Monday, December 30, 2019

Finance Essays - Foreign Exchange Currency - Free Essay Example

Sample details Pages: 10 Words: 2996 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Level High school Did you like this example? Foreign Exchange Currency The term foreign exchange is normally used to denote foreign currency surrendered or asked for in any of its current forms, i.e. a currency note or a negotiable instrument or transfer of funds through cable or mail transfer or a letter of credit transaction requiring sale and purchase of foreign exchange or conversion of one currency into another, either at the local center or an overseas center. The banks, dealing in for exchange and providing facilities for conversion of one currency into another or vice versa are known as Authorized Dealers or Dealers in Foreign Exchange. Don’t waste time! Our writers will create an original "Finance Essays Foreign Exchange Currency" essay for you Create order A bank is said to buy or sell foreign exchange when it handles the claims drawn in foreign currency or the actual legal tender money, i.e., foreign currency notes and coins of other countries. The theory of Foreign exchange covers different means and methods by which the claims expressed in terms of one currency are converted into another currency and specifically deal with the rates at which such conversion takes place. With partial or complete exchange control, as exercised by countries since World War II exchange markets are no longer free. Exchange rates today are not entirely determined by market forces but are officially fixed and maintained by Central Forex Markets The foreign exchange market, like the market for any other commodity, comprises of buyers and sellers of foreign currencies. The operations in the foreign exchange market originate in the requirements of customers for making remittances to and receiving them from other countries. But the bulk of transactions take place among banks dealing in foreign exchange for their own requirements as they do cover operations. Banks undertake large and frequent deals with other banks through the agency of Exchange Brokers, and it is these deals which give the market its significance. In addition, there are other transactions which take place in the foreign exchange market. All transactions of the exchange market may be divided into five categories: Transactions between banks and their customers. Transactions between different banks in the same centre. Dealings between banks in a country and their correspondents, and overseas branches. The purchase and sale of currencies between the central bank of a country and the commercial banks. The transactions of the central banks of one country, with central banks of other countries. There is not much difference between one market and another as far as the international transaction between markets at different centres is concerned. But local dealings, among members of the same market are organized in two different forms. One of them is the pattern adopted in Great Britain, U.S. A. and some other countries, where foreign exchange dealers never meet each other but transact business through a network of telephone lines linking the banks, with exchange brokers who act as intermediaries. In India also the foreign exchange market is organized on these lines. The other type is the markets in countries of Western Europe, where the dealers in Foreign exchange meet on every working day at a meeting place for business proposals-They fix the exchange rates for certain kind of business particularly with-customers. The foreign exchange markets in these countries are like commodity exchange or stock exchange. However, the global important of these markets, is comparatively small. ( Bhalla, V.K (june 2000). International Finance Management. 6th ed. New Delhi: Kalyani Publishers ) Indian Foreign Exchange Market A Historical Perspective The evolution of Indiarsquo;s foreign exchange market may be viewed in line with the shifts in Indiarsquo;s exchange rate policies over the last few decades from a par value system to a basket-peg and further to a managed float exchange rate system. During the period from 1947 to 1971, India followed the par value system of exchange rate. Initially the rupeersquo;s external par value was fixed at 4.15 grains of fine gold. The Reserve Bank maintained the par value of the rupee within the permitted margin of plusmn;1 per cent using pound sterling as the intervention currency. Since the sterling-dollar exchange rate was kept stable by the US monetary authority, the exchange rates of rupee in terms of gold as well as the dollar and other currencies were indirectly kept stable. The devaluation of rupee in September 1949 and June 1966 in terms of gold resulted in the reduction of the par value of rupee in terms of gold to 2.88 and 1.83 grains of fine gold, respectively. The exchange r ate of the rupee remained unchanged between 1966 and 1971. Given the fixed exchange regime during this period, the foreign exchange market for all practical purposes was defunct. Banks were required to undertake only cover operations and maintain a lsquo;squarersquo; or lsquo;near squarersquo; position at all times. The objective of exchange controls was primarily to regulate the demand for foreign exchange for various purposes, within the limit set by the available supply. The Foreign Exchange Regulation Act initially enacted in 1947 was placed on a permanent basis in 1957. In terms of the provisions of the Act, the Reserve Bank, and in certain cases, the Central Government controlled and regulated the dealings in foreign exchange payments outside India, export and import of currency notes and bullion, transfers of securities between residents and non-residents, acquisition of foreign securities. ( Sukumar,N (1996). international finance: the Indian perspective. 3rd ed. Pune: National Institute of Bank Management. ) With the breakdown of the Bretton Woods System in 1971 and the floatation of major currencies, the conduct of exchange rate policy posed a serious challenge to all central banks world wide as currency fluctuations opened up tremendous opportunities for market players to trade in currencies in a borderless market. In December 1971, the rupee was linked with pound sterling. Since sterling was fixed in terms of US dollar under the Smithsonian Agreement of 1971, the rupee also remained stable against dollar. In order to overcome the weaknesses associated with a single currency peg and to ensure stability of the exchange rate, the rupee, with effect from September 1975, was pegged to a basket of currencies. The currency selection and weights assigned were left to the discretion of the Reserve Bank. The currencies included in the basket as well as their relative weights were kept confidential in order to discourage speculation. It was around this time that banks in India became interested in trading in foreign exchange. The impetus to trading in the foreign exchange market in India came in 1978 when banks in India were allowed by the Reserve Bank to undertake intra-day trading in foreign exchange and were required to comply with the stipulation of maintaining lsquo;squarersquo; or lsquo;near squarersquo; position only at the close of business hours each day. The extent of position which could be left uncovered overnight (the open position) as well as the limits up to which dealers could trade during the day was to be decided by the management of banks. The exchange rate of the rupee during this period was officially determined by the Reserve Bank in terms of a weighted basket of currencies of Indiarsquo;s major trading partners and the exchange rate regime was characterized by daily announcement by the Reserve Bank of its buying and selling rates to the Authorized Dealers (ADs) for undertaking merchant transactio ns. The spread between the buying and the selling rates was 0.5 per cent and the market began to trade actively within this range. ADs were also permitted to trade in cross currencies (one convertible foreign currency versus another). However, no lsquo;positionrsquo; in this regard could originate in overseas markets. As opportunities to make profits began to emerge, major banks in India started quoting two-way prices against the rupee as well as in cross currencies and, gradually, trading volumes began to increase. This led to the adoption of widely different practices (some of them being irregular) and the need was felt for a comprehensive set of guidelines for operation of banks engaged in foreign exchange business. Accordingly, the lsquo;Guidelines for Internal Control over Foreign Exchange Businessrsquo;, were framed for adoption by the banks in 1981. The foreign exchange market in India till the early 1990s, however, remained highly regulated with restrictions on externa l transactions, barriers to entry, low liquidity and high transaction costs. The exchange rate during this period was managed mainly for facilitating Indiarsquo;s imports. The strict control on foreign exchange transactions through the Foreign Exchange Regulations Act (FERA) had resulted in one of the largest and most efficient parallel markets for foreign exchange in the world, i.e., the hawala (unofficial) market. ( siddiki, J (1998). ; Black market exchange rates in India, an empirical analysis. surrey: kingston upon thames, faculty of human science, kingston university. ) Formative Period: 1978-1992 By the late 1980s and the early 1990s, it was recognized that both macroeconomic policy and structural factors had contributed to balance of payments difficulties. Devaluations by Indiarsquo;s competitors had aggravated the situation. Although exports had recorded a higher growth during the second half of the 1980s (from about 4.3 per cent of GDP in 1987-88 to about 5.8 per cent of GDP in 1990-91), trade imbalances persisted at around 3 per cent of GDP. This combined with a precipitous fall in invisible receipts in the form of private remittances, travel and tourism earnings in the year 1990-91 led to further widening of current account deficit. The weaknesses in the external sector were accentuated by the Gulf crisis of 1990-91. As a result, the current account deficit widened to 3.2 per cent of GDP in 1990-91 and the capital flows also dried up necessitating the adoption of exceptional corrective steps. It was against this backdrop that India embarked on stabilization and structural reforms in the early 1990s. ( Srinivasan, V (2001). Structural changes in the Indian foreign exchange market; an empirical investigation. storrs: Center for International Business Education and Research (CIBER). Post-Reform Period: 1992 onwards This phase was marked by wide ranging reform measures aimed at widening and deepening the foreign exchange market and liberalization of exchange control regimes. A credible macroeconomic, structural and stabilization programmed encompassing trade, industry, foreign investment, exchange rate, public finance and the financial sector was put in place creating an environment conducive for the expansion of trade and investment. It was recognized that trade policies, exchange rate policies and industrial policies should form part of an integrated policy framework to improve the overall productivity, competitiveness and efficiency of the economic system, in general, and the external sector, in particular. As a stabilization measure, a two-step downward exchange rate adjustment by 9 per cent and 11 per cent between July 1 and 3, 1991 was resorted to counter the massive draw down in the foreign exchange reserves, to instill confidence among investors and to improve domestic competitiveness. A two-step adjustment of exchange rate in July 1991 effectively brought to close the regime of a pegged exchan ge rate. After the Gulf crisis in 1990-91, the broad framework for reforms in the external sector was laid out in the Report of the High Level Committee on Balance of Payments (Chairman: Dr. C. Rangarajan). Following the recommendations of the Committee to move towards the market-determined exchange rate, the Liberalized Exchange Rate Management System (LERMS) be put in place in March 1992 initially involving a dual exchange rate system. Under the LERMS, all foreign exchange receipts on current account transactions (exports, remittances, etc.) were required to be surrendered to the Authorized Dealers (ADrsquo;s) in full. The rate of exchange for conversion of 60 per cent of the proceeds of these transactions was the market rate quoted by the ADrsquo;s, while the remaining 40 per cent of the proceeds were converted at the Reserve Bankrsquo;s official rate. The ADrsquo;s, in turn, were required to surrender these 40 per cent of their purchase of foreign currencies to the Reserve Bank. They were free to retain the balance 60 per cent of foreign exchange for selling in the free market for permissible transactions. The LERMS was essentially a transitional mechanism and a downward adjustment in the official exchange rate took place in early December 1992 and ultimate convergence of the dual rates was made effective from March 1, 1993, leading to the introduction of a market-determined exchange rate regime. The dual exchange rate system was replaced by a unified exchange rate system in March 1993, whereby all foreign exchange receipts could be converted at market determined exchange rates. On unification of the exchange rates, the nominal exchange rate of the rupee against both the US dollar as also against a basket of currencies got adjusted lower, which almost nullified the impact of the previous inflation differential. The restrictions on a number of other current account transactions were relaxed. The unification of the exchange rate of the Indian rup ee was an important step towards current account convertibility, which was finally achieved in August 1994, when India accepted obligations under Article VIII of the Articles of Agreement of the IMF. With the rupee becoming fully convertible on all current account transactions, the risk-bearing capacity of banks increased and foreign exchange trading volumes started rising. This was supplemented by wide-ranging reforms undertaken by the Reserve Bank in conjunction with the Government to remove market distortions and deepen the foreign exchange market. The process has been marked by lsquo;gradualismrsquo; with measures being undertaken after extensive consultations with experts and market participants. The reform phase began with the Sodhani Committee (1994), which in its report submitted in 1995 made several recommendations to relax the regulations with a view to vitalizing the foreign exchange market. ( Srinivasan, V (2001). Structural changes in the Indian foreign exchange m arket; an empirical investigation. storrs: Center for International Business Education and Research (CIBER). ( Khasnobis, B (1998). sensitivity of the rupee dollar exchange rate, a VAR analysis. Mumbai: Indira Gandhi institute of development research. ) Indian Foreign Exchange Market The Indian foreign exchange market, broadly concentrated in big cities, is a three-tier market. The first tier covers the transactions between the Reserve Bank and Authorized Dealers (Ads). As per the Foreign Regulation Act, the responsibility and authority of foreign exchange administration is vested with the RBI. It is the apex body in this area and for its own convenience, has delegated its responsibility of foreign exchange transaction functions to Ads, primarily the scheduled commercial banks. They have formed the Foreign Exchange Dealersrsquo; Association of India which framers rules regarding the conduct of business, coordinates with the RBI in the proper administration of foreign exchange control and acts as a clearing house for information among Ads. Besides the commercial banks, there are money- changers operating on the periphery. They are well-established firms and hotels doing this business under license from the RBI. In the first tier of the market, the RBI buys an d sells foreign currency from and to Ads according to the exchange control regulations in force from time to time. Prior to the introduction of the Liberalized Exchange Management System, Ads had to sell foreign currency acquired by them from the primary market at rates administered by the RBI. The latter too sold pounds sterling or US dollars, spot as well as forward, to Ads to cover the latterrsquo;s primary market requirements. But with the unified exchange rate system, the RBI now intervenes in the market to stabilize the value of the rupee. The second of the market is the inter-bank market where Ads transaction business among themselves. They normally do their business within the country, but they can transact business also with overseas bank in order to cover their own position. Through they can do it independently, they do it normally through a recognized broker. The brokers are not allowed to execute any deals on their own account or for the purpose of jobbing. With in the country, the inter-bank transactions can be both sport and forwards. These may be swap transactions. Any permitted currency can be sued. But while dealing with the overseas Ads, because the Indian market lacks depth in other currencies; the Indian banks can deal mainly in two currencies, viz, the US branches must cover only genuine transactions relating to a customer in India or for the purpose of adjusting or squaring the bankrsquo;s own position. Forward trading with overseas banks is also allowed if it is done for the above two purpose, that is for covering genuine transactions or for squaring the currency position, and does not exceed a period of six months. In case the import is made on deferred payment terms and the period exceeds six months, permission has to be obtained from the RBI. Cancellation of forward contracts is allowed in India, although it has to be referred to the RBI. Previously, the banks used to get the forward transactions covered with the RBI, bu t since 1994-95 the RBI has stopped giving this cover and has permitted the banks to trade freely in the forward market. Cancellation of a forward contract involves entering into a reverse transaction at the going rate. Suppose US $1,000 was bough forward on 1 February for three months at Rs. 40/US $. On 1 March, it is cancelled involving selling the US dollar at the rate prevalent on this day. If the exchange rate on 1 March is Rs. 39.50/US $ there will be a loss of Rs. 500 (the dollar sold for Rs. 39.5 minus dollar bought at Rs. 40.00). The loss is borne by the customer. If the value of the US dollar is greater on the cancellation day, the customer shall reap the profit. The third tier of the foreign exchange market is represented by the primary market where Ads transact in foreign currency with the customers. The very existence of this tier is the outcome of the legal provision that all foreign exchange transactions of the Indian residents must take place through Ads. The t ourists exchange currency, exporters and importers exchange currency, and all these transactions come under the primary market. (Pandey, I M (1999). International Finance management. New Delhi: Kalyani Publishers. )

Sunday, December 22, 2019

Analysis Of The Book Lien - 2038 Words

First impressions are everything. When people hear this phrase, many will often associate it with meeting new people. However, this concept can just as easily be applied to literature. Authors put great care into how they describe a character or a setting because the reader has nothing but words off of which to base their perception. This can be problematic if the author is not able to create a compelling enough picture in the reader’s mind, but it can also be used to the author’s advantage, often by tricking the reader with their words into believing something, and then revealing it to be the opposite. This story, â€Å"Lien,† was created with the intention of exploring the way people perceive reality and how they decide on the true nature of their surroundings, which is accomplished through the use of geographical concepts, intertextual examples found in famous fictional pieces, and descriptive language. In the overall narrative, the main character is lost and is trying to find his way back home. Both he and the readers are never supposed to be sure if he is awake, dreaming, or a little bit of both, which relates to the uncertainty and tricks played by the unconscious, both of which are brought up by the movie, Inception. In this movie, the subject of a dream often does not realize that he is in one, which is a concept the authors of the overall narrative are trying to imitate (â€Å"Inception† 2010). In the process of trying to return home, the protagonist ends up at inShow MoreRelatedLakeside Auditing728 Words   |  3 PagesExercises Exercise 1 Following his discussion with Rogers, Andrews talked briefly with Carole Mitchell concerning the warehouse expansion. She indicated that Art Heyman had already prepared an analysis of the repairs and Maintenance account (see Exhibit 9-4). In addition, based on the debits to the Warehouse account (see Exhibit 9-5) he had located the invoices substantiating the capitalized transactions (see Exhibit 9-7) while reviewing the invoices received by Lakeside subsequent to the end ofRead MoreInternet And Its Impact On Society Essay1388 Words   |  6 Pagesmore efficient. Though the internet has many advantages, it has brought a lot of negative impact to our society. 1.2 Definition of the internet The word Internet comes from the words â€Å"Interconnection of Networks† (Greenfield, 1999). According to One book projects, the Internet is a worldwide interconnection of computer networks that transmit information from one place to another using the standard Internet Protocol. It is also knwn as the Net. In order to understand how the internet has an impactRead MoreThe Impact Of Internet On Our Society Today Essay1502 Words   |  7 Pagesthe words â€Å"Interconnection of Networks† (Greenfield, 1999). The Internet is a worldwide interconnection of computer networks that transmit information from one place to another using the standard Internet Protocol. It is also known as the Net (One Book Projects). To understand how the internet has an impact to our day to day lives, one needs to understand its history. 1.3 History of the internet The internet was first conceived in the early 1960 by the Department of Defense in the United statedRead MoreTheory of Title: When Does Title to Real Property Transfer in the State of Arkansas6459 Words   |  26 Pagescollection of rents. The literature tends to suggest that Arkansas does that follow any particular lien theory and utilizes a combination of each of the three lien theories. The Outline I. Introduction II. General definitions of three theories governing title transfer in United States of America: a. Title theory. b. Lien Theory c. Intermediate theory III General effects of theories in practice a. EffectsRead MoreA Research Project On Credit Risk Management Basic1515 Words   |  7 PagesThe theoretical framework or theoretical review can be defined as a set of linked idea that facilitate to better understand the content of a research project. ( Investopedia.com) According to Van Gestel and Baesens in their book â€Å"Credit risk management basic† in order for banks to ensure a good credit risk management and to maximize its profitability it is very important that banks pays particular attention to four practices. Those practices are the selection of a solvable counterparty, limitationRead MoreConstruction Laws And Construction Law2221 Words   |  9 Pagessome of the types of surety bonds. 4. Construction Liens Construction liens are designed to protect builders, contractors and suppliers from the risk of not being paid for the services they provided. Any professional who has supplied labor and material has to be paid for his services irrespective of the quality of work provided by them. Construction lien ensures that the payment is made. The term construction lien is adopted from Mechanic’s lien which is associated with the automobile industry. WhenRead MoreImplementation Of The Loan Resolution1259 Words   |  6 Pagesin counseling the borrower we can consider either a short sale or short payoff if the property is worth less than what is owed. Additionally, accepting a deed-in-lieu of foreclosure may be an option if the property is free and clear of any other liens or encumbrances, with the exception of outstanding real estate taxes, or assisting the borrower in disposal of the property if it has been determined the borrower cannot support the debt. The following procedures will be implemented over a 30-dayRead MoreBank Of America Corporation : A Bank Company1127 Words   |  5 PagesIts merchandise embody fixed- and adjustable-rate first-lien mortgage loans for home purchase and refinancing wants, HELOC and residential equity loans. The worldwide Banking section provides a variety of lending-related merchandise and services, integrated capital management and treasury solutions to purchasers, and underwriting and consultative services. The worldwide Markets section offers sales and commerce services, which has analysis to institutional purchasers across mounted financial gainRead MoreCommercial Liens - a Potent Weapon Essay32374 Words   |  130 PagesCOMMERCIAL LIENS A MOST POTENT WEAPON Version 1.0 |Edited by Build Freedom staff | |[with acknowledgments and credit to Alfred Adask (Publisher of AntiShyster magazine), Richard Boalbey, David | |DeReimer, and the various lien authors, for providing some of the content] | |(Applicable To The U.S.A.; Adaptable For Some Other Countries) Read MoreEmail Business Environment : The Importance Of Email, And General Guidelines For Professional Use Email1879 Words   |  8 PagesCommon mistakes made when communicating through email †¢General guidelines for a professional use of email Primary research was no conducted in this project. Secondary research constitutes peer review sources, sources from WSJ, Electronic Library books and periodicals. Results from this research are better discussed in this report. I would be very please to discuss this research report and its conclusions with you at your request. Thank you for your confidence in selecting me to present to you

Saturday, December 14, 2019

A Visit to a Famous City Free Essays

A few months ago my father and I visited Singapore, one of the most famous cities in Asia. Singapore, a small island, lies at the southern and of West Malaysia. A long and narrow piece of land joins Singapore with Johore Hahru, the southern-most town of West Malaysia. We will write a custom essay sample on A Visit to a Famous City or any similar topic only for you Order Now Singapore is now an independent state. The city of Singapore is extremely beautiful. It is well known for its centers of business and other activities. There are many places of interest such as the Tiger Balm Garden, the Botanical Gardens and Raffles Museum. There are also many important centers of learning such as the University of Singapore, Science Centre, the Nanyang University and the Polytechnic. Being a famous city, hundreds of people come everyday from various parts of the world to do business or to enjoy the sights of the city. Singapore therefore has large and beautiful airports and its harbors are full of ships. There are many night schools where people who cannot go to the day schools for some reason or other can continue their studies. And, the government of Singapore is still doing its best to make further improvements in the city for the benefit of the people. During my stay in Singapore, I went out everyday with my father to see the beautiful and interesting places and things in the city. One day we went to the Tiger Balm Garden where I saw several statues of people, animals and other strange creature beautifully made and kept. The sea near this garden makes it a pleasant place to visit. We spent almost half of the day at this place. Another day we visited the museum where I saw hundreds of curious things preserved for scholars and others. It was indeed an education to see all those things. There is so much to learn here that every visit by any person is sure to add to his knowledge. I also visited some of the harbors and saw the large ships anchored there. The sight of the ships aroused a desire in me to cross the oceans and go round the world. I was indeed deeply impressed by activities at the harbor. Then every night, I went round the town and visited some of the parks and other places of interest. The numerous lights and the constant stream of traffic kept the city alive. I visited a few of the cinemas as well. In short, I enjoyed every moment of my stay in this famous city of Singapore. How to cite A Visit to a Famous City, Essay examples

Friday, December 6, 2019

Business Planet and Society Environment

Question: Discuss about the Business Planet and Society Environment. Answer: Introduction: The current report is based on the assessment of business values governing a business environment. Universally business ethical values are defined as the set of guiding principles, which encourage individuals in an organisation to undertake decision based on the organisations, stated belief and attitude towards a business practice within its industry (Schrempf et al., 2015). The current report is based on the evaluation of business ethics and social responsibility of Air China and Qantas both operating under the aviation industry but from different country. Air china limited is considered as the chief carrier of the peoples republic of china having its head quarter in Shunyi District, Beijing. Air china established and commenced its business operations during the year 1988 on 1st July. The company carries flight operations largely from the Beijing capital international airport. On the other hand, Qantas, which is considered as the flag carrier airline, company of Australia having the largest airline by fleet size with worldwide flights and worldwide destinations (Investor.qantas. 2017). Qantas is considered as the worlds third oldest airline company in the world following KLM and Avianca. Qantas was founded in Winton, Queensland in the year 1920 as Queensland and Northern Territory Aerial services limited. Differences between the two companies in terms of social issues Community strategy and partnerships Qantas community strategy forms the spirit of Australia. Qantas is committed to the journey of reconciliation, promoting and displaying the best of Australia. Qantas engages its workforces in order to re-enforce their brand values through annual community investment (Cheng et al., 2014). Qantas forms partnerships with organisations, which promotes positive changes to enrich their community. Reducing the use of resources is the primary focus of Qantas towards future planet. Qantas also aims to reduce its dependence on water by 20% by the end of 2020. Other social issues such as it are specifically aimed to reduce the instance of waste to landfill by 30% with 35% reduction in electricity by 2030. Qantas is also focused towards achieving carbon neutral growth by the end of 2030 and aims to cut down its emission by 50% by the end of 2050 in comparison to their 2005 level of emission. Social responsibility and ethical operations forms the fundamental part of Qantas business activities. Qantas understands its brands valuation and aims to protect it through robust social policies and processes. Qantas continues to prioritise its social responsibility by addressing unethical business practices such as corruption (Rupp et al., 2013). It continues to priorities the development of its business through rigorous anti-corruption framework. Qantas establishes a cross functional responsibilities by steering the executive group towards developing anti-corruption strategy and policy. Air china on the other hand, has consistently followed a high standard business ethics. At the same time it Air china endeavours to uphold its social image by contributing its resources towards building a fair and harmonious social atmosphere (Airchina.com. 2017). Air china have continued to progress with their campaign of combating corruption and promoting integrity by implementing work plan for building integrity culture and develops an educational network based on integrity culture. Relevant issues such as customers services, corporate culture, operational safety, lower carbon emission, energy efficiency and reduction in emission. Air china further works towards addressing community development through public welfare activities and investors communications. With sustainable development in the background, Air china encourages its participation of stakeholders under the principles of practicality along with completeness to identify the issues. This consists of the identification of relevant issues, confirmation of the practical issues, approval of reporting content and reviewing procedures. This allows Air China to monitor responsibility and strengthen the accountability mechanism upon anti-corruption (Korschun et al., 2014). This allows air china to push forward the prevention and control function of their social integrity by strengthening the construction of their integrity monitoring mechanism. The various types of the differences related to the corporate social responsibilities of Air China and Qantas have been shown below as follows: In case of Qantas the various types of the corporate social responsibilities has been seen in terms of the support for corporate social responsibility, which includes working with an alliance towards a membership with Supplier Ethical Data Exchange (SEDEX). It has been further seen that the various types of the audit report, which are being shared on this platform, are directly related to the areas of concern for maintenance of labour standards, health, safety, and maintenance of integrity in the business. The main social responsibility has been seen with extensive assessment of the onsite audits, which are conducted in the workplace. Since 2009, the company has been committed in maintaining highest form of efficiency of fuel usage and improving the same to 5%. This has been observed to a considerable sector for the area related to the overall development on terms of the corporate social responsibility. It has been further stated that the various types of the factors related to the variables affecting the fuel efficiency has been seen to be accelerated in terms of increasing the existing fuel efficiency and reducing the carbon emissions in compared to other airlines (Investor.qantas.com. 2017). The corporate social responsibility of Air China has been seen in form of the release of the state owned supervision of the assets and the administration commission of the state council. The notice related to the acceptability of the CSR has been seen in form of the guidelines stated by Shanghai Stock Exchange. The various types of the CSR strategy development has been further seen with the usage of the positive engagement with the stakeholders in areas related to operation, safety, service, talent and environment (Airchina.com.cn. 2017). On 23rd April 2014, the company introduced environmental protection related to public interest, which was done under the theme of walking for a better health and for the protection of the environment. The program consisted of 100 employees and more than 160 volunteers took part in the same. In another instance, Air China was known to introduce the intelligent policy for recycling of plastic bottles. In this initiative, it has been observed that the employees can place the empty bottle after receiving of RMB0.5-1.5 credit in the mobile apps of the respective users. It is also regarded as the first central state-owned company to respond to the Beijing Municipal Governments call (Airchina.com.cn. 2017). Quality of social accounting approach The notion that that the corporations should be held responsible for their social presentation has progressively turned acceptable over the last five years. According to Jacobson et al., (2014), a considerable amount of debate has been raised regarding the process adopted by the companies to address the social responsibility and what constitutes their finest practice in social accounting. Vital principles concerning the fundamental philosophies of best practice is that companies, which are socially responsible, must engage themselves with their stakeholders and generate the social report, which is an account of their social performance. According to the Zadek et al. 1997 theory, social accounting undertaken by Qantas for management control purpose is designed to support and facilitate the achievement of the companys own objectives. Such responsibilities include assessment of risk, management of stakeholders, preconisation of social responsibility, maintenance of public relations and efficiencies. Air china on the other hand, has undertaken the responsibility of accountability, democratic and sustainability purpose, which is designed to support and facilitate society in pursuit of its objectives. Such reporting covers the rights of the stakeholders, balancing power with responsibility empowerment of stakeholders by promoting transparency and openness demonstrating the social and environmental cost of economic success. Whilst there shall be often be overlap between these two companies as neither of the company is simply homogeneous since they possess differences in fundamental approach. The management control perspective of Qantas put the organisation first and typically it focuses on society first hardly makes any assumption regarding the organisation. Air china stakeholders engagement is essential towards sustainable development. According to the Zadek theory, air china has channelized its resources to promote dialog with the stakeholders. The overall social responsibility of air china lays down the impact of decisions in the economy in terms of both environmentally and socially (Fooks et al., 2013). Air china evaluates and monitor the progress of the companys response towards stakeholders demands and its efforts to create comprehensive values against the set of pre-established performance indicators. This helps in identifying the problems and challenges within the prescribed time to continuously improve the accountability management system of Air china. The extent of social report reporting the stated values of Qantas and Air China: Social responsibility has several benefits for the organisations regardless of the industry in which it operates. These benefits consist of enhancing the brand image, promoting customer loyalty and increased ability to retain employees. The idea of social responsibility is contently evolving (Zheng et al., 2014). Amongst the most highly recognised changes is increased involvement of stakeholder, creation of business ethics and code of conduct to promote financial transparency. Social responsibility of Qantas plays an important and progressive role domestically in Australia across the overseas global network. Qantas continues to challenge the notion by promoting customer loyalty and satisfaction forming a vital part of their business. Qantas promotes environmental leadership by working together with their customers and communities by becoming the first airline company in the world to introduce a voluntary carbon offsetting programme. Furthermore, Qantas does not generate any revenue from such programmes and uses the funds obtained to purchase verified carbon offsets with yearly contribution of more than 1.2 million. Qantas promotes social responsibility through risk control based on the supplier, industry and location (Doh et al., 2013). It also sets up a network concerning ethics and compliance throughout the wide range of business sectors in order to share knowledge and initiatives. Following the consultation with their key stakeholders, it periodically revises the code of conduct and ethics serving in the form of compliance guide for the managers. Air china manages social responsibility by developing opportunity and maintaining communications through positive engagement with its stakeholders. Air china not only faces social responsibility directly but also utilises the social demand in order to explore bigger market to realise continuous sustainable growth. Air china pays special attentions to co-operate with their industry peers in order to attain a rational allocation by realising the general values for the entire industry (Goetsch Davis, 2014). On the other hand, suppliers forms the key part of air china values chain by strengthening the management of suppliers responsibility. The company also anticipates its suppliers to follow the practices of common principles. This can help in establishing closer co-operations with the company, which may ultimately assist them in raising developmental abilities. In addition to this, air china also implements the green purchases towards environmental protection forming an essential conditions in air chinas supplier choice. The company also ensures to strengthen its safety management in order to improve the quality of the companys operational safety (Fooks et al., 2013). Air china promotes the application of its safety management, which focuses on the introduction of new safety measures along with the control of critical risk through management of safety emergency. Conclusion: Upon conclusion, it is found that Air China fulfils the responsibility to its customers and endeavours to improve the quality of the service throughout the entire process. The report also provides that the company focus on seamless service by laying down clear guidelines to improve the customer experience. Air china significantly fulfilled its responsibility towards sustainability by reducing its dependence on fuel and striving towards energy conservation. The company has earnestly fulfilled its social responsibility by being thoughtful to its social and communal development. It was also found that air china is focuses on energy conservation by implementing improved fuel efficiency and lower noise level. On the other hand, Qantas reported to prioritise its social responsibility by dealing with unprincipled business practices such as corruption. The study further provides that it continue to priorities the expansion of its trade by adopting rigorous anti-corruption framework. Qantas launched a cross functional responsibilities by navigating the executive group towards developing anti-corruption strategy and policy. 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