed many theories, ideas, and experiments that made study of human mind and behavior much more noble and interesting. As psychology grow older and older, there are many different types of branches that were created, such as psychoanalysis, behavio r, cognitive, evolutionary, and developmental. Each branches have changed way society worksRead MoreParenting: Diana Baumrind Theory648 Words   |  3 PagesMany people do not notice how cruel a parent can be with their kids. Many dont take the time to see how a parent is truly. Most parents dont realize how their parenting methods affect their childs development. Most parents dont realize how bad or good of a parent they are. Many of them dont see that their kids imitate the methods they use to discipline their kids. In fact there are many types of different beliefs of parents. But there are certain people who observe the children’s behavior.Read MoreParenting Styles And The Parenting Style Essay1594 Words   |  7 PagesIntroduction Parenting style used by caregivers plays an important role in the child’s development and learning, specifically social emotional learning. Parents play a big role in their child’s academic achievement, especially depending on the parenting style use. The parenting style where the parents are involved and monitor their children is related to academic achievement and educational accomplishment (Spera, 2005). Parenting styles comprise of two dimensions, demandingness and responsivenessRead MoreThe Fbi Behavior Analysis Unit1443 Words   |  6 PagesKarley Pecosky Psychology Parenting Styles The FBI Behavior Analysis Unit can profile a person down to the type of household they grew up in. Behavior as an adult, especially of a psychopath, is usually in correlation to a traumatic event of their childhood, usually involving their parents. The FBI has the ability to analyze all the behaviors of a person and tell you what kind of car they are mostly likely to drive, what profession they are most likely involved in, and in most cases, links toRead MoreCross-Cultural Differences Between Asian American Parenting1397 Words   |  6 PagesBetween Asian American Parenting Styles To compare, another study, by Cindy Lin and Fu (1990) compared and contrasted the parenting styles amongst Chinese, Immigrant Chinese, and Caucasian-American parents. The study was conducted on mothers and fathers of 138 kindergarteners, and first and second graders in the USA and Taiwan. This study researched the parental authoritativeness, academic achievement, and independence encouragement amongst the two cultures, and parenting styles through the use ofRead MoreParenting Styles And Its Effect On Children Essay1382 Words   |  6 Pageson how we were raised, or how we raise-or plan on raising-our own children. With this said it is undeniable that parenting styles and their effectiveness vary. In research, parenting styles have been split into four categories the authoritarian, authoritative, permissive, and the uninvolved. Within these categories, researches have attempted to map the effectiveness of parenting styles and the positive and negative outcomes of each. Despite the eclectic and commonly erratic nature of family structures

Herman Case Free Essays

string(27) " its first stock offering\." Companies† list in both 2008 and 2010. The three high-technology organizations selected for these lists were Microsoft, Cisco, and Google. Unlike most firms, especially those in mature industries and most of its office furniture rivals, Herman Miller had pursued a path distinctively marked by reinvention and renewal. We will write a custom essay sample on Herman Case or any similar topic only for you Order Now This path had served it well over the decades. It survived the Great Depression early in its history and multiple recessions in the 20th century In the early part of the 21st century, it recovered from the dot. Com bust. In 201 2, Herman Miller once again was facing turbulent and uncertain economic conditions. Would its propensity for using innovation to reinvent and renew its business once again allow the company to flourish and grow? How far and how fast might the company be able to push its annual revenues above the 201 1 level of $1. 6 billion? COMPANY BACKGROUND Herman Miller’s roots went back to 1905 and the Star Furniture Company, a manufacturer of traditionalistic bedroom suites in Zealand, Michigan. In 1909, it was renamed Michigan Star Furniture Company and hired Dirk Jan De Pre as a clerk. De Pre, became president in 191 9 and four years later convinced his father-in-law, Herman Miller, to purchase the majority of hares; De Pre renamed the company Herman Miller Furniture Company in recognition of Millers support. In 1 927, De Pre committed himself to treating â€Å"all workers as individuals with special talents and potential. † This occurred after he visited the family of a millwright who had died unexpectedly. During the visit, the widow read some poetry Upon asking the widow who the poet was, De Pre was surprised to learn it was the millwright. This led him to wonder whether the millwright was a worker who wrote poetry or a poet who worked as a millwright. This story was part of Herman Miller’s corporate culture, which intended to generate respect for all employees and fueled the quest to tap the diversity of gifts and skills held by all. In 1 930, the United States was in the Great Depression and Herman Miller was in financial trouble. As De Pre was looking for a way to save the company, Gilbert Rhode, a designer from New York, approached him and told him about his design philosophy. Rhode then asked for an opportunity to design a bedroom suite for a fee of $1 ,OHO. When De Pre reacted negatively to such a fee, Rhode suggested an alternative payment plan-?a 3 percent royalty on the furniture sold-?to which De Pre agreed, figuring that there as nothing to lose. A few weeks later, De Pre received the-first designs from Rhode. Again, he reacted negatively. In response, Rhode wrote De Pre a letter explaining his design philosophy: â€Å"[Horst,] utter simplicity: no surface enrichment, no carvings, no molding, [and second,] furniture should be anonymous. People are Important, not furniture. Furniture should be useful† Rhodes designs were antithetical to traditional designs, but De Pre saw merit in them and set Herman Miller on a course of designing and selling furniture that reflected a way of life. In 1 942, Herman Miller produced its first office furniture-?a Gilbert Rhode sign referred to as the Executive Office Group. Rhode died two years later, and De Pre began a search for a new design leader. After reading an article in Life magazine â€Å"about designer George Nelson, De Pre hired Nelson as Herman Miller’s first design director. In 1 946, De Pre hired Charles and Ray Names, a husband-and-wife design team based in Los Angels. In the same year, Charles Earn sees designs were featured in the first one-man furniture exhibit at New Work’s Museum of Modern Art. Some of his designs became part of the museum’s permanent collection. Many sources were helpful in providing material for this case, m ¶SST articulacy employees at Herman Miller who generously shared their time and viewpoints about the company to help ensure that the case accurately reflected the company’s practices and culture. They provided many resources, including internal documents and stories of their personal experiences. In 1 950, Herman Miller, under the guidance of Dry. Carl Frost, a professor at Michigan State University, became the first company in the state of Michigan to implement a Scansion Plan, a productivity incentive program devised by labor expert Joseph N. Scansion. Underlying the Scansion Plan were the principles of equity and justice for everyone in the company† Two major functional elements Of Scansion plans were the use of committees for sharing ideas on improvements and a structure for sharing increased profitability. The relationship between Frost and Herman Miller continued for at least four decades. During the asses, Herman Miller introduced a number of new furniture designs, including those by Alexander Gerard, Charles and Ray Names, and George Nelson. Specifically, the company introduced the first molded fiberglass chairs and the Names lounge chair and ottoman (see Exhibit 1). The Names designs were introduced on NBC Home Show with Arlene Francis, a precursor to the Today show. Also in the asses, Herman Miller began its first overseas foray, selling its products in the European market. In 1 962, D. J. De Pre became chairman of the board and his son, Hugh De Pre, became president and chief executive officer. D. J. De Pre had served for more than 40 years as the president of Herman Miller. EXHIBIT 1 Names Lounge Chair and Ottoman During the 1 sass, Herman Miller introduced many new designs for both home and office. The most notable design was the Action Office System, the rolls first open-plan modular office arrangement of movable; panels and attachments. By the end of the 1 sass, Herman Miller had formed a subsidiary in England with sales and marketing responsibility throughout England and the Scandinavian countries. The company also established dealers in South and Central America, Australia, Canada, Europe, Africa, the Near East, and Japan. In 1 970, Herman Miller went public and made its first stock offering. You read "Herman Case" in category "Papers" The stock certificate was designed by the Names office staff. The company entered the health/science market in 1 971 and introduced the Oregon chair, its first design eased on scientific observation and ergonomic principles, in 1976. In 1 979, in conjunction with the University of Michigan, Herman Miller established the Facility Management Institute, which pioneered the profession of facility management. The company continued to expand overseas and introduce new designs throughout the asses. By 1 977, more than half of Herman Miller’s 2,500 employees worked outside the production area. The Scansion Plan therefore needed to be overhauled, since it had been designed originally for a production workforce. In addition, employees worked at multiple U. S. And overseas locations. In 1 978, an ad hoc committee of 54 people from nearly every segment of the company was elected to examine the need for changes and to make recommendations. By January 1979, the committee had developed a final draft. The plan established a new organization structure based on work teams, caucuses, and councils. All employees were given an opportunity to discuss the new plan in small group settings. On January 26,1 979,96 percent of the employees voted to accept the new plan. After 18 years as president and CEO, Hugh De Pre stepped down; his younger brother, Max De pre, became chairman and chief executive officer n 1980. In 1981, Herman Miller took a major initiative to become more efficient and environmentally friendly. Its Energy Center generated both electrical and steam power to run its 1 -million-square-foot facility by burning waste. 2 In 1983, Herman Miller established a plan whereby all employees became shareholders. This initiative occurred approximately 10 years before congressional incentives fueled employee stock ownership plan (ESP.) growth. In 1 984, Herman Miller introduced the Aqua chair, a second chair based on ergonomic principles; many other designs followed in the 1 9805. In 1987, the iris non-De Pre family member, Dickered, became chief executive officer. By the end of the decade, Time magazine had recognized the Aqua chair as a Design of the Decade. Also, in 1989, Herman Miller established its Environmental Quality Action Team, whose purpose was to â€Å"coordinate environmental programs worldwide and involve as many employees as possible. † In 1990, Herman Miller became a founding member of the Tropical Forest Foundation and was the only furniture manufacturer to belong. That same year, it discontinued using endangered rosewood in its redrawing Names lounge chair and ottoman, and substituted cherry and walnut from sustainable sources. It also became a founding member of the U. S. Green Building Council in 1994. Some of the buildings at Herman Miller were used to establish Leadership in Energy and Environmental Design (LED) standards. Because of its environmental efforts, Herman Miller received awards from Fortune magazine and the National Wildlife Federation in the 1 9905. Also in the 1 sass, Herman Miller again introduced some groundbreaking designs. In 1 994, it introduced the Aaron chair (see Exhibit 2), which almost immediately was added to the New York Museum of Modern Art’s permanent sign collection. In 1999, the Aaron chair won the Design of the Decade Award from Businesslike and the Industrial Designers I Society of America. In 1 992, J. Kermit Campbell became Herman Miller’s fifth CEO and president. He was the first person from outside the company to hold either position. In 1995, Campbell resigned and Mike Evolved was promoted to CEO. Evolved, just 39 years old, had been with a company called Meridian for seven years before Herman Miller acquired it in 1990, so when he became CEO he had been with either Herman Miller or its subsidiary for 12 years. At the time, the industry was in a slump and Herman Miller was being restructured. Sales were approximately $1 billion annually. EXHIBIT 2 The Herman Miller Aaron Chair In 1 994, the company launched a product line called Herman Miller for the Home to focus on the residential market. It reintroduced some Of its modern classic designs from the asses, asses, and asses as well as new designs. In 1998, it set up a specific website (www. Home. Com) to tap into this market. Attachments took additional marketing initiatives to focus on small and midsized businesses. It established a network of 1 80 retailers to focus on small genuineness and made a 3-D design computer program available to midsized customers. In addition, its order entries were digitally linked among the company and its suppliers, distributors, and customers to expedite orders and improve their accuracy 3 THE FIRST DECADE OF THE 21ST CENTURY The first decade of the 21 SST century started off spectacularly for Herman Miller, with record profits and sales in 2000 and 2001. The company offered: an employee stock option plan (ESP.) in July 2000, and Time magazine selected the Names molded ply’. Judd chair a Design of the Century. Sales had ore than doubled in the six years that Mike Evolved had been CEO. Then the dot. Com bubble burst and the terrorist attacks of September 1 1 , 2001, shook the U. S. Economy. Herman Miller’s sales dropped by 34 percent, from more than $22 billion in 2001 to less than $1. 5 billion in 2002. In the same two years, the company saw a decline in profits from a positive $144 million to a negative $56 million. In an interview for Fascinating magazine in 2007, Evolved said, â€Å"One night went to bed a genius and woke up the town idiot† Although sales continued to drop in 2003, Herman Miller returned to reparability in that year. To do so, Herman Miller had to drop its long-held tradition of lifelong employment; approximately 38 percent of the workforce was laid off, and an entire plant in Georgia was closed. Mike Evolved and Brian Walker, then president of Herman Miller North America, met with all the workers to tell them what was happening and why it had to be done. One Of the workers being laid off was so moved by Evolved and Walkers presentation that she told them she felt sorry for them having to personally lay off workers. To replace the tradition of lifelong employment, Evolved, tit input from many others, developed what the company referred to as â€Å"the new social contract. † He explained it as follows: We are a commercial enterprise, and the customer has to be on center stage, so we have to first figure out whether your gifts and talents have a match with the needs and wants of this commercial enterprise. If they don’t, then we want to wish you the best, but we do need to tell you that I don’t have a job for you right now. As part of the implementation of the social contract, the company redesigned benefit plans such as educational reimbursement and 401 (k) plans to be more portable. This done to decrease the cost of changing jobs for employees whose gifts and talents no longer matched customer needs. Herman Miller’s sales and profits began to climb from 2003 to 2008. In 2008, even though sales were not at an all-time high, the company’s profits had reached a record level. Walker became president in 2003 and CEO in 2004. Evolved became chairman of the board in 2004. Then Herman Miller was hit by the recession of 2009. Sales dropped by 1 9 percent, from approximately $2. 0 billion in 2008 to approximately $ 1. 6 billion in 2009. In the same years, profits dropped from $1 52 million to $68 million. In March 2009, Mark Churchman, director of external communications at Herman Miller, predicted that the changes made to recover from the 2001-2003 recession would help the company weather the recession that began in late 2007. HERMAN MILLER IN 2012 Herman Miller had codified its long-practiced organizational values and published them on its website on a page titled â€Å"What We Believe. † Those beliefs, listed as follows, were intended as a basis for uniting all employees, building relationships, and contributing to communities: ; Curiosity Exploration: These are two of our greatest strengths. They he behind our heritage of research- driven design. How do we keep our curiosity? By respecting and encouraging risk, and by practicing forgiveness. You can’t be curious and infallible. In one sense, if you never make a mistake, you’re not exploring new ideas often enough. Everybody makes mistakes: we ought to celebrate honest mistakes, learn from them, and move on. ; Engagement: For us, it is about being owners-? actively committed to the life of this community called Herman Miller, sharing in its success and risk. Stock ownership is an important ingredient, but it’s not enough. The strength and the payoff really come when engaged people own problems, solutions, and behavior. Acknowledge responsibility, choose to step forward and be counted. Care about this community and make a difference in it. ; Performance: Performance is required for leadership. We want to be leaders, so we are committed to performing at the highest level possible. Performance isn’t a choice. It’s up to everybody at Herman Miller to perform at his or her best. Our own high performance-?however we measure it-?enriches our lives as employees, delights our customers, and creates real value for our shareholders ; Inclusiveness: To succeed as a company, we must include all the expressions of human talent and potential that society offers. We value the whole person and everything each of us has to offer, obvious or not so 4 obvious. We believe that every person should have the chance to realize his or her potential regardless of color, gender, age, sexual orientation, educational background, weight, height, family status, skill level-? the list goes on and on. When we are truly inclusive, we go beyond toleration to understanding all the qualities that make people who they are, that make us unique, and most important, that unite us. Design: Design for us is a way of looking at the world and how it works-?or doesn’t. It is a method for getting something done, for solving a problem. To design a solution, rather than simply devising one, requires research, thought, sometimes starting over, listening, and humility. Sometimes design results in memorable occasions, timeless chairs, or really fun parties. Design isn’t just the way something looks; it sinusitis the way something works, either. ; Foundations: The past can be a tricky thing-?an anchor or a sail, a tether or a launching pad. We value and respect our past without being ruled by it. The stories, people, and experiences in Herman Miller’s past form a unique foundation. Our past teaches us about design, human compassion, leadership, risk taking, seeking out change and working together. From that foundation, we can move forward together with a common language, a set of owned beliefs and understandings. We value our rich legacy more for what it shows us we might become than as a picture of what we’ve been. ; A Better World: This is at the heart of Herman Miller and the real reason why many of us come to work every day. We contribute to a better world by pursuing sustainability and environmental wisdom. Environmental advocacy is part of our heritage and a responsibility we gladly bear for future generations. We reach for a better world by giving time and money to our communities and causes outside the company; through becoming a good corporate citizen worldwide; and even in the (not so) simple act of adding beauty to the world. By participating in the effort, we lift our spirits and the spirits of those around us. ; Transparency: Transparency begins with letting people see how decisions are made and owning the decisions we make. So when you make a decision, own it. Confidentiality has a place at Herman Miller, but if you can’t tell anybody about a decision you’ve made, you’ve probably made a poor choice. Without transparency, it’s impossible to have trust and integrity. Without trust and integrity, its impossible to be transparent All employees were expected to live these values. Management Mike Evolved remained chairman of the board in 2012, and Brian Walker was president and CEO. Walker’s compensation was listed by Bloomberg Businesslike as $693,969 in 2011. The magazine listed compensation for Coos at four competitors as ranging from $778,000 to $973,000. Walker and our other top executives at Herman Miller took a 10 percent pay cut in January 2009 and, along with all salaried workers, another 10 percent cut in March 2009. The production workers were placed on a work schedule that consisted of nine days in two weeks, effectively cutting their pay by 10 percent as well. That the executives would take a pay cut before salaried workers, and one twice as much as that required by workers, was just one way human compassion was practiced at Herman Miller. However, most employees’ pay cuts and furloughs were ended in June 201 0 when the company’s financial performance began to improve. By U. S. Securities and Exchange Commission (SEC) regulations, a publicly traded Company had to have a board of directors. By Herman Miller’s corporate policy, the majority of the 14 members of the board had to be independent. To be judged independent, the individual as a minimum had to meet the NASDAQ National Market requirements for independent directors (NASDAQ Stock Market Rule 4200). In addition, the individual could not have any â€Å"other material relationship with the company or its affiliates or with any executive officer of the company or his or her affiliates. Moreover, according o company documents, any â€Å"transaction between the Company and any executive officer or director of the Company (including that persons spouse, children, stepchildren, parents, stepparents, siblings, parents-law, children- in-law, siblings-in-law and persons sharing the same residence) must be disclosed to the Board of Directors and is subject to the approval of the Board of Director s Or the Nominating and Governance Committee unless the proposed transaction is part of a general program available to all directors or employees equally under an existing policy or is a purchase of Company reduces consistent with the price and terms of other transactions of similar size with other purchasers. † Furthermore, â€Å"It is the policy of the Board that all directors, consistent with their responsibilities to the stockholders of the company as a whole, hold an equity interest in the company. Toward this end, the. Board requires that each director will have an equity interest after one year on the Board, and within five years the Board encourages the 5 directors to have shares of common stock of the company with a value of at least three times the amount of the annual retainer paid to each director. † In there words, board members were held to standards consistent with Herman Miller’s corporate beliefs and its ESP. program. Although Herman Miller had departments, the most frequently referenced work unit was the team. Paul Murray, director of environmental health and safety, explained the relationship between the team and the department as follows: At Herman Miller, team has just been the term that has been used since the Scansion Plan and the De Peres brought that into Herman Miller. And so I think that’s why we use that almost exclusively. The department-? as a department, we help facilitate the other teams. And so they aren’t just department driven. Teams were often cross-functional. Membership on a team was based on the employee’s ability to contribute to that team. As Gave Wing lead chemical engineer for the company’s Design for the Environment division, described it, You grab the appropriate representative who can best help your team achieve its goal. It doesn’t seem to be driven based on title. It’s based on who has the ability to help us drive our initiatives towards our goal. Teams were often based on product development. When the product had been developed, the members of that team were redistributed to new rejects. New projects could come from any level in the organization: One way in which leadership was shared at Herman Miller was through the concept of â€Å"talking up and down the ladder. † Workers at all levels were encouraged to put forth new ideas. Herman Miller environmental specialist Rudy Barrels said, If they try something they have folks there that will help them and be there for them.. That requires a presence of one of us or an e-mail or just to say, â€Å"Yeah, I think that’s a great idea. † That’s how a tot †¦ In the organization works. Because Herman Miller workers felt empowered, a new manager could run onto some startling behavior. Paul Murray recalled, can remember my first day on the job. I took my safety glasses 0 if . ND an employee stepped forward and said, â€Å"Get your safety glasses back on At [Company X, Company there was no way they would have ever talked to a supervisor like that, much less their supervisor’s manager. Itâ⠂¬â„¢s been a fun journey when the workforce is that empowered. The company’s beliefs were also reinforced through the Employee Gifts Committee and the Environmental Quality Action Team. True to Herman Millers practice of shared leadership, the Employee Gifts Committee distributed funds and other sources based on employee involvement. Jay Link, manager of corporate giving explained the program as follows: Our first priority is to honor organizations where our employees are involved. We believe that it’s important that we engender kind of a giving spirit in our employees, so if we know they’re involved in organizations, which is going to be where we have a manufacturing presence, then our giving kind of comes alongside organizations that the/re involved with. So that’s our first priority. In addition, all Herman Miller employees could work 16 paid hours a year with a charitable organization of their choice. The company set goals for the number of employee volunteer hours contributed annually to its communities. Progress toward meeting those goals was reported to the CEO. The Environmental Affairs Team, formed in 1 988 with the authorization of Max De pre, had responsibility for such activities as recycling solid waste and designing products from sustainable resources. One of the team’s successes was in the reduction of solid waste taken to landfills. In 1 991, Herman Miller was sending 41 million pounds of solid waste to landfills. That figure was down to 24 million pounds by 1 994 and to 3. 6 million pounds by 2008. Such improvements were both environmentally friendly and costiveness. Herman Miller’s beliefs carried over to the family and the community. Gave Wing related, â€Å"I’ve got the worst lawn in my neighborhood. That’s because don’t spread pesticides on it, and don’t put fertilizer down. † He went on to say that he and his wife had to make a difficult decision in the summer of 2009 6 because Herman Miller had a policy â€Å"to avoid PVC [polyvinyl chloride] wherever possible. In restoring their home, they chose fiber cement board over PVC siding even though the fiber cement board was considerably more costly. Wing said, â€Å"Seven years ago, I didn’t really think about it. † Rudy Barrels was involved in a youth soccer association that raised money to buy uniforms by collecting newspapers and aluminum cans. Barrels said, â€Å"When I’ll speak they’ll say, ‘Yeah, that’s Rudy. He’s Herman Miller. You should-?you know we’re goanna have to do this. â€Å"‘ The company’s beliefs carried over to all functional areas of the business. Some of them were obviously beneficial, and some were simply the way Herman Miller chose to conduct its business. How to cite Herman Case, Papers

Economic Duress free essay sample

A contract is voidable or vitiate under several situations, economic duress is one of the examples. Economic duress is a vitiating factor in a contract as it is a common law defense. When there happens to be an economic duress in a contract, the party can make the contract voidable if the requirements are fulfilled. One needs to be noted that the contract is only voidable instead of being voided completely. A contract has no legal force or effect at all if it is being voided. However, a contract that is voidable simply means that the contract is still legally binding until avoided by the party. The affected party may cancel the contract and claim for remedies. Kerr J proposed that the contract can be set aside when there is economic duress exerting on one of the parties. Occidental Worldwide Investment Corporation v Skibs A/S Avanti, The Sibeon and The Sibotre [1976] 1 Lloyd’s Rep 293 Economic duress is a threat to a person’s financial or business interests. (Contract Law, 10th edn, Jill Poole pg564). The threat must be directed to the person’s financial standing but not to the person himself or his property. (Contract Law in Perspective, John Tillotson pg165). There is an economic duress exerted on a party when one party threatens to breach the contract unless the other party who is being threatened complies or renegotiates with him/her. Normally, the party who is being threatened would rather to comply or renegotiate with the other party, as it would be more practical to do so. This is because the breaching of the contract might bring more disadvantages than to comply with it despite that the party is being threatened. For example, A and B entered into a contract that A would provide something to B and B would pay for it. A then threatened to breach the contract if B did not want to pay more for the stuffs. B is in an urge to get the stuffs or else he will breach another contract with a third party and A is the only company that provides such things. B has no choice but to pay more to A. A has exerted economic duress on B as B is being forced to enter into a new contract to pay more to A. B has no other choice but to agree with it because A is the only supplier he could find. In this case, it is more practical to comply with A because the breaching of the contract will result in disastrous consequences to B. However, the issue here is does the duress negate the consent of the party? This issue will be discussed in detailed later. Development of Economic Duress Formerly, with the absence of the doctrine of economic duress, the example mentioned above will be dealt in the light of the doctrine of consideration. Generally, there was no contract if the parties did not provide any considerations. A did not provide any consideration to B in order for B to pay A more. Hence, the promise is not legally binding and B is not contractually obliged to pay A the extra amount of money. However, Williams v Roffey Bros amp; Nicholls (Contractors) Ltd [1991] 1 QB 1 has changed the position of law regarding to the doctrine of consideration. The court held that where a party agrees to pay extra in order for the other to perform his existing contractual duty, the promise is binding if the promisor obtained practical benefit or avoided a disadvantage even though there was a lack of consideration. In this case, B has to pay the extra money as he has avoided a disadvantage of breaching the contract with a third party. This leads to a question of fairness. Is it equitable for B to pay more if he is being threatened or forced by A? Obviously, A is taking advantage of B. The doctrine of economic duress is being established to overcome the problems. Furthermore, before the doctrine of economic duress was established, duress was confined to duress to person G H Treitel, The Law of Contract (11th ed 2003), p 408 and duress to goods only. The law has expanded the concept of duress to economic duress. In the law today, a threat to the financial standing of the party can claim under economic duress. It is inevitable to deny that all contracts are entered with some forms of pressures. Pressure is a natural part of the bargaining process. See discussion by Tipping J in Attorney-General for England and Wales v R [2002] 2 NZLR 91, para 62. However, with the changing of the society, the courts feel that there is a need to expand the doctrine to protect the victim who has a lower bargaining power. It is clearly unfair for one party to be forced to enter into a contract by an illegitimate pressure. The doctrine of economic duress was first recognized in the case of The Sibeon and The Sibotre. Occidental Worldwide Investment Corporation v Skibs [1976] 1 Lloyds Rep 293 However, the doctrine of economic duress is still developing through case laws as this doctrine has been established for over two decades only. Hence, there are some problems in this doctrine as it is still developing. What amounts to Economic Duress? Pao On v Lau Yiu Long [1980] AC 614 is the leading case in the doctrine of economic duress. This case has technically established the doctrine of economic duress. Lord Scarman in this case has stated the requirements that amounts to economic duress. Firstly, it must be proven that there is an illegitimate pressure exerted by the party to the victim. Secondly, it is the illegitimate pressure that causes the victim to enter into the contract. Lastly, the victim has no practical choice other than agree with it. This case was then being affirmed in the case of DSND Subsea Ltd v Petroleum Geo Services ASA [2000] BLR 530. In order to succeed in the claim of economic duress, one must satisfied the three conditions as mentioned. Firstly, it must be shown that the party has threatened or forced the victim to enter into a new contract with illegitimate pressure. It must be shown that there is a pressure or threat. The injured party is being coerced into complying with the party who exerted the pressure or else it is more likely to cause damage or danger to the injured party. The victim’s financial interests are at a risk if he refused to compromise or enter into a new contract with the other party. The force or threat must be identified first in order to succeed in a claim based on economic duress. Williams v Roffey Brothers [1991] 1 QB 1 In this case, the parties did not enter into a new contract because of any threat or pressure. The defendant had obtained a practical profit through the promise and this shows that he is not under threat or pressure when he promised to pay more. As such, there is no economic duress. This is because there must be a threat or pressure for the party to rely on this doctrine successfully. Once the existence of pressure or threat is being established, the next thing to do is to prove that the pressure or threat is illegitimate. In other words, the pressure or threat exerted by the party to the victim must be something that is not authorized by the law or something that is unlawful. However, it is unclear whether what actually amounts to illegitimate pressure or threat. Dayson J stated that ‘illegitimate pressure must be distinguished from the rough and tumble of the pressure of normal commercial bargaining’ DSND Subsea Ltd v Petroleum Geo Services ASA [2000] BLR 530. It is normal that there happens to be some pressures in business context when both parties are negotiating with each other. The doctrine of economic duress has acted as a guideline to limit the pressure exerts by the businessman so that fairness can be seen in both parties. This can limit the power of a party that has a stronger bargaining power from abusing his power. It is important to distinguish between a lawful and unlawful pressure because only an unlawful pressure is deemed to be one of the elements that must be proven in the doctrine of economic duress. For example, a threat in refusing to complete the task such as shipping goods which the party is contractually obliged to do so amounts to an illegitimate pressure because the party has no rights over the goods. Vantage Navigation Corporation v Suhail and Saud Bahwan Building Materials LLC, The Alev [1989] 1 Lloyd’s Rep 138 Next, it must be shown that it is the illegitimate pressure that causes the victim to enter into the contract. The illegitimate pressure must be the contributory factor of the victim’s action to enter into a new contract. The victim would not have entered into the contract if he is not threatened or forced by the illegitimate pressure. Thirdly, it must be shown that the victim has no practical choice other than to agree with the terms or conditions offered by the other party. This means that the party has left the victim with an only choice, that is, to agree with whatever they offer. As such, it renders the parties to enter into a new contract because the party who is exerting illegitimate pressure is trying to change the terms of the original contract. If the victim has been provided with an alternative choice, then he cannot fulfill this element of the doctrine. And so, he is not entitled to claim under economic duress. Here is an example that illustrates the situation where the victim has no practical choice other than to agree. Bamp;S Contractors v Victor Green Publications [1984] ICR 419 In this case, the plaintiff threatened the defendant to pay more or else he is not going to complete his work to erect the stand for exhibitions which is needed by the defendant. The defendant had no choice other to pay the plaintiff. This is because the defendant will have to bear with bad consequences if the plaintiff refused to work. The defendant then deducted the amount of money given to the plaintiff from the amount of money that the plaintiff is supposed to receive. The plaintiff claimed for the balance. Obviously, the plaintiff’s refusal to work had left the defendant with no alternative option other than to pay the plaintiff. It can be clearly seen that the defendant is under economic duress as he had no other choice than to pay the plaintiff. Thus, if the victim’s only choice is to comply with the other party because the illegitimate pressure by the party would bring bad consequences to the victim, then it amounts to economic duress provided other elements of economic duress has been established. Atlas Express Ltd v Kafco (Importers amp; Distributors) Ltd [1989] 1 All ER 641 amp; Adam Opel GmbH v Mitras Automotive Ltd [2007] EWHC 3205 (QB), [2008] BUS LR DIGEST D55. Does economic duress negate the existence of consent? Duress, whatever form it takes, is a coercion of the will so as to vitiate consent. [I]n a contractual situation commercial pressure is not enough. There must be present some factor which could in law be regarded as a coercion of [the] will [of the person alleging duress] so as to vitiate his [or her] consent    In determining whether there was a coercion of will such that there was no true consent, it is material to enquire whether the person alleged to have been coerced did or did not protest; whether, at the time he [or she] was allegedly coerced into making the contract, he [or she] did or did not have an alternative course open to him [or her] such as an adequate legal remedy; whether he [or she] was independently advised; and whether after entering th e contract he [or she] took steps to avoid it. All these matters are relevant in determining whether [the person alleging duress] acted voluntarily or not. Decision of Judicial Committee of the Privy Council in Pao On v Lau Yiu Long [1979] 3 All ER 65 at 78 Economic duress merely vitiates the consent but it does not negate the existence of the consent of the victim. See The Universe Sentinal Case. The victim still has the knowledge of what is he consenting to. He intentionally agrees to the coercion to enter into a new contract. Lord Goff in Dimskal Shipping Co. SA v International Transport Workers’ Federation, The Evia Luck [1991] 4 All ER 871 at p. 878. Although what the victim has agreed to is not what he actually intended to do so, he has no other choice than to agree with it. This however does not destroy the existence of consent. Consent simply means an agreement of someone to do something. The element of consent is still present. As such, one should not say that economic duress has the effect to negative the presence of consent. The House of Lord has been clear in saying that the defense of duress does not depend on upon the absence of a voluntary act (which means that it does not depend upon the absence of consent) but rather depends upon intentional submission in the face of no other practical alternative. Lynch v DPP for Northern Ireland [1975] AC 653 However, one can determine whether there was a coercion of will by four points. Firstly, did the victim protest when he was being coerced to enter into a new contract? If he did protest then it was not his true consent in agreeing to enter into a new contract. Secondly, after the victim has entered into a new contract caused by the exertion of illegitimate force, did he not have other option open to him; has he received any advice or did he take actions to avoid the coercion? If the answers are yes then one can say that he will was being coerced and it was not his true consent. If so, the doctrine of economic duress can be applied and the contract between the parties is voidable. Furthermore, there is one more requirement for establishing economic duress, that is, the victim must take action to protest at the time he was being coerced or shortly after he had been exerted with illegitimate pressure. There will be no remedy available for the victim if he fails to protest. In the case of The Atlantic Baron, although it was held that the defendant’s action amounted to economic duress, the failure of the victim to protest after such a long time had prevented him to claim for a remedy in duress. (North Ocean Shipping Co. Ltd v Hyundai Construction Co. Ltd [1979] QB 705) The contract in this case is however voidable as there was an economic duress but the victim cannot claim for remedy. This case has clearly shows that it is crucial to protest at the time or shortly thereafter in getting a remedy. The action of disagreeing or objecting is sufficient for the victim o prove that he had protested and thus entitling him for a remedy later on. Problems in Economic Duress As mentioned above, this doctrine is still undergoing a development. There are some problems in this doctrine and the court is trying to improve it. Firstly, the meaning of illegitimate pressure is unclear. The law is unclear whether what can amount to an illegitimate pressure. This is b ecause most of the contracts entered are due to some form of pressures. The distinction between lawful and illegitimate pressure must be made clearly. There should be a guideline whether what amounts to an illegitimate pressure. Secondly, the remedy for economic duress is inadequate. The victim is not allowed to claim for damages. The only remedy for this doctrine is rescission, that is, the parties are allowed to go back to the position before the contract was made. It is unfair to the victim as he has to bear with the losses. The court should have allowed the victim to claim for damages. However, the existence of this doctrine has acted fairly to the person who has been forced to enter into a contract. A contract can only be legally binding when both parties agree to the terms in the contract mutually. No one has the rights to force the other people to enter into a contract by using illegitimate pressure. It is very unfair to do so. Economic Duress in Malaysia In Malaysia, contracts can also be set aside if the parties are forced to enter in a contract. The parties must enter into an agreement by free consent and voluntarily so that the agreement could be legally enforceable. (Section 10 Contract Act 1950) The word ‘coercion’ is being used in Malaysia instead of the word ‘duress’ as in the UK under the common law. The definition of coercion is provided for under Section 15 of Contract Act 1950. Coercion is the committing or threatening to commit any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. According to Section 15 of Contract Act 1950, Ian Chin J stated that coercion can be committed by either the threatening of an act forbidden by the Penal Code and or unlawful of detention of any property or the threat to the prejudice of any person. Teck Guan Trading Sdn Bhd v Hydrotek Engineering (S) Sdn Bhd [1996] 4 MLJ 331; [1996] BLJ 163) The concept of coercion in s15 and the cocept of duress in the English common law are different in some ways. Firstly, under the s15 of the Contract Act 1950, the victim who is seeking to set aside the contract must show that the act committed is a threat to commit an act forbidden by the Penal Code. Furt hermore, the victim must also identify the section which the forbidden act falls in the Penal Code. A failure to establish that the act is forbidden under the Penal Code would prevent the court from deciding whether such an offence had been committed or not. This would result in no coercion and thus the victim could not rely on s15 of Contract Act 1950. The court held that there was no coercion of the will in the cases of Teck Guan Trading Sdn Bhd v Hydrotek Engineering (S) Sdn Bhd and Asbir, Hira Sigh amp;Co v Supramaniam a/l Pitchaimuthu amp; Ors [2000] 1 MLJ 83 because the parties failed to prove the elements under s15 of the Contract Act 1950. This is very different to the duress under the English common law. In order to rely on coercion successfully, the threat or the act committed must be of the offences under the Penal Code. S15 of the Contract Act 1950 has limited the scope of coercion to crimes under the Penal Code only. Any offences outside the Penal Code or which are merely civil wrongs do not amount to coercion. It makes coercion to be obsolete and it also does not meet the objective to the use of illegitimate pressure. Contract Law in Malaysia by Cheong May Fong 2010 pg 217. Secondly, the concept of coercion is wider as it covers the unlawful detention of property if compared to the concept of duress which recognizes only duress to person where threats to property seem to be insufficient to amount to duress in most of the cases. See Barton v Armstrong [1975] 2 WLR 1050, PC (Appeal from Australia). In addition, s15 provides that it does not matter whether or not the Penal Code is enforceable in the place where the coercion is exerted. See the illustration provides under s15 Although there are differences between the concept of coercion and the concept of duress, the judges in Malaysia still apply English cases regarding to economic duress. James Foong J in Mohd Fariq Subramaniam v Naza Motor Trading Sdn Bhd [1997] 3 CLJ Supp 249 referred to the criterion as stated in Pao On v Lau Yiu Long. See also Third World Development amp; Anor v Atang Latief amp; Anor (1990) 1 SCR 533 However, VC George J stated that economic duress under the English common law does not apply in Malaysia because economic duress in Malaysia are confined to situations stated under s14 and s15 only. Perlis Plantations Berhad v Mohammad Abdullah Ang [1988] 1 CLJ 670 In the English common law, it is very important for the victim to protest. It is also the same in the Malaysia law. Although both doctrines do not require the element of protest, it is essential to do so as it is more likely to show that the parties are under coercion or duress if they do protest. In Mohd Fariq Subramaniam v Naza Motor Trading Sdn Bhd, although it was proven that there was economic duress, the court held that there was no coercion because the plaintiff made no protest either before or after the contract was made. The English court would also come out with the same decision if the victim fails to protest. See North Ocean Shipping Co Ltd v Hyundai Construction Co Conclusion http://www. willans. co. uk/news/article/economic_duress_illegitimate_pressure_requirement_may_include_threats_of_la/ http://books. google. com. my/books? id=-sr5oUyjhVECamp;pg=PA166amp;lpg=PA166amp;dq=economic+duress+negate+the+existence+of+consentamp;source=blamp;ots=K07_YMpY2_amp;sig=qoDHDkDJ6DgqCXekjUk3Y-D_U1kamp;hl=enamp;sa=Xamp;ei=OkB5UJHHOszirAebq4GICQamp;ved=0CDgQ6AEwAw#v=onepageamp;q=economic%20duress%20negate%20the%20existence%20of%20consentamp;f=false