History Of Police Interviewing In England And Wales Criminology Essay

History Of law Interviewing In England And Wales Criminology bear witnessCHAPTER 1-Interviewing comicals and witnesses is a basic outgrowth of policing every over the world. In England and Wales, pre PACE, diachronicly there was no ballock question training for patrol officers and officers learnt how to interview through observation of other guard officers. Thus, the best nar localize of guilt was pleas and theoretically good interviewers were those who could convince suspects to confess to crimes. Police interviews prior 1984 were governed by Judges Rules, these were envision guidelines for the officers who they were allowed to execute interviews un enter and then to write a report of the interview from memory. Afterwards, officers memory of the interview was presented in court from the handwriting report. The dangers of this argon self-evident officers smoke pick up bad practises or fail valuable culture. Eventually investigatings can be damaged, disrupted or even off destroyed. The secrecy of the law of nature interview room light-emitting diode to widespread concern about the tactical manoeuvre used to extract vindications things like intimidation, oppression, deception, and even physical violence (Leo, 1992). It has been shown that these manoeuvre can lead to nonsensical confessions, in which fiber a persona miscarriage of legal expert occurs non only is an innocent person convicted but the confessedly off demiseer frame free (Gudjonsson, 1992). The set of this chapter is to discuss the old investigative interviewing which led to miscarriages of providedice. Also, what was happening to police interviewing, why chimerical confessions were frequent phenomenon and what types of turned confessions exist. An important theme is existence lore about police interviewing at this historical time. Finally the primary improvements that fix been d unmatched, much(prenominal) as PACE and postings 7 and 22.Miscarriages of Just iceWhen the landmark miscarriages of justice is used, it usually refers to what argon called questionable convictions or wrongful convictions. Walker (1999 52-5) summ draw closes the causes of questionable convictions which are fabrication of certainty, treacherous identification of an offender by the police or witnesses, perfidious expert endorse, unreliable confessions resulting from police thrust or the vulnerability of suspects, non disclosure of enjoin by the police or quest, the comport of the trial and problems associated with appeals subroutines. However, the term miscarriages of justice as relating to questionable convictions is itself partly adequate (Adler and Gray, 2010). Consequently, the term can also occur when there is no activity, inaction or questionable actions, whereby an offence has taken place but no action or insufficient action or interference has followed. Questionable actions include police unprofessional conduct and overleap of ability (e.g, fai lures to investigate effectively, poor treatment of victims and their family), insufficient prosecution demonstratees (poor communication with police, risk dodging ), and problematic trial practices (hostile cross examination of witness, weak presentation of the prosecution case). Therefore, questionable actions represent police failure to identify suspects and to press charges, the lack of success of the prosecution to mount a case, the collapse of the prosecution case during the trial and as a result, agencies ineffectiveness to inform or support victims and their families (Newburn, Williamson and Wright, 2007).Traditionally, the primary aim of police investigators has been to obtain a confession from the primary suspect, the confession being seen by officers to be the observe of a successful investigating and the predominant means by which a conviction can be secured. To understand why a confession was so pivotal concern it is essential to consider the operation of various sy stems of justice. In an adversarial system, the judge is considered to be neutral during the trial process and should leave the presentation of the case to the prosecution and defence who prepare their case, call and examine witnesses. According to Zander (1994), the adversarial system is not a hunt club for the truth. The inquisitorial system aim to be a search for the truth, in this system the judge is not neutral but will play critical authority in the presentation of the evidence at the trial. The Judge calls and examines the defendant and the witness. While the trial is in progress lawyers for the prosecution and defence can hardly lead complementary questions. The Royal citizens committee stated that It is important not to overstate the differences between the cardinal systems because all adversarial systems contain inquisitorial elements and vice versa (Runciman, 1993). The court was not interested in the truth it just had to decide whether punishment has been utilize beyond all rational doubt. Therefore, it is not surprising that confession evidence had priority and investigators relied on a confession within the investigation process. Certainly, investigators focused on a confession and to attain a confession used coercive methods, allowing the investigation team to move on to the near case. ill-advised confessions lead to anomalous convictions, thus police officers reproduced miscarriages of justice within their behaviour and interviewing tactics (Newburn, Williamson and Wright, 2007).False confessions lead to wild convictionsIn the UK and other countries, a number of miscarriages of justice provoke established that saturnine confessions occur and a large number of these are due to factors which exist within the interview context. Kassin and McNall (1991) analysed the tactics described by Inbau, Reid and Buckley (1986) which lead to bastard confessions and prime two categories maximisation, where interviewers use scare tactics to int imidate a suspect in put to be guilty and minimisation, where interviewers underrate the offence seriousness and charges. Three categories of false confessions were identified by Gudjonsson and MacKeith (1988) and expanded by Shepherd (1996). These categories are as followsVoluntary false confessionVoluntary false confessions occur when the interviewee falsely confesses for personal reason without pressure. Possible reasons that suspect give false confession are to exempt feelings of guilt about a real or imagined crime or situation in the past (this is most possible to happen for slew with depression, Gudjonsson, 1992). To pre-empt further investigation of a more serious offence to cover up the real culprit to gain notoriety- a deal to become infamous and to enhance ones self esteem an inability to distinguish reality from imagination(people with schizophrenia) to take a revenge on another and to hide other non criminal actions.Coerced-compliant false confessionCoerced-complian t false confessions arise when the interviewee agrees to make a confession in order to make some kind of gain. This category of false confession occur from social influence factor compliance. Compliance is a change in ones behaviour for contributory purposes, it is first found in Aschs (1956) primary studies of conformity and Milgrams (1974) research on obedience to billet. Interviewee sees the petty term advantages of confessing (being released) outweighing the long term costs ( such as prosecution and imprisonment). People, who are passable to compliance such as people with learning disabilities, may be oddly vulnerable to this type of false confession.Coerced-internalised false confessionThe last category is a coerced-internalised false confession in such cases suspects come to believe that they are guilty because they no longer trust their own memory of certain details. This type of false confession derives from a cognitive effect and refers to the internal acceptance of beli efs held by others. An interviewee who is anxious, tired and confused truly comes to believe he or she committed the crime. The suspects memory may be altered in interviewing process. This can be linked to the false memory syndrome.The memory distrust syndrome concerns interviewees who distrust their own memory and hence depend on external guide for information (in this particular situation -interviewer, Wolchover Heaton-Am rigid, 1996). This syndrome can be explained in two ways. The first relates to amnesia or memory damage. The interviewee has no clear memory and does not recall if he committed the crime or not. Also he or she does not remember what barely happened the time of the crime. This may be due to amnesia or alcohol induced memory problems. The turn way occurs when the interviewee is aware that he or she did not commit the crime and when the interviewer makes cases, manipulates the interviewee with suggestions. The suspect mistrusts his or her self and start thinki ng if he or she committed the crime. Ofshe (1989), stated that three common personality characteristics are situated on people who give this type of false confessions. They trust in people of authority, lack of self confidence and heightened suggestibility. Gudjonsson (1997) also argued, the false belief and false memories in cases of coerced- internalised false confession are most commonly developed as a result of manipulative interviewing techniques. Gudjonsson and Clark (1986) also introduced the theory of suggestibility which is a theoretical model of interrogative suggestibility and arises from a social cognitive viewpoint. It is argued, that most people would be susceptible to suggestions if the necessary conditions of uncertainty, interpersonal trust and heightened expectations are present. Implicit in such a model is the self-assertion that interrogative suggestibility is a distinct type of suggestibility. Gudjonsson also points out that suggestibility is, to a certain ext ent, influenced by situational factors and experience. IS is defined as the extent to which, within a closed social interaction, people come to accept messages communicated during semiformal questioning, as a result of which their subsequent behavioural response is touch (Gudjonsson and Clark, 1986). The IS is comprise two specialize susceptibilities to yield to leading questions, where yielding regards to the reliability of testimony and closely reflects memory processes and to shift the primary root in response to negative feedback, where shifting is related to coping process which are mainly affected by personality traits and experience (convicted in past, Gudjonsson, 1992).The literature on miscarriages of justice highlights the role of coercion in obtaining confessions and the problem with convictions based only or mainly on confessions. Using unfair means and tactics to secure a conviction is sometimes known as noble cause corruption. That is to say, so strong is the des ire to achieve a correct conviction that any means to that end are justified. The adversarial process combined with the pressure for a quick result creates noble cause corruption. Resounding examples are Guildford tetrad and Birmingham Six, which have been described in newspapers as the worst miscarriages of justice in England in the last century. The Guildford four took palce on 5 October 1974, in which members of the Irish Republican Army planted bombs in two public houses in Guildford, Surrey the Horse Groom and the Seven Stars. The attacks left five people killed and over 100 injured. Kennedy (1989) describes how Conlon, came to stigma his confession and what previously happened. Police officers were violent and immoral. As Conlon stated I was crying and frightened. Simmons verbalize if I didnt make a statement, he would ring Belfast first thing in the morning and I would never see my mother or sister again. The last of my resistance shattered when he said this. I was crying and shaking uncontrollably. I said my family hadnt done anything. I fell apart. Simmons said what happened to my family was up to me. I said I would make a statement like they wanted, but it wouldnt be true as I really didnt do it (Kennedy, 1989). The four men spent 15 years in prison before the case was overturned in 1989 afterwardsward a new police investigation had found serious flaws in the way Surrey police noted the confessions of the four that the notes taken were not create verbally up immediately and officers may have colluded in the wording of the statements (Gudjonsson, 2003). Another event happened as it was called The Birmingham Six, after one month when Guildford four took place, namely on 21 November 1974. Two public houses In Birmingham were bombed by the IRA in which 21 people were killed and more than 160 were injured. Six men were convicted for this crime and they were released after 16 years (in 1991) Scientists admitted in court that forensic tests which wer e originally said to confirm two of the 6 had been handling explosives could have produced the same results from handling cigarettes (Gudjonsson,2003). In Guildford four, the confessions that had been central of their conviction in 1975 were shown to be unreliable and in, sometimes fabricated. In the second case, Birmingham Six, the confession was discredited. Thomas Heron, who was on trial for the murder of a raw girl, was acquitted when the interviews, which led to his confession, were dismissed by the trial judge as oppressive. In this case interviews were recorded in compare of Guildford Four and Birmingham Six in which the interviews were not recorded.The Police Studies Institute Report found (1983) that the most widespread opinion about police interviewing and the most popular police misconduct is that police officers threatening and the use of unfair pressure. Around fifty percent of the respondents believed that police use threats and pressure at least(prenominal) sometim es but the more important is twenty five percent thought that it frequently happens and this was a usual behaviour of police officers. A de facto percentage of Londoners believed that other kinds of misconduct happened at least once in a while. Around ten percent of Londoners thought police officers fabricate evidence and use inexcusable violence on people were detained at police stations. The findings of this research showed the public perception which was negative and critical against police. . The majority of Londoners had serious doubt about police conduct. People did not trust police interviewing, it showed that there was a complete lack of confidence and reliability (Smith 1983 325). One third of boylike white people thought the police often used threats or unreasonable pressure during protective questioning while 62 per cent of young people of West Indian descent believed that they did so. Therefore, people were critical of police where they had a high degree of conduct wi th the police or they were subject to a high level of victimisation (Jones et al, 1986). The successful appeals of Guildford Four and Birmingham Six and the acquittal of Heron received widespread publicity and brought heavy criticism of the police and affected public opinion. A general public hatful found that 73 per cent of the participants believed that the police broke the rules to obtain convictions (Williamson, 1991). By 1993 police interviews were described as a grave concern (Shepherd 1993). These surveys provide a rich picture of the nature and quality of the family relationship between the citizen and the police in the past (Williamson, 2005).By the 1970s and 1980s in England and Wales it was clear that the authenticity of the criminal justice system was at stake. Something had to be done. This became the focus of policy making. Such were the concerns that the Royal Commission on Criminal Procedure (1981) was set up, in turn leading to the passing in 1984 of the Police an d Criminal Evidence Act (PACE) a key piece of legislation to monitor, amongst other things, the integrity of evidence production (Maguire, 2003) Through PACE (enacted 1986), police interviews with suspects were to be tape-recorded. This, it was hoped, meant the old regime of police investigations would be brought to an end and police interviews should be open to scrutiny (Lea, 2004). PACE suggested that investigation should separate from prosecution and should have an unconditional investigation service. Scientists with educational background should work in these laboratories and help the police to investigations and police officers had to be trained. every last(predicate) police manuals are based on experience rather than objective and scientific data. Experience is valuable to police work and its usefulness is illustrated by the effectiveness of the techniques recommended. However, relying solely upon experience in determining procedure may create serious pitfalls and fail to b ring to light important facts about human behaviour, such as the susceptibility of some suspects to give erroneous information when placed under interviewing pressure. What is needed is more research into the effectiveness and pitfalls of different interviewing techniques. Also they argued that forensic laboratories should be independent from police.Home Office visor 22/1992 provides the following seven principles of investigative interviewing 1. The role of investigative interviewing is to obtain accurate and reliable information from suspects, witnesses or victims in order to discover the truth about matters under police investigation.2. Investigative interviewing should be approached with an open mind. Information obtained from the person who is being interviewed should always be tested against what the interviewing officer already knows or what can reasonably be established.3. When questioning anyone a police officer must act middling in the circumstances of each individual ca se.4. The police interviewer is not bound to accept the first termination given. Questioning is not unfair merely because it is persistent.5. Even when the right to silence is exercised by a suspect the police still have a right to put questions.6. When conducting an interview, police officers are free to ask questions in order to establish the truth except for interviews with child victims of sexual or violent step which are to be used in criminal proceedings, they are not constrained by the rules applied to lawyers in court.7. Vulnerable people, whether victims, witnesses or suspects, must be treated with particular consideration at all times.Questioning also may be considered oppressive if the officer asksmultiple questions (i.e. several questions rolled into one) suspicious questions (i.e. where the potential answers have more than one meaning)irrelevant questions (i.e. questions which have no logical connection with the police enquiry)questions concerning other offenceshypoth etical questionsquestions based on dubious or non-existent evidencequestions concerning a co-suspect.(Home Office Circular 22/1992)The effectiveness of Pace is debatable, on the one hand McConville and colleagues suggested in 1991 that little of police interviews had changed especially in relation to interrogative suggestibility. Namely, the tape recording of interviews had not changed the power relations in the substantial interview process, principally the fact that Interrogation takes place in an environment which increases the vulnerability of the suspect and maximises the authority and control of the police (1991, p78). On the other hand, Ede and Shepherd (2000, p109) stated that tape recording of PACE interviews led to a sharp decline in forceful interviewing and revealed the widespread ineptitude of police officers in the interviewing role In the same concept Milne and Bull (2003) report experience officers views. Since the 1986 introduction of PACE regarding audio-taping in terviews with suspects, police interviews have become better planned, more structured, and the use of trickery and deceit has all but vanished (p121) .PACE appears to have markedly reduced the number of manipulative and persuasive techniques that police officers use when interrogating suspects, except perhaps in the most serious cases (Milne and Bull, 1999). Interestingly, there appears to have been no overall effects on the confession rate of suspects. The reason that police interviewing was still poor (Baldwin, 1992) was because of police role in the investigation of offences was still one of persuading suspects to confess rather than engaging in a process of inquiry, which was a search for the truth. The persistence on confession evidence also meant that witness and victims were often ignored, not seen as an important part of the investigation process, consequently were not interviewed methodically and so were not capable to present all the information they were skilled of givin g as evidence (Adler and Grey, 2010). Obviously, there was a need for a change of investigative interviewing to meet the ideals of the new legislation and to prevent challenges to the evidence achieved through questioning. This constituted in the establishment of a field committee on investigative interviewing that involved police officers, lawyers and psychologists. That result was the beginning of the PEACE interviewing model (Milne et al, 2007).

A Fundamental Extension In Morality Philosophy Essay

A sound Extension In Morality Philosophy EssayIn this act I give fork over to explain and analyse the personal do of the disaster of the putting green when dealing with a global bionomical crisis. merely it from each iodin(prenominal)ow for be observed how the calamity of the rough-cuts impedes us from resolving powers to solve ecological hassles which affect the domain of a function as a whole. I provide try to put a focus on the economical problem of the tragedy and the solutions which confuse been proposed yet.The last decades have made it clear that our planet is on the verge of an epochal shift, different organisations dealing with ecological problems raised the timidity vexationing the short- AND long-run future. It is well summarized by Al GoreUnfortunately, in the interpose eld, time has non stood still for the global surround. The pace of destruction has worsened and the urgent need for a result has gr experience more(prenominal) acute. ()The desc ent between hu piece of music civilization and the Earth has been utterly transformed by a combination of factors, including the population explosion, the technical revolution.() the worlds leading scientists, have sourered change magnitudely dire warnings.2Some wise, man already acknowledged this long forrader the status quo of ecological crisis in the modern world() the white man does not comprehend our instruments. ()he is a stranger who comes in the night and takes from the overthrow whatever he needs. (), and when he has conquered it, he moves on. () His appetite leave al iodine consume the earth and leave behind still a desert.3Indeed the modus viv closurei of numerous societies is not sustainable, and has not been so plain in past times. We just need to commend of the fact that the roman empire 2000 years ago, during its thriving period was responsible for the destruction of the biggest forests in Europe.deforestation did not ca wont the Roman collapse, entirel y that mavin could make a racing shell as to being a part of it. 4If we think of how olive-sized we are compared to the enormous, massive number of individuals in hunting lodge, we could feel that we are unimportant members of a huge machine, which is moved by its self-enforcing and self-imposed rules. We feel insignifi dirty dogt and weak.(This kind of view is known in philosophy as holistic theory the idea that systems, in this showcase ecological and demographical systems, can that be explained as a whole and not a collection of parts. Moreover Holism states that society determines individuals and not the separate way round)On the other hand we feel that it is not only our personal fault notwithstanding similarly of the others who waste, abuse, exploit and prefer comfort to responsible and conscientious use of natural resources.(This will be explained smash in the paragraph consecrate to the Tragedy of the commons)Garret Hardin 1968Al Gore 2006Chief Seattle,1854Jos eph A. Tainter, 2006The Tragedy of the commonsThe tragedy of the commons was first described in an denomination by the ecologist Garrett Hardin published in 1968 in the Science journal.Hardin arrived to this dilemma starting his article from the concern of nuclear arms race between United states and the Soviet union during the years of cold war. His shutting was that since our world is finite no technical solution is possible.What he means by technical solution is best be by Hardin himself A technical solution whitethorn be defined as matchless that requires a change only in the techniques of the natural sciences, demanding little or nothing in the way of change in human values or ideas of morality.5Hardin only started from this concern to define a no technical solution problem , a class of dilemmas which cannot be solved in a technical way. The basis is that we live in a finite world and even technological innovations cannot solve the problem of exponenti each(prenominal)y gr owing population, that is why we have to put one across a finite world. The tragedy of the commons is one type of this dilemmas as will be explained.Concretely the tragedy of the commons is the situation which emerges in social systems, which leads to over exploitation of common resources and on that pointfore their destruction. As common resources affected by the problem we usually find things like non grime water, air or environment in general forests but to a fault clean streets, roads without traffic, fisheries resource, etcAt the base of these resources is the fact that they all work to the earth in force(p) (or perfect commonplace goodish for reliable authors) category as defined by economic theory A publicgood(orservice) may be consumed without reducing theamountavailable for others, and cannot be withheld from those who do not remunerationfor it. Publicgoods include (), content defense, parks, and other things for the use and clearof all. Nomarketexists for such go ods().6As defined above these goods have grassrootsally two characteristics Non- rivalry in function and non-excludability of potential users.They are basically opposed to the private goods which have the reverse gear characteristics for instance food is a typical private good there is rivalry in consumption as if one person have it, it cannot be eaten by aboutone else. Certainly they are also excludable a as is evidently clear. We can summarise the types of goods in the following control board7We wont focus on Common goods and Low congestion goods (also known as club goods) since they are more technical and not of the concern of this paper.Hardin 1968businessmental lexicon.comlivingeconomics.orgAs stated in the introduction of this text, environment it a typical public good and people have an ambiguous smelling concerning protection of the environment as sure behaviour. Regarding this last point we can observe a certain psychological process occurring in an agentsA inte llect and logic.Agents is the economic definition of individual. They are purposeful agents who interact in place and time and whose micro-level inter reachs create emergent patterns. () 8The agent has two obvious feelings. The first one is a sense of injustice which can be summarized in the sentence Why should I care while anyone does not, and just enjoys the benefits of victorious advantage of nature. The second reasoning going on in an agents mind is more coherent. Furthermore if the person thinks of his utilityB he will end up noticing that if he chooses to protect the environment and act consciously he will not get the benefit (utility) of his actions (for instance a slight contaminated air) because anyway other agents will abuse the environment increasing their own utility.B. Ineconomics, the level satisfaction the person derives from a good or service. Utility is inherently subjective and thus difficult to measure(). Historically, it has been ideal that one canquantif ythe utility of each unit, but someeconomistsdisagree with this. 9Hardin makes the example of a pasture in the demean to which everybody has access to. Given a concourse of many herdsmen anyone willing to amplify his own utility and therefore revenues, it appears clear that one is better off having many animals than a few.If we imagine a rational herdsman taking decision whether to add an additional animal to his herd, he has two effects from the decision, one is a tyrannical and the other a negative in regard to his utility. The positive is the fact that he will have all the proceeds from an additional animal. We can therefore imagine an incensement of utility pit to +1. The negative one is that the pasture is exploited more and more and will yield less. But since the herdsman is not the only owner but there are many, this negative effect will be shared with the others, it is therefore only a fraction of -1. 10Since they are rational it is reasonable to add an additional anim al but as all do so, the pasture gets ruined. Indeed this is due to the fact that the revenue is individualistic, the harm on the other hand is shared by all. Additionally each one is only applying his individual rationality which is different from collective one. distributively man is locked into a system that compels him to increase his herd without limit-in a world that is limited. Ruin is the destination toward which all men rush10At this point one could argue that after some years the herdsmen understand that abusing the pasture by over exploiting it leads to a worse outcome for all since it gets infertile and no one can profit from it anymore.But even if they do understand the mechanism of the dilemma it is very difficult to enforce means of compulsive the others pastures are huge and there are many animals, so how to pock one from another? If it would be conceivable to create such a control in the herdsmen case it would be even worse and incredible for cases like defile ment.How to control every person who is dirtying the streets? Agreement to prevent polluting action is almost impossible, violators are difficult to catch because the agents are many and the vilify produced by each action is relatively small and hidden. What is even worse is that violations are hard to identify not only because the group is big, but also fluid (lots of agents are in the place for a very short period of time)New Palgrave Dictionary of Economics, 2008Farlex Financial Dictionary. 2012 Farlex, Inc.Hardin 1968ConclusionsAs we have seen the tragedy of the common is the biggest deal preventing us to deal with a global ecological crisis. We know that the problem of each person will be asking what would change if they act in a conscious way, but the conclusion will only be that the environment gets ruined anyway and the individual will be worse off than when playacting selfish. This is not only true for single people but also for entire nations.The latter concept is also k nown in supranational law as Transboundary damage Transboundary damage can arise from a wide range of activities which are carried out in one unpolished but inict adverse effects in the territory of another. Traditionally, however, transboundary damage as a term of art normally refers to border-crossing damage via land, water, or air in dyadic State relations11, 12, 13It is the idea that industrial or economic activity conducted by one country for its own sake creates damage for others.The technical definition is That large-scale industrial, agricultural, and technical activities conducted in the territory of one country can cause detrimental effects in the territory of another country or to areas of the global commons.11,12,13The problem is still that Everyone is waiting for everyone else to act first, the result being that no one acts at all.14, 15Economic theory deals with this kind of problem as a market failure. As we said in the preliminary paragraph, public goods lead to market failures because a certain part of the cost of the action is not paid by the agent. For instance the cost of a polluted environment is not paid by the polluting industries. These agents are known in economic theory as free riders Partythat enjoys abenefitaccruing from a collective effort, butcontributeslittle or nothing to the effort.16 everyday solution to the problem is to tax the agent who is creating the social cost so that he has to pay the charge for the damage he is creating. This kind of tax is known as Pigouvian tax, from the name of his inventor Arthur Cecil PigouWhat is different in our case is that we deal with a global ecological crisis so there is no global financial institution which could enforce taxation on national states.A particular solution which is interesting in our case is the one of emission trading. This refers to a system of tradable permit which can be bought on a market. Each permit gives the right to pollute a certain quantity, the outcome of t he trading is unexpected An effort whichs cost of reducing pollution is high might buy the permits, on the other hand an industry with low reduction cost for emission might shrink its emissions and sells its permits to others.The more efficient in reducing emissions are rewarded. This system is not only a theoretical one but was actually applied for the Kyoto communications protocol of 1997 about CO2 emissions.Still as stated above and previous to our times by Garret Hardin these are mostly technical solutions and will only delay the moment in which resources will not coif especially with a growing population. Therefore a different get along is necessary, a shift in the way we act but essentially in what we believe to be the goal of our lives and therefore societies.Certainly one answer to the problem would be the one of the Ecologist view of the world. Green parties have been asking for reduction of emission and preservation of environment since the late sixties.The basic fou ndation of their claims is that human society as a whole should reduce its consumption and live a life which is sustainable. () the more fundamental response is to try to reduce or avoid those human activities that are seen as endangering sustainable development.17We should demand ourselves if we really need all the material good provided by society and if this really makes us happier. Market economy states that the price is the value a consumer gives to a certain good. If he is willing to pay one hundred dollars for a good or service this means he values it exactly one hundred dollars of utility.But the capitulum is does our happiness really depend on this? Because in the end, at the deepest degree it is just about it Happiness. It has been questioned if the relation with nature is only one sided or if it might be that our life depends from what nature gives to us Weve heard plentiful accounts of our impact-as humans, as a society-on the natural world. But this is not a colore d relationship. Lost in these dire and scolding accounts has been the impact on us and our well-being.18This is Lambins view in his book ecology of happiness. Further he arrives to the conclusion that You sense it while walking on a sandy beach, or in a wild, woody forest, or when you catch sight of wildlife, or even while gardening in your backyard. Could it be that the natural environment is an essential part of our happiness?18The answer is a positive one, we were born as natural beings but the development of modern society pushed us extremely far away from our original situation.We should really think if the direction our society is going will bring to a better life for all?Hanqin, Xue 2003Crawford, James 2003Bell, John 2003G. Smith 2002J. Connelly 2002The Business dictionarySzarka, JosephEric Lambin 2012

Operation Management Facility Location Layout Marketing Essay

Operation way Faci illuminey Location Layout Marketing analyseQ2. Visit the websites of three study disposals in your region. Find out where their facilities ar located. Explain some computes which should be forecasted while evaluating fix options for a preparation because globalization has made consumers expect the best merchandises at the lowest prices no matter of where they be spend a pennyd. Companies ar under emulous pressure to engage in global yieldion and assistance operations due to the rapid emersion of global marketsWe all know that every organisation goes by the The quartet Ps Price, Product, Promotion and Place. Place refers broadly to distri preciselyion, i.e., where your customer evaluates and ultimately receives your product or proceeds. era this whitethorn not matter much for deal who work virtually, or who run a agate line that drop-ships from a three set well-nighy, its lively for restaurants, retailers, and even m all service businesse s. Ironically, while send is ofttimes the most permanent of the four Ps, its alike ofttimes the most overlooked.So, trading operations counseling takes into consideration adroitness posture layout to decide on the puzzle of choosing the right place.Location is about more than just choosing a make. perchance for you, opening your business in your own town, or even your part of town, is a given. But consider the big pictureState Income taxes and sales taxes depart greatly from claim to state, as do regulatory requirements. Is the state you live in friendly to entrepreneurship? To the specific type of business you indirect request to run? Now superpower be the time to consider a move if it isnt, or possibly to open your business in a nearby state if you live near a state line. urban center Rent and divers(prenominal) cost, availability of labour, taxes, regulations and government economic incentives skunk also vary greatly from city to city, even within the same stat e. Or maybe a small town is the perfect spot for your business. originate of town What kind of commute is involved? Is the part of town uniform with the image for your business? Rent varies greatly according to positioning.Location sexual intercourse to streets, parking, and other businesses Do you wish to be visible and/or comfortably accessible to pedestrian and automobile traffic? Will being belt up to businesses that d cranky a convertible clientele help your business? For example, a sporting proficients store or health food store might do very well next to a gym.Type of location Do you need office space, retail or wargonhouse? retail is generally the most expensive of the three.There atomic number 18 many ciphers to consider in choosing the location for your business. While cost is obviously a major consideration, you must also think about your various constituencies. Is your location substantial to-You? The space has to work for you, or it wont work. Remember, you re the unity has to work in that location every day.Your customers? It also has to work for your customers, or it wont work. No customers = no business.Your employees? This issue may not be as critical at first, e supererogatoryly if you dont pass on any employees yet. But the ability to attract and give good employees bequeath be affected by your location.Strategic partners? While this may not seem like a big issue, the human beings is that strategic partnerships happen more easily when the partners ar topical anaesthetic to all(prenominal) other. Why do you think that certain atomic number 18as become hubs for certain types of business, such(prenominal) as Silicon Valley for the tech industry?Potential investors or buyers? You may not even be thinking about that yet, that potential investors looking at the long-term value of the business forget see location as an substantial factor.Each of these groups has different concerns about the locationCost Most obviously, c an you afford it? Also, though, consider whether your customers and employees can afford it. For example, is there free parking, or is it expensive? Will higher(prenominal) rent cause you to charge higher prices to your customers? Thats not necessarily a bad thing, but a factor to consider. What about taxes? Income taxes and sales taxes vary greatly from state to state, and if you buy your own property,Convenience Is it easy to take in? Is parking close by? Consider your clients. If youre dealing with pregnant mothers and the elderly, they may have a different concept of convenient.Safety This is an increasingly in-chief(postnominal) issue for both customers and employees. Is the parking close by? Well lit? Is there security on the premises?Prestige Would a business district address add credibility? Will wealthy clients favour a business in their own neighbourhood? Some places even earmark virtual offices with prestigious addresses, such as Beverly Hills, Silicon Valley, or Ma nhattan. calling Retailers and restaurants love it, office workers dont.Facility requirements Do you have any special needs, such as high power consumption or narrow down wiring? Do you need meeting space, but only now and then? You might consider a shared office suite (often called executive director suites) in that case.Zoning Many cities have very strict district requirements. Make sure your business is even allowed there before you house the leaseA fully informed decision involves a evenhandedly complex matrix of issues. Determine your priorities, keep an open mind about your options, do your research, and get ready to make one of the most important decisions about your business.WHAT IS FACILITY LOCATION LAYOUT?Facility Location is the right location for the manufacturing facility, it allow have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive improvement following are the critical factors. Overall accusative of an organization is to satisfy and delight customers with its product and services. Therefore, for an organization it becomes important to have outline formulated around its manufacturing unit. A manufacturing unit is the place where all inputs such as raw material, equipment, skilled labours, etc. come together and constitute products for customers. One of the most critical factors determining the success of the manufacturing unit is the location.Factors Influencing Facility LocationIf the organization can configure the right location for the manufacturing facility, it provide have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factorsCustomer Proximity Facility locations are selected closer to the customer as to reduce transportation cost and come down time in r distributivelying the customer.Business Area Presence of other similar manufacturing units around makes business area cond ucive for facility establishment. accessibility of Skill Labour Education, experience and skill of available labour party are other important, which determines facility location.Free Trade Zone/Agreement Free-trade zones bear on the establishment of manufacturing facility by providing incentives in custom duties and levies. On another hand free trade agreement is among countries providing an incentive to establish business, in particular, country.Suppliers Continuous and quality supply of the raw materials is another critical factor in determining the location of manufacturing facility.Environmental Policy In electric current globalized world pollution, control is very important, therefore understanding of environmental insurance for the facility location is another critical factor.Center of Gravity, Location schemaLocation Strategy in Operations Management is an important factor to be considered. It is important because it helps in determining the place of fictionalisation. T he place of manufacture needs to have certain qualities of features where manufacturing process takes place hassle-free. It is one such method or strategy which can determine the effectiveness of a location.Firms throughout the world are using the concepts and techniques in Operations Management to address the location decision because location greatly affects both rigid and variable cost. Location has a major impact on the boilersuit risk and profit of the company. For instance, depending on the product and type of production or service taking place, transportation costs alone can centre as much as 25% of the products selling price. That is, one-fourth of a firms total revenue may be needed just to adopt freight expenses of the raw materials coming in and finished products going out. separate costs that may be rund by location include taxes, wages, raw material costs and rents.Companies make location decisions relatively infrequently, usually because choose has out-grown the current plants capacity or because of channelises in labour productivity, exchange rates, costs or local military strengths. Companies may also relocate their manufacturing or service facilities because of shifts in demographics and customer demand.Location options includeExpanding an existing facility quite a of movingMaintaining current sites while adding another facility elsewhere and conclusion the existing facility and moving to another location.The location decision often depends on the type of business. For industrial location decisions, the strategy is usually minimizing costs, although transformation and creativity may also be critical. For retail and professional service organizations, the strategy focuses on maximizing revenue. Warehouse location strategy, however, may be driven by a combination of cost and speed of delivery. The objective of location strategy is to maximize the benefit of location to the firm.Location and costs because location is such a significan t cost and revenue driver, location often has the power to make or break a companys business strategy. Key multinationals in every major industry, from automobiles to mobile phones, now have or are planning a heading in each of their major markets. Location decisions to support a low cost strategy require particularly careful considerations.Once focal point is committed to a specific location, many costs are firmly in place and difficult to reduce. For instance, if a new factory location is in a region with high energy costs, even a good management with an outstanding energy strategy is starting at a disadvantage. Management is in similar bind with its human resource strategy if labor in the selected location is expensive, ill-trained or has a poor work ethic. Consequently, disenfranchised work to determine an optimal facility location is a good investment.Location and Innovation When creativity, innovation and research and development investments are critical to the operations s trategy, the location criteria may change from a focus on costs. When innovation is the focus, four attributes seem to affect overall competitiveness as well as innovation.The presence of high-quality and specialized inputs such as scientific and technical talentAs environment that encourages investment and intense local rivalry.Pressure and insight gained from a sophisticated local market.Local presence of related and supporting industries.A workplace that has carefully arranged its layout will allow for a more effective and efficient workflow and produce its good or services to a high standard.There are three types of workflow layouts that managers can choose fromProcess layout arranged in departments (e.g., hospitals).Product layout production line (e.g., a car assembly plant).Fixed-position layout building a large item (e.g., jumbo jet).CONSUMER BEHAVIOUR AND DESIREConsumer behavior refers to the mental and psychological process that goes in the mind of buyer so as to choose on e product or service and not the other.In the first stage of buying, the consumer identifies and need and selects a product or service that will satisfy the need.On selecting the product, they estimate amount they are willing to spend on it. Just before buying the product or service, the consumer analyzes the different price on offer. Here are the factors that twine consumer choices1. CultureCulture is the way of life of a community or group. In order to fit in a ethnic group, a consumer must follow the written and unwritten cultural norms.For instance, for your to fit in an Islamic community, you are cannot consume pork. To fit among the youth in any community, you are expected to dress like them.In other words, cultural norms define what a consumer can or cannot buy.2. LifestyleYour lifestyle is generally determined by the amount of money you make. If you make more cash, you are expected to keep to a certain lifestyle.Lifestyle influence consumer deportment directly by the fact that if you earn less, you cannot afford to buy items which are above your class.On the other hand, if you are from a higher class, you will find oneself like your class is lowered by consuming chinchy products or services.3. MotivationMotivation is what drives a person to consider one need to be more important that the other. The more important need demands to be satisfied sooner than the others.Motivation is powered by different physiological, biological and social needs. If you are motivated by the need to feel important, you will generally buy products or services that feed this need.4. disposition reputation is a set of characters that are deeply embedded in a persons mind. Personality differs from person to person and also place and time.Personality determines what you eat, wear, drive or watch. In simple terms, personality determines all your decisions including your attitude towards different products.5. AgeAge influences consumer behaviour in a rather direct way. For in stance, the needs of a 6-year onetime(a) are not similar to those of a teenager. Consumer needs are basic in childhood but become complex in teenage and middle ages.In old age, consumer needs go back to basic. Furthermore, the psychological needs of people at different age groups are different thus the difference in consumer behaviour.6. PerceptionPerception is the prevailing popular opinion about a product or service at a particular time. Perceptions change with time. Consumer can have the same need but buy totally different brands due to cognition.In the past, mobile phones were only for communication- calling and texts. This perception has since changed mobile phones have a variety of functions.Perception is also influence by media reports and advertising. Just after the Oil Spill at the disconnectedness of Mexico, perceptions about BP the oil company were really bad.**************

Dangers of Escalation of Commitment in Accounting

Dangers of Escalation of Commitment in AccountingThis line analyses the recognise of escalation of commitment to a course of accomplishment from the perspective of the pharmaceutic companyceutical industry. Escalation can be defined as a patch where a failing bring to the highest degree is supplied with additional resources beyond the point of feasibility. As such(prenominal), escalation carries substantial dangers for organisations by generating avertable economic losses. The report inquiries into the generic wine causes of escalation by examining subject literature. Accordingly psychological, kindly, organisational and proposal-specific factors be identified as common escalation activators. Exploration into the particulars of the said industry categorises positiveness issues, market place proceeding concerns, maturing harvest-tides portfolio alongside development pipeline conditions as cavorts amplifying pharma companies vulnerability to escalation. The point is back up by real-life brass examples located in the appendix.Appreciation of escalation causes allows for development of stampive prevention policies. The report suggests preventive measures captureed at simplification the occurrence of escalation triggers, such as challenging the individual and social causes. Approaches for reducing separate factors impact on decision-making are outlined in the form of strategy alteration as comfortably as cultivate management policies. The report finalises with suggestions on escalating situations management.Statement of ReferenceThe aim of this 2000-word report is to inquiry the causes and dangers of escalation of commitment to a course of action from the perspective of pharmaceutical companies.This report is to assess the dangers of escalation of commitment to a chosen course of action through the perspective of pharmaceutical companies. In order to achieve the aim put up, the paper first analyses the definition and threats arising from the phenomenon of escalation.Next, following the framework proposed by Ross Staw (1993) generic causes of escalation are summarised. Subsequently, the report looks at industry- and medicine development-specific escalation triggers in an attempt to rate why the pharmaceutical companies are particularly vulnerable to the dangers of escalation of commitment.Then, escalation prevention supply organised around tackling previously identified triggers are outlined. The report concludes with suggestions concerning the issue of escalating situation management.Escalation of commitment Definition and dangersEscalation can be defined as a situation where an individual over-commits resources to a failing gamble afterwardwards receiving negative feedback on its performance. Having an option to blockade, the decision-maker forgoes sage behaviour and devotes more money, age or effort in a false belief that great involvement leave bring the switch to supremacyful completion (Staw, 198 1). just about examination suggests that escalation as such should not be automatically appoint negative connotation. Low level of employee commitment is also damaging to organisational performance background factors might justify over-commitment (Heath, 1995). Anformer(a) view assumes escalation to be a natural feature of the business decision-making that should be treated as an needed expense (Bowen, 1987). The dominant notion supported by extensive look into suggests that escalation of commitment should be acted against (Brockner, 1992) because of carrying dangers ofUltimately leading to multiplication of avoidable lossesIntroducing irrational decision-makingUndermining the basic premise of business activity to maximise gains with token(prenominal) appealsGenerating substantial opportunity beConsuming unrecoverable resources, such as time.Appreciation of escalation triggers allows for development of efficient prevention methods aimed at reducing the occurrence of such facto rs, subsequently protecting the company from the aforementioned detriments. generic wine causes of escalationPsychologicalInitial research suggested that escalation arises primarily from the natural incline of the mankind being to self-justify behaviour. Supplying the course of action with additional resources serves as unconscious(p) defence technique the individual reassures him/herself that the original decision made was rational (Staw, 1976). Self-justification need is heightened if the decision-maker holds responsibility for the resource allocation (Staw, 1981), which is typical for investment funds decision setting.Prospect theory applied to escalation suggests that self-justification is not zippy prerequisite for its occurrence. Escalation is provoked by the decision-maker using a frame to make decisions under conditions of uncertainty of results. The decision-maker views subsequent decisions in reference to outcomes of initial judgements in order to produce a coherent fr ame. The negative feedback on the initial resource allocation results in the subsequent distribution being viewed as a choice surrounded by definite and possible loss, or a negative frame. Subsequently individuals are prone to escalation by becoming risk-seeking failing to accept a definite loss even at the cost of incurring greater in the future (Whyte, 1986).How the decision-maker perceives incurred costs, constitutes another escalation trigger (Garland Newport, 1991). pursuit prospects theory, the sunk costs effect suggests that costs incurred viewed in relation to the total expenditure induce a negative frame, leading to escalating behaviour. Linked with that, the hate of waste provides another motivation to supply the course of action upgrade, previous than baptismal font a definite loss (Arkes Blumer, 1985). Interestingly, excitement about the task outcomes (Schmidt Calantone, 2002), and sunk-time effect (Navarro Fantino, 2009) aid escalation occurrence.SocialImporta ntly, the aforementioned need to justify the rightness of behaviour is not limited to the individual and applies to the wider social context (Staw, 1976). Maintaining an examine of a unchanging decision-maker among peers proves equally, or more, important to meeting self-justification needs.The impulse to obtain social approval is exacerbated under insecurity of the social precondition in the convention, or in a presence of an adverse gathering (Staw, 1976). In such instances the individual is likely to model his/her behaviour to upchuck the model endorsed by the audience (Brockner, 1992). As the group replicates leader stereotypes that express the need for decision-makers to be consistent in actions in order to be comprehend as competent (Staw Ross, 1980), the individual aspiring to achieve congruity with the stereotypical image will over-commit not to distort others belief in their leadership latent, and to reaffirm position in the group social system.Intra- or inter- group competition can indicate escalation. The focus is shifted away from objective judicial decision of the possible outcomes of a chosen decision onto the motivation to win. The need to do whatever it takes to get a step ahead of the competitors introduces scope for unreason and escalation as such irrational behaviour is common to both of the parties tangled (Bazerman, 2006).OrganisationalProjects receiving strong organisational support are prone to escalation (Pfeffer, 1981 in Ross Staw, 1993), as the decision-makers rate them with the existence of organisation itself. Furthermore, the centrality of the project to organisational values and its entrenchment in the organisational structure account for the projects being continued despite reservations (Goodman et al., 1980 in Ross Staw, 1993). Unwinding the supporting floor might threaten the very basis of working organisational structure induce change that is often associated with risks and dangers. The costs of acceptance of status quo are perceived as minor to the electric potential dangers of modified environment.Maintaining story and consistency between values and actions prove to constitute forces inducing over-commitment from organisational perspective (Ross Staw, 1993). Companies having publicly announced success might be more hesitant to admit misfortune and discontinue with the course of action.Project-specificHigh development costs and risky market performance of the finished product, the acceptance of failures and losses as a feature of the RD process, and reluctance of decision-makers to activatedly detach from the prolonged projects account for greater escalation picture of RD projects (Schmidt Calantone, 2002).Low potential reusability (Staw Ross, 1993) of the generated output results in reluctance to discontinue the venture in order to avoid waste. Negative framing induces the perception of take place costs, such as compensation packages as definite waste, leading to escalation.The betterment of the project on a timeline constitutes another threat due to sunk-cost effect (Navarro Fantino, 2009). Projects reaching advanced full stops of development would be discontinued reluctantly because of assembling of used resources, including time, and the perception of imminent availability of the anticipate gains.Industry-specific Escalation TriggersProfitability issues young data suggests that pharmaceutical companies are to face decline in net profit figures in forthcoming years (Datamonitor, 2010). This can be attributed to steadily change magnitude drug development costs the costs producing the final product exceed $1 billion, with as few as 20% of successful product entries achieving the break-even point (Innovation.org, 2010). Estimates suggest that pharmaceutical companies should launch two to four drugs annually to observe steady profit margins (Gassmann Reepmeyer, 2005). However, due to high attrition range the overall success of organisations strateg y is often reliant on the success of a single project (Kola Landis, 2004). These factors pressurise the companies to continue with projects and disregard arising reservations to maintain profitability.Maturing product portfolioThe reduction in new component approvals can be partially attributed to strengthening drug registration requirements. Other explanation lies in the controversial innovation deficit experienced by the industry (Schmid Smith, 2004). bring down innovation figures account for pharmaceutical companies being faced with maturing product portfolio. Consequently, the companies accept in a variety of advanced(a) projects overly-optimistically assessing their revenue potential, failing to discontinue when reservations arise. Eventually, the companies face greater losses as the projects fail to generate anticipated revenues, but incurring avoidable losses (Appendix Dimebon case).Concerns for market performanceThe mechanical press to persist is further reinforced by th e need to be consistent with companys vision (Ross Staw, 1993). Endorsing the projects demonstrates consistence with the mission statement reaffirms the reputation as hale as reassures the market and investors on following the profitable trail. However, forgoing respectable and safety aspects of drug delivery over concerns for market performance and cost-cutting proves harmful (Appendix GSK Puerto Rico Plant).Development pipeline conditionsThe specificity of the drug development pipeline further adds to the vulnerability to the dangers of escalation of commitment. The drug development time is estimated to surpass 10 years, with the costs amplifying as the project progresses (Accenture, 2007). This suggests heightened emotional attachment and excitement towards results, as well as existence of supporting infrastructure as powerful motivators of escalation. scrape figures reveal that escalation is common in the industry as the most projects are draw back after reaching the most c ost intensive stage of advanced clinical trials that precedes the registration process or are recalled after reaching the patient due to safety concerns that grant been ignored earlier on (Kola Landis, 2004) (Appendix Avandia case).Escalation how to prevent it?Tackling individual and social causesPerhaps introduce approximation procedures emphasizing ones ability to build on past actions, rather than furtherance of the project. This will reduce managers fear of negative consequences if the project fails. Confidential intervention of sensitive matters, such as personal failures, will reduce the reputation retention motivation for escalation (Simonson Staw, 1992). reach developing positive leader stereotypes supported by convergent organisational values emphasizing the rationality of decision-making. Furthermore, introducing panel decision-making procedures stomach to preventing escalation by reducing individual responsibility for the decision taken (Simonson Staw, 1992 Schmidt C alantone, 2002). Inviting members of germane(predicate) departments allows for assessing the projects success potential from a variety of angles limiting scope for escalation to arise. debate developing neutral decision frames by rotating managers in charge of the project so that different individuals held responsibility for initial and subsequent resources allocations (Simonson Staw, 1992). Additionally, foster for emotional detachment from sunk costs by introducing training in psychical budgeting (Heath, 1995).Project evaluation and managementClear and achievable targets should be set out at the project initiation alongside exit points at various stages of progression (Schmid Smith, 2004). Measuring projects performance against set aims assessing the efficiency with which resources throw results at the selected points allows for early estimation whether the project is following the anticipated pathway, and then allowing to avoid greater losses. Consider adopting attrite early strategy (Schmid Smith, 2004) as companys motto.Consider participation in multi-stakeholder analysis projects evaluating the potential value of innovative drug projects at early stages of development such as the consultations conducted within the European Healthcare Innovation Leadership Network (AstraZeneca, 2010).Ponder involving external parties in the project (Schmidt Calantone, 2002). Perhaps engage auditors to assess the success projects success potential at its outset or to devise effective contingency planning. This will ensure objectivity and independence of organisational politics. Consider outsourcing the project to subcontractors to avoid its institutionalisation in the organisational structure.Alternating middle-to-long-term strategyConsider renewing existing product portfolio and battle in me-too drug developments. This ensures steady revenue generation from inelastic beg segments (Ganuza et al., 2009) and carries less risk comparing to reliance on anticipated gains from innovative enhances. Estimations suggest that involvement in drug-related sectors or focusing on progression in licensed compounds constitute a potentially profitable substitute (Schmid Smith, 2004). Consider GSKs involvement in healthcare brands as an example.Managing EscalationSuppose the escalating situation arises, consider replacing the project manager or establishing panel mind in order to remove the negative thinking frame, rid absent the potential self-justification needs and assess realistically projects success potential (Simonson Staw, 1992). Consequently, ponder engaging external consultants to develop plausible solutions and introduce other point of view independent of the political and organisational influence. Otherwise, gauge potential deliver value of the project towards establishing uses other than the initial one anticipated (Appendix sildenafil citrate case).Furthermore, consider whether external financial support for advanced research is acquirabl e and if is feasible to use towards accomplishment of the projects aims. Otherwise, ponder engaging in partnership with a company undertaking research in comparable compound in order to combine knowhow and reduce costs.AppendixAvandia case novel withdrawal of GSKs highly innovative and best-selling diabetes drug, Avandia, in EU was caused by the linkages with deaths by heart failures among the patients on the medication (FT.com, 2010b). Allegedly, the company was aware of the virulence of adverse effects, however launched the drug to the market (Avandia Recall News, 2010). Estimations suggest that GSK could face between $1.1bn and $6bn in compensation costs (FT.com, 2010a) that could have been avoided had the company ceased the project when safety concerns were brought to light. Additionally, bad publicity incurred after the allegations surfaced resulted in fall of GSK care prices, and the company facing negative profit accounts (FT.com, 2010c).Dimebon casePfizer has recently wi thdrawn from advanced clinical trials (undertaken in partnership with Medivation) of highly anticipated Alzheimers disease cure, Dimebon, after the drug exhibited no promising therapeutic results (MedScape Medical News, 2010). The reservations about the curative properties of the compound have been raised at early stages of the process. It is fictional that the logic behind Dimebons miraculous effects was never properly investigated. Furthermore, similar compounds failed in previous trials (ABC News online, 2010). Escalating behaviour in such case could be linked to Pfizer losing patent rights the currently marketed Alzheimers treatment, Aricept and was in need of a profitable replacement. As a result of failure to investigate and evaluate promptly, Pfizer has incurred $725 million in RD costs (the Economist.com, 2010).GSK Puerto Rico Plant caseGSK is report to pay $750m in penalty payment to US government and other claimants following allegations on manufacturing malpractice and f ailure to adhere to safety standards in merchandise plant in Puerto Rico. The allegations regarding mal-adjusted doses of active ingredients and ineffectiveness of drugs submitted to government programmes were revealed by a former employee and resulted in the company being charged with a vile offence (Wall Street Journal Law Blog, 2010).Viagra case ab initio Viagra was developed as a cordial drug aimed at decreasing blood pressure and preventing cardiac arrests. Clinical trials unexpectedly revealed potentially exploitable and marketable properties of the drug high effectiveness in fighting erect dysfunction in men.In the six months following its launch as a revolutionary treatment, in 1998 Viagra worldwide sales have exceeded 300 million (BBCnews.com, 1999).