The social responsibility of a business Essay

Nowadays, the idea of social responsibilities supposes that the corporation has not only economic and legal obligations, but also certain responsibilities to society which extend beyond these obligations. Moreover, social responsibility is the obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interests. In other words, virtually all definitions of CSR include the notion that corporations have obligations toward society beyond their economic obligations to shareholders. Yet many authors have argued and still some continue to argue that social responsibility should not cater to the society at large but only to the organisation’s own interests. For instance, some believe that business has only two responsibilities: to obey the elementary canons of everyday face-to-face civility (honesty, good faith and so on ) and to seek material gain. Therefore, the definitions of CSR appear to fall under two general school of thoughts and throughout this study, we made an attempt to demonstrate that CSR is not limited only to economic duty. Literature Review: The roots of CSR can be traced back to the medieval era. According to May et al. (2007), various questions regarding organizations’ impact on society have been present for centuries. In fact, the corporate form and modern labor union were derived from the early medieval guild (May et al., 2007). In the 1870s large corporations began to have a significant impact on different aspects of society, including the environment, employees, customers, and the public as a whole. Although there are many definitions of CSR available, we centre our attention on more recent concepts of CSR. According to Richardson, Welker and Hutchinson (1999), CSR behaviours can be defined as discretionary actions undertaken by companies that are intended to advance their social issues. Joyner, Payne & Raiborn (2002) noted that CSR are categories of economic, legal, ethical and discretionary activities of a business entity as adapted to the values and expectations from society. They also added that, CSR are the basic expectations of the company regarding initiatives that take the  form of protection to public health, public safety, and the environment. In this concept, they explained that values and ethics influence the extent of a corporation’s perceived social responsibility that is influenced by societal activities, norms or standard. In today’s world, CSR can be defined as regards to all aspects of business behaviour so that the impacts of these activities are incorporated in every corporate agenda (Orgrizek, 2001; Coldwell, 2001). So, with the literatures definition of CSR, it can be concluded that CSR is the continuing commitment taken by business organizations to strengthen their ethical concepts and social involvement in society, contribute to economic development, sponsor charitable programs, and improve the quality of the workforce and also the increment of services provided. However on the other hand, Freeman & Liedtka (1991) argue that CSR can promote incompetence by leading the managers to get themselves involved in areas beyond their expertise, that is, trying to repair society’s ill. To sum up, those CSR theories and approaches are focused on four main points: (1) Long term profit maximization, (2) Responsible use of power, (3) Social demand integration, and (4) Achieving a good society. The adoption of the approaches in CSR on some level reflects the motivations of a company behind its CSR implementation. Discussion & Findings: Is CSR limited to economic duty? The evolution of international markets, easy and inexpensive communication structures, increased consumer awareness, wider distribution of risk, environmental awareness, and concern for global equality have put more emphasis on the social responsibility of corporations. Many organisations have introduced new policy instruments to promote corporate citizenship and corporate social responsibility. As mentioned above, there exists mainly two school of thoughts, some believe that social responsibility is limited  only to economic duty that is the welfare of an organisation’s stockholders while others believe that organizations should adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups. Firstly, the neoclassical paradigm of management explains ethics and corporate social responsibility as nothing but a new strategic instrument to ensure long-term shareholder value. As Milton Friedman wrote long ago â€Å"The social responsibility of business is to increase its profits.† He argues that â€Å"there is one and only one social responsibility of a business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud†. Milton Friedman’s claim that the sole social responsibility of business is to increase its profits places businesses into an adversarial relation to society. That is, businesses become the enemies, the exploiters, of the society of which they are a part. His statement implies that a business is allowed to behave in a socially irresponsible, and even socially destructive, manner, if this increases its profit. There are ways of increasing a business’ profits which are damaging to the society of which it is a part. Indeed, it is a tendency of business to seek to externalize all costs. Thus, to pollute, to ignore worker safety regulations, to engage in misrepresentation if not fraud, etc. If the business is in competition, and these things are permitted, it must do them, since its competitors, similarly situated, will also do these things. Its competitors, if allowed to externalize costs by polluting, will do so, and so it must also. Its competitors, if allowed to externalize costs by skimping on worker safety, will do so, and so it must do so also. Equally, many authors like Porter and Jensen, agree to Milton Friedman statement and they also argue that social responsibility is only an economic duty. They articulate arguments to demonstrate the irreconcilability of economic aims with broader social concerns. Michael Porter argues that corporate philanthropy is only meaningful as a part of the economic strategy of a firm while Michael Jensen maintains that it is logically impossible for a company to serve more than one objective. Moreover, Drucker (1984) had the opinion  that: â€Å"business turns a social problem into economic opportunity and economic benefit, into productive capacity, human competence, into well paid jobs, and into wealth†. Therefore, Drucker also argued that social responsibility is limited to economic duty. Although these kinds of arguments can be defined in order to emphasize the economic advantages of corporate social responsibility and economic advantages of corporate social responsibility and the economic duties of corporations, they do not capture the broader role that corporate citizenship plays in society. The world is changing and nowadays cor porations are now held accountable not just by the government, but also by the public. Corporate responsibility must now take into account how dealings with customers, shareholders and employees are seen by the world. Large global corporations know that people are watching them and that any wrongdoing will not go unnoticed. Many companies have a social conscience, treat employees fairly and try to do the best for their shareholders while trying to be socially responsible. There are, however, many other corporations who see nothing wrong with employing third world country workers to make their products. It is only due to groups who monitor such activities that these issues become public. Many corporations have been forced into taking corporate responsibility at a broader level that is now businesses do not limit corporate responsibility only to economic duty. They know that it does not make good business sense to be seen as a company that is damaging the world that we live in. Huge penalties and fines also await corporations that break ethical and environmental laws. Corporate responsibility has a huge impact not only on the local community, but also on the world. Its affects are social, economic and environmental. Bad and good corporate responsibility has effects that reach from the worker in the third world country to the air that we breathe. Furthermore, a growing number of writers over the last quarter of a century have recognized that the activities of an organization impact upon the external environment and gave suggested that such an organization should therefore be accountable to a wider audience than simply its shareholders. In the 1970’s many writers evincing concern with the social performance of a business, as a member of society at large. This concern was stated by Aukerman (1975) who argued that big business was recognizing the need to adapt to a new social climate of community accountability, but that the orientation of business to financial  results was inhibiting social responsiveness. Similarly, Mc Donald and Puxty (1979) maintain that companies are no longer the instruments of shareholders alone but exist within society and so therefore have responsibilities to that society, and that there is therefore a shift towards the greater accountability of companies to all participants. Moreover, author like Carroll (1979; 2008, 500) stated that â€Å"The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that a society has of organizations at a given point in time†. Carroll’s definition is often pictured in the above CSR Pyramid, and is where many CSR practitioners and theoreticians start. As can be seen above, he argued that companies should have economic responsibilities. Obviously, without making a profit then a company will cease to exist and CSR dies. However, the key issue is that CSR is not anti-profits, simply is all about how profits are made! The economic responsibilities cited in the definition refer to society’s expectation that organizations will produce good and services that are needed and desired by customers and sell those goods and services at a reasonable price. Organizations are expected to be efficient, profitable, and to keep shareholder interests in mind. Carroll then goes on to mention legal responsibilities but doesn’t consider those countries where the law is ignored (corrupt Governments for instance). The legal responsibilities relate to the expectation that organizations will comply with the laws set down by society to govern competition in the marketplace. Organizations have thousands of legal responsibilities governing almost every aspect of their operations, including consumer and product laws, environmental laws, and employment laws. Ethical responsibilities come next, but it seems that ethical behavior is not so easy to define. It concerns societal expectations that go beyond the law, such as the expectation that organizations will conduct their affairs in a fair and just way. This means that organizations are expected to do more than just comply with the law, but also make proactive efforts to anticipate and meet the norms of society even if those norms are not formally enacted in law. At the top of the pyramid is ‘philanthropy’. This may involve such things as philanthropic support of programs benefiting a community or the nation. It may also involve donating employee expertise and time to worthy causes. But in most  cases, philanthropy is seen as a first step toward CSR and all the other levels are often ignored by most businesses. Therefore, Caroll argues that business ethics, values-driven management, and corporate social responsibility are standards of governance that make it possible conceive of the corporation as both an economic instrument and a good corporate citizen. Conclusion: The importance of serving the society where the companies are operating is a legal and moral responsibility for both the public and private companies. Big companies are always exploiting the resources of a place and they should compensate for that. Companies should understand that, it can stay in the market with the help of the customers and the society in which it operates alone. Neither financial abilities nor the smart governance or management will help the companies in achieving their long term goals. In order to achieve long term goals, the companies need to execute their social responsibilities in a fruitful manner. On a concluding note, corporate social responsibility is not helping the poor and needy people alone. The company should keep morality and ethics in all its operations in order to fully execute their social responsibilities. Companies should never try to exploit the natural resources injudiciously. Moreover they should never engage in activities which are harmful to the environment. In short, corporate social responsibility is a wide topic which includes a company’s commitment to the society, stakeholders and the environment in which it operates. REFERENCES: Archie B. Carroll, Ann K. Buchholtz Business & Society: Ethics and Stakeholder Management David Crowther; Gà ¼ler Aras Corporate Social responsibility Davis Keith, L Blomstrom Robert, 2002 Business & Society: Environment & Responsibility† 3rd Edition MC Graw Hill International Edition. Mark S. Schwartz. Corporate Social Responsibility: An Ethical Approach Porter M.E & Kramer M.2006 Strategy & Society, The link between competitive advantage and corporate social responsibility, Harvard Business Review.

Alibugha

ALIBUGHA The play â€Å"Alibugha† that we watched last September 11, 2011 at Paco Catholic School was derived from the Parable of the Prodigal Son. The two are almost the same, the only difference was that there were some twists added to the story. In Alibugha, there was a family composed of a father & two sons. The father was a farmer, his older son followed his path and also became a farmer while his other son went to Manila to study because he doesn’t want to be a farmer like them because he thinks that it won’t take him that far and that it won’t make him any richer.His younger son went home one day and asked for his inheritance and went to Manila right after he got it, money is the only thing that matters to him. He spent the inheritance he got from his father to useless stuffs. He even used it to get a girl make out with him. He thought he got the girl pregnant so he married her. They’ve had a daughter and lived together for years until the bo ss of the girl finds out where they live and that they were living together.Her wife had a relationship with her boss before they got together, she left him when they met. Her boss got mad for that and searched for them for years, when he found their location, he made an action immediately. He went there and threatened the girl to go with her but the girl doesn’t want to, so he shot her and he also died in the end. The husband was left with the child he doesn’t even own, he realized how miserable he was after that so he decided to go back to his father and brother and reconcile with them.They accepted him completely, without any hesitation. This story was great. It just teaches us to remember to get back to God whenever we got the wrong path. God is always ready to accept us no matter what we do, we just need to get back to Him and reconcile for our sins and He will immediately accept us. We should follow God’s path because it’s the right path that will l ead us to success.

Operation Management Techniques at McDonalds Term Paper

Operation Management Techniques at McDonalds - Term Paper Example Owing to the success of the corporation, there is evidence that McDonalds utilizes distinct operation management techniques that often give it an edge over others in the global business environment. This is informed by the actuality that being a service business, McDonald has widespread operations in virtually all the regions across the world that comprise of America, Asia and Europe. This makes it be essential to circumspectly examine the relevant methods of operations management as applied by McDonalds. Such an evaluation will consider the strategic methods that make the company distinct with regard to business effectiveness. Since operations management regards the development, in addition to the organization of merchandise, systems, and services along with supply chains and is founded on the attainment, expansion and use of resources that business entities need to convey commodities to clients, a comprehensive evaluation of McDonalds’ operations management will expose the b asic activities and strategies that make the company unique. Such a report will be necessary in providing information that could be used by other companies pursuing effectiveness. Table of Contents I. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 A. Objectives†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 B. Motivation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 C. Report Outline†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 II. Detailed Study and Comparative Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 ... Operations management techniques in McDonalds†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....7 III. Recommendation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...11 IV. Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.12 V. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.13 Introduction A). The Goals and Objectives The central function of this account is to examine McDonalds, particularly how it utilizes operation management techniques in its activities. The description w ill spotlight the manner in which operations management is practiced in McDonalds. This will help establish the dynamics employed by the relevant company in achieving its objectives as well as executing its daily commercial activities. McDonald stands out as a very successful global commercial entity with outlets all over the world, there must be something quite distinct about the operations management of this company (Render & Heizer, 2005). The account will endeavor to underscore the exact essence of McDonald brand in the perspective of operations management to bring out the practices that make the global corporation a success. The eventual aspiration of the testimony is to evaluate and offer a comprehensive account of the practices of operation management in McDonalds Company. B). Motivation The motivation for studying this topic is derived from the significance of operations management in commercial entities as well as the global commercial presence of McDonalds. Operations mana gement is a dynamic discipline in management that caters for the design and administration of merchandises, services and practices (Welch et al, 2007).

Concert performance review papaer Essay Example | Topics and Well Written Essays - 500 words

Concert performance review papaer - Essay Example At some points during the music, the orchestra does not blow the instruments and quietness prevails. The music has a non-uniform tone. It starts with a low tone. As the music progresses, there is an alternating rise and fall in the tone of the music. At some points, the orchestra goes down in its tonal variation and sometimes they raise their voice to attain a high tone. The instruments in the music sometimes produce high volume and a time the volume goes low. The music has a rhythm that has variations characterized by the regular recurrence or alternation of varying conditions. The orchestra plays the tunes on varying notes. The music’s dynamics consists of low volume throughout the thirty-four minutes. There is a rise and fall trend in the sound of music. Within the four phases of the structure of the music, there is a spread of sound variations. The orchestra varies the sound in a perfect way that fits the desirable tone of classical music. The form and structure of the music assumes four phases. The orchestra starts with a high note and the note declines towards the fifth minute. The orchestra seems to make a stop at that point. They come up again to attain a high tone. For the second time, the orchestra goes down to a low tone. The orchestra picks up for the third phase and lowers the tone. They come up for the fourth and last time. The music ends when the leader of the orchestra bows down. The alterations of the four phases in this music have a plan that depicts uniformity. The music has a tune that brings out the melody of a valuable classical music. The tune is appealing and makes the music enjoyable. The orchestra has the experience to bring out the melody that conforms to the tune of classical music. The music has simultaneous pitches throughout the thirty-four minutes. The pitch variations have a harmonious arrangement. The orchestra plays the instruments in a manner that brings out the right form

Introduction to Organisations and Management Essay

Introduction to Organisations and Management - Essay Example Hence, in any good organization, there should be a clear road map that decides the specific roles of various people at different tiers so that good coordination would be possible facilitating maximum out put in unit time. In general, several principles of management play vital role in giving any organization a solid strength and proper direction and an element of sustainability. Effective management also facilitates good organizational design and structure, effective team work, ideal organizational culture and dynamic leadership. To understand this properly, practical studies of some organizations and comparison of their operation and management styles would be of immense help. Keeping this in consideration, a relative comparative analysis of two different firms i.e. Watson’s Engine Components vs. H&M Consulting has been made in terms of their style of operation and nature of management. The operation and management of both these firms is discussed with special emphasis to str ucture and design of organization, team work, leadership issues and organizational culture. ... Good organizational design would always facilitate better coherence and coordination among the employees and would also be instrumental in production of high quality end products. In the present case study, the organizational design of Watson’s Engine Components is hierarchial and it is not satisfactory as it lacks proper direction. In any organizational design, the founder or leader has to provide clear road map in which the organization has to concentrate for achieving its predetermined targets. Moreover, an effective organizational structure requires functional and divisional components (Hax and Majluf, 1981). In Watson’s Engine Components, Watson couldn’t give any futuristic model and it is completely family owned company with less diversification and specialization is also wanting as there is no proper division of works under different sections or departments. In this way, there is no proper communication and operation of authority of individual employees, s pan of control and accountability resulted in poor performance of Watson’s Engine Components. There is no coherence at among the employees and flexibility is also found to be lacking which makes Watson’s Engine Components less competitive in the present day market. For meeting the present needs of the market, the design has to be modified in any successful organization (Kikulis et al., 1995). But this has never happened in Watson’s Engine Components. The staff absenteeism and turn over rates of technical staff are quite quite high in Watson’s Engine Components resulting in poor organizational efficiency and this is to be addressed immediately. The Managing Director Gordon

Geography Bachelor Essay Example | Topics and Well Written Essays - 500 words

Geography Bachelor - Essay Example Then we got tired of the loss of quality of life associated with that kind of crowding, social inequity, and pollution. And through sets of rules and through inventive technology, we invented a better systemwe're talking about global warming." Somverille believes that humans are causing the climate changes, ozone depletion, and global warming. He states, "What we really need is a global technology policy to try to accelerate the rate of development of clean technologies, and to help especially the developed world" On the other hand, Dr. Fred S. Singer believes that although humans do contribute to climate change on a local scale. Singer (2000) "climate change is a natural phenomenon. Climate keeps changing all the time. The fact that climate changes is not in itself a threat, because, obviously, in the past human beings have adapted to all kinds of climate changes. Climate change is a natural phenomenon. Climate keeps changing all the time. The fact that climate changes is not in itself a threat, because, obviously, in the past human beings have adapted to all kinds of climate changes." He stated that during the years of 1900-1940, the temperature increased and that was before the use of energy. Then the climate cooled between the years of 1940-1975.

Roy Lichtenstein - Stepping Out Essay Example | Topics and Well Written Essays - 1500 words

Roy Lichtenstein - Stepping Out - Essay Example ‘Stepping Out’ implements Lichtenstein’s traditional comic book imagery. The painting, Fig. 1 in the appendix, features two individuals. Seemingly these individuals are a woman and a man, however Lichtenstein uses cubist like forms to obscure easy and clear distinctions. The male figure seems to be identifiable though traditional social conventions of dress; he is wearing a hat, has short-trimmed hair, as well as a suit and tie. Conversely, the woman does not take on complete form; instead her face is depicted not in the traditional form of the human head, but as a canvas. She only has one eye, which is slanted vertically. She has long blonde-hair, red lips, and a yellow dress that seems to further situate her with feminine identification. The division between the man and woman is blurred such that they seem to dissolve into each other; this perspective on singularity is further witnessed through Lichtenstein’s slight use of pointillism on the right side an d left side of the woman and man’s faces, respectively. Finally, the background of the work is divided into strong black and white, the white is on the woman’s side and the black is on the man’s side. Aesthetic analysis of Lichtenstein’s ‘Stepping Out’ reveals a considerable number of insights. Upon its debut the work was well received. One recognizes that by 1978 Lichtenstein’s reputation as a Pop artist was well established and this surely factored into its positive reception. In terms of meaning, interpretations differ widely from different critics. Indeed, the very post-modern elements of the work invite such multiple-critical voices. In terms of objective elements one recognizes that there is a degree of inter-textuality in the work. The male in work is based on Fernand Leger’s 1944 painting ‘Three Musicians;’ however Lichtenstein’s version is the mirror image of Leger’s earlier work.2 Additionally the female in the painting is clearly influenced by Picasso’s cubist style, in the multi-dimensional and slightly surrealist juxtapositions. In terms of the specific meaning this elements form, this essay contends that the primary emphasis is the

Thoreaus Ideas of Sound Essay Example | Topics and Well Written Essays - 1500 words

Thoreaus Ideas of Sound - Essay Example The incident of hearing the railroad cars moving along the tracks prompted an extended meditation on the relationship of man to nature. Thoreau originally responded to the sounds of the train as normal people would. He was bothered by the disruption, feeling a great distaste for the loud, clanging noise. It bothered him that it was this train that disturbed the natural peace and quiet of Nature. These thoughts led to the concept that some aspects of the modern human world were not always horrible. The trains, for example, allowed people to get from one place to another, especially if they were great distances from each other.   However, almost in the same breath, Thoreau realises that trains have taken away from a more simple time of life, when travels were done by means of walking or loading wagons - methods that did not involve disturbing Nature. Furthermore, these methods of transportation actually allowed these people to become closer to Nature. It aggravated Thoreau to realise that while people had come along way in regard to technology and amazing inventions that they had really set themselves quite far back by abandoning Nature for these wonderful creations.  It became rather confusing trying to decipher how Thoreau really felt about the existence of the train, especially as it was so close to his new home. He understood its purpose in the modern world, yet he found it difficult to comprehend why people would want to trade such peaceful methods of transportation for something.

Paternalism Essay Essay Example for Free

Paternalism Essay Essay The debate over state interference in personal liberties has been a reoccurring concern since the beginning of the first types of democracies. In John Stuart Mills, On Liberty, Mill addresses the need for little state intervention in order to respect personal liberty and autonomy. In his essay, Mill stresses the importance of the individual and the need for government not to restrain these liberties through paternalistic means. With his firm stance of his Harm Principle, devotion to utilitarianism, and analysis of liberties of thought and action, Mill confidently stresses that state paternalism is never justified. In this paper, I will argue, through Mills Harm Principle that the only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. I will emphasize the idea that one is sovereign and the government need not interfere for liberty consists in doing what one desires, so long as it does not infringe on the liberties of others. Over himself, over his own body and mind, the individual is sovereign. Mills defense against paternalism lies primarily on the concept that individuals have a better idea of what is good for them than the government or any one else for that matter. While arguing his case, he ensures that these individuals involved are coherent, educated, and well-informed adults. Before further indulging into Mills argument against paternalism, one may wonder what exactly paternalism is. Websters Dictionary describes paternalism as a policy or practice of treating or governing people in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities. To continue further, paternalism is the interference of a state or an individual against the will of another. This interference is justified by claiming what they did is to protect that person from harm. For example, seat belt laws are a form of paternalism. As of May 1st, 2000 New Jersey statute declared that one must wear a seat belt, whereas if one is not wearing a seat belt they will be summoned. Former Governor Whitman signed the statute into effect based on statistics from the National Highway Traffic Safety Administration. The statistics showed that New Jersey could  save forty-seven lives and have fifteen hundred fewer serious injuries a year. In this case, the government of New Jersey is telling the state that everyone must wear a seat belt. Yet, what about those who ride their vehicle into a body of water and cannot get their set belt off; they may end up drowning and death may arise. In this case, the seat belt law is not helpful. Recently, research in Britain shows that British citizens wear seat belts not because they are told to, but because they fear the damage that may result from a car collision. So, is such a law necessary to tell people what to do? A line needs to be drawn with these sorts of regulations and interferences. People know what is morally wrong and right, and personal liberty decisions need to be left autonomous. Mill, as an anti-paternalist argues interference is wrong. Mill indicates that liberty consists in doing what one desires, and he does not desire to fall into the river. He refers to an incidence where an official sees a person about to cross a bridge which has been declared unsafe. Mill supposes that the official has no time to warn the person of the danger of crossing the bridge. At this point, the person is seized and no real infringements of liberty were asserted on the person. This is where Mill would draw the line of paternalism. In this case, it was necessary for the person to be stopped, if not, he may have been killed unwillfully. So, where does Mill urge that interference is wrongful? Mill supposes that if one knows he is in danger, he ought to be only warned of the danger; not forcibly prevented from exposing himself to it. Therefore, if someone knows the dangers of crossing the bridge, he should be left to make his own decision. I would compare this to the sale of tobacco. As a matter of fact, the danger of smoking is stamped across the side of the box. It states, Quitting smoking now greatly reduces serious risks to your health. Just as someone is left to make his own decision to cross the bridge, as is the decision left to the person to smoke tobacco or not. Yet, if the government were to prohibit tobacco sales, they would be parenting society. Mill urges this not to be done and the decision should be left to oneself. Mill draws a different line of paternalism regarding alcohol in respect to  drunkenness. He thinks that alcohol should not be prohibited, yet if someone is known for acting violent when drunk, he himself should be restricted. At this point, one is infringing anothers liberties and he should be stopped. For example, if a man is know to abuse his wife when drunk, then he should be punished and restricted. On the other hand, John Doe, who goes to the local bar once a week, should not be punished because of another mans abusive tendencies when under the influence of alcohol. Today, this can be compared to drinking and driving. If one is intoxicated while driving, and is in an accident, then he will be severely punished, whereas his license may be suspended and other charges may be pressed against him. Yet, if a sober person is in an accident, he would have minimum reparations to pay, usually an insurance deductible and nothing more. Here, the government is stating they will tolerate drinking, so long as there are no effects on anyone else. The government laid down the law on what is to be done if the privilege of drinking is taken advantage of. It is quite similar to the warning label on cigarettes. Both examples allow people to engage in certain activities, and warnings are given. Everything is left up to the person engaging in the activity. There is limited paternalism, and this is what Mill shows to be acceptable. In On Liberty, Mill does a superb job in demonstrating what paternalism is, and he introduces a solution to the problem. In his bridge example, he lucidly states that there are clear-cut places where one can or cannot step in, especially when the liberties of others are at stake. In summation, if one knows of the consequences of his actions let him be without any interference. Yet, if one is ignorant to what may arise from a given situation one may interfere to protect that person from what he may not want to do. This is where the line should be drawn. Mill does conclude that any state interference would end up granting the state more power against the individual and limit the liberties of man. So, should a paternalistic structure dictate what society can and cannot do? This reoccurring problem is solved in On Liberty, and Mill does suggest that man has the intellectual capability to make personal decisions that are in  his own interest. Paternalistic interference is unnecessary. As Mill argued, The worth of a State is worth of the individuals composing it. Moreover, there are no cases when it is acceptable to force an individual to do something for his own good. His principle will never allow for paternalism. Mills principle dictates the freedom to conduct oneself as he sees fit, so long as all others are left unharmed. As he indicated, which I stand firmly by with my argument, liberty consists in doing what one desires, and [one] does not desire to fall into the river.

Theme of Punishment in Scarlet Letter Essay Example for Free

Theme of Punishment in Scarlet Letter Essay Hawthornes The Scarlet Letter deals with many themes, the most powerful being punishment. In this novel, Hester Prynne becomes a highly respected person in a Puritan society by overcoming one of the harshest punishments, the scarlet letter. This object on her bosom; however, does the exact opposite of that which it was meant for. Eventually, Hester Prynne inverts all the odds against here due to her courage, pride and effort. Hester went beyond the letter of the law and did everything asked of here in order to prove that she is able. Hester became quite a popular seamstress, admired all over the town of Boston for her work. Hester is modest in everything that she does. Hester herself wears only poor clothing while she embroiders marvelous works for the rest of Boston. The only piece of clothing forbidden to create was the wedding vail. How could a woman wearing the scarlet letter create a dress that represents the values of marriage; having committed sin as she did to be involved in the marital bonds of another couple. Although she does the job willingly and rarely ever looks back to the horrid past behind. The scarlet letter was constantly worn by Hester with pride and dignity. Hester knew that what was done in the past was wrong and that the scarlet A as the right thing to do, therefor it is worn with a sense of pride. The child, Pearl, is a blessing and as a reminder of her sin. As if the scarlet A were not enough punishment there was a brat of that hellish breed which would remind Hester of what happened in the past. The brat could have been given away to Governor Bellingham yet Hester proclaimed that Pearl is my happiness! Ye shall not take her! I will die first! Not a person in Boston, nor Hester herself thought highly of the little child and Hester refused to let Pearl go. Hester carried the kid around only because it was a direct reflection f her sin and to cast away here sin as freely as that to give it away would be unjust and unfair to Hester and Pearl. From now on Hester would continually and proudly be near Pearl. Hester would go against the grain in everything she did. Very rarely did she ever give up hope; never did she complete a job poorly. In the city of Boston many people refused to interpret the scarlet A by its original signification. They said that it meant Able; so strong was Hester Prynne, with a womans strength. By now the people of Boston believe in Hester and accept her because Hester is an arduous, productive worker in the puritan society. The townspeople were reconsidering whether Hester was still worthy of wearing the scarlet letter by the time Hester was about to leave with Dimmesdale. The people of Boston realized what a good job Hester had done wearing it and what once was evil inside of Hester turned into good. The fact that Hester committed adultery was soon forgotten by the people around Hesters everyday life. Yet another meaning for the scarlet letter was brought about when a meteorite appeared above Boston, a sexton thought it represented the word Angel coming from above. What was once an ignoble member of the puritan way of life became a decorous woman.

Effects of Harmonization of Railway Infrastructure

Effects of Harmonization of Railway Infrastructure Abstract Historically, rail transport systems in Europe have been running as per national standards through the monopolistic and vertically integrated state owned operators. Most of the railway network in Europe is designed for different technical and operational standards of the member states, which makes it impossible or expensive for rail transport across borders. With a vision of achieving a single European railway network, in 1991, the European commission adopted a policy of revitalizing the railway sector to harmonize the technical and operational standards across the member states. This policy promotes a single set of Technical Specifications for Interoperability (TSIs)todefine common railway system architectureanda common approach to railway safety management. The long-term objective of such a policy is to open up the rail passenger and freight market for competition and promote the rail transport as sustainable means of transportation. The future of the rail supply industry in Europe is linked to the creation of sustainable transport system, which can only be achieved by increasing the competition in the industry to provide cost effective solutions. Harmonization of the railway networks in Europe will be one of the important driving forces in shaping the rail supply industry in Europe. This paper analyses the current structure of the German rail supply industry and how the industry may evolve given the current drive for interoperability through harmonization of standards and technologies. The policies of interoperability were conceived during the early 90s, but the impact of such policies are yet to be seen due to the lack of co-ordination between the manufactures, the regulatory mechanism, insufficient funding and the political will. Though the rail supply industry of Europe is in favour of achieving the common technical standards, the resulting market dynamics due to the common European market remains unanswered. 1. Introduction The purpose of this paper is to analyse the effects of harmonization of railway infrastructure in Europe on the rail supply industry in Europe with focus on Germany. Various directives and regulations of European commission have set off a series of dramatic changes in the European railway sector. The liberalization process has seen unbundling of the vertically integrated state owned operators. The directive of interoperability is enforcing the member states to transition from the existing signalling systems to common rail traffic management systems across Europe. Besides the control systems, there is significant thrust by the European commission to harmonize the technical and operational standards of the other components of the railway infrastructure like the tracks, electrification, power supply substations etc. These would render common product characteristics across the infrastructure segments with some exceptions in the stations and tunnel construction as the nature of these requ irements varies depending on the local needs and resource restrictions and also these components doesnt contribute to the desired interoperability. Thus the harmonization process would increase the size of the accessible market for companies in rail supply industry. Hence harmonization is bound to have a significant effect on how the industry is structured and the competition within the industry. The German railway infrastructure is the key component of the entire railway transport industry, where in the state owned operator and Logistics Company, Deutsche Bahn AG owns the entire infrastructure. Deutsche Bahn AG (DB) has a monopoly on the upstream of the value chain of German railway industry and at the same time DB exists as a monopsony at the downstream of the value chain. Thus, DB is a single buyer of the infrastructure services and products with very high bargaining power over their suppliers. The processes of harmonization and liberalization in the European railway sector have been shaping the complete value chain of industry. The increasing competition among the railway operator has brought in many benefits to the consumers and also to all other stakeholders involved in the industry. The German rail supply industry is highly fragmented with small to large companies involved in different segments of infrastructure services. The Fragmented nature of the industry has given rise to aggressive competition in the industry with many large players trying to claim their stakes in the market. The presence of only a single buyer, Deutsche Bahn, has defined the competition as price oriented, with many infrastructure companies trying to innovate on the technology and process to provide the infrastructure as per the national standards and at lower costs. This paper will discuss the benefits of the standardization in the industry and would also discuss how the rail supply industry in Germany may restructure to the changing market dynamics once the single European market is in place for the railway sector. Chapter 2 of this paper presents entire value chain of the German railway transport industry. This will be followed by the description of the key stake holders of the industry and the interaction mechanism between them. Further the analysis will focus on the railway infrastructure part of the value chain. The analysis in this section will try to evaluate the forces that drive the industry and the bargaining power of the decision makers. Chapter 3 of the document discusses process of harmonization through the EU directives of interoperability and safety. The analysis here will try to explain the various regulation, time frames and governing bodies involved in the process. The discussion will also highlight the progress of harmonization and the issues and obstacles to achieving the desired targets of interoperability. Chapter 4 will discuss the benefits of harmonization to the industry and chart out the current strategic environment of the German rail supply industry. This section will include a note on the key causal factors and actors influencing harmonization and will develop and discuss few scenarios as to how the industry may evolve post harmonization of the railway infrastructure in Europe in general and Germany in particular. The analysis in this section will draw inferences from the views of some opinion leaders and academics who are involved with the industry. Finally the conclusions of the study will be presented in the chapter 5 which will summarize the findings and hypothesis of chapters 3 and 4 respectively. The conclusion will highlight the limitations of this research paper and will also suggest further research options concerning the rail supply industry. 2. The Value chain of German Railway Industry 2.1. Over view of value chain The German railway industry is composed of various players along the value chain. A brief overview of the Railway industry value chain is as shown the figure1. The first link in the value chain of German railway industry is the infrastructure construction, which includes the building and maintaining various infrastructure components that support the railway network. The infrastructure components can be track, electrification, power supply substation, electro mechanical works, signalling and command control, railway stations, maintenance and upgrade of tracks and public announcement, displays, ticketing devices etc. Many private companies as well as the subsidiaries of DB are active in this part of the value chain. The second component of the value chain is the infrastructure management, which is driven by many stake holders, but is controlled mainly by DB Netze, which owns the complete mainline and high speed railway network in Germany. The infrastructure for the urban transport is usually owned by the urban transport operators. The governing bodies like Federal Railway Authority of Germany and the Public Transport Authorities of the various states are the key decision makers for infrastructure management. The most important component of the value chain is the network operation and logistics. This segment of the industry caters to the rail transport market, by providing services to the end customers. The main players in this segment are the Deutsche Bahn, which is a monopoly with around 85% of market share in Germany. The liberalization process has led to the advent of few private operators, who lease the infrastructure from the DB Netze. The urban transport operators are active players in the metro/ tram segment of the railway transport market. The last link of the value chain includes the end customers, which is constituted of both the passenger and freight transport market. Customers are the central focus for the various reforms in the industry as the growth is dependent on the ability of the industry to provide the transport services at affordable prices in comparison with other alternatives like road and air transport. The details of different segments of the rail transport market and the related statistics are provided in Appendix 1. As seen from the figure 1, the intensity of the competition increases as we move up the value chain from the network operators to the infrastructure suppliers. The process of liberalization has induced competition amongst the operators, but the very high sunk costs involved, have erected a strong barrier for new entrants. Further up the value chain, there are many players involved in infrastructure management and infrastructure construction due to the attractive market size. Though the liberalization process has contributed to the opening up of this market, historically many small and big players are involved in this part of the value chain leading to an increased competition. 2.2. Key players of German railway infrastructure management To understand the rail infrastructure industry in Germany, It is essential to understand the various stakeholders in the industry and their contribution and importance in driving the market dynamics. Figure 2 is a schematic of the industry structure with a focus on infrastructure management. 2.2.1. European Commission European Commission is a governing body which is one of the important demand drivers for the infrastructure market. The federal and local governments of the member states in the European Union are obligated to adhere to the regulations and policies devised by European Commission. European commission reviews and responds to the transportation needs of the member states of EU, which has the construction of modern, safe and integrated railway network in Europe as priority to fuel the growth of intra and international trade among the EU members. Hence, the reformatory regulations and their periodic reviews lie within the gamut of European commissions functions. European Commission has set up the European Railway Agency (ERA) to oversee the creation of integrated European railway network by enforcing and implementing safety and interoperability through standardizations and harmonization. ERA works as a coordinating body between the railway sector companies, national authorities, European Commission and other concerned parties. ERAs main task is to develop common technical standards and approaches for the European railway systems and infrastructure. ERA is also the system authority for the implementation of the European Rail Traffic Management Systems (ERTMS) project. Source: Adapted from the article separation of operators from infrastructure 2.2.2. Governments The German government oversees the overall transport sector through the Federal ministry for Transport, Building and Urban affairs. The Federal Railway Authority (Eisenbahn Bundesamt: EBA) is the supervisory authority for 30 railroad traffic operators and for 5 infrastructure companies mainly for the Deutsche Bahn AG. The functions of EBA include issuing licenses for infrastructure companies, providing investments and funding for infrastructure projects, making railroad access discrimination free, facilitates innovation within the accepted safety standards, ensures value creation for customers and also checks for unfair competitive practices. The supervisory authority of the urban transport lies with the 31 Public Transport Authorities (PTA) in the different federal states of Germany. The duties of the PTA are similar to those of EBA, but within the context of urban transport. PTAs work in conjunction with EBA for the infrastructure planning and funding activities at the local level. The political decision makers own the responsibility to define the legislative framework to fully integrate the European railways, in terms of enhanced market access, interoperability and safety rules. A sound legislative framework that works in tandem with the EU commission is expected to accelerate the harmonization process. 2.2.3. Network Operators/ Owners In Germany most of the mainline and regional rail networks infrastructure are owned and operated by the DB Netze AG , DB Regio Netz Infrastruktur GmbH, DB Station Service AG, DB Railionand the DB reise und touristik , who are all directly owned by the Federal Government. The DB Netze AG is responsible for track installations, coordination of network usage time tables and pricing. The DB Station Service AG operates, maintains and develops the passenger stations and also ensures the provision of services to travellers and railway undertakings. The DB Regio Netz Infrastruktur GmbH is responsible for local and regional traffic operation and infrastructure management. DB Railion is responsible for operation of freight traffic and DB Reise und touristik is responsible for long distance traffic operation. Besides these many new private traffic operators like Veolia Transportation, TX logistics, AKN Eisenbahn AG, Ostdeutsche Eisenbahn GmbH, S-Bahn Hamburg GmbH, etc have entered the German railway market. Railway operators are responsible for improving the quality of services in terms of information accessibility, customer comfort, reservation and ticketing, network accessibility, availability of services, punctuality and reliability. The infrastructure managers or the network owners are responsible for optimising the capacity utilization of the available network infrastructure; ensure fair and non discriminatory access to network for all railway undertakings and also to ensure operational efficiency and safety. 2.2.4. Infrastructure providers Infrastructure providers are the companies that supply the railway transport industry with various infrastructure services like the rolling stock, track, electrification, maintenance etc. The infrastructure providers can also be termed as rail supply industry focused on the infrastructure development as per the standards and regulations set by the other stakeholders listed above. The rail supply industry is responsible for organising themselves to provide the ready to use equipment and infrastructure needed by the railway undertakings and infrastructure managers. The research and development of new products to promote the process of harmonization depends on the capabilities of rail supply industry. 2.2.5. Associations and Organizations Many organizations and agencies of the railway industry in Europe work closely with the EU and the national governments of the member states to support and promote the rail transport by setting technical standards and promoting fair competitive practices in the industry. Some of the important associations and agencies that are relevant to the rail supply industry are UNIFE, ERRAC, UITP, UIC, CER, EFRTC etc. Details of these associations are provided in the Appendix 2. 2.3. Overview of German rail supply market Worldwide, total rail supply market volume exceeds â‚ ¬ 120 bn. Of which, the size of the rail supply market in Germany is estimated to be around â‚ ¬ 6.3 bn. Based on the railway network type and usage characteristics, the rail supply markets can be further classified as High speed and very high-speed lines, conventional and regional rail lines and the urban rail transport networks. While Deutsche Bahn is the single customer in the high speed and very high speed lines and the conventional and regional lines segments, the different public transport authorities are the customers in the urban rail infrastructure market. High speed and very high-speed lines: These are usually the rail networks that spans across the borders to enable faster connectivity across Europe. The high speed lines between the important cities within the country also fall into this category, as they have the future potential to be integrated with cross border traffic. In Germany, this segment is currently small in size and is expected to grow especially due to the increasing need of cross border traffic. Conventional and regional lines: These are usually referred to as main lines and consist of the rail networks that connect the different regions with in a country. So, the entire regional rail transport networks that support the intra train transport with in a country and the freight transport networks can be grouped into this category. Currently this segment is built and operated as per the national standards set by the Federal railway authority and the volume of this network is very huge and is highly heterogeneous and is also operationally underutilised. Urban rail networks: This market segment consists of metros and the commuter/sub urban rail networks which support the public transport with in a city. The product requirements within this segment can vary depending on the local geographical characteristics and funds availability. This segment is mostly independent of and incompatible with the other segments and so provides many avenues of differentiation for the companies that are active in this segment. As of now there are no regulations enforcing harmonization of these networks. 2.4. Structure of rail supply industry in Germany The rail supply industry in Germany is classified into four segments namely; Rolling stock, Infrastructure, Signalling and control system and services. Figure 3 represents a schematic of the different segments of the German rail supply industry. Rolling stock: The products in this segment are characterized by all the vehicles that run on the railways like locomotives, railroad cars, coaches and wagons. Due to the high capital investments, this segment usually consists of large companies like Bombardier, Siemens and Alstom. Infrastructure: This segment is characterized by the infrastructure components like tracks, electrification and stations. Many companies with diversified products serve in one or more of the components of this segment. Signalling and control systems: The infrastructure components like the track side signal installations, on board control equipment, control stations etc are grouped as signalling and control systems. Services: This segment includes the service and maintenance for all the other segments. This segment also comprises the project management and turnkey solutions. In Germany most of the maintenance and project management is carried out by the subsidiaries of Deutsche Bahn. 2.5. Segmentation of the German rail supply market Putting the rail supply market and the rail supply industry segmentation together will provide a complete segmentation matrix, which will help in the better understanding and analysis of the market. The segmentation matrix is provided in figure 4. Figure 4: German rail supply Market Segmentation matrix In the above matrix, the shaded regions indicate an overlap of product and service similarities in the different infrastructure components and the market segments of the railway industry. 3. Harmonization For a successful, larger and integrated Europe, the availability of efficient transport systems is essential for supporting sustainable economic growth and social development. Passenger and freight transportation by rail is a potentially effective instrument to combat congestion, pollution, global warming and traffic accidents. These negative externalities undermine the capability and efficiency of European economy and the health of future generations. The growing European Union and the globalization of the world economy have necessitated an international transport market, to support the outpacing economic growth. Today, the rail sector faces an ever increasing demand of accommodating higher transport volumes, a result of transport growth, and of policies favouring competition in the sector. Rail transport in Europe is a future-oriented industry, striving to offer attractive, affordable, safe, clean, competitive and reliable transport mode. Harmonization is the process of standardization of infrastructure components like types of track gauges, different types of power supply, speed control systems, train safety systems and technologies as well as the job profiles of drivers. The objective of harmonization is to achieve interoperability between the heterogeneous railway networks of the member states with in EU. Harmonizing products and technologies through innovation is a necessity for the rail supply industry to deploy its potential, and for its stakeholders to deliver cost-effective services for intermediate and final clients. 3.1. Need for harmonization Prior to the formation of European Union, the railway systems in Europe were run at the national level and were managed and operated by vertically integrated state owned companies. These railway systems were designed under different national operational rules, policies and standards. This resulted in the lack of interoperability in the railway transport sector which hampered the goal of growth in European economy through increased trade activities amongst the member states. The EU thus envisaged a goal of unified railway transport network across the EU member states to promote the trade and thus foster the economy. This goal transformed into a number of directives and regulations to achieve a Trans European network. 3.2. Components of harmonization To transition from the heterogeneous railway networks to a homogenised railway transport infrastructure across Europe, different components of harmonisations were evaluated by the European commission. European commission defined the homologation process in terms of interoperability, safety and signalling systems. 3.2.1. Interoperability Interoperability of the rail systems renders a safe and uninterrupted movement of trains, while accomplishing the required and specified levels of performance. Interoperability rests on all the technical, operational and regulatory conditions that must be met in order to satisfy the essential requirements. Interoperability has been mandated by several EU directives. The first one is the Directive 96/48/EC, which was passed in 1996 and is only concerned with the interoperability of the Trans- European high speed rail system. The second one is the Directive 2001/16/EC, which applies interoperability to lines within the trans-European transport network and other infrastructure facilities. Both these directives were later modified by the directive 2004/50/EC along with the corrigendum for the former directives. Most recently the directive 2008/57/EC was passed to include the community railway systems within the scope of interoperability. A consolidated history of regulatory framework evolution concerning interoperability in European railways is provided as Appendix 3. To overcome the technical fragmentation of rail networks, the interoperability directives provided that the Community legislation is gradually establishing mandatory so called Technical Specifications for Interoperability, commonly referred to as TSIs. The European Railway Agency owns the responsibility to draw up and revise the TSIs, on the basis of inputs provided by the member states and other stakeholders of the railway sector. Several subsystem constituents of interoperability of railway transport for both conventional and high speed lines are as below: Infrastructure( track works, tunnels, bridges and stations) and energy (electrification system) Operation and telematic application for passengers: related equipment and procedures to enable a coherent operation of different subsystems and also the requirements of professional qualification for the skilled labour involved in operations. Rolling stock: vehicle dynamics, superstructure, on board command and control system equipment, current-collection devices, traction units, energy conversion units, braking, coupling and running gear and suspension, doors, man/machine interfaces, passive or active safety devices. Maintenance: procedures and processes, technical documentation, related equipments, logistics centres for maintenance work. 3.2.2. Safety Safety is one of the important components of the railway systems which is highly regulated at both national and EU level. Safety is one of the prime concerns of the customers of rail transport and hence there is a special focus on the safety standards which have to be designed in line with the interoperability directives. Hence common safety standards, practices and targets have to complement interoperability to successfully achieve the desired homologation of the trans-European railway network. The European commission issued many directives to mandate the safety methods to support the harmonization process. These directives include Directive 2004/49/EC, Directive 2007/59/EC, the directive on certification of train drivers and other relevant EU legislation. ERA acts as a supporting organization to the European commission to develop the further implementation plans for the EU directives by networking with the national bodies of the member states. ERA has structured four different business sectors concerning railway safety and provides central support to the stakeholders involved in the complete process from formulation of regulation to implementation and periodic reviews. The four different segments are: Safety Assessment: developing common safety methods for risk evaluation and assessment and common safety targets according to articles 6 and 7 of the Directive 2004/49/EC. This unit assists each member state to define their safety targets and develop a methodology for calculating and assessing the achievement of those targets. This unit also collaborates to define safety requirements for TSIs and to support technical opinions to be given to European commission. Safety Certification: define, develop and evaluate implementation of common safety methods for certification of railway undertakings as well as certification for train drivers and authorization of infrastructure managers. The objective of this unit includes proposing a migration strategy towards a single Community Safety certificate. Safety Reporting: Monitors and analyzes the development of safety on Europes railways and disseminates information, reports biennially on the safety performance of railways within the European Union. Functions also include developing and maintaining public databases of safety related documents such as safety certificates, licenses, national safety rules, investigation reports and indicators. Responsibility of coordinating with the national investigation bodies concerning safety and facilitating information exchange between them lies with this unit Safety Regulation: Functions include, validating the notification of national safety rules, register and notify the national safety rules accepted by the commission, analyze the way in which the national safety rules are published, maintain the communication protocol between the member states and the responsible organizations for railway regulation. 3.2.3. ERTMS The command control and signalling systems is an important instrument that should also be harmonised to support the much required interoperability of the trans-European railway network. ERTMS is considered to be a first major step in fostering the creation of single European railway market. ERTMS would also address the increasing costs of operation due to the incompatible and obsolete signalling systems across Europe. Currently around 20 signalling systems are in place across Europe, most of which are adopted by the network operators of the member countries as stipulated by national standards. These different signal systems impose a restriction on the rail transport across the borders of the member states of EU, as the costs of incorporating compatibility with the international networks increases. A common standards and systems for intra as well as international rail traffic management in the EU member countries would enhance the attractiveness of rail transport making it affordable and environment friendly. The idea of common traffic management systems for European railways was conceived during the late 1980s, but the process of drawing up technical specification was started during 1998, following the interoperability directive of 1996. The ERTMS specification was approved by EU in 2000, followed by which, between 2005 and 2008, the implementations plans were charted out for the six freight corridors across Europe and the memorandum of understanding was signed between the EU, member states and the other railway stakeholders. The implementation plan was devised considering the national implementation plans of the member states, which was then consolidated taking into consideration the priority for the freight corridors connecting different member states. The proposed completion of implementation of ERTMS across Europe is by the end of 2020. UNIFE and a consortium of railway signal equipment manufacturers are working closely with the European commission and the infrastructure managers of member companies for the development and implementation of cost effective technical solutions concerning ERTMS implementation. 3.3. Process of Harmonization For successful harmonization of European railways, close cooperation of the institutional bodies, political representations and also commitment of the railway operators and rail supply industry are required. The harmonization and standardization process to achieve European railway interoperability can be grouped into two stages: 3.3.1. Directives to Standards The directives of the European Commission are transformed into the TSIs by ERA, which are then validated against the standards requirement at the national and the EU level by relevant standardization organization like CEN, CENELEC and ETSI. At the end of this stage a detailed documentation of the standards, while adopting the TSIs are produced. Figure 5 provides and illustration of this process. Source: Dealing with standardization in liberalized network industries by Dr Marc Laperrouza 3.3.2. Standards to Products Once the directives are turned into standards, the next challenge is to transform the standards into the products. The standards are again reviewed by the ERA and then passed over to the European Union for the legal process. Once the compliance with legal process is established, the standar Effects of Harmonization of Railway Infrastructure Effects of Harmonization of Railway Infrastructure Abstract Historically, rail transport systems in Europe have been running as per national standards through the monopolistic and vertically integrated state owned operators. Most of the railway network in Europe is designed for different technical and operational standards of the member states, which makes it impossible or expensive for rail transport across borders. With a vision of achieving a single European railway network, in 1991, the European commission adopted a policy of revitalizing the railway sector to harmonize the technical and operational standards across the member states. This policy promotes a single set of Technical Specifications for Interoperability (TSIs)todefine common railway system architectureanda common approach to railway safety management. The long-term objective of such a policy is to open up the rail passenger and freight market for competition and promote the rail transport as sustainable means of transportation. The future of the rail supply industry in Europe is linked to the creation of sustainable transport system, which can only be achieved by increasing the competition in the industry to provide cost effective solutions. Harmonization of the railway networks in Europe will be one of the important driving forces in shaping the rail supply industry in Europe. This paper analyses the current structure of the German rail supply industry and how the industry may evolve given the current drive for interoperability through harmonization of standards and technologies. The policies of interoperability were conceived during the early 90s, but the impact of such policies are yet to be seen due to the lack of co-ordination between the manufactures, the regulatory mechanism, insufficient funding and the political will. Though the rail supply industry of Europe is in favour of achieving the common technical standards, the resulting market dynamics due to the common European market remains unanswered. 1. Introduction The purpose of this paper is to analyse the effects of harmonization of railway infrastructure in Europe on the rail supply industry in Europe with focus on Germany. Various directives and regulations of European commission have set off a series of dramatic changes in the European railway sector. The liberalization process has seen unbundling of the vertically integrated state owned operators. The directive of interoperability is enforcing the member states to transition from the existing signalling systems to common rail traffic management systems across Europe. Besides the control systems, there is significant thrust by the European commission to harmonize the technical and operational standards of the other components of the railway infrastructure like the tracks, electrification, power supply substations etc. These would render common product characteristics across the infrastructure segments with some exceptions in the stations and tunnel construction as the nature of these requ irements varies depending on the local needs and resource restrictions and also these components doesnt contribute to the desired interoperability. Thus the harmonization process would increase the size of the accessible market for companies in rail supply industry. Hence harmonization is bound to have a significant effect on how the industry is structured and the competition within the industry. The German railway infrastructure is the key component of the entire railway transport industry, where in the state owned operator and Logistics Company, Deutsche Bahn AG owns the entire infrastructure. Deutsche Bahn AG (DB) has a monopoly on the upstream of the value chain of German railway industry and at the same time DB exists as a monopsony at the downstream of the value chain. Thus, DB is a single buyer of the infrastructure services and products with very high bargaining power over their suppliers. The processes of harmonization and liberalization in the European railway sector have been shaping the complete value chain of industry. The increasing competition among the railway operator has brought in many benefits to the consumers and also to all other stakeholders involved in the industry. The German rail supply industry is highly fragmented with small to large companies involved in different segments of infrastructure services. The Fragmented nature of the industry has given rise to aggressive competition in the industry with many large players trying to claim their stakes in the market. The presence of only a single buyer, Deutsche Bahn, has defined the competition as price oriented, with many infrastructure companies trying to innovate on the technology and process to provide the infrastructure as per the national standards and at lower costs. This paper will discuss the benefits of the standardization in the industry and would also discuss how the rail supply industry in Germany may restructure to the changing market dynamics once the single European market is in place for the railway sector. Chapter 2 of this paper presents entire value chain of the German railway transport industry. This will be followed by the description of the key stake holders of the industry and the interaction mechanism between them. Further the analysis will focus on the railway infrastructure part of the value chain. The analysis in this section will try to evaluate the forces that drive the industry and the bargaining power of the decision makers. Chapter 3 of the document discusses process of harmonization through the EU directives of interoperability and safety. The analysis here will try to explain the various regulation, time frames and governing bodies involved in the process. The discussion will also highlight the progress of harmonization and the issues and obstacles to achieving the desired targets of interoperability. Chapter 4 will discuss the benefits of harmonization to the industry and chart out the current strategic environment of the German rail supply industry. This section will include a note on the key causal factors and actors influencing harmonization and will develop and discuss few scenarios as to how the industry may evolve post harmonization of the railway infrastructure in Europe in general and Germany in particular. The analysis in this section will draw inferences from the views of some opinion leaders and academics who are involved with the industry. Finally the conclusions of the study will be presented in the chapter 5 which will summarize the findings and hypothesis of chapters 3 and 4 respectively. The conclusion will highlight the limitations of this research paper and will also suggest further research options concerning the rail supply industry. 2. The Value chain of German Railway Industry 2.1. Over view of value chain The German railway industry is composed of various players along the value chain. A brief overview of the Railway industry value chain is as shown the figure1. The first link in the value chain of German railway industry is the infrastructure construction, which includes the building and maintaining various infrastructure components that support the railway network. The infrastructure components can be track, electrification, power supply substation, electro mechanical works, signalling and command control, railway stations, maintenance and upgrade of tracks and public announcement, displays, ticketing devices etc. Many private companies as well as the subsidiaries of DB are active in this part of the value chain. The second component of the value chain is the infrastructure management, which is driven by many stake holders, but is controlled mainly by DB Netze, which owns the complete mainline and high speed railway network in Germany. The infrastructure for the urban transport is usually owned by the urban transport operators. The governing bodies like Federal Railway Authority of Germany and the Public Transport Authorities of the various states are the key decision makers for infrastructure management. The most important component of the value chain is the network operation and logistics. This segment of the industry caters to the rail transport market, by providing services to the end customers. The main players in this segment are the Deutsche Bahn, which is a monopoly with around 85% of market share in Germany. The liberalization process has led to the advent of few private operators, who lease the infrastructure from the DB Netze. The urban transport operators are active players in the metro/ tram segment of the railway transport market. The last link of the value chain includes the end customers, which is constituted of both the passenger and freight transport market. Customers are the central focus for the various reforms in the industry as the growth is dependent on the ability of the industry to provide the transport services at affordable prices in comparison with other alternatives like road and air transport. The details of different segments of the rail transport market and the related statistics are provided in Appendix 1. As seen from the figure 1, the intensity of the competition increases as we move up the value chain from the network operators to the infrastructure suppliers. The process of liberalization has induced competition amongst the operators, but the very high sunk costs involved, have erected a strong barrier for new entrants. Further up the value chain, there are many players involved in infrastructure management and infrastructure construction due to the attractive market size. Though the liberalization process has contributed to the opening up of this market, historically many small and big players are involved in this part of the value chain leading to an increased competition. 2.2. Key players of German railway infrastructure management To understand the rail infrastructure industry in Germany, It is essential to understand the various stakeholders in the industry and their contribution and importance in driving the market dynamics. Figure 2 is a schematic of the industry structure with a focus on infrastructure management. 2.2.1. European Commission European Commission is a governing body which is one of the important demand drivers for the infrastructure market. The federal and local governments of the member states in the European Union are obligated to adhere to the regulations and policies devised by European Commission. European commission reviews and responds to the transportation needs of the member states of EU, which has the construction of modern, safe and integrated railway network in Europe as priority to fuel the growth of intra and international trade among the EU members. Hence, the reformatory regulations and their periodic reviews lie within the gamut of European commissions functions. European Commission has set up the European Railway Agency (ERA) to oversee the creation of integrated European railway network by enforcing and implementing safety and interoperability through standardizations and harmonization. ERA works as a coordinating body between the railway sector companies, national authorities, European Commission and other concerned parties. ERAs main task is to develop common technical standards and approaches for the European railway systems and infrastructure. ERA is also the system authority for the implementation of the European Rail Traffic Management Systems (ERTMS) project. Source: Adapted from the article separation of operators from infrastructure 2.2.2. Governments The German government oversees the overall transport sector through the Federal ministry for Transport, Building and Urban affairs. The Federal Railway Authority (Eisenbahn Bundesamt: EBA) is the supervisory authority for 30 railroad traffic operators and for 5 infrastructure companies mainly for the Deutsche Bahn AG. The functions of EBA include issuing licenses for infrastructure companies, providing investments and funding for infrastructure projects, making railroad access discrimination free, facilitates innovation within the accepted safety standards, ensures value creation for customers and also checks for unfair competitive practices. The supervisory authority of the urban transport lies with the 31 Public Transport Authorities (PTA) in the different federal states of Germany. The duties of the PTA are similar to those of EBA, but within the context of urban transport. PTAs work in conjunction with EBA for the infrastructure planning and funding activities at the local level. The political decision makers own the responsibility to define the legislative framework to fully integrate the European railways, in terms of enhanced market access, interoperability and safety rules. A sound legislative framework that works in tandem with the EU commission is expected to accelerate the harmonization process. 2.2.3. Network Operators/ Owners In Germany most of the mainline and regional rail networks infrastructure are owned and operated by the DB Netze AG , DB Regio Netz Infrastruktur GmbH, DB Station Service AG, DB Railionand the DB reise und touristik , who are all directly owned by the Federal Government. The DB Netze AG is responsible for track installations, coordination of network usage time tables and pricing. The DB Station Service AG operates, maintains and develops the passenger stations and also ensures the provision of services to travellers and railway undertakings. The DB Regio Netz Infrastruktur GmbH is responsible for local and regional traffic operation and infrastructure management. DB Railion is responsible for operation of freight traffic and DB Reise und touristik is responsible for long distance traffic operation. Besides these many new private traffic operators like Veolia Transportation, TX logistics, AKN Eisenbahn AG, Ostdeutsche Eisenbahn GmbH, S-Bahn Hamburg GmbH, etc have entered the German railway market. Railway operators are responsible for improving the quality of services in terms of information accessibility, customer comfort, reservation and ticketing, network accessibility, availability of services, punctuality and reliability. The infrastructure managers or the network owners are responsible for optimising the capacity utilization of the available network infrastructure; ensure fair and non discriminatory access to network for all railway undertakings and also to ensure operational efficiency and safety. 2.2.4. Infrastructure providers Infrastructure providers are the companies that supply the railway transport industry with various infrastructure services like the rolling stock, track, electrification, maintenance etc. The infrastructure providers can also be termed as rail supply industry focused on the infrastructure development as per the standards and regulations set by the other stakeholders listed above. The rail supply industry is responsible for organising themselves to provide the ready to use equipment and infrastructure needed by the railway undertakings and infrastructure managers. The research and development of new products to promote the process of harmonization depends on the capabilities of rail supply industry. 2.2.5. Associations and Organizations Many organizations and agencies of the railway industry in Europe work closely with the EU and the national governments of the member states to support and promote the rail transport by setting technical standards and promoting fair competitive practices in the industry. Some of the important associations and agencies that are relevant to the rail supply industry are UNIFE, ERRAC, UITP, UIC, CER, EFRTC etc. Details of these associations are provided in the Appendix 2. 2.3. Overview of German rail supply market Worldwide, total rail supply market volume exceeds â‚ ¬ 120 bn. Of which, the size of the rail supply market in Germany is estimated to be around â‚ ¬ 6.3 bn. Based on the railway network type and usage characteristics, the rail supply markets can be further classified as High speed and very high-speed lines, conventional and regional rail lines and the urban rail transport networks. While Deutsche Bahn is the single customer in the high speed and very high speed lines and the conventional and regional lines segments, the different public transport authorities are the customers in the urban rail infrastructure market. High speed and very high-speed lines: These are usually the rail networks that spans across the borders to enable faster connectivity across Europe. The high speed lines between the important cities within the country also fall into this category, as they have the future potential to be integrated with cross border traffic. In Germany, this segment is currently small in size and is expected to grow especially due to the increasing need of cross border traffic. Conventional and regional lines: These are usually referred to as main lines and consist of the rail networks that connect the different regions with in a country. So, the entire regional rail transport networks that support the intra train transport with in a country and the freight transport networks can be grouped into this category. Currently this segment is built and operated as per the national standards set by the Federal railway authority and the volume of this network is very huge and is highly heterogeneous and is also operationally underutilised. Urban rail networks: This market segment consists of metros and the commuter/sub urban rail networks which support the public transport with in a city. The product requirements within this segment can vary depending on the local geographical characteristics and funds availability. This segment is mostly independent of and incompatible with the other segments and so provides many avenues of differentiation for the companies that are active in this segment. As of now there are no regulations enforcing harmonization of these networks. 2.4. Structure of rail supply industry in Germany The rail supply industry in Germany is classified into four segments namely; Rolling stock, Infrastructure, Signalling and control system and services. Figure 3 represents a schematic of the different segments of the German rail supply industry. Rolling stock: The products in this segment are characterized by all the vehicles that run on the railways like locomotives, railroad cars, coaches and wagons. Due to the high capital investments, this segment usually consists of large companies like Bombardier, Siemens and Alstom. Infrastructure: This segment is characterized by the infrastructure components like tracks, electrification and stations. Many companies with diversified products serve in one or more of the components of this segment. Signalling and control systems: The infrastructure components like the track side signal installations, on board control equipment, control stations etc are grouped as signalling and control systems. Services: This segment includes the service and maintenance for all the other segments. This segment also comprises the project management and turnkey solutions. In Germany most of the maintenance and project management is carried out by the subsidiaries of Deutsche Bahn. 2.5. Segmentation of the German rail supply market Putting the rail supply market and the rail supply industry segmentation together will provide a complete segmentation matrix, which will help in the better understanding and analysis of the market. The segmentation matrix is provided in figure 4. Figure 4: German rail supply Market Segmentation matrix In the above matrix, the shaded regions indicate an overlap of product and service similarities in the different infrastructure components and the market segments of the railway industry. 3. Harmonization For a successful, larger and integrated Europe, the availability of efficient transport systems is essential for supporting sustainable economic growth and social development. Passenger and freight transportation by rail is a potentially effective instrument to combat congestion, pollution, global warming and traffic accidents. These negative externalities undermine the capability and efficiency of European economy and the health of future generations. The growing European Union and the globalization of the world economy have necessitated an international transport market, to support the outpacing economic growth. Today, the rail sector faces an ever increasing demand of accommodating higher transport volumes, a result of transport growth, and of policies favouring competition in the sector. Rail transport in Europe is a future-oriented industry, striving to offer attractive, affordable, safe, clean, competitive and reliable transport mode. Harmonization is the process of standardization of infrastructure components like types of track gauges, different types of power supply, speed control systems, train safety systems and technologies as well as the job profiles of drivers. The objective of harmonization is to achieve interoperability between the heterogeneous railway networks of the member states with in EU. Harmonizing products and technologies through innovation is a necessity for the rail supply industry to deploy its potential, and for its stakeholders to deliver cost-effective services for intermediate and final clients. 3.1. Need for harmonization Prior to the formation of European Union, the railway systems in Europe were run at the national level and were managed and operated by vertically integrated state owned companies. These railway systems were designed under different national operational rules, policies and standards. This resulted in the lack of interoperability in the railway transport sector which hampered the goal of growth in European economy through increased trade activities amongst the member states. The EU thus envisaged a goal of unified railway transport network across the EU member states to promote the trade and thus foster the economy. This goal transformed into a number of directives and regulations to achieve a Trans European network. 3.2. Components of harmonization To transition from the heterogeneous railway networks to a homogenised railway transport infrastructure across Europe, different components of harmonisations were evaluated by the European commission. European commission defined the homologation process in terms of interoperability, safety and signalling systems. 3.2.1. Interoperability Interoperability of the rail systems renders a safe and uninterrupted movement of trains, while accomplishing the required and specified levels of performance. Interoperability rests on all the technical, operational and regulatory conditions that must be met in order to satisfy the essential requirements. Interoperability has been mandated by several EU directives. The first one is the Directive 96/48/EC, which was passed in 1996 and is only concerned with the interoperability of the Trans- European high speed rail system. The second one is the Directive 2001/16/EC, which applies interoperability to lines within the trans-European transport network and other infrastructure facilities. Both these directives were later modified by the directive 2004/50/EC along with the corrigendum for the former directives. Most recently the directive 2008/57/EC was passed to include the community railway systems within the scope of interoperability. A consolidated history of regulatory framework evolution concerning interoperability in European railways is provided as Appendix 3. To overcome the technical fragmentation of rail networks, the interoperability directives provided that the Community legislation is gradually establishing mandatory so called Technical Specifications for Interoperability, commonly referred to as TSIs. The European Railway Agency owns the responsibility to draw up and revise the TSIs, on the basis of inputs provided by the member states and other stakeholders of the railway sector. Several subsystem constituents of interoperability of railway transport for both conventional and high speed lines are as below: Infrastructure( track works, tunnels, bridges and stations) and energy (electrification system) Operation and telematic application for passengers: related equipment and procedures to enable a coherent operation of different subsystems and also the requirements of professional qualification for the skilled labour involved in operations. Rolling stock: vehicle dynamics, superstructure, on board command and control system equipment, current-collection devices, traction units, energy conversion units, braking, coupling and running gear and suspension, doors, man/machine interfaces, passive or active safety devices. Maintenance: procedures and processes, technical documentation, related equipments, logistics centres for maintenance work. 3.2.2. Safety Safety is one of the important components of the railway systems which is highly regulated at both national and EU level. Safety is one of the prime concerns of the customers of rail transport and hence there is a special focus on the safety standards which have to be designed in line with the interoperability directives. Hence common safety standards, practices and targets have to complement interoperability to successfully achieve the desired homologation of the trans-European railway network. The European commission issued many directives to mandate the safety methods to support the harmonization process. These directives include Directive 2004/49/EC, Directive 2007/59/EC, the directive on certification of train drivers and other relevant EU legislation. ERA acts as a supporting organization to the European commission to develop the further implementation plans for the EU directives by networking with the national bodies of the member states. ERA has structured four different business sectors concerning railway safety and provides central support to the stakeholders involved in the complete process from formulation of regulation to implementation and periodic reviews. The four different segments are: Safety Assessment: developing common safety methods for risk evaluation and assessment and common safety targets according to articles 6 and 7 of the Directive 2004/49/EC. This unit assists each member state to define their safety targets and develop a methodology for calculating and assessing the achievement of those targets. This unit also collaborates to define safety requirements for TSIs and to support technical opinions to be given to European commission. Safety Certification: define, develop and evaluate implementation of common safety methods for certification of railway undertakings as well as certification for train drivers and authorization of infrastructure managers. The objective of this unit includes proposing a migration strategy towards a single Community Safety certificate. Safety Reporting: Monitors and analyzes the development of safety on Europes railways and disseminates information, reports biennially on the safety performance of railways within the European Union. Functions also include developing and maintaining public databases of safety related documents such as safety certificates, licenses, national safety rules, investigation reports and indicators. Responsibility of coordinating with the national investigation bodies concerning safety and facilitating information exchange between them lies with this unit Safety Regulation: Functions include, validating the notification of national safety rules, register and notify the national safety rules accepted by the commission, analyze the way in which the national safety rules are published, maintain the communication protocol between the member states and the responsible organizations for railway regulation. 3.2.3. ERTMS The command control and signalling systems is an important instrument that should also be harmonised to support the much required interoperability of the trans-European railway network. ERTMS is considered to be a first major step in fostering the creation of single European railway market. ERTMS would also address the increasing costs of operation due to the incompatible and obsolete signalling systems across Europe. Currently around 20 signalling systems are in place across Europe, most of which are adopted by the network operators of the member countries as stipulated by national standards. These different signal systems impose a restriction on the rail transport across the borders of the member states of EU, as the costs of incorporating compatibility with the international networks increases. A common standards and systems for intra as well as international rail traffic management in the EU member countries would enhance the attractiveness of rail transport making it affordable and environment friendly. The idea of common traffic management systems for European railways was conceived during the late 1980s, but the process of drawing up technical specification was started during 1998, following the interoperability directive of 1996. The ERTMS specification was approved by EU in 2000, followed by which, between 2005 and 2008, the implementations plans were charted out for the six freight corridors across Europe and the memorandum of understanding was signed between the EU, member states and the other railway stakeholders. The implementation plan was devised considering the national implementation plans of the member states, which was then consolidated taking into consideration the priority for the freight corridors connecting different member states. The proposed completion of implementation of ERTMS across Europe is by the end of 2020. UNIFE and a consortium of railway signal equipment manufacturers are working closely with the European commission and the infrastructure managers of member companies for the development and implementation of cost effective technical solutions concerning ERTMS implementation. 3.3. Process of Harmonization For successful harmonization of European railways, close cooperation of the institutional bodies, political representations and also commitment of the railway operators and rail supply industry are required. The harmonization and standardization process to achieve European railway interoperability can be grouped into two stages: 3.3.1. Directives to Standards The directives of the European Commission are transformed into the TSIs by ERA, which are then validated against the standards requirement at the national and the EU level by relevant standardization organization like CEN, CENELEC and ETSI. At the end of this stage a detailed documentation of the standards, while adopting the TSIs are produced. Figure 5 provides and illustration of this process. Source: Dealing with standardization in liberalized network industries by Dr Marc Laperrouza 3.3.2. Standards to Products Once the directives are turned into standards, the next challenge is to transform the standards into the products. The standards are again reviewed by the ERA and then passed over to the European Union for the legal process. Once the compliance with legal process is established, the standar