Ethics, values, and social responsibility Essay Example for Free

Ethics, values, and social responsibility Essay In the finance field there are a number of ethical issues although many issues in this field are governed by law. Ethical issues in finance include individual conduct, financial institution operations and financial markets operations. In this field people are trained to perform different duties and thus finance ethics is diversified. However, the top five issues in this field include honesty and fairness, fraud, conflicts of interest, discrimination and information technology. Honesty and fairness in this field has raised much dispute. Because of the intense competition in the world, many people view the conditions in a business to be similar to those in a game of sport or war and thus anything is considered to be fair. On the other hand there are those who argue that not everything is considered to be honest and fair. This has therefore led to ethical issues in this field regarding what is honest and fair and what is not. Conflicts of interest is mainly observed in situations where an individual is placed in a position of making a decision on whether to pursue personal interests or the interests of other individuals or business. Similar, it can involve an organization making a choice on whether to pursue own interests or the interest of the society. The issue concerning fraud primarily entails the disclosure of valuable information which is vitally important for security. It also involves misrepresentation of material evidence intentionally. There are several types of fraud and this may include; accounting, marketing and consumer fraud. Discrimination is an ethical issue which can involve an individual or a business. Some individuals or businesses abuse others by enticing them and exploiting them. In addition to that it may include issues regarding race, gender among others. To add to that there are some cases which involve price discrimination. In information technology, the issue entails the privacy and confidentiality of information on matters concerning the employees and consumers. Privacy and confidentiality is essential in this field however there may be some cases where it is not ensured. This has therefore led to ethical issues concerning what is privacy. In addition to that there are ethical issues which involve protection of intellectual property. Ranking The top five issues can be arranged in descending order as honest and fairness, conflict of interest, fraud, discrimination and information technology (College of Micronesia, n. d. ). Honesty and fairness are major issues since they affect all levels of an organization, and are much experienced by society. Furthermore, controlling this issue other issues will be taken care of. For instance, an organization which is honest and fair, issues concerning fraud, discrimination, conflict of interest and information technology are minimal. Analysis Honesty and fairness In the financial market fairness is taken to mean a level playing field for everyone. However, in most cases the playing field is unleveled and this can be attributed to issues concerning inequalities in the bargaining power, possession of information, resources available, among others. Inequalities in the bargaining power and resources are considered to be ethical only when used coercively and violate rights and obligations (Frederick, 2002). This implies that individuals or organization are only allowed to use their advantages in ways that are considered fair to others. Additionally, individuals can use their resources to acquire information which they are entitled to exploit to their advantage. This has made access to information an issue of investment thereby leading to inaccessibility to critical information by some individuals. To acquire information individual must invest adequate resources. Ethical issues arise over accessibility of information, how the information should be distributed to ensure equality. Fraud In sales concerning financial products like insurance policies, loans, mutual funds among others, application of ethical standards is a requirement. Hence businesses are given the mandate to ensure adequate material information is available. There are regulatory agencies which monitor prospectus for mutual funds, however, personal sales and advertisements can contain false or misleading information (Frederick, 2002). Additionally, this is an issue which has been observed in the stock market and in many businesses. Some individuals conceal valuable information to lure more customers to their businesses. For instance, in the stock market assets of a particular organization may be inflated or some of its liabilities may be concealed. This issue has led to large losses in many investment companies and to individuals (Frederick, 2002). Since assessing the risk and suitability for an investment has been made difficult with inadequate material information. Conflict of interest This is issue which is primarily observed in agents, fiduciaries and financial managers, in which the personal interest interferes with the interests of the organization or society. Agents and fiduciaries are given the mandate to act on behalf of others in exercising judgment, however, in cases where they stand to gain personally their judgments may be compromised. Additionally, financial managers are given the mandate to manage assets prudently and thus avoid using them for personal gains however, in some cases conflict of interest might occur. For instance, management buyouts whereby a group of managers take a public organization to be private are an ethical issue. This issue occurs mainly since the actions to be performed by an individual are not fully specified before the transaction and thus an individual is given a wide range of options. In addition to that they are not closely monitored and evaluated. This has led to huge losses being incurred by individuals and companies. For instance, some banks have collapse and this was attributed to rogue traders (Frederick, 2002). Discrimination This issue observed mainly in financial products and it involves abusive practices of selling such as flipping and twisting. In flipping one loan is replaced by another for generation of additional fees. While in twisting, insurance agents persuade their clients to replace the existing policy in order to get commission (Frederick, 2002). Some financial institution abuse poor individuals by offering them loans of high interest and by adding little values to lure them. Furthermore, in some institutions there are cases of discrimination in employment on matters concerning race and gender. Information technology Maintaining privacy and confidentiality of information in many business has been difficult because of the cost of technology. As technology advances it becomes more expensive to ensure privacy of employees and clients information. Furthermore, with the increase in number of people of accessing the internet maintaining privacy and confidentiality has become difficult. This has therefore led to loss of confident by the public since they cannot trust some organizations to protect their personal information. Solutions and recommendations The issue of conflict of interests can be addressed by closely monitoring individuals and by changing the structure of the relationship. For instance, the commissions can be focused mainly on performance of the clients portfolios and not on the volumes of sales. Additionally, professionalism, trust and codes of ethics should be strongly emphasized in relationships in order to guarantee the confidence from the society. Fraud and discrimination issues can be solved in courts. There are laws which were put in place in place to protect people against abuse or discrimination. For instance, the Employment Act protects employees against discrimination and harassment. Furthermore, the pre-dispute arbitration agreement should be amended or individuals should avoid it. This agreement may have several advantages but denies adequate protection to investors. Maintaining privacy and confidentiality of clients and employees information require much funding. It is essential for organizations to invest more funds in acquiring knowledge and skills concerning privacy and confidentiality in the information technology. By ensuring privacy and confidentiality, public confidence will be build. Social responsibility is essential for ensuring ethical standards are maintained in the society. When making decisions, people should consider their effects to the society and to themselves. This will ensure that ethical issues are maintained. Additionally, since businesses cannot be trusted to maintain ethical standards, some laws have been passed to ensure social responsibility. For instance there are laws concerning consumer safety and environment protection. This is a step forward in ensuring ethical standards. Furthermore, there are some financial institutions which have developed and implemented strict policies that ensure ethical standards are adhered. For instance there are policies concerning privacy and confidentiality of employees’ and customers’ information. In conclusion, maintenance of ethical standards should not be the responsibility of an individual or an organization but should involve the whole society. By maintaining ethical standards the society and organizations will be protected from any harm and at the same time eliminate conflict. Even though ethical standards vary from one society to another, they should be understood and maintained adequately. Reference list College of Micronesia, (n. d. ). Code of Ethics. Retrieved June 18, 2009 from http://www. comfsm. fm/~dleeling/alo/personnel/code_of_ethics. html Frederick R. (2002). A companion to business ethics. Edition: 1. New York: Wiley-Blackwell. pp. 154-59.

Pros And Cons Of Capital Budgeting Measures Finance Essay

Pros And Cons Of Capital Budgeting Measures Finance Essay Capital budgeting refers to the process in which a firm determines whether a project or investment is worth pursuing. More often than not, the process involves a long term assessment of the cash inflow and outflows to determine if the returns generated meet the investment appraisal. The most common methods used are the net present value (NPV) where evaluation of the project is based on the amount by which its value is maximized. Other measures or tools used in decision making include: the internal rate of return (IRR), a version of the IRR known as the modified internal rate of return (MIRR), the discounted payback period (DPB), a profitability index method (PI) and the traditional payback method. Regardless of the demerits presented by each, most firms or financial managers tend to stick to a certain method of capital budgeting. This discourse explores each of the measure as they apply to real world process of project approval. The discourse comprehensively reviews and evaluates the advantages and disadvantages of each of these measures with regards to their effectiveness, project size and long term/ future returns. Based on review of recent literature in business related journals, the discussion primarily sought to determine which version of capital budgeting method is most suitable for big and small businesses. The findings of the discourse indicate that capital budgeting decision is a unique investment decision making tool to macro or micro enterprises and there is no one size fits all solution. As a matter of fact, certain methods of capital budgeting are identified with the level of project, size of firms and innovation levels. The discourse also established that while most chief executive officers or managers have distinct capital budgeting models, not all yield the same results for a company or even meet listed project or investment expectations. Introduction Capital budgeting involves a series of identifying, evaluating and implementing long term investment opportunities in a firm or business venture. Depending on the measure or technique employed, firms seek to identify investments that will increase their shareholder wealth. The decisions involved largely target or aim at assessing a project that demand large upfront investment coupled with a series of small cash inflows. The most commonly used measures of capital budgeting are NPV, IRR, MIRR and DPB methods. Distinct as they are in approach, each presents its strengths and weaknesses when it pertains to project evaluation or capital budgeting. Internal rate of return (IRR) According to recent budgetary surveys, the internal rate of return has received more preference for project evaluation than other techniques (Rousse, 2008, p. 2). The IRR presents analysts with an avenue through which rates of return are quantified in an investment and according to Kelleher MacCormack (2004, par. 4), managers opt to finance projects with high IRR based on their selection of the project value but at the same time destroy shareholder wealth in the investment. IRR can generate different values for the same project when future cash flows switch from negative to positive and back. More often than not, the IRR is expressed as a percentage thereby making small projects appear attractive and large ones great (Kelleher MacCormack, 2004, par. 4). As evident in most IRR projects, the general rule dictates that where the measure is greater than the opportunity cost of capital, all investments remain acceptable. Strengths and Weaknesses As one of the most commonly employed measures in capital budgeting, the IRR draws its popularity from the fact that it is based on a discounted cash flow. When used effectively, the IRR method provides viable or feasible options on a project value. On the flip side however, internal rate of return has numerous risks that outweigh its merits. The method is essentially inconsistent and exposes shareholders wealth at risks minimizing their objective (Rousse, 2008, p. 1). The IRR may exhibit multiple rates of return when cash flows shift from negative to positive multiple times (Kierulff, 2008, p. 327). If managers and analysts are to continue using IRR, then major adjustments are to be made over the measures critical assumption: that interim cash flows will be reinvested at the same high rates as the returns (Kelleher MacCormack, 2004, par. 5). Even more disturbing is the practice that practitioners frequently employ in interpreting the IRR; when computing the IRR, practitioners usuall y equate the measure with return on a given investment. Net present value (NPV) The net present value of a capital project or an investment is the aggregation of the present values of all benefits (in cash) by deducting the present value of all cash (Elumilade, Asaolu Ologunde, 2006, p. 145). The NPV basically involves evaluation of the amount by which the value of a given project is maximized. As the name suggests, the basic premise for the net present value is the assumption that monetary value of a currency today is worth more than its future value. According to Rudolf (2008, p. 1), the logic behind the premise is that present cash can be invested and generate interest. Profitability is determined by evaluating the return on the invested capital whose net present value is zero. Negative NPV implies that the project is not desirable while a positive NPV means the project is viable. Theoretically, all estimations made in the NPV involve measuring the projects future net cash flows such that they are discounted at appropriate cost of capital to procure their pr esent value (Elumilade et al., 2006, p 145). Strengths and Weaknesses The net present value method is effective for both the assessment of new investments and comparison of investment alternatives (Rudolf, 2008, p. 2); the investment with the higher NPV becomes a more viable alternative. Based on its additive process, the net present values of different investments with different discount rates can be added up. A notable strength of the NPV is that it recognizes the risks associated with future monetary value using the money concept. Another strength of the NPV method is that it is an arithmetically simple procedure that when computed presents easy interpretation as the capital value is expressed in monetary units. In addition, the NPV offers managers with the possibility of adapting the discount rates for different periods (Rudolf, 2008, p. 2). In line with the IRR, the net present value has several drawbacks much as it is popular in capital budgeting. For one thing, the NPV lacks visibility of a time frame on which a project is expected to generate positive values given the simplicity in calculations. While the NPVs basic premise is to accept all investment greater than zero, the measure is however not clear of when the positive values are achieved. In cases where a new project has higher risks than a companys cost of capital, its cash flow should be discounted at a higher rate to mirror that risk. But if they are, the reinvestment rate becomes detached from the cost of capital such that the investment rate for the new product introduction is way above the normal cost of capital (Kierulff, 2008, p. 323). Hypothetically, the NPV tends to generalize and assume that at any given time, the capital is always abundant and thereby no capital rationing. Supposing the resources are scarce, practitioners have to do some critical exa mination of not just the measure, but each and every available project and size of investment. Modified internal rate of return The modified internal rate of returns is a derivative of the IRR with the exclusion of the aforementioned drawbacks. Compared to the internal rate of return, it provides a more accurate percentage measure of financial attractiveness (Kierulff, 2008, p. 322). Based on existing literature, the MIRR method has not received much attention. Within a sample of 15 significant and highly respected finance textbooks, nearly all have ignored the MIRR (Kierulff, 2008, p. 322). Given the widespread use of NPV and IRR, financial institutions across the globe overlook the importance of the modified internal rate of return method. The main idea behind MIRR is simple computation that may seem challenging in practice because of the need to estimate reinvestment rates (Kierulff, 2008, p. 326). The modified IRR involves three basic procedures that when utilized effectively present the best measure of capital budgeting. The first step involves discounting investment funds committed to the project back to present at a rate that fairly reflects the investment risk. Two, with the exclusion of investment, the free cash flow is compounded forward within a time frame and a chosen reinvestment rate. It is worth noting that the reinvestment rate represents projected future opportunities with risks equal to investment risk. The final step involves calculation of the internal rate of return. Strengths and Weaknesses There are several reasons why firms should ditch the traditional IRR and embrace the modified version. While the former exudes rigidity in changing the reinvestment rate and assessing impacts, the MIRR function permits both a finance and reinvestment rate to be associated with the stream of cash outflows and inflows in investment evaluation (Block Bell, 2009, par. 14). Unlike the IRR or NPV, a company is able to tell whether an investment increases its value through MIRR. With MIRR, risks of future cash flows, time value of money and cash flows of the project are considered. Both NPV and IRR share significant drawbacks in that both of them have problems of size, timing and ranking. Moreover, NPV and IRR renders management locked into assumptions about how free cash flows will be reinvested by giving unrealistic view of investments actual potential (Kierulff, 2008, p. 328). Of the three, MIRR is the most effective considering its capability in dealing with the mentioned problems. Like the other decision tools, the modified internal rate of return has its share of weaknesses in capital budgeting. Some of the techniques in MIRR require adjustments for effective functioning in practice. For instance, the method requires an estimate of the cost of capital for one to make a decision and when used to compare mutually exclusive projects, the measure may fail to produce value-maximizing choices. Discounted payback method (DPB) The discounted payback method simply measures the period it takes to recover the initial investment using discounted cash flows. In DPB, projects with the shortest payback periods are ranked highest or considered the most viable. Unlike NPV, IRR and MIRR, the criterion used in discounted payback method centers more on profitability rather than liquidity. This method has many advantages over other measures. The discounted payback period is simple to understand and easy to compute. Additionally, the method offers a more conservative measure of the relative liquidity of an investment than the traditional payback method (Bhandari, 2009, p. 3). The DPB function allows for a better gauge of the economic breakeven point and can be interpreted as a period beyond which a project generates economic profit (Bhandari, 2009, p 3). Even so, the methods efficiency is reduced in cases where cash flows beyond it are overlooked. Another of its weakness is that it requires an estimate of the cost of ca pital for one to compute the payback and exudes a part whole bias in special cases such as assessing or valuing long term projects. Profitability Index (PI) Profitability index is also known as the cost-benefits ratio as it involves ratio of the present value of future cash benefits at the required rate of return to the initial cash outlay of an investment (Elumilade et al., 2006, p 146). The PI is another capital budgeting methods used by entrepreneurs in choosing among countless causes of action. The monetary cost of a project is ascertained and compared with its expected benefits in monetary term. The profitability index computes the present value of benefits to that of the cost such that when PI is greater than 1, the project is termed as acceptable. By comparison, the PI method is a slight modification of the NPV only that this time, the PI evaluates project using a return element. Its close relation with the net present value may lead to identical decisions in project evaluation. The PI method is easier to understand and tends to communicate more easily than the NPV. For firms initiating smaller or larger projects, the PI acts as an effective tool regardless of the project size. On the flipside however, the values obtained in profitability index may not be as accurate as the ones in IRR. Conclusion The survival, growth and development of a firm is heavily dependent on constant flow of ideas for new products and ways to make existing ones better. Capital budgeting is one of the most important factors in the process of corporate decision-making. The whole process of capital budgeting calls for a series of stages in which the project is evaluated and feasible options employed. For a firm to make rational decisions, specific objectives must be included to maximize profits with one eye on the projected long term return (Elumilade et al., 2006, p. 141). Identifying and evaluating possible projects and alternatives makes the all essence of capital budgeting and this fundamentally implies that a firm has to find a measure that is uniquely in congruence with its short term or long term objectives. The existent body of literature, primarily those included in this discourse, identify NPV and IRR as the most popularly used by firms. Whether this is a testament of their superiority in pract ice is still debatable as each of them has its own drawbacks. It is difficult to find one measure that would work for every organizations.

The responsibilities of a project manager

The responsibilities of a project manager

Maintaining Healthy Relationships Essay -- Gender Studies Marriage Rel

Healthy Relationships Both partners should feel safe to share their thoughts without feeling that their partner will judge them. They should be able to communicate with one another without having any fear of judgement or ridicule. They should also help build their partners self-esteem and make them feel good about themselves regardless of the situation. They shall embrace one another and respect each other. In order for the couple to maintain a healthy and successful relationship, the couple should nurture open and honest communication, encourage the expression of feelings, and build self-esteem amongst each other. Communication is a significant component in a healthy and successful relationship. The three main successful parts to communication is verbal communication, physical communication, and mental communication. Verbal communication is the ability to carry out a successful conversation without any interruptions. For instance, when a couple argues, it should be over a justifiable reason and not over something minute. If the couple argues over little things that should have been resolved before the conversation even occurred, then their relationship will soon collapse or lead to greater difficulties in the future. Physical communication is the physical contact needed to nourish the partners needs. For example, if the wife comes home from work and is feeling stressed out or had a bad day, the husband should be there to comfort her. Giving comfort to your partner will let them know that you are concerned about their situation. Mental communication is the ability to connect with your partner on a mental basis and be able to notice what irritates them. For example, if the husband is doing something the wife does not lik... ...tinue losing the weight. Complimenting one another makes a relationship stronger. Healthy relationships tend to last long and are enjoyable for both partners involved. These factors which were communication, expression of feelings and building self-esteem that have been mentioned above were key aspects to building a healthier and successful relationship. If one of the partners does not include these factors into their relationship, then there will be nothing to hold it together. Both partners have to be willing to consider these ideas and have an open mind towards every situation. These matters will also improve a rocky relationship, if implied into a current relationship. They should treat the partner the way that they would want to be treated. If all are within a relationship then the couple should have no problem getting along and living a delightful life.

Technology and Cheating Essay -- essays papers

Technology and Cheating "Technology really is a double-edged sword when it comes to cheating. The means for detecting cheating are catching up with the means for cheating." â€Å"There are many definitions of cheating, but the one that most accurately applies to the school environment is this one from Merriam Webster's Collegiate Dictionary, to violate rules dishonestly.†[1] With that definition, â€Å"A recent survey of more than 1,000 Choices readers shows that cheating among teenagers is a huge problem. Ninety-six percent of the respondents said that cheating was a problem in their school, and while 98 percent of the students said a person did not need to cheat to succeed, 64 percent of the respondents admitted cheating on a test.†[2] Another example of this is given â€Å"in a recent study by the Center for Academic Integrity at Duke University, 73 percent of seventh-graders and 66 percent of sixth-graders admitted that they had cheated. ‘Because kids as young as eight and nine now have Internet access, we see this problem moving further down in grade level,’ reports Steven Jongewaard, Ph.D., professor of education at Hamline University.†[3] Why do students cheat? According to the same survey as above, â€Å"students said they cheated because they needed to save time, they felt the problems, questions, or assignment were too hard, they were afraid of getting a poor grade or failing, and they weren't prepared. ‘Some kids think they're too cool to study, or that they know everything and don't have to study,’ says Alyxe. ‘Then, when it comes to the test, they're surprised and they try to cheat.’ Trying to please parents or attempting to help a friend is also reasons why kids cheat.†[4] To me this all seems like excuses. It seems... ...=EJ531712&db=eric [1] http://shs.westport.k12.ct.us . Retrieved May 2, 2004 [2] http://shs.westport.k12.ct.us. Retrieved May 2, 2004 [3] http://shs.westport.k12.ct.us. Retrieved May 2, 2004 [4] http://shs.westport.k12.ct.us. Retrieved May 2, 2004 [5] http://shs.westport.k12.ct.us. Retrieved May 2, 2004 [6]http://shs.westport.k12.ct.us [7] Argetsinger, Amy, Washingtonpost.com, Technology Exposes Cheating at U-Va. Wednesday, May 9, 2001; Page A01. Retrieved May 2, 2004 [8] Chase, Kimberly. â€Å"Teachers Fight Against Internet Plagiarism†. From the March 02, 2004 edition. http://www.csmonitor.com/2004/0302/p12s01-legn.html. Retrieved May 2, 2004. [9] Argetsinger [10] Chase [11] Bushweller, Kevin. 1999. "Generation of Cheaters," The American School Board Journal, April. Online: www.asbj.com/199904/0499coverstory.html. Retrieved May 2, 2004.

Discussion and Analysis Essay

Construct a good, solid essay of at least 3 full pages which answers one of the prompts below. In addition to consulting your lecture notes and textbook, you may find it helpful to consult the New Cambridge Medieval History, Vol. I, which may be found in the Walsh Library Reference Room, call number D117. N48. Essays will be graded on content (clarity and coherence) as well as mechanics (grammar and spelling). Late papers will be significantly penalized and any paper later than 24 hours will NOT be accepted. Drafts of papers are to be submitted as hard (printed) copies to both  your editing partner and me. Final versions of papers are to be submitted as hard (printed) copies to me; you will also  include  the marked-up version of your draft. All papers must have 1† margins, be double spaced, and in Times New Roman or Garamond, size 10-12 font. Do not double-space your initial, first page heading. In supporting your observations, you will certainly need to point to specifics in the texts. However, you should not rely on direct quotations and should use them very sparingly. You may not use any quote lengthier than two sentences. No block quotations. Any essay that consists of more than one-quarter direct quotations will receive a D. You should learn how to sum up examples in your own words, but be aware that changing only a few words of someone else is still considered plagiarism. Any time you use a direct quotation or paraphrase something, you need to cite the material. This includes anything from the Chronicle text. For this second essay, your goal is to analytically read primary source materials. As you read and begin to formulate your essay, consider some of the following questions: who is this author? Why are they writing? What is the obvious, surface purpose of this document? Is there a purpose or conclusion that the author reaches which is not so obvious? What fundamental assumptions does the author have about his subject material? How do these assumptions influence or appear in the work, either explicitly or implicitly? How do the attitudes or perceptions of the subject matter change or evolve over time? How does the historical context of each author influence his approach and treatment of his subject matter? These questions should be only the beginning of your inquiry and you certainly are not restricted to them. Use them to formulate your own questions, and then use those questions to help you structure your essay. Often the best essays are built around thesis questions, not thesis statements. Primary source excerpts can be found in your Rosenwein reader or online at the Fordham Medieval Sourcebook and google books. This is a 3 page paper; obviously you cannot use all the sources, however what you choose should make sense for your thesis. The Crusades Tactic I Using the documents listed below, explore what motivated people to go on crusade to the Holy Land in the middle ages. Did their experiences match their expectations? Were they fulfilled, disappointed? How important was morale and how was it kept up? Address strengths and weaknesses of the source material and be sure to make connections between the sources. Tactic II Using the documents listed below, explore what we can learn about memory and different groups’ interpretation of events. Address strengths and weaknesses of the source material and be sure to make connections between the sources.

Al-Fatihah

It is named Al-Fatihah, the Opening – because it opens the Book and the recitation in prayer commences by it. It is also named Umm al-Qur'an, the Mother of the Qur'an, and Umm al-Kitab, the Mother of the Book because the meaning of the entire Qur'an is summarised therein. It is also named Sab'ulMathani, (the Seven Often Repeated Verses), Al-Hamd, (the Praise), Al-Shifa (The Cure) and ArRuqya, the Spiritual Cure. Its recitation is a condition for the effectiveness of the prayer. It is the Mecci Surah of the Holy Quran. It was initially the 5th chapter to be disclosed but after Furqan e Hameed was assembled together, it was put at the beginning. Al-Fatiha itself means â€Å"The Opening† as this chapter comes right at the start of the Holy Book and serves as a Gateway to read Quran Majeed further. It also has the honor of being the very first Surah that is made known completely. Although it consists of 7 Ayats only, but it still explains the Almighty's reverence in a very comprehensive fashion and is a great means of asking Allah for keeping one on the right path.Virtues of Surah Fatiha There are many virtues associated with this Surah. Hazrat Abu Saeed al-Khudri narrates: â€Å"While on a journey we halted at a place. A girl came to us and said: â€Å"The chief of this tribe has been stung by a scorpion and our men are not present, is there anybody amongst you who can recite something upon him to treat him?† Then, one of our men went along with her although we did not think that he knew any such treatment. However, our friend went to the chief and recited something upon him and the chief was cured. Thereupon, the chief gave him thirty sheep and gave us all milk to drink. When he returned, we asked our friend: â€Å"Did you know anything to recite upon him to cure him?† He said: â€Å"No, I only recited Umm al-Kitab upon him.† We said that do not do anything until we reach Madinah and ask the Prophet regarding this (practice and reward whether the sheep were lawful or not for us). Upon reaching Madinah, we narrated this to the Prophet (PBUH), whereupon he remarked: â€Å"How did he come to know that Al-Fatiha can be used as a cure? (PBUH) Distribute your reward amongst yourselves and a lot a share for me as well†Theme of Surah Fatiha Allah has taught in this Surah to mankind to offer prayer to Him, who is the Lord of this universe before seeking guidance and Who alone can grant it. The reader should have a firm belief that the Creator of the universe is the source of all knowledge and the study of Quran can provide him guidance. Islam requires a man to commence everything with the name of Allah. By doing this he will keep himself away from evil and wrong deeds. Then there is prayer of Allah Who is Master, Owner, Sustainer, Provider, Guardian, Sovereign, Ruler, Administrator and Organizer. Then it is added that He is the Master of the Day of Judgment, thus, everyone is accountable for his deeds. Mankind is only worshiper of the Lord and for this reason, mankind is requesting for guidance in every walk of life. The guidance which make mankind favorable is required. The one who will be astray will suffer the wrath of Allah (SWT). Brief Tafseer of Surah FatihaIn the name of Allah The first ayah of Surah Fatiha is: In the name of Allah, the Beneficent, the Most Merciful. (Al-Fatiha: 1) This phrase is known as the bismillah. It is good to recite it before doing any action.The Meaning of the letter Baa The Baa in the Arabic language can have three different meanings:With – With / In the name of AllahSeeking help – Seeking help of the name of AllahSeeking blessing – Seeking blessing with the name of AllahThe Meaning of al-Rahman and al-RaheemBoth these names are derived from the same root letters: raa, haa, meem; which means to have mercy.They are thus similar in meaning and both are connected to Allah's (SWT) Mercy. The fact that Allah (SWT) mentions two of His Names which have to do with Mercy, rather than Might and Power or so on, shows just how important this Attribute is.The difference between al-Rahman and al-Raheem is that al-Rahman refers to Allah's (SWT) Mercy to all of creation. It is His Mercy which is extended to both believers and disbelievers; animals, and everything that exists. He says in the Qur'an:My Mercy encompasses all things. (Al-A'raf: 156)Al-Rahman therefore indicates the extreme vastness of Allah's (SWT) Mercy. It is mentioned in a hadith that Allah (SWT) divided Mercy into 100 parts and sent down only one part to this dunya. It is from this one part of His Mercy that animals show mercy to their offspring (Sahih Muslim). Al-Raheem refers to Allah's (SWT) Mercy which is specific for the believers. He says in the Qur'an:All Praise is due to AllahThe second ayah is: All praise be to Allah, the Lord of all the worlds. (Al-Fatiha: 2)The Meaning of Hamd and the Difference between Hamd and ShukrHamd means praise and thankfulness. The scholars differed as to the relation between the words hamd and shukr. Some said that they both have the same meaning. So, the meaning of hamd, in their view, is the same as shukr (gratitude). Hamd is something which must be done with love and reverence, but shukr does not need this. Shukr is done in response to a favour which is done to a person but hamd is done simply because the one being praised and thanked is worthy of that.The Meaning of ‘AalameenSome of the differing views about it are that it refers to:Everything which exists other than Allah ta'aalaaMankind and the jinnThose things which have an intellect, and they are four: mankind, jinn, angels, and devilsThose things which have soulsThe best view is the first one, the proof being ayah 23 and 24 of Surah Shu'ara. (23)Said Pharaoh, â€Å"And what is the Lord of the worlds?†(24) [Moses] said, â€Å"The Lord of the heavens and earth and that between them, if you should be convinced.The Beneficent, The Most MercifulThe third ayah is:The Beneficent, The Most Merciful. (Al-Fatiha: 3)There is repetition of these two names to emphasi ze the importance of the quality of mercy. Also, when something is repeated in the Qur'an, then you should look at the ayah before it and after it, to see how they are related. In this case, the previous ayah mentioned that Allah (SWT) is the Rabb of all the worlds. So, He repeating the words, al-Rahman al-Raheem after that, shows us that His being the Rabb – His taking of and sustaining and providing for us – is all part of His Mercy towards us. Master of the Day of RewardThe fourth ayah is:The Only Owner of the Day of Recompense. (Al-Fatiha: 3)The Meaning of MaalikThe first word of this ayah can be recited in two ways: either as â€Å"Maalik† (with a madd after the meem) or as â€Å"Malik† (without the madd). Maalik means master, and it refers to â€Å"milk† – the ownership of something. Malik means king, and it refers to â€Å"mulk† – the dominion of a person.God is the Lord of the Day when all generations of mankind gather together on order to render an account of their conduct, and when each person will be finally rewarded or punished for his deeds. The description of God as Lord of the Day of Judgement following the mention of his benevolence and compassion indicates that we ought to remember another aspect of God as well-namely, that He will judge us all, Hence, we ought not only to love Him for nourishing and sustaining us and for His compassion and mercy towards us, but also hold Him in awe because of His justice. You (Alone) We WorshipThe fifth ayah is:You (alone) we worship and You (alone) we ask for help. (Al-Fatiha: 5)At this point, there is a shift in the Surah from informing us about Allah (SWT) and praising Him, to addressing Him.†We worship† means we obey. Worship is obedience and self-abasement. It means to humble yourself before Allah (SWT) and to submit to His Will. The ayah affirms the Lordship of Allah.†Iyyaaka nasta'een† means we seek help and success. Usually, in most sentences the verb comes first and then the object; but in this ayah the object of the verb is mentioned first and then the verb to attach importance to it, to Allah (SWT). It also refers the status of the slave and his worship which is lower so it will come after mentioning the Lord, Allah (SWT).Guide us on the Straight PathThe sixth ayah is:Guide us on the Straight Path. (Al-Fatiha: 5)This ayah is a dua which we make to Allah (SWT). We ask Him to show us the Straight Path and to guide us on it, so that we will get His Guidance which draws us closer and nearer to Him. We need to struggle towards Allah (SWT) by doing good deeds and by staying away from all bad deeds which will distance us from Him. The Meaning of MustaqeemMustaqeem is derived from istaqaama, which means to be upright and correct. We already said that for a road to be a sirat it must be straight, so this adjective of mustaqeem again emphasizes the straight path. Another meaning of mustaqeem is to remain firm without tilting. For example, a tree that is firmly grounded when the wind blows it is not affected by it. So, the Straight Path is a path on which people are firmly grounded. The Path of Those†¦The seventh and final ayah is:The path of those you have blessed, not of those with anger on them, nor of those who are astray. (Al-Fatiha: 7)This ayah is for the people Allah has blessed and his guidance. This is explained by Allah (SWT) in another ayah where He says: Whosoever obeys Allah and the Messenger, they are with those whom Allah has favored, the Prophets, the sincere, the martyrs and the righteous, and these are the best company. (Al-Nisa': 69)So, the favored and blessed people are the Prophets, the righteous, the martyrs and the pious. And who are the people with anger on them and those who are astray? This is explained by the Prophet. ‘Adi ibn Hatim (RA) asked him about those with anger on them and he replied that it refers to the Jews. He then asked him about those who are astray and he replied that it refers to the Christians. Impact of Surah Al-Fatiha on the life of a Muslim as servant of Allah.The recitation of Surat Al-Fatiha in every Salat cause us to reflect deeply on our relationship with Rabb Al-‘Alameen; it drive us to ensure that we are sincere to the meaning of the words we utter when we say You alone we worship, and in You alone we seek help. Reciting these words cause us to shape our lives according to His commands and prohibitions, in preparation for meeting the Owner/King of the Day of Judgement. And above all else, it informs us and reminds us that all praise belongs to Allah, the Lord of the worlds. The hamd or praise over, the Surah draws attention to the all-encompassing providence of God, His mercy, and His justice; and thus gives a comprehensive picture of divine attributes which operate to provide man with all that he needs to sustain and develop the humanity in him and prevent him from going down in the scale of life.