Does power inevitably corrupt the powerful Essay

Does power inevitably corrupt the powerful - Essay Example From this perspective it could be argued that the simple ability to control others is by its nature a corruption of other peoples will and as such, power is inherently corruptible. However in practice this may not be true. Ultimately it could be argued that power does often corrupt however it does not necessarily have to corrupt. There is little question that in many circumstances in history people have been greatly corrupted by power. According to Haddock (2006) there have been several examples in history of people exerting their power over others. On one side of the spectrum one finds powerful men such as President Lyndon B. Johnson who would often hold meetings whilst he was sitting on the toilet (Demonstrating a kind of contempt over his coworkers) to a megalomaniac such as Joseph Stalin who killed millions. One issue regarding power that has arisen is the idea that people may be hardwired for egocentric power rather than simple institutional power. However it remains the case th at many people do achieve a great deal of power yet do not necessarily have to demonstrate their egocentric power over others. Many people who achieve professional success remain quite humble in their regular life. Bailey & Dash (2006) Highlighted that Billionaire Warren Buffett has lived in the same home in Omaha, Nebraska for over forty years. Moreover the billionaire remains committed to homespun values such as shunning executive payouts, avoiding investing in technology companies and frequently criticizing tax policies that benefit the rich. Having demonstrated that some powerful people do not necessarily exert egocentric power it is the case that according to haddock (2006) there are many people that do flex their ego muscles once they reach a certain level of power. This may be achieved through taking childish liberties, through sexual dominance over weaker people or through making outlandish purchases. Ultimately stride to egocentric power can be manifested through any number of mechanisms. The question of how the exercise of egocentric power affects followers can cover a wide range, owing to the fact that people respond differently to different treatment. On one end of the spectrum people could respond very negatively to egocentric behavior, such as creating deep feelings of insecurity, negative self esteem issues etc. However it could be argued that strong negative reinforcement from a leader could ultimately motivate the underlings to perform better. Anybody who has trained extensively for competitive sports would have likely experienced the effect of a trainer or coach shouting critiques and personal insults designed to motivate the trainee to do almost anything to win approval. However it could also be that people simply do not respond one way or the other and simply not strongly affected by egocentric behavior whatsoever. The issue of whether or not a leader can do anything to help combat the effect of power corrupting it long and storied. Accordi ng to Tertullian as espoused by Wehner (2009) it was a classical Roman tradition that generals would tour the streets after a military success (Much like the veterans parades today). However in the Roman tradition the Imperator (Equivalent to a commander) would be trailed by his servant who would be paid to whisper into the ear of his master â€Å"

Impact of Globalisation and Innovation on the Business Operating Coursework

Impact of Globalisation and Innovation on the Business Operating Strategies of International Financial Institutions and Systems- - Coursework Example This has not only increased international trade but has also nurtured human resource development. Thus, the globalization theories set perfect on the principles of â€Å"Ricardo’s Comparative Theory.† Although, globalization has revolutionized today’s world, there exist opponents of this trend. This includes aid organization such as Oxfam and the G77 countries (Investor Words). History of Globalization The Industrial Revolution seemed to sow the seeds of the globalization that was to come years later. The concept of globalization has gone through several ups and downs. The globalization came to an end after the World War 1 when more countries planned on practicing isolationism (Globalization, Encyclopedia of Business). There were several rules and regulations imposed regarding foreign trade and so treaties were signed that assured barriers to foreign trade in the form of duties and tariffs. The Smooth Hawley Tariffs of 1930 is a famous one (Globalization, Encyclo pedia of Business). However, after World War II, Bretton Woods resulted in the formation of World Bank, International Monetary Fund and General Agreements on Tariffs and Trade (Globalization, Encyclopedia of Business). This was the beginning of a new phase of globalization. Later in 1995, GATT was replaced by World Trade Organization that has the main motive of globalization and inculcates in trade in goods, services with the added benefit of an efficient dispute settlement system (Globalization, Encyclopedia of Business). Other trade blocs such as EU, SAARC and agreements such as NAFTA have come into the scene. Financial Globalization and Innovation Over the past two decades some very pronounced changes in the world financial system have been witnessed. All the financial markets of the world have become a complex network woven in a well knitted canopy. The liberalization policy has increased opportunities and varieties all over the globe. Privatization has been on an increase. Addi tionally, new hedging tools such as derivative instruments have been introduced against markets and credit related risks (Chernobai, Rachev & Fabozzi , 2007). Securitization has been adopted as means of trading as well (Chernobai, Rachev & Fabozzi , 2007). The most prominent example of trade liberalization is the European Union. The adoption of a single currency Euro and the inter bloc tariff free trade has empowered the position of the bloc and the currency as well. Financial integration is a similar process by which a strong integrated complex network of financial markets is developed. However, the rule of one price should prevail in these kinds of market which means that the risk-adjusted real return should equalize (Gudmundsson, 2007). The manifestation of globalization is the elimination of concentration of a particular/own country and an increase in cross-border activities. This would include capital investment in cross border projects, investment in assets and liabilities as well as an increase in banking and FDI (Gudmundsson, 2007). There have been certain implications well. According to Gudmundsson (2007), the global integration of the financial markets has not provided insurance against idiosyncratic shocks. Moreover, it has been concluded that due to the volatile nature of the capital stock due to asymmetric information, it has been more a source of shock rather than smoothing. There remain many repercussions of these integrated markets. Due to this increased trend outsourcing, expansion of